Nicaraguan President Daniel Ortega is advancing the country’s renewable energy initiatives with the approval of a significant solar power project. Developed in collaboration with China Communications Construction Company (CCCC), the El Photovoltaic Plant will produce 67.35 MW, marking a major step forward for Nicaragua’s energy sector.
Ortega Signs $68M Solar Power Deal for Matagalpa
President Ortega has paved the way for the development of the El Photovoltaic Plant by signing two key agreements: Presidential Agreements 55-2024 and 56-2024. The contract with CCCC is valued at 492.3 million yuan, or approximately $68 million, and will fund the construction and operation of the solar power project in Ciudad DarÃo, Matagalpa.
Image: Power Project in Ciudad
The total cost of the two projects is expected to be around $162 million, with most of the funding sourced from Chinese loans. This figure includes a recent $80 million loan allocated specifically for the development of the related El Hato plant.
El Photovoltaic Plant to Cut Enacal’s Energy Costs by 40%
A key goal of the El Photovoltaic Plant is to lower energy costs for the Nicaraguan Company of Aqueducts and Sanitary Sewers (Enacal) by approximately 40%. Since much of Nicaragua’s water pumping operations rely on electricity, the new solar plant is essential for helping Enacal maintain sustainable and cost-effective services.
Through ongoing Chinese investments in energy, transportation, and housing, Nicaraguans stand to benefit from more sustainable and affordable solutions. New solar installations like this one are poised to reduce energy costs, a trend supported by recent research indicating that the cost of solar energy falls as more capacity is installed.
“These are historic and exceptional moments for the country, reflecting the development of the strong relationship between Nicaragua and China,” said Laureano Ortega Murillo, a presidential advisor.
El Photovoltaic Plant to Be Nicaragua’s Largest Solar Installation
Once completed, the El Photovoltaic Plant will become the largest solar installation in Nicaragua, representing a major leap forward for the country’s renewable energy sector. Currently, Nicaragua has only two solar plants: Solaris and La Trinidad. The new facility will not only boost the nation’s solar capacity but also enhance its energy mix, promoting greater diversity and sustainability.
Future Prospects
Nicaragua’s expanding relationship with China is set to transform its economic and geopolitical landscape through ambitious projects like this one. By adopting solar power and investing in key infrastructure, Nicaragua is moving toward a greener, more sustainable energy sector that will benefit its environment and economy.
This partnership aims to enhance infrastructure and build a long-term relationship with a global leader, potentially reshaping Nicaragua’s position on the world stage. As these initiatives progress, they are expected to drive economic growth, attract more international investment, and bolster the country’s pursuit of energy independence and sustainability.
This collaboration between CCCC and Nicaragua underscores the nation’s commitment to green energy and aligns with China’s growing influence in global infrastructure. It also marks a significant advancement in the relationship between the two countries, with potentially long-lasting impacts.
