First geothermal plant in Honduras begins commercial operation

Honduras joins its neighbors as a geothermal producing country: just this week Ormat Technologies announced its 35 MW Platanares geothermal project has commenced commercial operation. Platanares will sell power under a 30 year PPA with national utility, ENEE, and is expected to generate yearly revenues of $33million on average. Ormat has a Build, Operate, and Transfer contract for the project with ELCOSA, a privately owned Honduran energy company, for 15 years from commercial start. 

The Platanares power plant was built using Ormat equity funds and is expected to be refinanced with project finance debt that will be provided by the Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution. Financing will be signed and closed within a few months of commercial operation. 

“The addition of Platanares, Honduras first geothermal power plant, to our operating portfolio is an important milestone, underscoring our commitment to growing internationally,” noted Isaac Angel, Chief Executive Officer