Energy Sector

Congressman Marco Tulio Rodríguez (Liberal Party) said electrical-sector reforms should include legislation against energy theft and require public bidding rather than direct contracts, arguing that will prevent inflated costs and rigged deals for Hondurans.

State institutions have accumulated over 20 billion lempiras (roughly $800 million) in unpaid electricity bills to ENEE, with much of the debt dating back more than 15 years; the utility is auditing its accounts receivable and also grappling with 34% energy losses due partly to theft.

Lawmakers are moving closer to agreement on reforms to Honduras's General Law of the Electrical Industry, with the Liberal Party and the legislative committee narrowing differences over how to attract private investment while keeping state assets under the control of the state-owned utility ENEE.

Congressman Arnold Burgos says the government lacks 13 votes from the opposition Liberal Party to pass reforms to Honduras's electricity sector, while denying plans to privatize the state utility ENEE.

Experts debated Honduras's urgent need for electricity-sector reform, warning that failure to reach consensus by July will worsen blackouts, increase public debt, and deter foreign investment, as lawmakers disagree over whether new utilities should remain state-owned or allow private investment.

Genesis Energy's natural-gas plant in Puerto Cortés, meant to supply fuel to utility Brassavola and replace diesel generation, has missed its original November 2024 deadline by nearly two years with five rescheduled start dates and minimal visible construction progress.

Honduras's Opportunity Electricity Market (MEO), created in 2019, is drawing fresh investment in power generation; by May 2026 it supplied 16.62% of national production through 39 plants, though faster payments to generators have increased Enee's purchase costs.

The head of Honduras's business association warns that the state power utility ENEE has 122 billion lempiras ($4.9 billion) in liabilities against 54 billion in assets, and risks having to return to costly diesel generation unless Congress approves new energy legislation and competitive bidding within months.

Former ENEE chief Erick Tejada accused the current utility head of signaling a government drive to privatize Honduras's electricity sector, citing France, Costa Rica, and other nations as examples of successful public energy systems.

The organization Sendas warned that Honduras's planned electricity-sector reform needs a dedicated, autonomous administrator with real decision-making power to implement structural changes, noting that fragmented responsibility across multiple agencies and weak institutional continuity have hindered past efforts.

A Libre congressman argues that collecting millions owed by large corporations to the state electricity utility ENEE would shore up its finances and make privatization unnecessary, and has called for public disclosure of the major delinquent accounts.

Former Energy Secretary Erick Tejada says Honduras's state power company needs eight years to recover from deep structural problems, and warns that the government's no-subsidy policy is pushing electricity rate increases onto ordinary Hondurans.

Renewable-energy generators say that once Congress approves planned reforms to Honduras's electricity sector, investment opportunities will expand significantly.

Congress President Tomás Zambrano said pending legislation to reform Honduras's state power utility aims to strengthen ENEE, reduce losses, and improve service—not privatize it—while the government spends over 16 billion lempiras annually to cover the company's deficits.

Honduras's state power utility is issuing bonds in the national financial system to raise liquidity and settle accumulated debts to electricity generators, officials say, aiming to ensure uninterrupted power supply.

The Inter-American Development Bank said it supports Honduras's energy reforms, which aim to fix structural problems in the electrical system and ensure long-term sustainability, and pledged to help with implementation.

Former energy official Guillermo Peña Panting warns that Honduras faces potential loss in international arbitrations filed by electricity-sector investors at the ICSID, citing the current administration's reforms to contracts signed under prior legal frameworks.

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.

Carlos Hernández, director of the advocacy group ASJ, warns that the state power utility ENEE has received 46 billion lempiras over four years while carrying a debt exceeding 100 billion lempiras, and continues to suffer from high losses, unfocused subsidies, and electricity theft.

The ENEE's financial manager said new transmission infrastructure projects will be funded through private investment drawn by sector openness, not public debt alone, to accelerate Honduras's energy development.

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.