Energy Law

Three weeks after Honduras's new Energy Justice Law took effect, a monitoring report finds only one of 42 required tasks completed, with losses at the state utility ENEE rising to 34.4% and a critical energy auction delayed to early 2027.

A think tank analyzing Honduras's new energy law found that freezing electricity rates through March 2027 would cost about L6 billion (roughly $240 million), with the richest 10% of customers capturing 65% of the savings while low-income households receive only 9%.

US power companies have expressed interest in investing in Honduras's energy sector following the September enactment of the Energy Justice Law, the government says.

The government installed an interagency committee to implement the Energy Justice Law, with a 600-megawatt generation tender among its first actions, aiming to reduce reliance on expensive diesel plants and lower power costs.

The government announced that implementation of Honduras's Energy Justice Law will speed up with technical assistance from the Inter-American Development Bank, with a steering committee of Cabinet officials and energy agencies working to advance regulatory processes.

International banks and investors are showing interest in Honduras's electricity sector following approval of the Energy Justice Law, which establishes competitive bidding and auctions; the government estimates the sector needs about $6 billion in investment to modernize infrastructure and expand coverage.

Following passage of the Energy Justice Law, approximately 10 companies are planning new investments in Honduras, including a $400 million light manufacturing project in Choloma, with officials citing energy-sector reforms as a key enabler for business confidence.

Congress began debate on sweeping reforms to Honduras's electric utility ENEE, aiming to reshape its corporate structure and finances to address the state company's L50 million daily fiscal deficit before lawmakers begin mid-year recess.