As Honduras works to overhaul its struggling power sector, the Central American nation has taken a bold step toward attracting global investment—particularly from China. In an effort to secure its long-term energy future, the government has unveiled plans for a $1.5 billion public tender that will introduce 1.5 GW of new generation capacity, with a heavy emphasis on renewable energy integrated with storage systems.
At the heart of this initiative is a reverse auction aimed at procuring 975 MW of renewable energy paired with battery energy storage, alongside 525 MW of conventional generation. The staged rollout is expected to deliver 800 MW by early 2028, 300 MW by 2029, and the remaining capacity by 2030. Honduran officials say this timeline is critical to ensuring the country’s energy stability over the next decade.
“Our goal is to secure reliable, affordable, and sustainable power for Honduran households and industries,” said Energy Secretary Erick Tejada. He emphasized that once the regulatory green light is granted by the Electric Energy Regulatory Commission (CREE), the tender will officially launch.
A Strategic Courtship with China
In a strategic move to attract foreign capital and technical expertise, Honduran Finance Minister Christian Duarte and Energy Secretary Tejada recently led a delegation to China, where they presented the country’s energy rescue strategy to 60 of China’s leading energy enterprises. The pitch included key elements of the upcoming tender and outlined the broader vision for modernizing Honduras’ electricity infrastructure.
This outreach is part of a larger trend of growing economic cooperation between Honduras and China, especially after the two countries formally established diplomatic ties in 2023. Chinese companies, many of which are global leaders in renewable energy and battery storage, represent a promising source of both investment and technological solutions.
Energy Reform Beyond the Tender
While the tender is a headline initiative, it is only a part of a much broader transformation. According to a statement from the Honduran government, the country’s energy sector requires an estimated $4.6 billion in total investment over the next ten years. Beyond new generation, this figure also reflects urgent needs in grid modernization, loss reduction, and improved access in rural regions.
The integration of storage into the procurement plan is especially noteworthy. It reflects a growing recognition among developing nations that renewable energy, while crucial, must be balanced with reliable dispatchable capacity. By coupling solar and wind with energy storage, Honduras aims to avoid the pitfalls of intermittent generation and create a more resilient and flexible grid.
What This Means for Global Players
For Chinese developers, this tender offers not just a business opportunity, but a strategic foothold in Latin America’s evolving energy landscape. For Honduras, the success of this initiative could serve as a model for how emerging economies can leverage international partnerships to advance domestic energy security and sustainability goals.
With Latin America’s rich renewable resources and increasing demand for grid modernization, the region is poised for a surge of infrastructure projects. Honduras is now signaling that it intends to be at the forefront of this movement—and it’s inviting the world to take part.
