WSHPDR_2013_Final_Report-updated_version

2.2.5 Honduras
Lara Esser and Laxmi Aggarwal, International Center
on Small Hydro Power
Key facts
Population 8,296,693 1
Area 112,090 km 2
Climate Subtropical in the lowlands and
temperate in the mountain areas 1
Topography Mostly mountains in interior; narrow
coastal plains. Highest point: Cerro
las Minas, 2,870 m 1
Rain pattern Average annual rainfall: 1,470 mm.
Rainy season from May to November,
with regional variations. 2 Hurricanes
and floods are common along the
Caribbean coast
Electricity sector overview
The national (government-owned) electric power
company, Empresa Nacional de Energia Electrica (ENEE)
is in charge of generation, transmission and
distribution of electric energy, in accordance with
Article 9 of the Law (Ley Marco del Sub sector
Eléctrico and Article 13 of the corresponding Bylaw)
and the Expansion Plan 2008-2022. Forty six per cent
of electricity is generated from hydropower (figure 1).
Natural gas
Coal
Co-generation
Hydropower
Diesel
0.18%
0.69%
2%
Table 1
Small hydropower projects under the Clean Development Mechanism in Honduras
Name
Installed capacity
(MW)
Generation
(GWh/year)
Type
46%
51%
0% 10% 20% 30% 40% 50% 60%
Figure 1 Electricity generation in Honduras
Source: Climate Investment Fund 3
Grid coverage jumped from 39.1 per cent in 1990 to
81.3 per cent in 2010, making it close to 100 per cent
in urban areas and 63.4 per cent in rural areas.
However, the remaining 26.6 per cent of rural
households still have no access to basic electricity
services because they are scattered in low-density
areas and it is expensive to connect them to the grid. 3
Small hydropower sector overview and potential
There are 14 small hydropower plants in operation
with a total capacity of 54.1 MW (figure 2). Seven new
plants are in the initial phase of planning (with a total
capacity of 12.5 MW) and another 26 are at bidding
stage (with a total capacity of 84.4 MW). Therefore,
once all of these investments are commissioned, the
total small hydropower capacity in Honduras will be
92.6 MW. 4 The Scaling-up Renewable Energy
Programme in Low-Income countries (SREP)
Investment Report mentions that there are only 11
privately-owned small hydropower plants with a total
capacity of 37 MW. The SREP Investment Plan for
Honduras reports that small hydropower potential
accounts for approximately 385 MW. 3
Remarks
Rio Blanco 5.00 32.00 Run-of river Operating since 2004, CDM registered in January 2005
Cececapa 2.86 14.90 Run-of river Provides electricity to local grid. Operating since 2005
Yojoa 0.63 2.99 Run-of river Electricity to local village. Operating since September 2005
Zacapa 0.52 2.76 Electricity to local grid. March 2006
SHP installed
capacity
54.1 MW
small hydropower, biomass and geothermal
generation. 5
SHP potential
385 MW
0 150 300 450
Figure 2 Small hydropower capacities in Honduras
Sources: Climate Investment Fund 3 , International
Journal on Hydropower and Dams 4
Between 2010 and 2011, Honduras experienced peak
clean energy investments of US$468.5 million,
dedicated mainly to small hydropower (defined as up
to 50 MW) and wind generation. 5 In addition to high
levels of investment, small hydropower also had the
chance to benefit from the first renewable energy
tender, conducted in 2010, and consisted of 20 to 30
years of contracts for 250 MW capacity relating to
Renewable energy policy
The 1998 Legal Framework and Reforms of the Energy
Sector Law and its Incentives Law for Renewable
Energy Generation have provided incentives for the
development of renewable energy coupled with
Decrees No. 85-89 and No. 267-98. It promotes
implementation of renewable energy plants via
mechanisms such as tax breaks or tariffs equivalent to
short-term marginal costs experienced by the system. 6
In 2007, the Honduran Government issued Decree
No.70-2007 (the Law to Promoting Electricity
Generation by Renewable Resources), implementing a
preferential tax policy and a preferential sales policy
for natural and juridical persons who develop and
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