The 1.5 GW power generation tender that Honduras is preparing to launch will be completely redesigned. The Electricity Regulatory Commission (CREE) has already confirmed that the BOT (Build, Operate and Transfer) model—under which private developers build, operate and later transfer power plants to the state—will be excluded from the new framework.
“That scheme was designed for a different stage of the country. Today we need more realistic and sustainable conditions to attract investment,” said Wilfredo Flores, commissioner at CREE.
The new terms will also discard the so-called “successive rounds” included in the previous design, pointing to a structural shift in how capacity additions to the power mix are planned.
The decision entails a comprehensive review of procurement mechanisms, aimed at a more flexible energy policy with stronger private sector participation.
Although the tender has not yet been officially published, the Council of Ministers has already approved the executive decree authorising it, and the state-owned utility National Electric Energy Company (ENEE) is working on the new terms of reference.
According to information previously reported by Energía Estratégica, the design would include differentiated blocks by technology and geographic location, with the goal of optimising the country’s natural resources: solar PV in the south, wind power in western regions and geothermal energy in specific areas.
Redefining the scheme would also make it possible to attract a more diverse investor base by removing the obligation to hand over assets at the end of the operating period.
This shift is part of a new orientation in public energy policy, with greater market openness while still preserving certain social instruments.
From CREE’s perspective, Honduras needs to adjust its energy policy to local realities, balancing clear economic signals with protection measures for the most vulnerable sectors.
One recent example is the electricity tariff freeze. Although the regulator had approved a 4.11% increase, the executive branch decided to keep tariffs unchanged, prioritising the economic impact on households and small businesses.
At the same time, the government has made progress on infrastructure projects that pave the way for the integration of new generation capacity.
A total of 20 transformers of 50 MW each have been installed, and new transmission lines have been developed to transport solar power from the south to the north, where demand is concentrated. These projects have significantly reduced outages in critical areas such as San Pedro Sula and helped relieve congestion in key sections of the grid.
“With these investments, we are now able to transport electricity from where it is generated to where it is most needed, and this is already reflected in improved service stability,” Flores said.
As a result, the country’s full potential will depend on the existence of clear rules, sound procurement mechanisms and long-term policies. The new tender process will be a key barometer for assessing the direction of Honduras’ energy transition.
