Nicaragua reduces ceiling price for solar by 40%

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Nicaragua’s Ministry of Energy and Mining (MEM) has published in the country’s official journal, the new maximum prices for the contracting of new renewable energy power facilities.

PV technology was assigned the lowest ceiling price, namely $70/MWh, followed by wind and biomass power for both of which the MEM has established a maximum price of $80/MWH. For geothermal power the maximum price is $92/MWh, while the highest prices are for hydroelectric projects, which range from $99 to $107/MWH.

According to local portal La Prensa, the previous maximum price for the solar technology, which was set by the MEM in 2015, was $118/MWh. This means this price was reduced by 40.6%. The portal also reports that in future contracting there will be no minimum reference price. Currently, the government of Nicaragua is contracting power from new large-scale solar and renewable energy projects by direct agreements and not through an auction mechanism.

Most of the country’s renewable energy installed generation capacity comes from wind and geothermal power plants. The first solar plant of the country, which was commissioned in 2013, has a capacity of 1,38MW. Another 12.5 MW solar facility was recently completed in Puerto Sandino, in the department of León.

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