Analysis of regulatory framework of electric power market in Honduras: Promising and essential changes

Flores, Wilfredo C.

doi:10.1016/j.jup.2011.11.006

Cited by 7 publications

(7 citation statements)

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“…One of the key aspects of the agreement is that the state must carry out the consultation; in Honduras the state has delegated this activity to the project developer, which has led to disagreements or misunderstandings when the community must validate or accept the project. In Honduras, the regulator is often weakened, so the developers tend to impose projects on the communities (Flores, ). The state of Honduras does not have a regulatory framework where the socialization of energy projects is considered exclusively, i.e., regulation that considers the implementation of ILO Convention 169; at present, the government intends to regulate it by decree.…”

Section: Important Aspects Of Honduras’ Energy Sector After the 2009 mentioning

confidence: 99%

Honduras’ Energy Policy: Post Coup d’état Energy Scenarios

Flores¹

2018

Latin American Policy

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Since the 2009 coup d’état, Honduras’ energy sector has experienced radical changes. The Honduran electricity market was liberalized, and electricity distribution was granted. The installation of photovoltaic projects in the country’s electricity grid was stimulated via incentives and increased investment in renewable energy projects. Additionally, the Energy Secretary was recently created by decree, but the sector still suffers from scattered, biased legislation, and institutional weakness. An important new issue related mainly to the high investment in renewables in isolated areas is the social effect, leading to social unrest, because many of the areas where these projects are being carried out are inhabited by indigenous communities. Moreover, the effects of climate change have not been included in studies on the nation’s energy policy. This article analyzes the most‐relevant factors that should be included in an update of Honduras’ energy policy, considering a post‐coup reality. The Long Energy Alternatives Planning software is used to model energy scenarios.

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Section: Important Aspects Of Honduras’ Energy Sector After the 2009 mentioning

confidence: 99%

Honduras’ Energy Policy: Post Coup d’état Energy Scenarios

Flores¹

2018

Latin American Policy

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“…While the level of competition increased overall, in some instances state monopolies were replaced by private monopolies -either by international conglomerates, such as Unión Fenosa in Nicaragua and Guatemala and Distribuidora de Electricidad del Sur in El Salvador, or by national elites (Barnes and Waddle, 2004;Cupples, 2011). In Honduras, the reforms to the sector that were enacted in the 1990s to separate policy, regulation and service, were not fully completed, leaving the utility as a vertically integrated state owned enterprise (Flores, 2012). For Honduras and Nicaragua, privatisation of state-owned electricity utilities was a condition of admission to the Heavily Indebted Poor Countries Initiative (HIPC) (Cupples, 2011).…”

Section: Shifting Energy Governance: From State To Marketmentioning

confidence: 99%

Electricity in Central America: Paradigms, reforms and the energy trilemma

Gent

Tomei

2017

Progress in Development Studies

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A new global energy era is emerging, one driven by the confluence of energy security, climate politics and energy equity issues. This 'energy trilemma' is shaping the global political economy of energy, which in turn influences how decisions are made about how energy is provided-referred to as global energy governance. This paper analyses historical and contemporary developments in Central America's power sectors. This is a region that has long been an implementation space for global policy priorities, but has been overlooked by those engaging with the challenges of the energy trilemma. During the 1990s and 2000s, the statist model of energy governance gave way to a market-led model in the Central American isthmus. This led to the privatisation of state-owned utilities and the promotion of a regional electricity market. During this period, the dominance of largely hydro-based renewable electricity generation diminished to be replaced by imported fossilbased generation. Oil price increases during the early 2000s highlighted the region's dependence on imports, with some countries turning to energy rationing. Increasingly interventionist state policies, which now seek to reduce oil dependence, improve energy efficiency and expand access to electricity, are being pursued in the region. This interventionist turn reflects the pressures of the energy trilemma, although energy security, particularly the need to reduce dependence on imported oil, remains the most important driver.

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“…The energy mix of the country changed from a primarily hydro‐based one to a thermal‐based one, as favorable financing dropped off and private investors estimated more favorably returns from fossil‐fuel plants with their lower capital costs. According to the World Bank (Flores, ), there were a number of reasons that the new market model did not work, centering on political clientelism and weak institutions. It notes the lack of de facto unbundling, the ineffective separation of government roles between the Secretariat of Natural Resources and Environment (SERNA) and ENEE, and the lack of technical expertise in the government; the National Energy Commission (CNE) was marginalized.…”

Section: Evolution Of State‐driven Central American Electricity Systemsmentioning

confidence: 99%

“…It notes the lack of de facto unbundling, the ineffective separation of government roles between the Secretariat of Natural Resources and Environment (SERNA) and ENEE, and the lack of technical expertise in the government; the National Energy Commission (CNE) was marginalized. As a result, ENEE became the de facto regulator and operator (Flores, , p. 49). Finally, the new reliance on oil for fuel meant volatile prices, making it more difficult politically to pass on increases to customers.…”

Section: Evolution Of State‐driven Central American Electricity Systemsmentioning

confidence: 99%

“…ENEE was facing losses of U.S.$200 million per year, leading the Honduran Congress to move toward privatization and unbundling of generation, transmission, and distribution (Palencia, ). The result was an ongoing inability to invest in grid expansion and maintenance, leading to pressure for privatization (Flores, , p. 47). In May 2014, Honduras passed the General Law for the Electric Industry (Decreto No.…”

Section: Evolution Of State‐driven Central American Electricity Systemsmentioning

confidence: 99%

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Renewable Energy in Central America: One Step Forward, One Step Back, and Another Tentative Step Forward Again

Hira¹

2016

Latin American Policy

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We are at an historical crossroads. The latest IPCC report gives dire predictions about potential losses from climate change, ranging from high sea levels to deterioration of agricultural production. Although emissions are still concentrated in the North, the most‐rapid growth of emissions is occurring in the South, suggesting the need for major changes in the trajectory of its economic development. Massive aid flows for climate‐change mitigation and adaptation lack any clear framework. We begin the task by examining the evolution of Central American electricity systems, seeking to explain the exceptional ability of several countries wracked by conflict, weak institutions, and struggling economies to move toward renewable fuels. We use first‐person interviews, government documents and websites, and consultant and expert reports to examine the largely unrecognized achievements. The necessity of finding alternative energy is not in question, but how these countries overcame the financial, technical, and policy challenges should be of great interest and could potentially provide valuable lessons for other countries.

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Analysis of regulatory framework of electric power market in Honduras: Promising and essential changes

Cited by 7 publications

References 5 publications

Honduras’ Energy Policy: Post Coup d’état Energy Scenarios

Honduras’ Energy Policy: Post Coup d’état Energy Scenarios

Electricity in Central America: Paradigms, reforms and the energy trilemma

Renewable Energy in Central America: One Step Forward, One Step Back, and Another Tentative Step Forward Again

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