At a glance: Honduras' 2024 energy budget

The energy sector, primarily power, will be the second highest recipient of funds from Honduras’ 2024 budget after social security, as is the case this year.

The energy allocation reaches 15.5bn lempiras (US$630mn) or 16% of planned government spend, according to the budget bill.

The sector’s 2023 budget totals 20.5bn lempiras, of which a little over a quarter had been spent through end-August. This year’s total budget is 76.6bn lempiras.

Of the 15.5bn lempiras, 7.79bn are earmarked for the energy department and 7.75bn lempiras for state power company Enee, with the rest destined to other sector entities such as power regulator CREE.

The government also expects to disburse 7.59bn lempiras for subsidies for low-income residents who use less than 150kWh/month and tariff adjustments for diesel, gasoline and LPG.

PROJECTS

Much of next year’s push will be new hydroelectric plants under development by Enee.

Feasibility studies and basic design are on tap for El Tablón (20MW), Jicatuyo (80MW), Llanitos (210MW), Valencia (270MW) e Tarrosa (150MW), the latter two also known as Patuca II and Patuca II A, respectively.

Meanwhile, funds will advance the overhaul of the 20.8MW Cañaveral-Río Lindo hydro and modernize the country’s largest generation plant, the 300MW Francisco Morazán hydro, also known as El Cajón (pictured).

The project roadmap includes the installation of a 1.5MW unit at the 104MW Patuca III hydro that would use flow from the reservoir.

And progress is expected on what would be Enee’s first solar foray, a 50MW complex in Olancho department.

Read Honduras power generation expansion to cost at least US$2.62bn

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On the dispatch front, the budget will support the reinforcement of the transmission grid and procurement of equipment to strengthen supervision and maintenance. 

Among the infrastructure is the expansion and construction of eight substations and four lines: Talanga-Juticalpa, Telica-San Francisco de la Paz, El Sitio-Zamorano-Chichicaste-Patuca III, and Negrito-Yoro-Arenales.

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