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Electricity sector of Honduras
Data
Electricity coverage (2006)
69% (total), 94% (urban), 45% (rural); (LAC total average in 2005: 92%)
Installed capacity (2006)
1.54 GW
Share of fossil energy
62%
Share of renewable energy
38% (including hydro)
GHG emissions from electricity generation (2003)
1.51 MtCO2
Average electricity use (2005)
4376 kWh per connection
Distribution losses (2006)
21%; (LAC average in 2005: 13.6%)
Consumption by sector (% of total)
Residential
42.5%
Industrial
53.3% (inc. commercial)
Tariffs and financing
Average residential tariff (US$/kW·h, 2006)
00.058; (LAC average in 2005: 0.115)
Average industrial tariff (US$/kW·h, 2006)
0.1053(medium voltage), 0.0934 (high voltage); (LAC average in 2005: 0.107)
Average commercial tariff (US$/kW·h, 2006)
0.133
Annual investment in electricity
4.01 US$ per capita
Services
Sector unbundling
Partial
Share of private sector in generation
62%
Share of private sector in distribution
0%
Competitive supply to large users
No
Competitive supply to residential users
No
Institutions
No. of service providers
One (ENEE)
Responsibility for transmission
Integrated utility (Empresa Nacional de Energía Eléctrica)
Responsibility for regulation
National, single-sector regulator
Responsibility for policy-setting
Energy Cabinet
Responsibility for the environment
Ministry of Environment (SERNA)
Electricity sector law
Yes (1994)
Renewable energy law
Yes (2007)
CDM transactions related to the electricity sector
19 registered CDM projects; 221,730 t CO2e annual emissions reductions
The electricity sector in Honduras has been shaped by the dominance of a vertically integrated utility; an incomplete attempt in the early 1990s to reform the sector; the increasing share of thermal generation over the past two decades; the poor financial health of the state utility Empresa Nacional de Energía Eléctrica (ENEE); the high technical and commercial losses in transmission and distribution; and the low electric coverage in rural areas
The key challenges in the sector include financing investments in generation and transmission in the absence of either a financially healthy utility or of concessionary funds by external donors. Tariffs need to be re-balanced, arrears need to be cut and commercial losses, including electricity theft, need to be reduced without fostering social unrest. In addition, the government must reconcile environmental concerns with its objective to build two new large dams and associated hydroelectric plants. Access to electricity in rural areas needs to be improved.
In June 2007, the president of Honduras, Manuel Zelaya, declared an "energia emergencia". An Intervention Board (Junta Interventoria), headed by the Minister of Defence and the Minister of Finance, was temporarily put in charge of ENEE to address the crisis. The mandate of this board has recently been extended until October 2022
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