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With a cumulative score of 1.48, Honduras ranks number 55 among emerging markets and number 84 in the global ranking.

  • Emerging markets
  • Americas

1.80 / 5

Power score

0.75 / 5

Transport score


Buildings score

Only 56 markets (28 emerging markets) are scored on the Buildings sector. See the full list on the methodology page.


Low-carbon strategy

Net-zero goal and strategy

Honduras has set neither a net-zero emissions goal nor a long-term carbon strategy.

Nationally Determined Contributions (NDC)

Since September 2015, Honduras has had in place a goal of cutting its CO2 emissions 15% by 2030 versus a 2016 baseline across its energy, industrial, transportation and agricultural sectors. The commitment was made on the condition that wealthier countries will provide the support they promised to less-developed nations under the 2015 Paris Agreement.

Fossil fuel phase-out policy

Honduras has no fossil fuel phase-out in place.


Power policy

Honduras has been planning to implement a net metering policy for the last few years but has not completed the regulations to do so. Once in effect, the policy would oblige distribution companies to purchase surplus renewable power from residential and commercial users and give discounts on their bills.

Decree 70-2007, published in June 2007, guarantees priority dispatch to electricity generated from clean sources. Renewable power is also exempt from income, import value and sales taxes.

Power policies

Renewable energy auction
Feed-in Tariff
Import tax incentives
Net Metering
Renewable energy target
VAT incentives

Power prices and costs

Electricity prices in Honduras increased from 2020 to 2021, with commercial rates rising most sharply, from $169.28/MWh to $173.26/MWh. Residential prices stayed flat in 2019-2020 at about $161/MWh.

Honduras has total installed capacity of 2.9 gigawatts. In 2021, just under a third of the country’s power came from oil- and diesel-fired plants. Hydro accounted for 28% of generation, while renewables (biomass, solar and wind) were a combined 38.5%. Solar capacity has grown by 23% since 2015 to over 660 megawatts in 2021. The Honduras wholesale market started operations in June 2019 and the country is part of the Central American Electrical Interconnected System (SIEPAC), meaning it is connected to El Salvador, Guatemala, Costa Rica, Panama and Nicaragua via transmission lines. Honduras is a net importer in the regional market.

From 2010-2021, Honduras attracted $2.8 billion in new clean energy investment, driven by $1.3 billion for solar from 2014-2021. These investments were boosted by a feed-in premium for renewables that came into force in August 2013. PV projects up to 300 megawatts installed by July 31, 2015, were eligible to receive a base price for their energy equal to the short-term marginal cost plus $0.03/kWh plus 10%. However, this policy was canceled in 2018 due to financial problems faced by state utility Empresa Nacional de Energia Electrica (ENEE).


Power market

Market conditions for renewables developers in Honduras are not easy. Since 2017, ENEE has faced financial problems and is having to renegotiate feed-in tariffs with national and international companies. However, international companies still have not agreed on lower tariffs.

The utility says energy demand is growing and will rise 4% per year through 2030. The national electrification rate in 2021 stood at 93%.

However, Honduras’s Decree 404-2013 which establishes that transmission and distribution companies are obliged to accept connection to the grid of any company and consumer that requires it, unless it detects a problem that may jeopardize the whole grid and other users. The tariffs to be charged for the use of the transmission and distribution grid are established by the Regional Electric Market Regulation, but the regulation offers no price guarantee or further explicit information.

Installed Capacity (in MW)

2012201420162018202001K2K3K MW

Electricity Generation (in GWh)

2012201420162018202002K4K6K8K10K GWh

Utility privatisation

Which segments of the power sector are open to private participation?


Wholesale power market

Does the country have a wholesale power market?

Not available

Doing business and barriers

There are limited formal barriers to renewables development in Honduras. Power purchase agreements (PPAs) with renewable energy generators last up to 20 years but cannot be renewed following expiration.

In addition, the Honduras transmission network remains shaky. On September 16, 2019, a blackout affected most SIEPAC countries and Mexico. The cause was said to be heavy storms in Honduras. The fragile conditions of Honduras’ and Nicaragua’s transmission systems led to nationwide four-hour blackouts in both countries.

Currency of PPAs

Are PPAs (eg. corporate PPAs and all other types) signed in or indexed to U.S. Dollars or Euro?

Not available

Bilateral power contracts

Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?

Not available

Fossil fuel price distortions - Subsidies

Does the government influence the wholesale price of fossil fuel (used by thermal power plants) down through subsidies?

Not available

Fossil fuel price distortions - Taxes

Does the government influence the wholesale price of fossil fuel (used by thermal power plants) up through taxes or carbon prices?

Not available


EV market

The government has yet to implement any substantive policy support in this sector and the electric vehicle (EV) market remains at an early stage.

EV policy

In its Nationally Determined Contribution, submitted in May 2021, Honduras stated that it wants to promote the use of low-emission transportation by 2030 through policies, strategies, regulatory frameworks, schemes and incentives programs, and projects. However, it offered no specifics on how it plans to implement its goals.

Transport policies

Electric vehicle target
Electric vehicle purchase grant or loan incentive
VAT incentives for EV
Import tax incentives for EV
EV charging infrastructure target
EV charging infrastructure support

Fuel economy standards

Does the country have a fuel economy standard in place?

Not available


Buildings market

In its NDC, or plan to achieve the goals of the Paris Agreement, Honduras said it plans to promote development of cities and communities, seeking to encourage the protection of people and improve the quality of life based on environmental, social and economic sustainability capable of adequately meeting the basic needs of society.

Energy efficiency policy

Does the country have a national energy efficiency plan?

Not available

Energy efficiency policy

Are there minimum energy performance standards for buildings?

Not available

Energy efficiency incentives

Is there access to loans or grants for energy efficiency measures (i.e. Wall or loft insulation or double glazing)?

Not available

Buildings policy

The government has yet to implement any substantive policy support in this sector and the low-carbon heat market remains at an early stage.

Buildings policies

Low-carbon heat target/roadmap
Tax credits
Boiler scrappage schemes
Heat pumps purchase grants/loans incentive
Ban on boilers: new build homes
Ban on boilers: all homes

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