Business & Finance, Finance, Latin America, New Development

Honduran authorities define details of planned hydroelectric plants

Honduran authorities plan to further define details of planned hydroelectric plants as part of the country’s target to have 95% of energy supplied from renewable sources by 2027.

According to information from BNAmericas, Honduras state-owned power company Empresa Nacional de Energia Electrica (ENEE) has issued an international consultancy call to design a hydropower resource investment plan for five projects: 270-MW Patuca II, 150-MW-Patuca II-A, 98-MW Llanitos, 173-MW Jicatuyo and 212-MW Mixcure.

The contract falls under an Inter-American Development Bank (IDB)-financed loan to strengthen the state company as part of its institutional overhaul following the publication of the country’s general power industry law published in 2014.

In 2013, ENEE estimated the cost for Patuca II at about US$810 million.

Currently, ENEE operates four hydroelectric plants for a combined 431 MW, the first of which came online in 1964 and the last in 1985.

Last year, amid unrest in Honduras surrounding a hydro project, The Netherlands Development Finance Co., Finnish Fund for Industrial Cooperation Ltd., the International Finance Corp. and China’s Sinohydro suspended financing for the he proposed 22-MW Agua Zarca small hydroelectric project planned for Santa Barbara and Intibuca.

In 2015, IDB and Japan International Cooperation Agency approved more than $160 million in loans to the government of Honduras to overhaul and upgrade the country’s 138-MW Canaveral-Rio Lindo hydroelectric power complex.