WSHPDR_2013_Final_Report-updated_version
WSHPDR_2013_Final_Report-updated_version
WSHPDR_2013_Final_Report-updated_version
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
operate renewable energy projects according to the<br />
Act 81 of the Environment General Law. 7 It grants<br />
additional benefits such as tax exemptions in the<br />
forms of import duty and income tax, and<br />
improvements in Power Purchase Agreements (PPAs)<br />
signed with ENEE to operators who generate<br />
electricity from renewable resources,. 3<br />
In 2010, ENEE held a public bidding process for the<br />
first time, allowing bidders to purchase electricity<br />
from renewable energy sources. Honduras was one of<br />
the six Latin American countries to do so. 3 Forty-eight<br />
projects were awarded PPAs for a total of 108 MW of<br />
renewable energy and an estimated investment of<br />
about US$2.5 billion. 8 With all these initiatives, the<br />
Government of Honduras intends to reverse the<br />
structure of the electricity sector by 2022 to a ratio of<br />
60 per cent renewable and 40 per cent fossil fuel, thus<br />
complying with the provisions of the Country Vision<br />
and National Plan Law constituted into State Policy by<br />
Decree No. 286-2009. 3<br />
Legislation on small hydropower<br />
Following the energy crisis of 1994, the Government<br />
of Honduras negotiated with the European<br />
Commission (EC) in order to promote electricity<br />
generation from renewable sources and to encourage<br />
energy conservation. In January 1996, a financing<br />
agreement was established between the EC and the<br />
national electricity utility ENEE. After an initial<br />
two-year project, the EC donated €250,000 to create a<br />
revolving fund called Fondo de Preinversión<br />
Hidroeléctrica that grants loans to the private sector.<br />
Since 1999, this ENEE Pre-investment Fund has helped<br />
finance feasibility studies for small hydropower plants<br />
of installed capacity up to 5 MW. 9<br />
Barriers to small hydropower development<br />
The equity capacity by private investors in Honduras is<br />
concentrated in the larger, fossil-fuel-fired energy<br />
projects. It is not common for domestic commercial<br />
banks to provide equity to renewable energy projects.<br />
Market research indicates that given sound<br />
fundamentals (technical viability of project, good<br />
contracts, positive and adequate technical studies,<br />
competent sponsors) and a resulting reasonably low<br />
risk expectation, there are abundant international<br />
equity investors and sovereign investors that would be<br />
interested in providing equity to renewable energy<br />
projects in Honduras. 3<br />
Scaling-Up Renewable Energy in Low-Income Countries<br />
(SREP) Agenda Item 6: Investment Plan for Honduras.<br />
Paper presented at Meeting of the SREP<br />
Sub-Committee. Washington D.C., 1 November.<br />
4. International Journal on Hydropower and Dams<br />
(2011). World Atlas and Industry Guide 2011. Surrey:<br />
AquaMedia International.<br />
5. Bloomberg New Energy Finance and Multilateral<br />
Investment Fund (2012). Climatescope 2012: Assessing<br />
the Climate for Climate Investing in Latin America and<br />
the Caribbean. New York. Available from<br />
www5.iadb.org/mif/Climatescope/2012/img/content/<br />
pdfs/eng/Climatescope2012-report.pdf.<br />
6. Johnson, Amanda and Meisen, Peter (2012).<br />
Achieving 100% Reliance on Renewable Energy for<br />
Electricity Generation in Central America. Global<br />
Energy Network Institute. San Diego. Available from<br />
www.geni.org/globalenergy/research/renewable-ener<br />
gy-transmission-central-america/Central%20America%<br />
20Renewable%20Energy%20Resources.pdf.<br />
7. Government of Honduras (2007). Decreto<br />
No.70-2007, Ley de Promocion a la Generacion de<br />
Energia Electrica Con Recursos Renovales. La Gaceta, 2<br />
October. Available from<br />
www.tsc.gob.hn/leyes/Ley%20de%20Promocion%20a<br />
%20la%20Generacion%20de%20Energia%20Electrica%<br />
20con%20Recursos%20Renovables.pdf.<br />
8. Figueroa Rivera and Miguel Ángel (2011). Marco<br />
Legal de Energía Renovable en Honduras y<br />
Perspectivas de Desarrollo. Presentation to the XV<br />
Reunión Anual Iberoamericana de Reguladores de la<br />
Energía. Santo Domingo, 6-8 April. Available from<br />
www.naruc.org/international/Documents/HONDURAS<br />
%20-%20Figueroa%20SPANISH%20rev.pdf.<br />
9. Empresa Nacional de Energía Eléctrica (2011). Plan<br />
de Expansión De Generación. Honduras. Available<br />
from<br />
www.enee.hn/planificacion/plan_exp_2008_2022.pdf<br />
?rand=1350059800948&trust=232961737&format=0.<br />
References<br />
1. Central Intelligence Agency (2012). The World<br />
Factbook. Available from<br />
www.cia.gov/library/publications/the-world-factbook.<br />
2. Servicio Meteorológico Nacional de Honduras<br />
(2012). Homepage. Tegucigalpa. Available from<br />
www.smn.gob.hn/. Accessed December 2012.<br />
3. Climate Investment Fund (2011). Programme on<br />
169