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Solar Power in Honduras: Incentive with Timeframe

April 2015

An announcement has been made that solar energy projects that negotiated contracts with the state run power company and begin operating before July 31 will receive an incentive of $0.03 per KW / h.

For renewable energy the price is, according to the National Energy Company (ENEE) is $11.4 KW / h, marginal cost, added to which is the 10% incentive and now on top of this would be added the additional $0.03 for generators operating during the next three months. In total for these companies the price KW / h would be at $15.54.

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27 plants solar projects have been approved by the government, of which only four are under construction and the remaining 23 are in the fundraising stage.

It is estimated that the investment required for the development of the approved projects is between $1.644 and $1.827 billion, which why the companies behind the 23 projects have not yet started seeking financing in the international market.

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In March the Congress of Honduras approved a contract which enables the company Energía Básica del Grupo Lufussa, to connect its 25 MW photovoltaic plant, located in the south of the country, to the network of the National Electricity Company (Empresa Nacional de Energía Eléctrica or ENEE).

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