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| − | = Energy situation, especially in rural areas = | + | = Overview = |
| | | | |
| − | == Energy demand and supply in the household sector == | + | Nicaragua has one of the lowest electrification rates in Central America, approximately 65%<ref name="IBD,2010">IDB.2010. National sustainable electrification and renewable energy program (PNESER): first loan. IDB. Managua, Nicaragua. 36 p.</ref> of the population compared to 99.2% coverage in Costa Rica<ref name="ARECA,2009">Proyecto ARECA. 2009. Análisis del mercado nicaragüense de energía renovable. Gerencia de Productos y programas de desarrollo, BCIE. Tegucigalpa, Honduras. 137 p.</ref>. About 68% of the rural population still lacks access to electricity<ref name="MEM,rural">MEM.2010. Electrificación rural: descripción general, estado actual de la electrificación rural en Nicaragua. Acceso online 15.10.10 http://www.mem.gob.ni</ref> . In absolute terms, it is estimated that a total of about 340,000 dwellings (1.8 million people) in both urban and rural areas lack electricity service<ref name="INE,balance SIN">_</ref>. |
| | + | |
| | + | = Energy situation = |
| | | | |
| | Residential energy consumption is around 47.6% of the total energy consumption<ref name="Rep. Nicaragua, 2008">Republica de Nicaragua.2008.Informe público de las políticas y regulaciones relativas a los servicios de energía, alivio de la pobreza y promoción de recursos renovables en las municipalidades de Nicaragua. s.l. 27 p.</ref>, of which 94.4% are provided by fuel wood. | | Residential energy consumption is around 47.6% of the total energy consumption<ref name="Rep. Nicaragua, 2008">Republica de Nicaragua.2008.Informe público de las políticas y regulaciones relativas a los servicios de energía, alivio de la pobreza y promoción de recursos renovables en las municipalidades de Nicaragua. s.l. 27 p.</ref>, of which 94.4% are provided by fuel wood. |
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| | The net electricity offer is around 3,150.98 GWh <ref name="INE, generacion bruta">INE.2010. Estadísticas del Sector eléctrico: generación neta por tipo de combustible. Instituto Nicaragua de energía. Acceso online. http://www.ine.gob.ni (Oct, 2010)</ref>, but 28.4% of the electricity generated is lost during transmission (2%) and distribution (26%), of which 18% are classified as non-technical and the remaining percent as technical.<ref name="MEM,guia">MEM. 2010. Guía del inversionista: invirtiendo en el sector eléctrico de Nicaragua. Ministerio de Energía y Minas, Gobierno de Nicaragua. 62 p.</ref><br/>The load factor of the installed generation capacity is 68.56%<ref name="INE,balance SIN">INE.2008.Balance de energía en el SIN: año 2008. Acceso online http://www.mem.gob.ni (Oct, 2010)</ref>, similar to the load factors of neighboring countries. During 2007 the effective energy supply generation was reduced to less than 500MW due to scant rainfall that reduce the use of hydro electrical power plants, as well as flaws on old generation plants; which causing frequent current outages.<br/>To address this crisis, the Government of Nicaragua decided to install 60 MW with diesel generators, in 2008 60 Mw with bunker generators, and between 2009 and 2010, 120 MW with bunker generators<ref name="MEM,guia">_</ref>. All of those operated with fuel which is sold by the Government of Venezuela at subsidized prices.<br/>With those new additions, the installed capacity is around 1015.6 MW (effective 836.6 MW) of which 66% is petrol, 9% biomass, 11% hydro electrical, 9% geothermic and 5% wind power plants<ref name="MEM,guia">_</ref>. | | The net electricity offer is around 3,150.98 GWh <ref name="INE, generacion bruta">INE.2010. Estadísticas del Sector eléctrico: generación neta por tipo de combustible. Instituto Nicaragua de energía. Acceso online. http://www.ine.gob.ni (Oct, 2010)</ref>, but 28.4% of the electricity generated is lost during transmission (2%) and distribution (26%), of which 18% are classified as non-technical and the remaining percent as technical.<ref name="MEM,guia">MEM. 2010. Guía del inversionista: invirtiendo en el sector eléctrico de Nicaragua. Ministerio de Energía y Minas, Gobierno de Nicaragua. 62 p.</ref><br/>The load factor of the installed generation capacity is 68.56%<ref name="INE,balance SIN">INE.2008.Balance de energía en el SIN: año 2008. Acceso online http://www.mem.gob.ni (Oct, 2010)</ref>, similar to the load factors of neighboring countries. During 2007 the effective energy supply generation was reduced to less than 500MW due to scant rainfall that reduce the use of hydro electrical power plants, as well as flaws on old generation plants; which causing frequent current outages.<br/>To address this crisis, the Government of Nicaragua decided to install 60 MW with diesel generators, in 2008 60 Mw with bunker generators, and between 2009 and 2010, 120 MW with bunker generators<ref name="MEM,guia">_</ref>. All of those operated with fuel which is sold by the Government of Venezuela at subsidized prices.<br/>With those new additions, the installed capacity is around 1015.6 MW (effective 836.6 MW) of which 66% is petrol, 9% biomass, 11% hydro electrical, 9% geothermic and 5% wind power plants<ref name="MEM,guia">_</ref>. |
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| | + | Go To Top |
| | + | |
| | + | = Electricity Situation = |
| | + | |
| | + | Nicaragua's power sector underwent a deep restructuring during 1998-99, when the generation, transmission and distribution divisions of the state-owned '''Empresa Nicaraguense de Electricidad (ENEL)''' were unbundled, and the privatization of the generation and distribution activities allowed. A wholesale market was created, which allowed electricity trading through long term contracts between generating companies and utilities or large users (more than 2 MW of installed capacity). A spot market also exists.<br/>Four generation companies (GEMOSA, GEOSA, HIDROGESA, and GECSA) a transmission company ENTRESA and two distribution companies (DISNORTE and DISSUR) were created. Two generation companies were sold and are now privately operated; the transmission is expected to remain public and the two utilities were sold to the Spanish company Unión Fenosa in September 2000, with a concession that covers the Western, Central and Northern zones of the country. The eastern part of the country along the Atlantic Coast remains in the responsibility of ENEL which manages some mini-grids at the Atlantic coastline.<ref name="MEM,agentes">MEM.2010. Agentes productores conectados al sistema interconectado del mercado electrico nacional. Direccion de mercado eléctrico, Ministerio de Energia y minas. Acceso online: http://www.mem.gob.ni</ref> |
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| | <br/> | | <br/> |
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| − | == Rural Electricity Supply == | + | == Power Generation == |
| | | | |
| − | Nicaragua has one of the lowest electrification rates in Central America, approximately 65%<ref name="IBD,2010">IDB.2010. National sustainable electrification and renewable energy program (PNESER): first loan. IDB. Managua, Nicaragua. 36 p.</ref> of the population compared to 99.2% coverage in Costa Rica<ref name="ARECA,2009">Proyecto ARECA. 2009. Análisis del mercado nicaragüense de energía renovable. Gerencia de Productos y programas de desarrollo, BCIE. Tegucigalpa, Honduras. 137 p.</ref>. About 68% of the rural population still lacks access to electricity<ref name="MEM,rural">MEM.2010. Electrificación rural: descripción general, estado actual de la electrificación rural en Nicaragua. Acceso online 15.10.10 http://www.mem.gob.ni</ref> . In absolute terms, it is estimated that a total of about 340,000 dwellings (1.8 million people) in both urban and rural areas lack electricity service<ref name="INE,balance SIN">_</ref>.
| + | 80% of the power generated comes from private companies, amongst which we find: Consorcio Eolico Amayo operating since 2009 with an effective capacity of 30 MW. The Coastal Power that runs two thermal power stations, ‘Nicaragua’ and ‘Chinandega’, with a combined effective capacity of 114 MW. Other private thermal power stations are CENSA-AMFELS, Tipitapa power company and ENRON with the following effective capacities: 24 MW, 50.9 MW and 50 MW, respectively.<br/>Currently all geothermal and biomass power stations are private owned. Geothermal power plants include ORMAT (22 MW), Polaris Energy Nicaragua (4.8 MW) and GESARSA (4.2 MW). The biomass power plants Monterosa and Nicaragua Sugar Ltd., both of them generate electricity from sugarcane bagasse.<br/>The state owned companies are Albanisa thermal power plant (97.6 MW), GECSA manages the three thermal power plants ‘Managua’ (50MW), Hugo Chavez Flores-Las Brisas (43.2 MW) and ‘Las Brisas’ (54MW), and HIDROGESA hydroelectric power plant with a effective capacity of 96 MW. |
| | + | |
| | + | <br/> |
| | + | |
| | + | == Transmission == |
| | + | |
| | + | The transmission company Empresa Nacional de Transmisión Eléctrica S.A. (ENATREL) remains a government-owned company and is responsible for the management of the transmission lines and the international electricity exchange, which is managed by the CNDC (Centro Nacional de Despacho de Carga). As indicated above, CNDC is responsible for the dispatching functions. |
| | + | |
| | + | == <br/>Distribution == |
| | + | |
| | + | the energy distribution is carried out by Union Fenosa, ENEL, Zelaya Luz S.A. and small dealerships which manage some isolated systems. Unión Fenosa is a private-state owned utility which got the concession for the national grid covering the Western, Central, and Northern zones of the country trough two distribution systems: Disnorte and Dissur. In the concession areas, Unión Fenosa holds a monopoly on distribution and retail supply except for final consumers with a power demand higher than 2 MW, who can contract directly with generators if so they wish.<br/>As mentioned before, ENEL through its Isolated Systems Division, provides electricity to the north, south and central Atlantic region, outside the concession area by DISNORTE and DISSUR utilities.<br/>Since 2006 and for a period of 30 years the Zelaya Luz S.A., private owned utility, can distribute and market energy in the Nueva Guinea municipality located on the South Atlantic Autonomous Region (RASS). The energy supply to Zelaya Luz S.A is provided by DISSUR and it is expected that 250 dwellings access electricity through this utility.<br/>The small dealerships are 10 small utilities which also generate their own electricity; all of them provide electricity to remote rural villages and small urban municipalities, located on the eastern and central region. Of these utilities, 60% have an installed capacity of less than 500 Kw. Some of them are describe in the section below. |
| | + | |
| | + | <br/> |
| | | | |
| − | <br/>The national electricity is subdivided into two concession areas covering only the western part of the country. More than half of the country on the Caribbean and Atlantic coasts remains outside of these concession areas, including half of the Rio San Juan Region, the Region Autonoma Atlántico Sur (RAAS), the Region Autonoma Atlántico Norte (RAAN) and two thirds of the Jinotega region, Matagalpa, Boaco, Chontales and Rio San Juan.
| + | == Rural Electricity Situation == |
| | + | |
| | + | The national electricity is subdivided into two concession areas covering only the western part of the country. More than half of the country on the Caribbean and Atlantic coasts remains outside of these concession areas, including half of the Rio San Juan Region, the Region Autonoma Atlántico Sur (RAAS), the Region Autonoma Atlántico Norte (RAAN) and two thirds of the Jinotega region, Matagalpa, Boaco, Chontales and Rio San Juan. |
| | | | |
| | <br/>The area not covered by the SIN is called the “Open Area.” This area remains open to be divided into smaller concession areas on a case-by-case basis. The Open Area is characterized by very low population density—only 6 inhabitants per square kilometer, average electricity consumption is 60 KWh per month, there is a low load factor, low incomes, the dwellings have a wide spread and the communities are located far from the energy distribution net<ref name="Plan,2004">Gobierno de Nicaragua.2004. Plan nacional de electrificacion rural.</ref>. | | <br/>The area not covered by the SIN is called the “Open Area.” This area remains open to be divided into smaller concession areas on a case-by-case basis. The Open Area is characterized by very low population density—only 6 inhabitants per square kilometer, average electricity consumption is 60 KWh per month, there is a low load factor, low incomes, the dwellings have a wide spread and the communities are located far from the energy distribution net<ref name="Plan,2004">Gobierno de Nicaragua.2004. Plan nacional de electrificacion rural.</ref>. |
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| − | = Institutional Set-up and Actors in the Energy Sector = | + | = Key Problems Hampering Access to Modern Energy Services in Rural Areas = |
| | | | |
| − | Nicaragua's power sector underwent a deep restructuring during 1998-99, when the generation, transmission and distribution divisions of the state-owned '''Empresa Nicaraguense de Electricidad (ENEL)''' were unbundled, and the privatization of the generation and distribution activities allowed. A wholesale market was created, which allowed electricity trading through long term contracts between generating companies and utilities or large users (more than 2 MW of installed capacity). A spot market also exists.<br/>Four generation companies (GEMOSA, GEOSA, HIDROGESA, and GECSA) a transmission company ENTRESA and two distribution companies (DISNORTE and DISSUR) were created. Two generation companies were sold and are now privately operated; the transmission is expected to remain public and the two utilities were sold to the Spanish company Unión Fenosa in September 2000, with a concession that covers the Western, Central and Northern zones of the country. The eastern part of the country along the Atlantic Coast remains in the responsibility of ENEL which manages some mini-grids at the Atlantic coastline. | + | == Obstacles for Grid-based Rural Electrification == |
| | + | |
| | + | <u>Several factors handicap rural electrification in Nicaragua, among of which are:</u> |
| | + | #''Insufficient financial resources for investments in grid extension and installation of minigrids''. Unión Fenosa is not interested in grid extension into rural areas, as the profitability of the investment is considered low. The same refers for establishing mini grids in rural areas. Private companies generally do not invest in this sector as cost of providing access are high due to remoteness of the sites, dispersed nature of the populations and difficulty of the terrain. Local communities do not dispose of sufficient proper financial resources to make infrastructure investments in their community. Consequently, only the central government and NGOs are left for this kind of investment. NGOs are specialized on small systems whereas the MEM is involved in middle size systems. However, both depend to large degree from international donations to be able to carry out mayor investment in rural electrification. In the case of MEM less than 30% of the calculated costs of the national rural electrification plan are currently covered by international grants and loans. |
| | + | #''Lack of skills in operating small power generating plants and mini grids.'' Although there are several examples where micro and mini hydropower plants are managed successfully in rural areas in Nicaragua, the number of sufficiently qualified persons is low. This refers to technical skills necessary to maintain and repair the system as well as to management skills regarding appropriate tariff-setting and operation of the plant. |
| | + | #''Difficulty to operate mini-grid profitability due to the low purchasing power and the low energy demand of rural clients.'' |
| | | | |
| | <br/> | | <br/> |
| | + | |
| | + | == Obstacles for Off-grid Energy Technologies and Services == |
| | + | |
| | + | #''Insufficient financial resources to carry out dissemination programs for off-grid technologies''. |
| | + | #''Insufficient availability of micro-finance schemes for energy technologies in rural areas.'' Large parts of the country have almost no access to institutional micro-finance services and must rely largely on moneylenders, suppliers, family and friends for short term seasonal loans. There are no secure liquid savings options available to these households, which would enable them to build assets over time. Existing micro-finance institutions often have a narrow credit product line, limited experience in rural markets and a lack of access to best practice information and technical tools. |
| | + | #''Lack of a marketing and maintenance structure for energy technology devices in rural areas''. Almost all retailers are established in towns with no outlets in remote rural communities. Thus, clients have to travel to the distric capitals to purchase energy devices and for repair orders. However the high costs for transportation and mobilization, the dispersed nature of the populations of the local population are still considered a challenge. |
| | + | # |
| | + | |
| | + | = Institutional Set-up and Actors in the Energy Sector = |
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| | == Public Institutions == | | == Public Institutions == |
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| − | == Electricity Companies <ref name="MEM,agentes">MEM.2010. Agentes productores conectados al sistema interconectado del mercado electrico nacional. Direccion de mercado eléctrico, Ministerio de Energia y minas. Acceso online: http://www.mem.gob.ni</ref> == | + | == Non Governmental Services Providers for Rural Areas in the Energy Sector == |
| − | | + | |
| − | === Power Generation ===
| + | |
| − | | + | |
| − | 80% of the power generated comes from private companies, amongst which we find: Consorcio Eolico Amayo operating since 2009 with an effective capacity of 30 MW. The Coastal Power that runs two thermal power stations, ‘Nicaragua’ and ‘Chinandega’, with a combined effective capacity of 114 MW. Other private thermal power stations are CENSA-AMFELS, Tipitapa power company and ENRON with the following effective capacities: 24 MW, 50.9 MW and 50 MW, respectively.<br/>Currently all geothermal and biomass power stations are private owned. Geothermal power plants include ORMAT (22 MW), Polaris Energy Nicaragua (4.8 MW) and GESARSA (4.2 MW). The biomass power plants Monterosa and Nicaragua Sugar Ltd., both of them generate electricity from sugarcane bagasse.<br/>The state owned companies are Albanisa thermal power plant (97.6 MW), GECSA manages the three thermal power plants ‘Managua’ (50MW), Hugo Chavez Flores-Las Brisas (43.2 MW) and ‘Las Brisas’ (54MW), and HIDROGESA hydroelectric power plant with a effective capacity of 96 MW.
| + | |
| − | | + | |
| − | <br/>
| + | |
| − | | + | |
| − | === Transmission ===
| + | |
| − | | + | |
| − | The transmission company Empresa Nacional de Transmisión Eléctrica S.A. (ENATREL) remains a government-owned company and is responsible for the management of the transmission lines and the international electricity exchange, which is managed by the CNDC (Centro Nacional de Despacho de Carga). As indicated above, CNDC is responsible for the dispatching functions.
| + | |
| − | | + | |
| − | === <br/>Distribution ===
| + | |
| − | | + | |
| − | the energy distribution is carried out by Union Fenosa, ENEL, Zelaya Luz S.A. and small dealerships which manage some isolated systems. Unión Fenosa is a private-state owned utility which got the concession for the national grid covering the Western, Central, and Northern zones of the country trough two distribution systems: Disnorte and Dissur. In the concession areas, Unión Fenosa holds a monopoly on distribution and retail supply except for final consumers with a power demand higher than 2 MW, who can contract directly with generators if so they wish.<br/>As mentioned before, ENEL through its Isolated Systems Division, provides electricity to the north, south and central Atlantic region, outside the concession area by DISNORTE and DISSUR utilities.<br/>Since 2006 and for a period of 30 years the Zelaya Luz S.A., private owned utility, can distribute and market energy in the Nueva Guinea municipality located on the South Atlantic Autonomous Region (RASS). The energy supply to Zelaya Luz S.A is provided by DISSUR and it is expected that 250 dwellings access electricity through this utility.<br/>The small dealerships are 10 small utilities which also generate their own electricity; all of them provide electricity to remote rural villages and small urban municipalities, located on the eastern and central region. Of these utilities, 60% have an installed capacity of less than 500 Kw. Some of them are describe in the section below.
| + | |
| − | | + | |
| − | == <br/>Non Governmental Services Providers for Rural Areas in the Energy Sector ==
| + | |
| | | | |
| | <u>'''Projects implementing NGOs: '''Nicaragua has a well developed NGO sector with several organisations working in the field of energy. The most important are:</u> | | <u>'''Projects implementing NGOs: '''Nicaragua has a well developed NGO sector with several organisations working in the field of energy. The most important are:</u> |
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| | *'''Blue Energy '''is a NGO that provides solutions to the energy needs of marginalized communities through the construction, installation, and maintenance of hybrid wind and solar electric systems. It is creating the local capacity needed to support the operation of the energy systems and leverages strategic partnerships to create other basic services such as water and communications. Their activities are concentrated in the Atlantic Coast (RAAS). | | *'''Blue Energy '''is a NGO that provides solutions to the energy needs of marginalized communities through the construction, installation, and maintenance of hybrid wind and solar electric systems. It is creating the local capacity needed to support the operation of the energy systems and leverages strategic partnerships to create other basic services such as water and communications. Their activities are concentrated in the Atlantic Coast (RAAS). |
| | *'''RENOVABLES '''is the Nicaraguan Renewable Energy and Environment Association, a group that comprises private, non-governmental and educational organizations active in renewable energies. Its aims are to:<br/>a) establish an official communication channel with the MEM,<br/>b) take part in national energy strategic planning and contribute to the implementation of the national energy strategy;<br/>c) take part and strengthen renewable energy events in the country and<br/>d) advance on updating energy legal framework proposals.<br/> | | *'''RENOVABLES '''is the Nicaraguan Renewable Energy and Environment Association, a group that comprises private, non-governmental and educational organizations active in renewable energies. Its aims are to:<br/>a) establish an official communication channel with the MEM,<br/>b) take part in national energy strategic planning and contribute to the implementation of the national energy strategy;<br/>c) take part and strengthen renewable energy events in the country and<br/>d) advance on updating energy legal framework proposals.<br/> |
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| | *'''“National Energy Policy”''' (Política energética nacional) (Decree No 13-2004) its main objectives are to ensure the country's energy requirements, prioritize the usage of clean renewable energy sources within national energy matrix, allocating resources and mechanisms in order to obtain the maximal benefits, promoting stability in the costs of power generation in the country through renewable energy sources, establish incentives for investments that produce acceptable cost, diversified supply, clean generation and efficient use, promote anti-monopoly and competitive behavior in the energy sector, promote energy sector participation on the Integrated Regional energy markets, and others. | | *'''“National Energy Policy”''' (Política energética nacional) (Decree No 13-2004) its main objectives are to ensure the country's energy requirements, prioritize the usage of clean renewable energy sources within national energy matrix, allocating resources and mechanisms in order to obtain the maximal benefits, promoting stability in the costs of power generation in the country through renewable energy sources, establish incentives for investments that produce acceptable cost, diversified supply, clean generation and efficient use, promote anti-monopoly and competitive behavior in the energy sector, promote energy sector participation on the Integrated Regional energy markets, and others. |
| | *'''“PLANER”, '''based on the National Development Plan (PND), a national program for rural electrification (PLANER) was developed. The aim of the program is to achieve a national electrification rate of 70% by 2013. In absolute figures it means to provide 1,585,909 people with access to electricity. The program costs are calculated to be 344 million US $ or 189 US $ per person. The Government's sees the expansion of electricity services in the rural areas as part of its strategy to improve the competitiveness of the country through the strengthening of rural economic activities, and as a tool to improve the living standards of the rural population. The Government however, is also aware, that the electricity sector would be able to contribute to the achievement of this ambitious goal only if electrification is combined with the promotion of economic activities in rural areas. Therefore, the Government's strategy aims at strengthening rural businesses by upgrading agricultural technology, promoting integrated clusters and networks for the dairy and coffee sector, and by training trainers to deliver business development services to rural areas. | | *'''“PLANER”, '''based on the National Development Plan (PND), a national program for rural electrification (PLANER) was developed. The aim of the program is to achieve a national electrification rate of 70% by 2013. In absolute figures it means to provide 1,585,909 people with access to electricity. The program costs are calculated to be 344 million US $ or 189 US $ per person. The Government's sees the expansion of electricity services in the rural areas as part of its strategy to improve the competitiveness of the country through the strengthening of rural economic activities, and as a tool to improve the living standards of the rural population. The Government however, is also aware, that the electricity sector would be able to contribute to the achievement of this ambitious goal only if electrification is combined with the promotion of economic activities in rural areas. Therefore, the Government's strategy aims at strengthening rural businesses by upgrading agricultural technology, promoting integrated clusters and networks for the dairy and coffee sector, and by training trainers to deliver business development services to rural areas. |
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| − | = Key Problems Hampering Access to Modern Energy Services in Rural Areas =
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| − |
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| − | == Obstacles for Grid-based Rural Electrification ==
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| − |
| |
| − | <u>Several factors handicap rural electrification in Nicaragua, among of which are:</u>
| |
| − | #''Insufficient financial resources for investments in grid extension and installation of minigrids''. Unión Fenosa is not interested in grid extension into rural areas, as the profitability of the investment is considered low. The same refers for establishing mini grids in rural areas. Private companies generally do not invest in this sector as cost of providing access are high due to remoteness of the sites, dispersed nature of the populations and difficulty of the terrain. Local communities do not dispose of sufficient proper financial resources to make infrastructure investments in their community. Consequently, only the central government and NGOs are left for this kind of investment. NGOs are specialized on small systems whereas the MEM is involved in middle size systems. However, both depend to large degree from international donations to be able to carry out mayor investment in rural electrification. In the case of MEM less than 30% of the calculated costs of the national rural electrification plan are currently covered by international grants and loans.
| |
| − | #''Lack of skills in operating small power generating plants and mini grids.'' Although there are several examples where micro and mini hydropower plants are managed successfully in rural areas in Nicaragua, the number of sufficiently qualified persons is low. This refers to technical skills necessary to maintain and repair the system as well as to management skills regarding appropriate tariff-setting and operation of the plant.
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| − | #''Difficulty to operate mini-grid profitability due to the low purchasing power and the low energy demand of rural clients.''
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| − | == Obstacles for Off-grid Energy Technologies and Services ==
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| − |
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| − | #''Insufficient financial resources to carry out dissemination programs for off-grid technologies''.
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| − | #''Insufficient availability of micro-finance schemes for energy technologies in rural areas.'' Large parts of the country have almost no access to institutional micro-finance services and must rely largely on moneylenders, suppliers, family and friends for short term seasonal loans. There are no secure liquid savings options available to these households, which would enable them to build assets over time. Existing micro-finance institutions often have a narrow credit product line, limited experience in rural markets and a lack of access to best practice information and technical tools.
| |
| − | #''Lack of a marketing and maintenance structure for energy technology devices in rural areas''. Almost all retailers are established in towns with no outlets in remote rural communities. Thus, clients have to travel to the distric capitals to purchase energy devices and for repair orders. However the high costs for transportation and mobilization, the dispersed nature of the populations of the local population are still considered a challenge.
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| − | [[Category:Country_Energy_Situation]]
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| − | [[Category:Nicaragua]]
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Nicaragua has one of the lowest electrification rates in Central America, approximately 65%[1] of the population compared to 99.2% coverage in Costa Rica[2]. About 68% of the rural population still lacks access to electricity[3] . In absolute terms, it is estimated that a total of about 340,000 dwellings (1.8 million people) in both urban and rural areas lack electricity service[4].
Gross electricity generation of the SIN (national interconnected grid) and isolated power stations registered is in 2010 was around 3,450 GWh. These are produced by the following types of power plants[6]:
Nicaragua's power sector underwent a deep restructuring during 1998-99, when the generation, transmission and distribution divisions of the state-owned Empresa Nicaraguense de Electricidad (ENEL) were unbundled, and the privatization of the generation and distribution activities allowed. A wholesale market was created, which allowed electricity trading through long term contracts between generating companies and utilities or large users (more than 2 MW of installed capacity). A spot market also exists.
Four generation companies (GEMOSA, GEOSA, HIDROGESA, and GECSA) a transmission company ENTRESA and two distribution companies (DISNORTE and DISSUR) were created. Two generation companies were sold and are now privately operated; the transmission is expected to remain public and the two utilities were sold to the Spanish company Unión Fenosa in September 2000, with a concession that covers the Western, Central and Northern zones of the country. The eastern part of the country along the Atlantic Coast remains in the responsibility of ENEL which manages some mini-grids at the Atlantic coastline.[9]
80% of the power generated comes from private companies, amongst which we find: Consorcio Eolico Amayo operating since 2009 with an effective capacity of 30 MW. The Coastal Power that runs two thermal power stations, ‘Nicaragua’ and ‘Chinandega’, with a combined effective capacity of 114 MW. Other private thermal power stations are CENSA-AMFELS, Tipitapa power company and ENRON with the following effective capacities: 24 MW, 50.9 MW and 50 MW, respectively.
Currently all geothermal and biomass power stations are private owned. Geothermal power plants include ORMAT (22 MW), Polaris Energy Nicaragua (4.8 MW) and GESARSA (4.2 MW). The biomass power plants Monterosa and Nicaragua Sugar Ltd., both of them generate electricity from sugarcane bagasse.
The state owned companies are Albanisa thermal power plant (97.6 MW), GECSA manages the three thermal power plants ‘Managua’ (50MW), Hugo Chavez Flores-Las Brisas (43.2 MW) and ‘Las Brisas’ (54MW), and HIDROGESA hydroelectric power plant with a effective capacity of 96 MW.
The transmission company Empresa Nacional de Transmisión Eléctrica S.A. (ENATREL) remains a government-owned company and is responsible for the management of the transmission lines and the international electricity exchange, which is managed by the CNDC (Centro Nacional de Despacho de Carga). As indicated above, CNDC is responsible for the dispatching functions.
the energy distribution is carried out by Union Fenosa, ENEL, Zelaya Luz S.A. and small dealerships which manage some isolated systems. Unión Fenosa is a private-state owned utility which got the concession for the national grid covering the Western, Central, and Northern zones of the country trough two distribution systems: Disnorte and Dissur. In the concession areas, Unión Fenosa holds a monopoly on distribution and retail supply except for final consumers with a power demand higher than 2 MW, who can contract directly with generators if so they wish.
As mentioned before, ENEL through its Isolated Systems Division, provides electricity to the north, south and central Atlantic region, outside the concession area by DISNORTE and DISSUR utilities.
Since 2006 and for a period of 30 years the Zelaya Luz S.A., private owned utility, can distribute and market energy in the Nueva Guinea municipality located on the South Atlantic Autonomous Region (RASS). The energy supply to Zelaya Luz S.A is provided by DISSUR and it is expected that 250 dwellings access electricity through this utility.
The small dealerships are 10 small utilities which also generate their own electricity; all of them provide electricity to remote rural villages and small urban municipalities, located on the eastern and central region. Of these utilities, 60% have an installed capacity of less than 500 Kw. Some of them are describe in the section below.
The national electricity is subdivided into two concession areas covering only the western part of the country. More than half of the country on the Caribbean and Atlantic coasts remains outside of these concession areas, including half of the Rio San Juan Region, the Region Autonoma Atlántico Sur (RAAS), the Region Autonoma Atlántico Norte (RAAN) and two thirds of the Jinotega region, Matagalpa, Boaco, Chontales and Rio San Juan.
The government currently has a goal of achieving 87% rural electrification rate by 2016.[11]
