Nicaragua takes firm steps on renewable energy
- 27 July 2021
Nicaragua has experienced significant progress in the field of renewable energy, achieving the generation of 76 percent of its energy matrix with renewable sources.
According to data from the Government of Nicaragua, the capacity to generate renewable energy in Nicaragua accounted for 75.94 percent of the total in 2020, which represents 50 percent more than in 2007, when the generation capacity was predominantly thermal (more than 70 %), made of fuel oil and diesel. This shift to renewable energy has meant savings for Nicaragua of 5.1 million barrels derived from oil in 2020 and 19 million barrels since 2007.
In addition to the increase in renewable sources in its energy matrix, it is important to highlight the wide electricity coverage that Nicaragua has achieved. In 2006, a little more than 3 million inhabitants had electricity in their homes, which meant a national coverage of 54 percent; in May 2021 it was 98.7 percent, reaching a total of 6.4 million nicaraguans. This increase in coverage is attributed to investments since 2007 of US$1,200 million in electricity transmission and distribution. Likewise, between this year and 2022, the Nicaraguan Government plans to install more than 10,500 photovoltaic systems in communities that do not have electricity networks.
Another important element to highlight is the subsidy in the electricity fee received by the 896,990 home customers who consume less than 150 kilowatts per month. In 2020, the subsidy for residential rates with consumptions below 150 kWh/month amounted to US$64.1 million. The rates in the country also contemplate subsidies for retirees, which are received by a total of 57,307 pensioners, and accounted to a total expenditure of US$7.1 million in 2020.
This progress made by Nicaragua in its energy matrix has also been internationally recognized, most recently by the Europa Press news agency. This renowned agency of Spanish origin highlighted in a recent article that the Government of Nicaragua has developed various projects and measures in favor of energy efficiency in the country, and will continue to do so as an important part of its government plan with the aim of continuing favoring nicaraguan families.
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