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Latin America

Honduras

With a power score of 1.96, Honduras ranks number 52 among Emerging Markets and number 12 in the Latin America region

Power score

1.96/5

135135135

Score over time

2021 - 2024

21
2021
54
2022
43
2023
52
2024

Overview

Honduras has a power score of 1.96, which puts it at rank 52 in the Emerging Markets power ranking. In comparison to 2023, Honduras has dropped in the power rankings by 9 places, from rank 43, to rank 52.

At 1.96, the power score of Honduras is better than than the regional average of 1.93 in the Latin America region and puts it at rank 12 in the region.

Regional comparison chart

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Honduras

Power

Power policy

Honduras implements policies in 7/9 power policy categories tracked by Climatescope, including Renewable energy target, Renewable energy auction, Feed-in tariff, Net metering, Import tax incentives, VAT incentives, and Priority grid access.

Power policies

Renewable energy target
Renewable energy auction
Feed-in tariff
Net metering
Import tax incentives
VAT incentives
Priority grid access
Renewables mandate
Renewable Energy Certificates

Power prices and costs

The average electricity price in Honduras has increased from 169.52 USD/MWh in 2022 to 205.00 USD/MWh in 2023. Since 2017, the average electricity price in Honduras has fluctuated between 144.39 USD/MWh (2017) and 205.00 USD/MWh (2023).

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Power market

The top amount of capacity installed in Honduras in 2023 was in Oil & Diesel at 32.12%, up from 31.76% in 2022.

Installed capacity (in MW)

2000200520102015202001K2K3K MW

Electricity generation (in GWh)

2000200520102015202002K4K6K8K10K GWh

The top amount of electricity generated in Honduras in 2023 was in Oil & Diesel at 42.3%, up from 35.51% in 2022.

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Investment in clean energy in Honduras was around $14.00 million in 2023. Between 2018 and 2023, the highest investment in clean energy was in 2020 at $77.60 million, while the lowest was in 2021 with $11.66 million.

Utility privatisation

Which segments of the power sector are open to private participation?

generation: Yes
transmission: Yes
retail: Yes

Doing business and barriers

Type

Question

Availability

Currency of PPAs

Are other PPAs (eg. corporate PPAs) signed in or indexed to U.S. Dollars or Euro?

Yes

Type

Question

Availability

Bilateral power contracts

Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?

Yes

Type

Question

Availability

Fossil fuel price distortions - Subsidies

Does the government keep the wholesale price of electricity from fossil fuels artificially low through subsidies?

No

Type

Question

Availability

Fossil fuel price distortions - Taxes and carbon prices

Does the government significantly�increase the wholesale price of electricity from fossil fuel through targeted taxes and/or carbon prices?

No

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