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Approved on November 3, 1994, the Energy Subsector Framework Law regulates the generation, transmission, distribution, and commercialization of electric power in Honduras, allowing the private sector to participate in the generation and distribution of electric power. Framework Law of the Electricity Sub-Sector (1996) Honduras approved legislation to encourage investors into raising the country’s renewable energy generation. Firmscomingintothe sectorwillbeabletobuildaplant without paying sales tax on any of their materials for 15 years. Another 10-year tax break frees them from income tax. Thenewlawcoversenergy produced from biomass or alcohol, solar, tidal or wave power, as well as geothermal and hydro energy. A development fund of $11m will be set up and used by ENEE, the state electricity company, for such renewable energyprojects. Thelawpassedbythenationalassemblyat the end of March 1998 is also aimed at creating rural jobs. No Specific Law for Geothermal The specific incentives which benefit generation activities by renewable energy for private investment consist of the exemption of the rights of the duty for the import of generation equipment (Power in Latin America, April 1998). Geothermal Sites / Projects Hondurashasanestimated990MWeof geothermalpower potential. ENEE began exploring Honduras’s geothermal resources in the 1970s with a field survey of Pavana undertaken by Geonomics. Thesurveywasterminated earlyduetofinancialproblems. In 1979, a nationwide reconnaissance program identified 128 thermal manifestations and took water and gas samples at 111 and 11 sites respectively. In 1980, GeothermEx, funded by the UN, identified six sitesofinterest: Pavana,SamboCreek,ElOlivar,San Geothermal Resources in Latin America & the Caribbean 45PDF Image | Geothermal Resources in the Caribbean and Latin America
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