Honduras Energy Tender Marks Major Step Toward Renewable Energy Expansion
Honduras has unveiled a significant energy tender to secure an additional 1,500 MW of capacity, placing a strong emphasis on renewables. The Ministry of Energy’s plan to procure 975 MW from these sources is a cornerstone of the nation’s strategy to diversify its energy mix and enhance grid stability.
Tender Breakdown: A Focus on Renewables
The tender is divided into three categories: 975 MW from renewable sources, 400 MW from combined cycle plants, and 125 MW from thermal plants. Renewable energy projects are expected to receive 10-year contracts, while combined cycle and thermal plants will be awarded 15-year contracts. This focus on renewables aims to stabilize the grid and reduce the country’s dependence on fossil fuels.
Honduras has already seen notable growth in renewable energy, particularly in solar and hydropower. According to the International Renewable Energy Agency, the country added 410 MW of solar capacity between 2015 and 2022. This new tender is poised to accelerate the development of both solar and wind power, significantly expanding the nation’s renewable energy portfolio.
Investment Opportunities and the Tender Process
This tender presents a substantial opportunity for private investors looking to enter the Honduran energy market. Energy Minister Erick Tejada has highlighted the crucial role of private sector participation in meeting the country’s renewable energy goals. The government is also exploring potential financing from multilateral institutions to support the tender, a move that underscores the importance of collaborative efforts.
The tender process will unfold in several phases. Prospective companies must first prequalify by demonstrating their financial and technical capabilities. Prequalified bidders will then be invited to submit detailed proposals for evaluation based on technical and financial criteria. The government aims to announce the winning bids by the end of the year.
Supporting National Renewable Energy Goals
This tender is a vital part of Honduras’ broader strategy to increase its share of modern renewables in final energy consumption. The government has set an ambitious target to generate 80% of its electricity from renewable sources by 2027. At present, the energy mix is dominated by thermal and hydroelectric power, with renewables accounting for about 60% of total capacity.
The new tender is expected to drive significant progress toward this goal, particularly through the development of solar and wind energy projects. The government is also investing in grid infrastructure to integrate this new renewable capacity, ensuring the stability and reliability of the national energy supply.
The energy transition in Honduras is part of a broader regional trend in Central America, where several countries are ramping up investments in renewable energy. Honduras’ favorable climate and abundant natural resources position it ideally for solar and wind energy development.
Reinforcing a Commitment to Sustainability
Honduras’ dedication to renewable energy is set to attract significant foreign investment, especially from companies with expertise in solar and wind projects. The government is also exploring opportunities to export renewable energy to neighboring countries, which could further strengthen the nation’s energy sector.
This tender marks a significant milestone in Honduras’ energy transition, positioning the country as a potential leader in renewable energy within Central America. Through strategic investments and policies, Honduras can meet its renewable energy goals and contribute to global efforts to combat climate change.
For more insights into global solar energy initiatives, check out this article on solar tenders in Algeria and Qatar’s solar power plant launch.
