Nicaragua's Energy Generation Capacity Increases

    WASHINGTON, DC, March 27, 2010 /24-7PressRelease/ -- Nicaragua's energy generation capacity recently surpassed 1,000 megawatts (MW) after the establishment of a 27.2MW energy generation plant of Taiwanese origin in the city of Leon. The total capacity of this US$30 million investment project represents 5.5 percent of the country's total demand and will be able provide electric service to over 68,000 additional households.

As a result of the Government of Nicaragua's pro-investment policies, especially in the energy sector, the country's energy generation capacity has increased in over 300MW. The government has openly expressed its interest in promoting this sector in order to extend electric service to other areas of the country.

Additionally, the government has set the goal of transforming the country's energy generation matrix to increase the use of renewable sources from 35 percent today to 86 percent by 2015. The Renewable Energy Incentives Law (Law 532) has fostered the establishment of several alternative energy projects such as wind power, hydroelectric, biomass and geothermal.

One of the most emblematic projects underway is Tumarin, the largest hydroelectric project in the country built by Brazilian company Queiroz Galvao in partnership with Electrobras. Tumarin will begin construction in a few months and represents an estimated investment of US$600 million, with an energy generation capacity of up to 220 MW once fully operational. The project is expected to begin operations in 2014 and, once completed, will supply 25 percent of Nicaragua's energy demand.

Estimates from the Ministry of Energy and Mines (MEM, for its acronym in Spanish) indicate that Nicaragua has a renewable energy potential of 4,500 MW, of which only 234 MW are currently being utilized. This represents a huge potential for companies interested in investing in renewable energy projects in Nicaragua, which in turn will help increase the country's generation capacity and lower the cost of energy. The Electrical Interconnection System for Central America (SIEPAC), currently being developed, will also allow companies to buy and sell energy in the regional electricity market.

PRONicaragua is the Nicaraguan Investment Promotion Agency, established in 2002. It is a non-profit, public-private institution whose mission is to generate economic growth and job creation in Nicaragua by attracting high-quality foreign direct investment. The agency provides complimentary support services to qualified investors seeking investment opportunities in our country. For further information, please contact us at (505) 2270-6400.

Website: http://pronicaragua.org

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