Browse Honduras Daily Stories

Honduras's new Energy Justice Law, approved by Congress in August, has drawn interest from international financial institutions and investors who see it as a signal of transparent investment rules and modernization, with the government estimating the sector needs about $6 billion to upgrade infrastructure and expand coverage.

The U.S. State Department said it welcomes Honduras's passage of the Energy Justice Law, noting that American companies are interested in investing in the country's energy sector to improve reliability and create jobs.

The state power utility reports daily losses of L40 million (about $1.6 million) while Congress delays approval of an energy law overhaul that officials say is needed to improve efficiency, attract investment, and reduce the company's mounting debt.

Qarim Qubain, president of the Cortés Chamber of Commerce and Industry, says Congress needs more time to build consensus on controversial energy reforms, warning that prolonged electricity costs are driving away business investment.

The president of Honduras's National Association of Industrialists says Congress should approve an energy-sector reform bill quickly, with a 20-year validity period, arguing that depoliticizing the issue and pursuing it on technical grounds will unlock investment and jobs.

A study by the Honduran private-sector council found that blackouts and electrical interruptions cost businesses approximately L1.2 billion (about $48 million) a year, with small firms hit hardest, as the government pushes energy-sector reforms.

Honduras's business council endorsed the government's proposed energy reforms but called for stronger legal protections, independent regulators, and a phased breakup of the state utility ENEE to reduce technical losses and attract investment.