Honduras

With support from the CIF, Honduras is working towards a cleaner, greener economy by strengthening climate change and risk management, reducing deforestation and forest degradation, and expanding domestic clean energy solutions to reduce dependence on firewood and imported fossil fuels.

INVESTING IN HONDURAS

Under the SREP, Honduras is tapping $30 million in grant and near-zero interest credit financing for a diverse programmatic investment plan aimed at creating an enabling environment for Honduras’ renewable energy sector. Activities include upgrading transmission infrastructure for grid-connected renewable energy, introducing wind and solar power in isolated, off-grid locations, and promoting uptake of low carbon cookstoves.

The plan includes support for policy and regulatory reforms to improve renewable energy market conditions. Honduras is also developing investment plans under the FIP and PPCR to support sustainable natural resource management and mainstreaming climate change considerations across sectors and stakeholder groups.

FACTS ABOUT HONDURAS

Home to the largest solar power development in Central America, with a 81.7 MW solar PV plant completed in 2015 by SunEdison with support from the CIF

50%

of households use firewood to meet their energy needs, one of the factors driving annual deforestation rate of 2.4%

Projects in Honduras

NAME FUND FUNDING (USD MILLION) COFINANCING (USD MILLION) MDB
  DPSP II: Utility-Scale Solar PV Sub-Program FUNDClean Technology Fund COFINANCING (USD MILLION) 19.50 FUNDING (USD MILLION) 186.80 MDBIFC  
  ERUS Universal Energy Access Program (PAUE) FUNDScaling Up Renewable Energy Program in Low Income Countries COFINANCING (USD MILLION) 6.55 FUNDING (USD MILLION) 1.60 MDBIADB  
  Grid-Connected RE Development Support (ADERC) - Generation / H-REFF FUNDScaling Up Renewable Energy Program in Low Income Countries COFINANCING (USD MILLION) 5.95 FUNDING (USD MILLION) 24.00 MDBIADB  
  Grid-Connected RE Development Support (ADERC) - Transmission Phase I FUNDScaling Up Renewable Energy Program in Low Income Countries COFINANCING (USD MILLION) 7.00 FUNDING (USD MILLION) 70.00 MDBIADB  
  Grid-Connected RE Development Support (ADERC) - Transmission Phase II FUNDScaling Up Renewable Energy Program in Low Income Countries COFINANCING (USD MILLION) 5.00 FUNDING (USD MILLION) 345.15 MDBIADB  
  Self Supply Renewable Energy Guarantee Program FUNDScaling Up Renewable Energy Program in Low Income Countries COFINANCING (USD MILLION) 5.50 FUNDING (USD MILLION) 40.00 MDBIADB  
  Strengthening of the ADERC H-REFF in Honduras FUNDScaling Up Renewable Energy Program in Low Income Countries COFINANCING (USD MILLION) 15.00 FUNDING (USD MILLION) 24.00 MDBIADB  
  Strengthening the RE Policy and Regulatory Framework (FOMPIER) Phase II FUNDScaling Up Renewable Energy Program in Low Income Countries COFINANCING (USD MILLION) 0.83 FUNDING (USD MILLION) MDBIADB  
  Strengthening the Renewable Energy Policy and Regulatory Framework Program (FOMPIER), Part I FUNDScaling Up Renewable Energy Program in Low Income Countries COFINANCING (USD MILLION) 0.02 FUNDING (USD MILLION) 0.09 MDBIADB  
  Sustainable Rural Energization (ERUS) – Part I & III: Promoting Sustainable Business Models for Clean Cook stoves Dissemination / Sustainable Rural Energization(ERUS)-Part II: Promoting Sustainable Business Models for Clean Cookstoves Dissemination FUNDScaling Up Renewable Energy Program in Low Income Countries COFINANCING (USD MILLION) 2.44 FUNDING (USD MILLION) 3.03 MDBIADB  

TRANSFORMING VISION INTO ACTION

The CIF programmatic approach to investment planning and implementation brings strategic value to CIF recipient countries. Working through a transparent, country-led process, the CIF fosters trust and collaboration among government ministries, civil society, indigenous peoples, private sector, and the MDBs that implement CIF funding. Together, they translate Nationally Determined Contributions and other national development and climate strategies into an actionable CIF investment plan. Rather than one-off projects, the plan comprises long-term, sequenced investments that mutually reinforce each other and link to other critical activities, such as policy and regulatory reform and capacity building. Under national government leadership, CIF stakeholders continue to work together to implement the plan, continually assessing progress and sharing lessons learned along the way.