Honduras is currently heavily dependent on diesel power as a source of energy generation, but the country aims to make renewable energy sources predominate to their energy mix. By 2022, the National Plan states that 60 percent of domestic demand will be supplied from renewable sources, where solar energy can play a significant role.

Market approach

In the third quarter 2014, Scatec Solar entered the solar market in Honduras through a partnership with a local project developer, PEMSA, and Norfund/KLP to build the 60 MW solar power plant, Agua Fria. A 20-year power purchase agreement has been signed with the National Electricity Company (ENEE).

More about this market

Several incentives for solar energy projects have recently been implemented in Honduras that successfully have promoted the development of solar projects in the country.  In 2014, the Honduran Congress approved PPAs totalling about 600 MW with special energy price incentives built into the PPA combined with sovereign guarantees. By ratifying these guarantees, the Honduran government can financially guarantee payments of the National Electricity Company (ENEE). ENEE is the dominating national utility owning 35% of the total generation capacity in Honduras, which amounts to about 1 700 MW.