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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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| = Electricity Situation = | | = Electricity Situation = |
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| 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> | | 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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| == Power Generation == | | == Power Generation == |
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− | 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. | + | 80% of the power generated comes from private companies, among 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. |
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| == Transmission == | | == Transmission == |
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| 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 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. |
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| == Distribution == | | == Distribution == |
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| 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. | | 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. |
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| == Rural Electricity Situation == | | == Rural Electricity Situation == |
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| *The “National Plan of Sustainable Electrification and Renewable Energy” – PNSER” is intended to electrify more than 3,666 communities by extending the distribution network, legalizing connections in formerly established neighborhoods and constructing new networks throughout the country. This plan contemplates an investment of 381 million US$ during the next four years. BID is expected to contribute 75.5 million US$, BCIE approx. 75 million US$ and others to co finance the program as the European Investment Bank (BEI), the Agency of International Cooperation of Japan (JICA), the Bank of Imports and Exports of Korea (KEXIM), the Spanish Agency of International Cooperation for Development (AECID), and the World Bank (BM) | | *The “National Plan of Sustainable Electrification and Renewable Energy” – PNSER” is intended to electrify more than 3,666 communities by extending the distribution network, legalizing connections in formerly established neighborhoods and constructing new networks throughout the country. This plan contemplates an investment of 381 million US$ during the next four years. BID is expected to contribute 75.5 million US$, BCIE approx. 75 million US$ and others to co finance the program as the European Investment Bank (BEI), the Agency of International Cooperation of Japan (JICA), the Bank of Imports and Exports of Korea (KEXIM), the Spanish Agency of International Cooperation for Development (AECID), and the World Bank (BM) |
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| = Key Problems Hampering Access to Modern Energy Services in Rural Areas = | | = Key Problems Hampering Access to Modern Energy Services in Rural Areas = |
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| #''Insufficient financial resources to carry out dissemination programs for off-grid technologies''. | | #''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. | | #''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. | + | #''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 district 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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| = Institutional Set-up and Actors in the Energy Sector = | | = Institutional Set-up and Actors in the Energy Sector = |
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| “'''FODIEN” (Fondo para el Desarrollo de la Industria Eléctrica'''). In October 2000 the Nicaraguan government created the public fund to finance rural electrification projects. The fund is managed by MEM. FODIEN is designed to finance feasibility and pre-feasibility studies, project design, execution of projects, and education and communication campaigns in the field of rural electrification. FODIEN resources come from multilateral agencies, bilateral donors, and from the state via the general budget of the republic. In addition, the fund will be fed by concession and license fees and fines. FODIEN can finance projects through grants, soft loans, loans without interest, and commercial loans. FODIEN has only recently become operational thus the first electrification projects in rural areas have received financial contributions through this mechanism.<br/>'''INE (Instituto Nicaragüense de Energía) '''is the national regulatory authority for the power and hydrocarbon sub sectors. In the power sector INE approves tariffs, adopts technical norms, and undertakes planning functions. The mission to issue concessions and licenses to operators has currently been transferred to the MEM.<br/>As remaining state owned electricity company, '''ENEL''' manages some 23 diesel and hydroelectric powered mini-grids in the non concession areas which are heavily subsidized to meet national electricity prices. Activities carried out by ENEL are: planning, management, control, monitoring and evaluation of power generation projects. Through its Isolated Systems Division, ENEL provides electricity to the north, south and central Atlantic region, outside the concession area by DISNORTE and DISSUR utilities. '''ENATREL '''or '''National Electricity Transmission Company''' is responsible for the operation and maintenance of the national transmission system. | | “'''FODIEN” (Fondo para el Desarrollo de la Industria Eléctrica'''). In October 2000 the Nicaraguan government created the public fund to finance rural electrification projects. The fund is managed by MEM. FODIEN is designed to finance feasibility and pre-feasibility studies, project design, execution of projects, and education and communication campaigns in the field of rural electrification. FODIEN resources come from multilateral agencies, bilateral donors, and from the state via the general budget of the republic. In addition, the fund will be fed by concession and license fees and fines. FODIEN can finance projects through grants, soft loans, loans without interest, and commercial loans. FODIEN has only recently become operational thus the first electrification projects in rural areas have received financial contributions through this mechanism.<br/>'''INE (Instituto Nicaragüense de Energía) '''is the national regulatory authority for the power and hydrocarbon sub sectors. In the power sector INE approves tariffs, adopts technical norms, and undertakes planning functions. The mission to issue concessions and licenses to operators has currently been transferred to the MEM.<br/>As remaining state owned electricity company, '''ENEL''' manages some 23 diesel and hydroelectric powered mini-grids in the non concession areas which are heavily subsidized to meet national electricity prices. Activities carried out by ENEL are: planning, management, control, monitoring and evaluation of power generation projects. Through its Isolated Systems Division, ENEL provides electricity to the north, south and central Atlantic region, outside the concession area by DISNORTE and DISSUR utilities. '''ENATREL '''or '''National Electricity Transmission Company''' is responsible for the operation and maintenance of the national transmission system. |
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− | '''The National Load Dispatch Center or CNDC''' (Centro Nacional de Despacho de Carga) manage the electricity market and the operation of the national interconnected system (SIN). Among its functions are: to schedule and dispatch energy available, to operate the national interconnected grid and the national transmission system (SNT), and to coordinate the planning of preventive and corrective maintenance of the facilities of the National Interconnected System and International Interconnection.<br/>Other public institutions involved in the energy sector are:<br/>• '''The Ministerio para el Fomento, la Industria y el Comercio '''(MIFIC) it is in charge of granting concessions for the use of water in hydroelectricity projects with generation capacity between 1 MW to 30 MW. For less than 1 MW projects will not need to apply for a grant<br/>• '''The Ministerio del Ambiente y Recursos Naturales''' (MARENA) develops policies and defines norms for the enviromental sector. Based on environmental impact studies, MARENA gives permits for all activities regulated by the environmental law (Ley del Medio Ambiente). | + | '''The National Load Dispatch Center or CNDC''' (Centro Nacional de Despacho de Carga) manage the electricity market and the operation of the national interconnected system (SIN). Among its functions are: to schedule and dispatch energy available, to operate the national interconnected grid and the national transmission system (SNT), and to coordinate the planning of preventive and corrective maintenance of the facilities of the National Interconnected System and International Interconnection.<br/>Other public institutions involved in the energy sector are:<br/>• '''The Ministerio para el Fomento, la Industria y el Comercio '''(MIFIC) it is in charge of granting concessions for the use of water in hydroelectricity projects with generation capacity between 1 MW to 30 MW. For less than 1 MW projects will not need to apply for a grant<br/>• '''The Ministerio del Ambiente y Recursos Naturales''' (MARENA) develops policies and defines norms for the environmental sector. Based on environmental impact studies, MARENA gives permits for all activities regulated by the environmental law (Ley del Medio Ambiente). |
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| == Non Governmental Services Providers for Rural Areas in the Energy Sector == | | == Non Governmental Services Providers for Rural Areas in the Energy Sector == |
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| *'''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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| = Policy framework = | | = Policy framework = |
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| <u>The key primary and secondary laws and regulations for the power sector are:</u> | | <u>The key primary and secondary laws and regulations for the power sector are:</u> |
− | *'''“Electricity Industry Law” '''(Ley de la Industria Eléctrica) (No 272-1998) and “Electricity Industry Law Regulation” (Decree No. 42-1998). This law defines actors, their role and responsibilities on energy sector, also determine the activities that can be develop on energy sector such as generation, transmition, distribution, marketing, importation and exportation; and establishes the conditions to do it. | + | *'''“Electricity Industry Law” '''(Ley de la Industria Eléctrica) (No 272-1998) and “Electricity Industry Law Regulation” (Decree No. 42-1998). This law defines actors, their role and responsibilities on energy sector, also determine the activities that can be develop on energy sector such as generation, transmission, distribution, marketing, importation and exportation; and establishes the conditions to do it. |
| *'''“Renewable energy promotion law” '''(Ley para la Promoción de Generación Eléctrica con Fuentes Renovables) (No. 532-2005), declares that renewable energy based power generation is of national interest. Additionally, it establishes economic incentives and priority rights when contracting new RE generation. The law established the following incentives for all equipment and materials necessary to establish power generation with renewable energies: i) exoneration of import taxes, value added tax , income tax for seven years for the operation of renewable energypower plants and all local taxes as well as other taxes; and ii) obligation of utilities to buy power generated from renewable energy plants. | | *'''“Renewable energy promotion law” '''(Ley para la Promoción de Generación Eléctrica con Fuentes Renovables) (No. 532-2005), declares that renewable energy based power generation is of national interest. Additionally, it establishes economic incentives and priority rights when contracting new RE generation. The law established the following incentives for all equipment and materials necessary to establish power generation with renewable energies: i) exoneration of import taxes, value added tax , income tax for seven years for the operation of renewable energypower plants and all local taxes as well as other taxes; and ii) obligation of utilities to buy power generated from renewable energy plants. |
| *'''“Hydroelectric sub-sector promotion law” '''(Ley para la promocion del sub-sector hidroelectrico) (No. 467-2003) and “Sub-sector hydroelectric promotion regulation” (Decree No 72-2003), sets the maximum generation capacity that can be generated for private investors, also sets the conditions to obtain a generation authorization. | | *'''“Hydroelectric sub-sector promotion law” '''(Ley para la promocion del sub-sector hidroelectrico) (No. 467-2003) and “Sub-sector hydroelectric promotion regulation” (Decree No 72-2003), sets the maximum generation capacity that can be generated for private investors, also sets the conditions to obtain a generation authorization. |
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| *'''“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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| = Further Information = | | = Further Information = |
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| *[https://energypedia.info/EnDev-Nicaragua EnDev-Nicaragua] | | *[https://energypedia.info/EnDev-Nicaragua EnDev-Nicaragua] |
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| = References = | | = References = |
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| <references /> | | <references /> |
| + | |
| + | [[Category:Nicaragua]] |
| + | [[Category:Country_Energy_Situation]] |
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, among 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]
The energy sector is regulated through several laws, decrees and norms.