La Ruta hacia el Futuro para la Energía Renovable en Centroamérica

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The report analyzes the energy landscape of Central America, noting a contradictory trend where the region leads in geothermal and hydroelectric power but faces increasing dependence on imported fossil fuels. It argues that while the region has the potential to meet 100% of its electricity needs through renewables, significant gaps in data, administrative inefficiency, and fossil fuel subsidies hinder progress. The document recommends integrating technical resource assessments with socio-economic analysis (LCOE+), simplifying bureaucratic processes through 'single-window' permitting, and strengthening regional interconnection via SIEPAC to manage variability in wind and solar power.

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  • Central America has the technical potential to meet 100% of its electricity needs using renewable energy, provided there is adequate political support and appropriate incentives.
  • The region is a global leader in geothermal energy; El Salvador ranks second globally in the share of geothermal energy in its total electricity capacity, following Iceland.
  • Despite renewable potential, there is a growing reliance on imported fossil fuels, which accounted for 45% of primary energy consumption and 70% of secondary energy consumption in the region.
  • Traditional biomass, specifically firewood for cooking, remains a dominant and unsustainable energy source, representing 38% of total final energy use in Central America.
  • Electricity losses in the region averaged approximately 15% in 2010, with Nicaragua and Honduras experiencing the highest losses at over 25% and nearly 24% respectively, primarily due to lack of grid maintenance.
  • The report argues that standard Levelized Cost of Energy (LCOE) calculations underestimate the cost of fossil fuels by ignoring health and climate externalities; including these (LCOE+) would increase the true cost of fossil fuel plants by 8% to 10.6% by 2020.
  • Approximately 7 million people in Central America have limited or no access to electricity, making distributed renewable energy the only viable technical and economic solution for remote areas.
  • Fossil fuel subsidies in the region create market distortions that disadvantage renewable energy; for example, El Salvador provides $420 million annually in subsidies for electricity, gasoline, propane, and public transport.
  • Nicaragua has successfully attracted renewable investment despite low global competitiveness rankings by using Build-Operate-Transfer (BOT) contracts to provide security to private investors.
  • The regional electricity interconnection system (SIEPAC) connects 35 million consumers from Guatemala to Panama, with a current capacity of 300 MW and plans to expand to 600 MW.

Cite the original document

APA
Dolezal, A., Majano, A. M., Ochs, A., & Palencia, R. (2013). La Ruta hacia el Futuro para la Energía Renovable en Centroamérica. Climate and Development Knowledge Network. https://cdkn.org/sites/default/files/files/La-Ruta-hacia-el-Futuro-para-la-Energia-Renovable.pdf
Chicago
Dolezal, Adam, Ana María Majano, Alexander Ochs, and Ramón Palencia. La Ruta hacia el Futuro para la Energía Renovable en Centroamérica. Climate and Development Knowledge Network, 2013. https://cdkn.org/sites/default/files/files/La-Ruta-hacia-el-Futuro-para-la-Energia-Renovable.pdf.
Wikipedia
{{cite report |last1=Dolezal |first1=Adam |last2=Majano |first2=Ana María |last3=Ochs |first3=Alexander |last4=Palencia |first4=Ramón |title=La Ruta hacia el Futuro para la Energía Renovable en Centroamérica |publisher=Climate and Development Knowledge Network |date=August 2013 |url=https://cdkn.org/sites/default/files/files/La-Ruta-hacia-el-Futuro-para-la-Energia-Renovable.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
BibTeX
@techreport{dolezal2013ruta, author = {Dolezal, Adam and Majano, Ana María and Ochs, Alexander and Palencia, Ramón}, title = {{La Ruta hacia el Futuro para la Energía Renovable en Centroamérica}}, institution = {Climate and Development Knowledge Network}, year = {2013}, month = aug, url = {https://cdkn.org/sites/default/files/files/La-Ruta-hacia-el-Futuro-para-la-Energia-Renovable.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }

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