Energy Sector

Honduras's state power utility ENEE requires L35.4 billion (roughly $1.4 billion USD) in domestic debt from 2026 to 2029 to cover payments to private generators, amid losses exceeding 34% and a total debt burden now at L73.3 billion.

Honduras's engineering college says a draft reform to the national electricity law could threaten sector stability by exempting state-owned subsidiaries from traditional asset controls and lacks binding mechanisms to address endemic technical and non-technical losses.

The European Investment Bank has offered up to 15 billion lempiras (roughly $600 million) to finance Honduras's transmission networks and renewable energy, EU Ambassador Gonzalo Fournier announced at a meeting with Congress leaders.

A Fosdeh economist argues that measures now being negotiated to stabilize Honduras's state electric utility must become permanent policy to prevent future administrations from reversing reforms, as has happened repeatedly.

Honduras's state power utility is auctioning L2.2 billion (about $88 million) in bonds at interest rates of 10.6% to 12.2% to pay down arrears exceeding L16.4 billion owed to private energy suppliers.

Honduras's business council submitted proposals to modernize electricity regulations under review by Congress, urging independent regulators and stable rules to strengthen the grid and attract investment.