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Honduras uses the most solar energy is the world

Adrienne SorensenJuly 23, 2018 1869 0

Honduras uses the most solar energy is the world 

Central America is a region composed of countries that have deployed large volumes of renewable energy to date. The nation with the highest portion of solar generation in its electricity mix is Honduras. This nation consists of 8 million people, with a per-capita gross domestic product of $5,000 per capita, and grave social problems. Not only does it get more than 10% of its electricity yearly from solar they continue to install renewable energy. The stereotype of energy transition doesn’t belong to wealthy nations has been proven incorrect. 


Honduras leads by solar energy example 

Latin and central america is a laboratory for deployment of renewable energy. Central American nations are applying  different means to procure solar. Developers are also testing various approaches that haven’t been applied elsewhere. Some of these more creative approaches includes auctions, feed-in tariffs, sale of electricity on the spot market, and bilateral negotiation of contracts. Some have achieved some of the highest penetrations of renewable energy deployed to date. With record breaking numbers in central america, how are solar energy being integrated into national and regional grids? How is this possible when some of these grids are geographically isolated and in poor shape? This is an issue for solar since much 
procurement goes on yearly.


Ways to be solar creative

Auctions. Auctions are one of the more popular methods to add solar energy in Central America. Auctions for renewables have already been awarded  more than 300 megawatts (MW) of solar PV in Guatemala, El Salvador and Panama. Around a third of the capacity is already in operation. It continues to be the main source of opportunities for solar in the region.Guatemala is where three solar parks totaling 85 MW awarded in auctions are in operation. Panama contracted electricity from solar parks in a long-term supply auction. Its the  only country in the region where auction only for solar projects has taken place. The auction took place in 2014  and two solar projects were signed. The average price for the solar projects awarded was US$87.25 per megawatt hour.
The other country in which solar projects have been awarded recently is El Salvador. In a solar energy, four solar projects with 120 MW were awarded this year.  An average price of US $51.48 per megawatt-hour. This is the lowest price for solar in the region. 

The solar capacity online in Central America was not contracted through auctions but through a feed-in-tariff (FIT) program which Honduras launched in 2013. A cap of 300 MW for projects to receive a bonus of three U.S. cents per kilowatt-hour was created. To obtain this higher tariff, the projects had to be in operation before the first of August 2015. Honduras is the leader in solar capacity in Central America. 388 MW of solar PV were commissioned in 2015 and further 45 MW in 2016, so that the nation achieved a cumulated capacity of 433 MW of solar PV, according to the state utility ENEE. The French Development Agency (AFD) has supported one of the largest projects in the region with financing, the 101 MW Providencia solar project in El Salvador. And even Spain is supporting a 1.4 MW solar project in a university in Honduras.

These nations are aggressively adding renewable energy, partly because they don’t have power plants. Central America has a very small coal mining industry and has no gas pipelines from outside the region. They have already broken new ground and serves as an example for nations around the world. Central America’s transition to renewable energy has demonstrated that small developing nations can be world leaders.

If you want to move into the future and join the solar revolution, or if you want to find out what solar panels are right for you, go to HahaSmart.com and try our price checker tool. You can see how much a system will cost, and how much you can save over the next 20 years. For more information relating to going solar, don't forget to visit our solar blog section for more handy guides and articles. 

 

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