Power Generation

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.

Engineer Miguel Arriaga warns Honduras's state power company faces severe financial pressure from high generation costs, reduced hydroelectric output due to drought, and years-long delays in signing new capacity contracts, leaving ENEE unable to recover over 6 billion lempiras (~$240 million) in costs over six months.

The electricity regulator warns Honduras risks power rationing next year unless it rapidly adds new generation capacity through competitive bidding, which it says—not tax breaks—will lower energy costs.

Former national power company manager Salomón Ordóñez cautioned that Honduras's largest hydroelectric dam, El Cajón, requires steady funding and emergency spare parts to avoid costly thermal-power substitution, and urged against privatizing generation and transmission.