Energy Sector Management Assistance Program2017-08-102017-08-102010-05https://hdl.handle.net/10986/27724This report was prepared in response to a request by the government of Honduras for assistance in the preparation of a power sector strategy for the country. Specifically, the government asked for help in identifying the main issues in the power sector, and in addressing them through formulation of a clearly defined, achievable strategy. Left unresolved, these issues risk derailing the country's macroeconomic framework, potentially damaging the competitiveness of the country and its prospects for poverty reduction. The main issues to be analyzed in the study were identified at a workshop held on September 19, 2006, in Tegucigalpa, jointly with the Secretaria de Recursos Naturales y Ambiente (SERNA) and the Comision Presidencial de Modernizacion del Estado (CPME), and with the participation of representatives from the Empresa Nacional de Energia Electrica (ENEE), civil society, the private sector, Congress, public sector agencies, donors, utilities, and ministries. It was decided that the study would be divided into two components: (a) the first would identify and evaluate options on institutional reforms, particularly ENEE's restructuring and management, and securing electricity supply; and (b) the second would formulate a power sector strategy. Two reports will be prepared, with the second report to be finalized according to the timing of the government's decision. This first report analyzes the institutional and policy issues; financial and fiscal concerns; social aspects, such as tariffs and subsidies, and access to electricity; and investment requirements including the development of renewable resources. The report is divided into two parts. Part A presents a diagnostic of the electricity sector, including ENEE's financial performance, fiscal impacts, and reliability of supply, institutional and legal framework, pricing policy, and electricity coverage. Part B evaluates the options available to improve sector efficiency, ensure financial sustainability, promote the diversification of energy sources, and increase electrification coverage.en-USCC BY 3.0 IGOACCESS TO ELECTRICITYALTERNATIVE ENERGYAVAILABILITYAVERAGE TARIFFAVERAGE TARIFFSBALANCEBED COMBUSTIONBENEFITS OF COMPETITIONBILL COLLECTIONBIOMASSCAPACITY CHARGESCAPITAL COSTSCAPITAL INVESTMENTCARBONCARBON DIOXIDECASH FLOWCASH GENERATIONCLEAN ENERGYCOALCOMPACT FLUORESCENT LAMPSCOMPETITIVE BIDDING PROCEDURESCOMPETITIVE BIDDING PROCESSCOMPETITIVE POWER MARKETCOMPETITIVE PRICESCOMPETITIVE PROCUREMENTCOMPETITIVE TENDERSCOMPETITIVE WHOLESALE POWER MARKETCONNECTED CUSTOMERSCONSUMER PRICE INDEXCONTRACT MANAGEMENTCONTRACT MARKETCOST OF ELECTRICITYCOST OF ENERGYCPICRUDE OILCURRENCYDEBTDIESELDIESEL GENERATORSDIESEL OILDISTRIBUTION COMPANIESDISTRIBUTION INVESTMENTSDISTRIBUTION NETWORKECONOMIC COSTSEFFICIENCY IMPROVEMENTSEFFICIENT ALLOCATIONELECTRIC SERVICEELECTRIC SERVICESELECTRICITYELECTRICITY CONSUMERSELECTRICITY CONSUMPTIONELECTRICITY DEMANDELECTRICITY GENERATIONELECTRICITY LAWELECTRICITY MARKETELECTRICITY PRICEELECTRICITY PRICESELECTRICITY SALESELECTRICITY SECTORELECTRICITY SERVICESELECTRICITY SUPPLYELECTRICITY SYSTEMELECTRICITY TARIFFELECTRICITY TARIFFSELECTRIFICATIONEMISSIONSENERGY BALANCEENERGY CRISISENERGY DEMANDENERGY EFFICIENCYENERGY GENERATIONENERGY LOSSESENERGY PLANNINGENERGY PRICESENERGY PROCUREMENTENERGY PRODUCTIONENERGY SALESENERGY SAVINGSENERGY SHORTAGESENERGY SOURCESENERGY SUPPLYENVIRONMENTALENVIRONMENTAL IMPACTSEXCHANGE RATEEXCLUSIVE RIGHTSFINANCIAL CONSTRAINTSFINANCIAL RESOURCESFISCAL CONSTRAINTSFIXED ASSETSFIXED COSTSFUELFUEL COSTSFUEL PRICESFUELSGASGAS PROJECTSGAS TURBINEGENERATIONGENERATION CAPACITYGENERATION CAPACITY EXPANSIONGENERATION COSTSGENERATION EXPANSIONGENERATION PRICEGOVERNMENT PARTICIPATIONGOVERNMENT SUBSIDIESGREENHOUSE GASESGRID EXTENSIONGRID RELIABILITYGROSS DOMESTIC PRODUCTHEAVY FUEL OILHIGH ENERGY LOSSESHYDRO POWERHYDROPOWERINCOMEINFLATIONINTERNATIONAL COMPETITIVE BIDDINGINTERNATIONAL FINANCEINVESTMENT COSTSINVESTMENT INCENTIVESINVESTMENT PROGRAMINVESTMENT REQUIREMENTSKILOWATT-HOURLEGISLATIONLIQUID FUELSLNGLOAD FACTORLOAD MANAGEMENTLOW TARIFFSLOWER COST GENERATIONMANAGEMENT CONTRACTSMARGINAL COSTNATURAL GASNATURAL RESOURCESNET IMPORTSNET WORTHNITROGENNITROGEN OXIDEOIL PRICEOIL PRICESOPEN ACCESSPARTICULATEPARTICULATE MATTERPEAK DEMANDPEAK TIMESPETROLEUMPETROLEUM GASPETROLEUM IMPORTSPHOTOVOLTAIC CAPACITYPOOR HOUSEHOLDSPOWERPOWER COMPANIESPOWER DEMANDPOWER GENERATIONPOWER GENERATION CAPACITYPOWER PLANTSPOWER PURCHASEPOWER PURCHASE AGREEMENTSPOWER PURCHASESPOWER SECTORPOWER STATIONSPOWER SYSTEMPRESENT VALUEPRICE REGULATIONPRICE SETTINGPRIVATE FINANCINGPRIVATE OPERATORSPRIVATE SECTOR PARTICIPATIONPUBLIC SECTORPUBLIC WORKSRELIABILITY OF SUPPLYRENEWABLE ENERGIESRENEWABLE ENERGYRENEWABLE ENERGY PROJECTSRENEWABLE POWERRENEWABLE RESOURCESRENEWABLE SOURCESRESIDENTIAL CONSUMERSRESIDENTIAL LOADRESIDENTIAL USERSRETAIL PRICESRETAIL TARIFFSROUTESRURAL ELECTRIFICATIONSOLAR HOME SYSTEMSSPOT MARKETSPOT MARKET TRADINGSUGAR MILLSSULFURSUPPLY CONTRACTSSUPPLY COSTSSUSTAINABLE ENERGYTARIFF ADJUSTMENTTARIFF ADJUSTMENTSTARIFF IMPACTTARIFF SETTINGTARIFF STRUCTURETAX EXEMPTIONSTHERMAL CAPACITYTHERMAL PLANTSTHERMAL POWERTHERMAL POWER GENERATIONTHERMAL UNITTRADITIONAL GENERATIONTRANSMISSION CAPACITYTRANSMISSION GRIDTRANSMISSION LINETRANSMISSION LINESTRANSPARENT COMPETITIVE BIDDINGUTILITIESVERTICAL INTEGRATIONVOLATILE INTERNATIONALVOLTAGEWHOLESALE COMPETITIONWHOLESALEReportWorld Bank10.1596/27724