Construction of the Platanares geothermal power plant in Honduras is at an advanced stage, according to the advisor to the Honduran Council of Private Enterprise (COHEP ), Solomon Ordonez, and as reported by Honduran newspaper La Tribuna.
This will be the first geothermal power plant to operate in Honduras. It is expected to start operating this year. The $200 million geothermal project – inclusive of Honduran and foreign capital – is located in the municipality of La Union, department of Copán, in western Honduras.
In February last year, Ormat Technologies, Inc. issued a press release in which it announced that its indirect subsidiary, wholly owned, confirmed the start of construction of the geothermal project.
The statement details that in 2013, Ormat signed a contract to build, operate, and transfer the Platanares geothermal project with Electricidad de Cortes (Elcosa), a privately-owned Honduras energy company.
The 15 year contract will go into effect from the date of commencement of commercial operation. In December 2015, Ormat concluded the drilling activity, and the evidence supporting the project’s decision.
The energy generated by Platanares will be marketed under the 30-year energy purchase agreements signed with the national electricity company of Honduras, the National Electric Energy Company (ENEE).
The Platanares geothermal project is regulated by the Law for the Promotion of the Generation of Electric Power by Renewable Resources, which was enacted in 2007, according to which it can benefit from a tax exemption during the first 10 years of operation.
The company expects to reach commercial operation by the end of 2017 and generate annual revenues of approximately $ 33 million.