Electricity sector in Nicaragua
Nicaragua continues significantly dependent on oil for electricity generation, despite recent developments toward renewable energy sources following the COVID-19 pandemic, with
This high contribution to emissions from electricity production in comparison with other countries in the region is due to the high share of thermal generation. Currently (November 2007), there are only two registered CDM projects in the electricity sector in Nicaragua, with overall estimated emission reductions of 336,723 tCO 2 e per year.
Go To Top Nicaragua's power sector underwent a deep restructuring during 1998-99, when the generation, transmission and distribution divisions of the state-owned Empresa Nicaraguense de Electricidad (ENEL) were unbundled, and the privatization of the generation and distribution activities allowed.
Currently, hydroelectric plants account only for 10% of the electricity produced in Nicaragua. The public company Hidrogesa owns and operates the two existing plants (Centroamérica and Santa Bárbara).
The Inter-American Development Bank (IDB) has several projects under implementation in the electricity sector in Nicaragua: In October 2007, the IDB approved US$350,500 for the Support to Power Sector Investment Program. In June 2007, a US$12 million loan was approved for the National Transmission Strengthening for Integration SIEPAC project.
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