Nicaragua takes steps to build distributed energy market

Enatrel, Nicaragua’s state-owned grid operator is conducting a feasibility study for small-sized solar PV and wind power systems. Once assessed, the next steps will be installation of distributed generation for residential, commercial, industrial and government buildings. According to Enatrel, these installations will be able to sell excess power to the local grid.

The government is preparing alongside this feasibility study, as the President sent a bill to Parliament to introduce net metering scheme for small generators. The Ministry of Energy and Mines also released new maximum prices for new renewable energy power facilities, solar reduced from $118/MWh to $70/MWh, which may slow investment in large-scale solar projects.

 

Currently, the government of Nicaragua is contracting power from new large-scale solar and renewable energy projects by direct agreements and not through an auction mechanism.

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