Nicaragua is set to significantly expand its renewable energy portfolio through a new partnership with a state-owned Chinese firm. The government has approved a deal with China Communications Construction Company (CCCC) to build the 67.3 MW El Photovoltaic Plant in the department of Matagalpa, a move announced by Vice President Rosario Murillo on April 30, 2024.
The project, located in El Hato, Ciudad Darío, was formalized through Presidential Agreements 55-2024 and 56-2024. The main construction contract is valued at 492.3 million yuan, or approximately $68 million, and is financed by a Chinese credit line of around $80 million. The agreement was finalized by Nicaraguan officials from the Ministries of Energy and Mines and Finance during a visit to China.
A Broader Vision for Solar Expansion
This 67.3 MW installation represents a crucial component of a broader strategic initiative between Nicaragua and CCCC. It is one of several solar projects planned, including a second 63 MW plant in San Isidro, Matagalpa, which carries an $82 million investment. Together, these initiatives are part of an ambitious plan to develop three solar plants that will collectively add nearly 200 MW of clean energy capacity to the nation’s grid.
Once operational, the El Photovoltaic Plant will become Nicaragua’s largest solar installation to date, surpassing its two existing solar farms, Solaris and La Trinidad, and marking a major leap forward in the country’s pursuit of energy sovereignty.
Boosting Infrastructure and Reducing Costs
A primary goal of Nicaragua’s expanding solar program is to reduce operational expenses for key state services. While this plant will contribute to the grid, a future 70 MW Enesolar-3 plant, slated for groundbreaking in June 2025, is specifically designed to slash energy costs for the Nicaraguan Company of Aqueducts and Sanitary Sewers (Enacal) by an estimated 40%. That project, funded by an $83 million Chinese investment, is expected to benefit four million people by securing power for water pumping operations. Such investments are increasingly viable as the global cost of solar panel production falls with rising capacity.
Presidential advisor Laureano Ortega Murillo highlighted the project’s significance, stating, “These are historic and exceptional moments for the country, reflecting the development of the strong relationship between Nicaragua and China.” The collaboration underscores a deepening economic and geopolitical partnership, positioning Nicaragua to build a more sustainable and resilient energy future.
Sources
- Renewables, rights and relations: Chinese solar projects in Nicaragua
- China’s Advance in Nicaragua – An Update – R. Evan Ellis, Phd
- Nicaragua and China break ground on landmark solar project to …
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- Nicaragua: Chinese state-owned construction firm CCCC to …
- Nicaragua starts work on 70 MW solar plant, largest to date
- Government greenlights collaborations with China on clean energy …
