EXPANSION AND STRENGTHENING OF NICARAGUA’S ELECTRICITY TRANSMISSION SYSTEM - NI-L1091 (US$43 million)

The general objective of the project is to promote an increase in the population’s welfare by strengthening the transmission infrastructure in order to connect new clients, improve the quality of supply, and move forward on optimization of the regional infrastructure.
The specific objectives of the program include:
(i) ensuring the continuous supply of electricity in the areas benefited by the expansion of electricity coverage under the National Sustainable Electrification and Renewable Energy Program (PNESER);
(ii) increasing load transmission capacity to meet electricity demand and carry the power generated in the expansion area under the PNESER program; and
(iii) optimizing the load capacity of the regional transmission line on the segments located in Nicaragua.

Activity I: Improvement of the transmission infrastructure to support increased comprehensive coverage, including the construction of 3 substations (138kV each) and related 90km of transmission lines and works.

Activity II: Improvements in the national transmission system to support the capacity of the regional system, including the construction of 65 km of transmission lines.

Website: http://www.iadb.org/es/proyectos/project-information-page,1303.html?id=NI-L1091

SUSTAINABLE ENERGY FACILITY (SEF) FOR THE EASTERN CARIBBEAN (US$20 million)

The objective of the Sustainable Energy Facility (SEF) for the Eastern Caribbean (the program) is to contribute to the diversification of the energy matrix in the Eastern Caribbean Countries (ECC) in an effort to reduce the cost of power generation and electricity tariffs by promoting the implementation of Energy Efficiency (EE) and Renewable Energy (RE) technologies to reduce the region’s dependency on liquid fossil fuels. The IDB will provide a Global Credit Loan (GCL) to the Caribbean Development Bank (CDB) to finance eligible sub-loans and sub-grants.

Activity I: Promotion of Energy Efficiency, including building retrofitting, street lighting and reduction of system losses.

Activity II: Promotion of regulatory frameworks, institutional strengthening and capacity building activities for the development of Sustainable Energy in the countries.

Activity III: Promotion of Renewable Energy and PPP mechanisms for solar PV, wind farms, geothermal, waste-to-energy and hydro.

Website: http://www.iadb.org/en/projects/project-description-title,1303.html?id=RG-L1071

Beneficiaries: Eastern Caribbean Facilities

The IDB aims to increase access to efficient, sustainable, reliable, and affordable energy, providing a diversified and secure energy source while reducing poverty, promoting improved quality of life, and fostering competitiveness, economic growth and development. In the last 5 years, the IDB has approved an average of over $1 billion dollars per year in public and private sector lending to support the region’s energy needs. In addition, the IDB has catalyzed additional investments from the public and private sector and provided grants and technical cooperation resources.
Examples of IDB’s work in the region include:

• Access: The National Sustainable Electrification and Renewable Energy Program (PNESER) in Nicaragua, (co-financed with 7 other organizations), which has led to 55,500 new households connected, 5,000 efficient public lighting fixtures replaced, and 40 km of new transmission lines built
• Renewable Energy: EURUS, a 250.5 MW wind farm in Oaxaca, is one of the first wind farms in Mexico and the largest one operating in Latin America.
• Energy Security and Regional Energy Integration: The Central American Electrical Interconnection System (SIEPAC) connecting Guatemala, El Salvador, Honduras, Costa Rica, Nicaragua, and Panama, with funds from the IDB, CABEI, BANCOMEXT, CAF, and share capital and loans from shareholders.

Initiative: SUPPORT FOR THE INTEGRATION OF HONDURAS IN THE REGIONAL ELECTRICITY MARKET
(US$22,93 mill. Loan). The program’s objective is to support the start-up of commercial operation of one of the segments of SIEPAC and to improve physical infrastructure conditions in Honduras so as to enable the country to participate effectively in the Regional Electricity Market (MER). The specific objectives are to: (i) reestablish the operating conditions of the only SIEPAC electric interconnection between Guatemala and Honduras, one of SIEPAC’s central connections; and (ii) strengthen ENEE’s operations and management so as to maximize the benefits of marketing electric power in the MER.

Activities: ACTIVITY I: Investment in works related to the integration of Honduras into SIEPAC (US$ 19.7 million). two parts:
- (A) Construction of the La Entrada substation (US$14.9 million). This part includes: (i) building a substation with capacity to convert from 50 MVA to 230 kV/34.5 kV, along with its associated outgoing lines, in order to create a link between SIEPAC and the transmission network in Honduras; (ii) installing three towers for the incoming transmission lines; (iii) improving the associated distribution lines; and (iv) purchasing land for construction of the substation.
- (B) Investments in electric transmission infrastructure (US$4.8 million). This will make it possible to complete the works and achieve the outcomes planned under previous Bank's loans. The works to be completed under these loans are: (i) two 69-kV transmission lines: Las Flores–Erandique (62 km) and Danli–Chichicaste (33 km); (ii) one 138-kV transmission line: San Pedro Sula Sur–Naco (23 km); (iii) expansion of the Las Flores and Danli substations ; and (iv) the Amarateca substation, with capacity to convert from 150 MVA to 230 kV .

ACTIVITY II. Strengthening ENEE for energy marketing in the MER (US$1.7 million). Activity II will help ENEE enhance its management capacity, including: (i) creating an electricity marketing and transactions unit at the ENEE National Dispatch Center so as to enhance the benefits from ENEE’s marketing of energy in the MER; and (ii) improving ENEE’s financial management for the proper handling of information on commercial transactions in the MER.

Website: http://www.iadb.org/en/projects/project-description-title,1303.html?id=HO-L1039

Beneficiaries: Republic of Honduras, Empresa Nacional de Energía Eléctrica (ENEE)

Initiative: Natural Gas in the Caribbean, Feasibility Studies
(US$1mill.) The objective of the program is to analyze the overall feasibility of establishing a commercial supply chain for Natural Gas (NG) in the Caribbean region considering in particular the potential role or regional suppliers such as Trinidad and Tobago (T&T) and regional small economies as off-takers. The Program will include technical, economic, financial and commercial aspects, with particular focus on the resulting costs of investments and of the end cost of the delivered gas. These studies are expected to support the decision making processes at the level of governments in the region, as well as other important stakeholders.

Activities: Activity I, Assessment of Potential Natural Gas Market in the Caribbean: (i) to analyze the T&T NG reserves and resources, (ii) to analyze the USA NG production and proven and potential NG reserves and its potential to supply the Caribbean region, (iii) to analyze the Guyana-Suriname Basin NG reserves and resources, (iv) to identify additional potential markets in the Caribbean region for shipped NG, and (v) to analyze the principal target markets in the Caribbean and evaluate these markets as off-takers under different scenarios of demand for NG.

Activity II, Economic Analysis of Liquefied Natural Gas (LNG) and Compressed Natural Gas (CNG) Application: (i) analysis of the global LNG market, (ii) analysis of the market for CNG and LNG in the Caribbean, (iii) analysis of the electricity market in the Caribbean, (iv) examination of the economics of converting existing HFO or diesel plants from to NG, (v) estimation the impacts of the introduction of other feasible energy technologies and (vi) examination of the macroeconomic implications of the application, its potential fiscal savings and impacts on account sustainability for the Caribbean countries

Activity III: Technical Analysis of Natural Gas (NG) Applications in the Caribbean. (i) identify infrastructure and technologies based on CNG and LNG potentially suitable for the region's countries, (ii) to identify the preferred technologies for each country, (iii) to analyze of the complete commercial cycle, (iv) dimension the most efficient infrastructure solution, (v) cost of the dimensioned infrastructure for trading NG from T&T to the Caribbean region, and (vii) a complete financial analysis.

Activity IV: Socio-environmental Impact and Risk Analysis.

Activity V: Develop Technical Terms of Reference for developing the selected solution.

Website: http://www.iadb.org/es/proyectos/project-information-page,1303.html?id=RG-T2243

Beneficiaries: Caribbean Governments

Iniciative: REGIONAL HUB FOR SUSTAINABLE ENERGY FOR ALL (SE4ALL) IN LAC
(US$700,000) The general objective is to provide support to Latin American and Caribbean (LAC) countries to achieve the three goals of the United Nations (UN) initiative Sustainable Energy for All (SE4All): universal access to modern energy; greater Energy Efficiency (EE); and increased use of Renewable Energy (RE). The specific objective is to provide technical and financial support for implementation of the Work Plan for the regional hub of SE4All in the Americas.

Activities:
Activity 1, Support for Implementation of SE4All in Countries: support of the government efforts, in at least two countries, including (i) support to prepare SE4All targeting setting,(ii) technical assistance or advisory services supporting priority actions such as policy, financial, technical assistance, capacity development, and/or planning needs on specific topics or issues in response to the specific requests from countries and (iii) knowledge sharing and communications.

Activity 2, Energy Knowledge Products and Dissemination: (i) development of a toolkit for Universal Access Planning, (ii) regional monitoring of SE4All goals in countries, (iii) EE Booklets Series will continue the knowledge series of best practices in EE measures to public and private sector actors and (iv) dissemination activities of knowledge products.

Activity 3 ,Sustainable Energy Project Preparation Facility: (i) support in promoting sustainable energy(renewables, efficiency and/or access) projects in at least 3 countries, (ii) establish an Energy Project Preparation Facility aimed at improving the financial structuring and presentation of some projects as they seek to acquire financing, (iii) design an online tool that will function as a virtual marketplace of SE projects seeking finance and (iv) a SE project preparation guide.

Website: http://www.iadb.org/es/temas/energia/se4allamericas/inicio,17743.html

Beneficiaries: Latin America and Caribbean countries