Renewable Energy Opportunities in Central America
Bron:
Nederlandse ambassade in San JoséThe Embassy of the Kingdom of the Netherlands in San José has identified growing investment opportunities in renewable energy infrastructure across Central America. With ambitious decarbonization targets, abundant natural resources like water and volcanoes, and rising energy demand due to population growth, countries in the region are scaling up their renewable energy strategies. Dutch businesses are well-positioned to contribute to the design, implementation, and operation of clean energy projects through innovative, sustainable, and climate-resilient technologies. In this document, we present some core projects in Renewable Energy in Central America, with a total sum of $2.3 billion dollars in investments.
Developments
Foreign direct investment in renewable energy across Central America is steadily increasing, spurred by abundant natural resources, ambitious decarbonization targets, and growing energy demand due to population growth. Renewable energy already supplies nearly 79% of total electricity demand in Central America, with Costa Rica achieving over 98% renewable generation for several consecutive years. Hydraulic power is providing around 47% of the renewable energy grid in Central America right now, and is expanding. As droughts are expected due to climate change, it can endanger this part of the energy grid in dryer times. For these reasons, Central American governments are also investing in a varied range of renewables. Governments are actively seeking international partners for utility-scale renewables, distributed generation, smart grids, and storage solutions. Projects are typically structured as PPPs or concession-based investments, often backed by institutions such as CABEI and IDB.
Opportunities for Dutch Businesses
Honduras
- La Tarrosa hydro plant (Patuca 2A): $525 million | 150 MW | Hydropower, irrigation, flood control
- El Tablón multipurpose dam: $395 million | 12 MW | Hydropower, irrigation, drinking water, flood control
International tender scheduled for February 2025; construction start October 2025
For whom does this currently represent an opportunity?
Hydropower engineers, dam builders, automation specialists, climate resilience consultants.
Why Dutch businesses?
The Netherlands is recognized globally for its engineering expertise in water management and dam construction, reflecting the country's long history of dealing with water-related challenges. Companies like Landustrie have experience in building screws for hydraulic energy dams, other Dutch firms like Royal HaskoningDHV have experience in engineering and building hydraulic structures and hydropower plants. Other companies with expertise in smart monitoring systems make them valuable partners in Honduras’s hydraulic energy expansion.
Nicaragua
- San Pedro del Norte hydro: $347 million | 75 MW | Hydropower plant in Matagalpa basin
- Boboke hydroelectric project: $99.8 million | 70 MW | Includes 138 kV, 30 km transmission line
For whom does this currently represent an opportunity?
Hydropower developers, EPC contractors, transmission specialists.
Why Dutch businesses?
Again, the Dutch are recognized for their historic battle against water. Experienced firms in hydropower like RoyalHaskoningDHV or Landustrie or other engineering or electricity firms are well suited for these opportunities.
Guatemala
- Cobasol Solar Project: $249.7 million | 339 MW | PV solar + substations, led by Enel Green Power
- Comapa Wind Project: $99 million | 57 MW | Onshore wind with 3.2 km 138 kV transmission
- Mita Geothermal Project: $100 million | 50 MW | Advanced stage, 18 production wells
- Santo Tomás Solar Park: $26 million | 100 MW | PV + 230 kV substations, transmission lines
For whom does this currently represent an opportunity?
Solar/wind/geothermal developers, turbine suppliers, transmission and substation engineers, environmental and social specialists.
Why Dutch businesses?
Not only are Dutch firms well-positioned in Hydraulic power, Dutch firms like Shell, Vattenfall AB (though owned by the Swedish company), van Oord or TenneT are internationally recognized in their wind energy projects. Sunstroom Engineering B.V. or DMEGC Solar Energy are known in solar energy. Royal HaskoningDHV is active and known in Geothermal Engergy projects. This positions Dutch firms well to participate.
El Salvador
- El Cimarrón Hydro Plant: $455 million | 261 MW | Multipurpose dam for power, irrigation, and tourism
PPP interest confirmed; CEL awaiting concession proposals.
For whom does this currently represent an opportunity?
Hydropower and multi-use water infrastructure firms, sustainability and tourism-integrated planners.
Why Dutch businesses?
See the description above.
Energy authorities per country.
Nicaragua
- Ministry of Energy and Mines (MEM) – Sets national energy policy, regulates the electricity sector.
- National Electricity Transmission Company (ENATREL) – Manages transmission grid.
- Nicaraguan Energy Institute (INE) – Regulates electricity generation and distribution.
Honduras
- Ministry of Energy, Natural Resources, Environment and Mines (MiAmbiente+) – Oversees energy and environmental policy.
- National Electric Energy Company (ENEE) – State-owned utility, responsible for electricity generation, transmission, and distribution.
- Electricity Regulatory Commission (CREE) – Regulates electricity market and tariffs.
El Salvador
- Ministry of Economy (MINEC) – Responsible for national energy policy and planning.
- Electricity and Telecommunications Superintendency (SIGET) – Regulates and supervises the electricity sector.
- LAGEO – State-owned geothermal energy company.
Guatemala
- Ministry of Energy and Mines (MEM) – Sets national energy policy and oversees the sector.
- National Electric Energy Commission (CNEE) – Regulates the electricity market.
- Wholesale Market Administrator (AMM) – Operates the electricity market and system dispatch.
Here procurement pages per country and important tender news by BCIE.
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Country |
|Procurement Platform / Source |
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Costa Rica |
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Honduras |
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Guatemala |
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Nicaragua |
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Regional (CA) |
The Embassy of the Kingdom of the Netherlands in San José, supported by regional consulates, maintains contact with energy ministries, utilities, and multilateral banks. Dutch firms can receive assistance in market scoping, tender monitoring, and matchmaking with local partners and PPP stakeholders. We have broad knowledge and extensive networks, both in politics and in business. We know the market, bridge language and culture barriers and have access to local authorities and companies.
Contact
Interested in exploring renewable energy opportunities in Central America?
Contact:
Hans E. Buhrs, MBA
Senior Officer, Economic Affairs
Embassy of the Kingdom of the Netherlands for Central America
hans.buhrs@minbuza.nl | +506 8427 8987
www.nederlandwereldwijd.nl/