Tegucigalpa electricity distribution

The Empresa Nacional de Energía Eléctrica (also commonly known as ENEE) is Honduras's government owned and operated electrical power company,[1] operating within the Electricity sector in Honduras.
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The Empresa Nacional de Energía Eléctrica (also commonly known as ENEE) is Honduras''s government owned and operated electrical power company,[1] operating within the Electricity sector in Honduras.

The organization was created on February 20, 1957, as an autonomous organization responsible for the production, transmission, distribution and commercialization of electrical energy in Honduras.

The first large-scale project was the first hydroelectric power station, Cañaveral, which included the construction of transmission lines and substations in order to distribute its generated power to the final consumers. The so-called National Interconnected System continued to expand and now covers most main regions throughout the country. In 1985 the Francisco Morazán Hydroelectric Project (El Cajón Dam) was completed at a cost of US$775 million.

The electricity sector in Honduras has been shaped by the dominance of a vertically integrated utility; an incomplete attempt in the early 1990s to reform the sector; the increasing share of thermal generation over the past two decades; the poor financial health of the state utility Empresa Nacional de Energía Eléctrica (ENEE); the high technical and commercial losses in transmission and distribution; and the low electric coverage in rural areas

The key challenges in the sector include financing investments in generation and transmission in the absence of either a financially healthy utility or of concessionary funds by external donors. Tariffs need to be re-balanced, arrears need to be cut and commercial losses, including electricity theft, need to be reduced without fostering social unrest. In addition, the government must reconcile environmental concerns with its objective to build two new large dams and associated hydroelectric plants. Access to electricity in rural areas needs to be improved.

In June 2007, the president of Honduras, Manuel Zelaya, declared an "energia emergencia". An Intervention Board (Junta Interventoria), headed by the Minister of Defence and the Minister of Finance, was temporarily put in charge of ENEE to address the crisis. The mandate of this board has recently been extended until October 2022

With an installed generation capacity of 1,568 MW (2007),[1] Honduras relies on a thermal-based power system (accounting for nearly two-thirds of its total installed capacity), which is very vulnerable to high and volatile international oil prices.[2][full citation needed] The generation mix is as follows:[1]

Firm electricity generation capacity is substantially lower than installed capacity due to seasonality (i.e. the natural uncertainty affecting hydroelectric generation), the old age of some of the plants, and mothballing of thermal capacity.

Total electricity sold in 2007 was 4,932 GWh.[1] In 2005, electricity sold by connection was 4,376 kWh,[3] which was much higher than in the neighboring countries of Guatemala (2,337 kWh per connection), Nicaragua (2,931 kWh per connection) and El Salvador (3,109 kWh per connection). It is, however, much lower than in the more developed Central American countries, such as Costa Rica (7,969 kWh) and Panama (7,574 kWh).

While peak demand in 2006 was below total installed capacity, it lay slightly above firm capacity. According to supply and demand projections by the World Bank, new generation capacity to be commissioned in the period between 2007–2010 will not be enough to meet demand growth, which means that an energy shortfall is likely to happen in the near future.[2][full citation needed]

The Honduran electricity grid is interconnected with the grids of its neighbors Nicaragua, El Salvador and Guatemala. However, the capacity of the interconnections is limited. It is expected to be expanded as part of the Central American Electric Interconnection System (SIEPAC) through a 230 kV transmission line with a capacity of 300 MW. (See Regional integration, the SIEPAC project below)

In 2002, Honduras imported about 420 GW·h of electricity (more than 10% of its consumption) without any exports, thus making it a net importer of electricity.[4]

The overall electricity coverage is 69%. In rural areas it reaches only 45%, which contrast with the 94% coverage in urban areas (2006).[2][full citation needed] The table below presents the access data per number of households and consumers.

The Electricity Coverage Index by department shows great disparities. Cortes and Islas de Bahia enjoy almost a 100% household coverage, while Lempira and Intibuca only have 24.6% and 36.2% coverage respectively.[2][full citation needed]

Electrification was programmed under the 1994 Electricity Law for the Electricity Sector through the creation of the Social Fund for Electricity Development (FOSODE). The Government has set a target to increase national electricity coverage to 80% by 2015, giving equal priority to urban and rural. So far, the outcome has been positive, with an increase in national coverage from 43% in 1994 to 69% in 2006.[2][full citation needed]

By 2015, 400,000 new connections are expected to be made. However, lack of financing has slowed grid development, causing it to lag behind demand.[2][full citation needed]

In the period 2001-2006, electricity losses increased from about 20% to 25%, compared to 8% in Chile and almost 30% in Nicaragua. This relatively high level of losses is due mostly to theft, fraud, and illegal connections. A recent study estimated that technical losses are about 10%, which implies that current commercial losses are about 15%, 30% of which correspond to fraud, 29% to illegal settlements and 29% to billing errors.[2][full citation needed]

Transmission and sub-transmission investments keep being delayed due to financial constraints. This situation, if further sustained, would increase the frequency of blackouts and would make it hard to reduce operating costs and technical losses.[2][full citation needed]

Loss-reduction programs implemented during 2007 brought total losses down to 21.2%, 3.5% in transmission and 17.7% in distribution.[1]

About Tegucigalpa electricity distribution

About Tegucigalpa electricity distribution

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