Electricity generation from renewable sources in Nicaragua has advanced significantly in recent years. Currently, the country obtains around 53% of its energy from renewable sources. However, 2017 marked a milestone when, according to the Minister of Energy and Mines (MEN), Salvador Mansell, on some days up to 84% of the energy was generated from renewable sources.
This demonstrates Nicaragua's great potential in clean energy and how the country is harnessing its natural resources. In months with optimal conditions, such as March, April, and November, all of the country's wind farms operate at 100% capacity, which, combined with hydroelectric power, increases the proportion of clean energy.
Mansell added that “when weather conditions allow renewable sources to generate energy at maximum capacity, they are prioritized in grid operation, and this is key to energy market management .” Throughout the year, it has been observed that, under optimal conditions, some individual energy sources reach their highest potential, maximizing the contribution of renewable energy.
In fact, Mansell did not rule out the possibility that Nicaragua could reach days when it exceeds 85% renewable energy . This year, a new 12-megawatt solar plant was inaugurated in Puerto Sandino, another step toward diversifying the country's energy sources.
An important aspect highlighted by the government is the use of thermal power generation as backup on days when optimal wind, sun, or rain conditions are not met. This ensures a continuous electricity supply for Nicaragua's population.
In 2016, Nicaragua ended the year with 53% stable generation from renewable energy sources, and set itself the goal of increasing this figure in the following years.
World Reference for Renewable Energies
Nicaragua remains one of the most cited examples in the international community regarding the use of renewable energy. In 2017, The Climate Reality Project Foundation, created by former Vice President of the United States, Al Gore, placed Nicaragua together with Sweden and Costa Rica as the countries that lead the way towards clean energy.
Between 2007 and 2014, the share of renewable energy in Nicaragua grew from 27.5% to 52%, setting a precedent for maintaining this upward trend. The government's goal is to achieve an ambitious 90% renewable energy generation by 2020 , based on public, private, and mixed investment projects that diversify the energy mix.
One of Nicaragua's major achievements is having added 180 megawatts to its energy capacity thanks to wind, biomass, hydroelectric and solar projects between 2007 and 2013, a vital contribution to meeting the country's energy needs.
Wind energy in Nicaragua
As previously highlighted, in 2016, Nicaragua's National Interconnected System (SIN) reported that 53% of its electricity generation came from renewable sources . Within this percentage, wind farms contributed 31%, making them one of the country's main energy sources.
Flagship wind energy projects like Amayo I and Amayo II, located in the department of Rivas and managed by the Canadian consortium Amayo SA, collectively produce approximately 63 megawatts . This potential will be increased with the Puerto Sandino photovoltaic plant, which is the only large-scale facility connecting solar energy to the grid.
Although the energy produced through solar panels in Nicaragua is significant, it is mainly used for self-consumption in rural and remote areas, where it allows for a better quality of life for communities.
By December of this year, the government has set a goal of achieving 94% electricity coverage nationwide, with a target of reaching 99% coverage in 2021, a milestone of great importance for a developing country like Nicaragua.
Diversity of renewable sources
The Tumarín hydroelectric megaproject , located in the Southern Caribbean of Nicaragua, continues to progress. Once completed, this project is projected to add 253 megawatts to the country's electrical grid, reinforcing its commitment to renewable energy.
César Zamora, manager of the company IC Power, recalled the electricity supply crisis that Nicaragua experienced before 2007. The introduction of the Law for the Promotion of Electricity Generation with Renewable Sources helped to mitigate this crisis, incentivizing investment projects that increased the country's energy capacity.
Zamora highlighted that among the most significant projects are the wind farms, which contribute 180 megawatts , as well as the San Jacinto-Tizate geothermal complex, with an additional 70 megawatts. Furthermore, 50 megawatts were added from hydroelectric plants such as Larreynaga and El Diamante, and biomass projects added 30 megawatts to the grid.
Foreign investment in renewable energy
Jahosca López, coordinator of the Renewables Nicaragua Association office, emphasizes that the boom in renewable energy in the country is largely due to government policies that facilitate both national and foreign investment.
The Law for the Promotion of Electricity Generation from Renewable Sources , amended in June 2015, has played a key role in providing tax and economic incentives to projects interested in developing renewable energy sources. This has allowed the government to attract significant investors, which in turn has led to lower electricity rates for consumers.
Furthermore, technological advancements have expedited the implementation of these projects. Some recent developments focus on the construction of solar power plants, such as those in Sébaco and Malpaisillo, which will contribute approximately 150 additional megawatts in the coming years, solidifying Nicaragua's role as a leader in clean energy.
The path towards more sustainable energy in Nicaragua has not only generated benefits for the environment, but also an increase in electricity coverage, which has improved the quality of life of thousands of Nicaraguans who previously did not have access to these services.