‘Prominent deficit’ forecast for Honduras power sector

Honduras’ power sector faces a “prominent deficit” of capacity in 2023, specifically during the summer months of March-May and the low hydrology period of August-September.

That is according to an update of national dispatch center CND’s 2023-25 operational planning outlook.

The report highlights the lack of sufficient capacity between the generation park and the projection of injections from the regional opportunity market (MOR) to cover demand and calls for a review of MOR purchases.

The new information also highlights that the commercial operation start date of the 198MW El Tornillito hydro was pushed back to December 2025 from mid-2024.

Regarding demand, the CND did not make modifications to the initial outlook.

Meanwhile, the launch of a process to procure 450MW is pending.

Source: Operational planning outlook update

In other developments from the country, state power company Enee said it plans to begin studies in July for multi-purpose hydro projects El Tablón, Los Llanitos and Jicatuyo.

Enee also reported that Empresa Energía Honduras’ (EEH) contract will end on August 19 as part of President Xiomara Castro’s plan to “rescue” public companies.

In 2016, the government (before Castro took office in 2022) signed a seven-year public-private partnership contract with EEH to take over distribution as part of efforts to help Enee reduce technical and non-technical losses.

EEH, however, has come under scrutiny for alleged non-fulfillment of contractual obligations and irregularities in the awarding of the contract.

For its part, the energy department signed an agreement with Mexican federal power company CFE to support Enee’s restructuring by carrying out a diagnostic of the national interconnected system, addressing technical and non-technical losses, and targeting the overhaul of hydro plants.

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