Still highly dependent on firewood and fossil fuels, Nicaragua aims to develop its vast untapped renewable energy potential to satisfying growing power demand, improve energy security, reduce costs, and increase access to modern energy services.
Source: World Bank
Nicaragua is focusing CIF financing in two strategic areas that can deliver short-term results while also paving the way for Nicaragua’s green energy future: geothermal power generation and integral development of rural areas. The SREP and CTF are helping to de-risk geothermal development and attract private investors by supporting risky exploration drilling at target sites.
Nicaragua also wants to bring modern electricity services to one million rural Nicaraguans uncovered by current electrification schemes. Replacing traditional cookstoves can curb deforestation and improve the living conditions of households cooking with firewood. Small-scale hydropower, solar PV, and biofuels are also being developed.
Estimated geothermal potential 1,500 MW, only 10% of which is currently developed
|NAME||FUND||FUNDING (USD MILLION)||COFINANCING (USD MILLION)||MDB|
|Geothermal Development and Integral Develoment of Rural Areas Project||FUNDScaling Up Renewable Energy Program in Low Income Countries||COFINANCING (USD MILLION) 7.5||FUNDING (USD MILLION) 96||MDBIDB|
|Geothermal Exploration and Transmission Improvement Program under the PINIC||FUNDClean Technology Fund||COFINANCING (USD MILLION) 9.52||FUNDING (USD MILLION) 86||MDBIDB|
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.