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Latin America

Nicaragua

With a power score of 2.12, Nicaragua ranks number 31 among Emerging Markets and number 7 in the Latin America region

Power score

2.12/5

12345

Score over time

2021 - 2024

46
2021
52
2022
49
2023
31
2024

Overview

Nicaragua has a power score of 2.12, which puts it at rank 31 in the Emerging Markets power ranking. In comparison to 2023, Nicaragua has improved in the power rankings by 18 places, from rank 49, to rank 31.

At 2.12, the power score of Nicaragua is better than than the regional average of 1.93 in the Latin America region and puts it at rank 7 in the region.

Regional comparison chart

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Nicaragua

Power

Power policy

Nicaragua implements policies in 6/9 power policy categories tracked by Climatescope, including Renewable energy target, Net metering, Import tax incentives, VAT incentives, Priority grid access, and Renewable Energy Certificates.

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 Nicaragua has dropped from 199.87 USD/MWh in 2022 to 195.96 USD/MWh in 2023. Since 2017, the average electricity price in Nicaragua has fluctuated between 195.96 USD/MWh (2023) and 233.13 USD/MWh (2020).

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Power market

The top amount of capacity installed in Nicaragua in 2023 was in Oil & Diesel at 54.27%.

Installed capacity (in MW)

2000200520102015202005001K1.5K MW

Electricity generation (in GWh)

2000200520102015202001K2K3K4K5K GWh

The top amount of electricity generated in Nicaragua in 2023 was in Oil & Diesel at 34.4%.

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Investment in clean energy in Nicaragua was around $16.50 million in 2023. Between 2018 and 2023, the highest investment in clean energy was in 2021 at $37.00 million, while the lowest was in 2019 with $2.10 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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