As a result of the debt that the National Electric Energy Company has with the generators, the business sector fears that in 2020 there will be rationing in the supply of electricity.
For the Honduran Council of Private Enterprise (Cohep), it urges that the Honduran government cancel the debt to the power generators, which totals about $568 million. If the obligations are not paid, severe service rationing could be reported in the middle of next year, according to productive sector forecasts.
Because there is no comprehensive plan to transform the energy sector, in Honduras it was decided to suspend "until further notice" the tender for energy supply.
On February 14, the Empresa Nacional de Energía Eléctrica (ENEE) published in the public procurement portal a notice informing that for reasons of force majeure the presentation and opening of offers of the tender in question is suspended until further notice, which was scheduled for February 21, 2019. See notice.
Of the 2.4 million megawatt hours generated in the first quarter of the year in Honduras, 36% came from water sources.
According to figures from the National Electric Power Company (Enee), in the first quarter of 2018 thermal plants supplied the system with 581 thousand megawatt hours, which is equivalent to 25% of the total.
Out of the nearly $570 million earmarked for public investment in the 2018 budget, about $320 million will go towards road infrastructure and energy.
According to the 2018 budget submitted by the Executive Branch, of the $569 million allocated for public investment, the Public Infrastructure and Services Secretariat (INSEP) will receive about $168 million and the National Electric Energy Company (ENEE), $151 million.
The $700 million in bond debt issued at a ten-year term at a rate of 6.25% will be used to pay the commitments of the National Electricity Company.
From a statement issued by the Ministry of Finance in Honduras:
The Government of the Republic through the Ministry of Finance, managed the successful issue of sovereign bonds in the order of $700 million to pay commitments of the National Electricity Company.
The National Electricity Company is preparing a debt bond issue for 2017 of $150 million.
The resources obtained through sale of debt will be used to pay part of the debts generated with the entity's suppliers during the years 2014 and 2015, as authorized in the approved budget for 2017.
"...A financial report by the National Electricity Company reveals that debt payable to suppliers, mainly to private generators, is L9,645 million as of August 31 2016. "
The National Electricity Company will have to convene a new tender to replace the four contracts for 520 MW of thermal energy maturing between 2017 and 2018.
In 2017 a contract for 80 MW with Elcosa and another for 240 MW with Lufussa will come to an end, while in 2018 a contract for 200 MW with Enersa will be finalised.The National Electricity Company will convene a new contest in which power generating companies based on natural gas, have expressed interest in participating.
As was done with distribution, the Honduran state run electricity company plans to hire a technical operator to be responsible for the improvements needed to the electricity transmission network.
Having hired a consortium, whose capital is mainly Colombian, to operate the power distribution system in the country for seven years, the National Electricity Company (ENEE), now intends to do the same for the maintenance of the electricity transmission network in next few months.
The National Electricity Company is preparing the specifications to tender 60 MW in the regional market and 120 MW in the local market in early 2017.
Authorities at the National Electricity Company (ENEE) plan to contract out 180 MW of firm power, for which reason they are ruling out offers that come from power plants based on solar and wind power.
A bill proposes renewing renewable energy generation contracts automatically rather than calling new tenders.
The proposal to reform the General Electricity Industry Act, in force since 2014, claims that"... renewable energy contracts remain in force, but do not benefit from the incentive payment of 10% of the base price and annual adjustment for inflation", as established by current legislation."
The payment of $0.03 per kW/h promised to solar generators a year ago has still not materialized, despite the fact that 12 plants are already operating in the country and others are in the processes of obtaining permits to start construction.
The fact that the incentives to increase the installation of power plants based on solar energy has not been made concrete affects not only the companies that own the plants, but also the banks who have been funding such projects since last year, because in many cases, "... the incentive scheme was part of the income submitted when applying for funding."
Empresa Nacional de Energía Eléctrica has announced that the increase of $0.15 to $0.17 in the price of Kwh will come into effect on May 1st.
Laprensa.hn explains that "...In percentage terms, the increase is 13.3%. In local currency, the price per kWh will increase from L3,43 to L3,86. "
"... The General Electricity Industry Act, which was passed by decree 404-2013 and published in the official newspaper La Gaceta, states that revisions to tariffs must be made every three months. "
The Legislature has approved on their third reading contracts for wind power in a 3,615 MW project, an electrical project in La Ceiba and one in Colón.
From a statement issued by the National Congress of Honduras:
Congress approved on a third and final debate contract 70-2010 containing Annex 10, a support agreement to comply with a supply of 3,615 MW of associated energy from wind resources subscribed between the National Electricity Company (ENEE) and General Equipment Supply company S.A.
Resources have been allocated for the construction of water reservoirs, installation of drip irrigation and technical assistance for the Water Harvest Project.
From a statement issued by the National Electricity Company of Honduras:
Tegucigalpa, February 01, 2016.- As part of the actions taken by the Government of the Republic to mitigate the impacts of climate change in the Dry Corridor, Honduras Strategic Investment (INVEST-Honduras) has signed a trust agreement (L 400 million) in FICOHSA Bank for the implementation of the Water Harvest project.