The Energy Transition in Honduras

Honduras’ energy transition is shaped by its significant renewable energy resources and the strategic need to reduce fossil fuel dependence, enhance energy security, and expand electricity access. The country’s current energy mix is diversified, with over 50% of generation from renewables—primarily hydropower, alongside growing contributions from solar PV, wind, biomass, and geothermal energy. The National Energy Policy 2050 and the Electricity Law of 2014 provide the policy framework to promote renewable energy investment, distributed generation, and regional power integration via the Central American Electrical Interconnection System (SIEPAC). Honduras has positioned itself as one of the leading solar producers in Central America, with strong private sector participation in renewables. While the country possesses some mineral resources, including zinc, lead, gold, and silver, it does not produce lithium, cobalt, or rare earth elements, relying on imports for these critical materials required for battery storage and green technologies. Key challenges include social and environmental conflicts around hydropower and mining, natural disaster risks, and grid modernisation needs. However, Honduras’ renewable potential, supportive legislation, and regional integration efforts present clear opportunities to advance its energy transition, strengthen energy resilience, and support sustainable economic development.