Honduras has extended by three months the deadline for submitting bids in its 1.5 GW international power tender, one of the most significant capacity procurement processes in its recent history.
The state-owned utility, the National Electric Power Company (ENEE), confirmed that a second amendment to the tender documents will be published in March 2026, with the new submission deadline set for June. The decision reflects the need to recalibrate technical and contractual conditions during a period of institutional transition in the energy sector.
Sources consulted by Energía Estratégica, who met with authorities, indicated that the new leadership acknowledged the need to “re-engineer the bidding documents, as in their current form they are not sufficiently attractive”.
The message to the market is clear: without adjustments, the tender is unlikely to achieve the expected level of competition. More than ten companies had purchased the bidding documents during the initial phase. However, industry stakeholders had already pointed out that the scheme required improvements to better balance risk allocation and long-term returns under power purchase agreements (PPAs).
The extension comes under the leadership of engineer Eduardo Oviedo, who has taken office as Secretary of State for Energy and interim General Manager of ENEE. The temporary concentration of strategic and operational roles places the new leadership at the centre of structural decision-making within Honduras’ power system.
1.5 GW with a 2030 horizon
The tender aims to incorporate new generation capacity by 2030, including renewable energy projects and firm capacity solutions to strengthen security of supply and grid reliability. The scale of the process — 1,500 MW — represents a substantial share of national demand and could reshape the future composition of the country’s generation mix.
The review of the tender rules forms part of a 2026–2030 roadmap that sets ambitious targets:
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Achieve 80% renewable energy participation by 2027
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Reduce technical and commercial losses by 40%
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Double the installed capacity in solar PV, wind power and biomass
Meeting these objectives will require international financing, regulatory predictability and bankable contractual frameworks capable of attracting independent power producers (IPPs) and institutional investors.
Investment climate under scrutiny
Honduras’ power sector continues to face financial and institutional challenges that affect investor appetite, particularly in long-term infrastructure projects and renewable energy investment. In this context, the extension signals openness to refining the process before final bid submission.
The key question now is the depth of the proposed re-engineering. If the amendments strengthen guarantees, enhance regulatory clarity and ensure competitive economic conditions — including transparent tariff structures and credible payment mechanisms — the tender could become a turning point for the sector.
Otherwise, the postponement may merely delay a limited outcome.
Honduras is not only tendering 1.5 GW of new generation capacity. It is also testing the credibility of its renewed energy leadership and its ability to position the country as a reliable destination for renewable energy and power generation investment in Central America.
