18 August 2010 – Central America is still heavily dependent on oil to generate the region’s electricity, according to IPS. Costa Rica is the exception with 80 per cent of its production derived from its hydropower fleet.
In Honduras, 50 per cent of its electricity comes from oil, while neighboring Nicaragua produces 70 per cent of its power from oil-fuelled plants.
The president of the Honduran Association of Small Producers of Renewable Energy, Elsia Paz, said that between 2010 and 2016 the country is planning to invest EUR1.6bn ($2.1bn) in 52 hydroelectric projects to provide electricity to rural areas in an effort to move away from their dependency on oil.
The Tumarin hydropower plant is being built in Nicaragua with a generation capacity of 220 MW. While in El Salvador, the Japan International Cooperation Agency has announced it will finance EUR1.1m in the development of renewable energy in the country.
According to Notimex, the development of renewable energy is so important in the region that Mexican businessman Carlos Slim has backed the creation of a new tax on carbon emissions.
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