CABEI promotes renewable energy generation and transmission projects

15/02/2017

The investment will increase electricity service coverage and prevent rationing and economic losses in the region.

Tegucigalpa, February 15, 2016. -  (AFP SERVICES/CABEI) Since its founding, the Central American Bank for Economic Integration (CABEI) has approved credits amounting to US$5.80 billion to support the generation, transmission and distribution of electric energy in the isthmus, thus preventing large economic losses caused by rationing and the absence of supply to meet the productive needs of its member countries.

The energy development works financed by CABEI enable the region’s countries to supply 5,920 megawatts (MW), which represents 38% of their total generation capacity.

The resources have also been used for the construction of high voltage lines, which can efficiently and economically transmit hundreds of megawatts, as well as substations that facilitate the transmission of energy from the production centers.

With regard to distribution, funds have been approved to install medium and low voltage lines that will improve energy coverage and quality, as well as boost reliability in industrial, commercial and residential users.

These projects have benefited 8.9 million energy subscribers and generated 7,019 temporary jobs.

The Institution has focused support in each country and has been essential in the development of the Central American Electricity Interconnection System (SIEPAC), which has integrated the electricity markets of Guatemala, Honduras, El Salvador, Nicaragua, Costa Rica and Panama.

The SIEPAC, which was established with US$505 million (US$109 million was contributed by CABEI), is a 1,790 km long electric transmission system operating with a maximum capacity of 230,000 volts.

During 2014 and 2015, the system registered electrical energy exchanges among the six countries totaling 7,160,300 megawatts/hour with an estimated value of US$715 million.

CABEI is clear that energy is essential for improving development and competitiveness in trade and industry; to that end, the Bank has established its goals based on the needs of its member countries.

Likewise, CABEI has defined an Institutional Strategic Framework that is in line with the Central American Integration System’s (SICA) 2020 Central American Sustainable Energy Strategy, which seeks to increase access to electricity for low-income populations, boost the participation of renewable energy in the matrices of each country and contribute to climate change mitigation and adaptation.

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