Honduras opens energy market to private development
Landscape in Honduras (source: flickr/ maxid, creative commons)
Alexander Richter
21 Jan 2014
Honduras opens its electricity market to private investors by splitting up its state utility ENEE into generation, transmission and distribution parts, in the hope to revitalize its energy market.
This morning reported by Reuters, the country of Honduras has now initiated the break up of its state power utility ENEE.
This is done in order to attract private investment into the energy market, as the utility has not been able to solve its economic troubles with huge losses incurred annually.
The legislation now having passed, opens the electricity market to private players and the hope is that it will now drive investments into development
ENEE will now be split into three separate entities for generation, transmission and distribution. All three will be open to private investment with the state planning to keep a minority stake in those entities. It is expected that the break-up will be finalized prior to a July 1, 2015 deadline, as laid out by the legislation.
The breakup must occur by July 1, 2015, at the latest, under the legislation.
Until now – so Reuters – private power producers had to sell power to ENEE. The utility currently has an installed power generation capacity of 400 MW in hydro power and geothermal plants.
Source: Reuters
