Nicaragua is advancing its renewable energy initiatives with the development of a new 100 MW solar plant near the capital, Managua. The project, valued at $83 million, is expected to begin operations by 2025.
Nicaragua solar project overview and plant specifications
Nicaragua is making significant progress in its renewable energy efforts with the development of a new 100 MW solar plant. The project, which is valued at $83 million, will be located near the capital city, Managua, and is expected to begin operations by 2025.
The solar plant will be built in the municipality of Villa El Carmen, which is situated approximately 30 kilometers west of Managua. Construction is scheduled to begin in February 2025, with the facility set to become operational in December of the same year. Once completed, the plant will feature 176,000 solar panels and 12 inverters, thereby making it one of the largest solar projects in the region.
In addition to the solar plant, the project will include the installation of 25 km of transmission lines and a 138 kV electric substation. These components are essential for integrating the solar power generated by the plant into Nicaragua’s national electricity grid.
Financing and global support for the Nicaragua solar project
The solar plant project is being developed by the Nicaraguan Ministry of Energy and Mines, which has secured funding from several international sources. The project is backed by a $50 million loan from the Central American Bank for Economic Integration (CABEI) and an $18 million loan from the International Fund for Agricultural Development (IFAD).
In addition to these loans, the project has received a $15 million grant from the European Union. According to CABEI Executive President, Dante Mossi, the solar plant will significantly contribute to Nicaragua’s energy security and sustainability goals.
“This project represents a major step forward in Nicaragua’s transition to renewable energy. It will not only help reduce the country’s dependence on fossil fuels but also support its efforts to combat climate change,” Mossi stated.
Growth of renewable energy through the Nicaragua solar project
Nicaragua has been steadily increasing its investment in renewable energy over the past decade. The country currently generates approximately 60 percent of its electricity from renewable sources, including hydroelectric, wind, and solar power. The new solar plant is expected to further boost this percentage and help Nicaragua achieve its goal of becoming energy independent.
The Villa El Carmen solar plant will be the second major solar project in the country. In 2021, Nicaragua inaugurated its first large-scale solar plant, the 50 MW Camilo Ortega Saavedra facility, which was built in the western region of Carazo.
Environmental and economic impact of the Nicaragua solar project
The new solar plant is expected to have a positive impact on both the environment and the economy of Nicaragua. By generating clean energy, the plant will help reduce the country’s greenhouse gas emissions and contribute to global efforts to combat climate change.
Economically, the project is expected to create jobs during the construction phase and provide long-term employment opportunities in the operation and maintenance of the facility. Additionally, the solar plant will help stabilize electricity prices in Nicaragua, as it will reduce the country’s reliance on imported fossil fuels.
The plant is part of Nicaragua’s broader strategy to diversify its energy mix and promote sustainable development. The country’s government has set ambitious targets for renewable energy, aiming to generate 90 percent of its electricity from renewable sources by 2027. For more on Nicaragua’s renewable energy developments, check out this article detailing the expansion of solar energy in the region.
