CABEI increases installed energy capacity in the region

CABEI increases installed energy capacity in the region

The Central American Bank for Economic Integration (CABEI) has promoted the development of energy generation in the region with an investment of more than US $1.33 billion in 14 projects under development two years after the implementation of the 2015-2019 Institutional Strategy “Integrating Development and Sustainable Competitiveness.”

The Executive President of CABEI, Dr Nick Rischbieth, commented that for the multilateral branch, supporting the energy sector is key to boosting the development of the region’s countries, as well as raising the quality of life of its inhabitants and increasing competitiveness in the area.

CABEI has approved more than US$ 6.4 billion in energy projects, increasing installed capacity by approximately 6,097 MW between 1970-2017. In 2017, the following projects are noteworthy:

• With the agency’s financial intermediation, El Salvador is building the El Bósforo photovoltaic energy park that will generate 142.1 MW (megawatts) at a cost of US $159.9 million.
• Los Prados photovoltaic solar project: loan for an amount of US $30.7 million to enable the construction and operation of a photovoltaic solar power generation plant with an installed capacity of 35.15 MW in Honduras.
• In Nicaragua, the National Program for Sustainable Electrification and Renewable Energy is being developed for an amount of US $86.5 million, which will provide rural electrification to more than 20,000 homes.
• The construction of the El Chaparral hydroelectric dam was financed, which has an installed capacity of 67.42 MWP (megawatt peaks), which will take advantage of the available flow over the Torola river in El Salvador, resulting in an estimated total annual average generation of 232,000 MWh (megawatt hours).
• CABEI supports the expansion project of the Electric Interconnection System for the Central American Countries, increasing the transmission capacity between the countries from 300 to 600 MW, through the authorization of the second circuit of the high voltage network that makes up the Regional Transmission Network, thus enabling the consolidation of this market and the improvement in the quality, reliability and security of the electricity supply in the countries. This project will allow the purchase and sale of energy between neighbouring countries and even outside the region, reducing the cost of electricity.
• The strategic investment plan for the reduction of losses of the National Electric Energy Company consists of the normalization of 188,330 subscribers at the Distribution level in order to regularize illegal connections, users without an electricity meter, and direct services that are not being commercialized by the Honduran Energy Company, achieving a reduction of 122,118 MWh with an average annual economic value of US $18,608.2 thousand.

Green Loans

In the 2017 period, the “Green MSMEs Initiative” began its second phase of implementation with the objective of providing efficient and sustainable access to financial products for environmental investments according to the needs of the Micro, Small and Medium Enterprises of the region.

This initiative integrates CABEI’s efforts as an executing agency, the Government of Germany through the Financial Cooperation of the Federal Republic of Germany (KfW) and the European Union as part of its Latin America Investment Facility (LAIF), using different mechanisms focused on the protection of the climate and the environment in the field of MSMEs in Central America, promoting environmental investments in the areas of energy efficiency and renovation.

To date, the program has reimbursable resources that are channelled in the region to finance projects in efficiency and renewable energy. In addition, financial resources for technical assistance, financing of energy studies, and promotion of the initiative are being structured with the EU.

In the same year, a total of US $3.4 million was disbursed in fleet replacement projects mitigating Carbon Dioxide (Co2) emissions and saving 115-kilowatt hours.

Eco-efficiency Practices at the Workspace

In 2016 and 2017, the installation of a photovoltaic solar plant in the headquarters building in Honduras and the El Salvador building was completed, which has led to the generation of solar energy of 37,318 KWH per month, which represents a reduction of equivalent Co2 emissions of 408.5 tons.

“These results are a sign of the commitment of the organization, to work for the environment and generate common welfare. The challenge is to continue strengthening the region in this regard, “said the Chief Executive of CABEI.

Original source: BCIE
Published on 14 February 2018