NDF - Financing for climate change and development projects

Launch of the Bay Islands renewable energy project

Centre of photo: IDB representative Mirna Lievano de Marques and Minister Jose Antonio Galdames
Next to banner: IDB representative Mirna Lievano de Marques and NDF consultant Scarleth Núñez Castillo

"Development of Renewable Energy in Bay Islands (ERIBA)" launched at official event on the main island of Roatán

Roatán, Honduras 21 October 2015. Today marks the launch of the "Development of Renewable Energy in Bay Islands (ERIBA)" project at an official event on the main island of Roatán. The event is led by Mr. Jose Antonio Galdames, Minister for Energy, Natural Resources, Environment and Mining, and Mrs. Mirna Lievano de Marques, Inter-American Development Bank’s representative in Honduras. The three Bay Island mayors are present as well as representatives of the private sector and local institutions.

The ERIBA Project covers the three major islands in the archipelago: Roatán, Utila and Guanaja. The Project will start the transformation of the Honduran Bay Islands into a low-carbon economy through an assessment of renewable energy options and development of an energy strategy and investment plan. The identified investment opportunities will afterwards be presented for financing to international development finance organizations, regional development banks, private sector, and new international climate finance mechanisms.

At present, the islands depend on fossil fuel for electricity generation. Electricity is produced in each of the islands by different private utilities, that all face the same type of problems such as high fuel prices, low efficiency and distribution losses that leads to very high costs for electricity production. Power is generated using thermal units burning diesel fuel. The efficiency of the thermal units is low, according to the National Energy Commission. Furthermore, the fuel handling may result in oil spills and leaks that threaten the fragile coral reef ecosystem.

The Government of Honduras and local authorities are interested in moving to carbon-neutral energy generation in the islands through the use of renewable energy sources and increasing access to electricity for the local population. Elsewhere in the Latin American and Caribbean region, there are successful experiences aiming to reduce the use of fossil fuel in fragile ecosystems such the Galapagos Islands, Aruba, Bonaire, and Curacao. The Project will use these models to prepare the renewable energy strategy and investment plan.

The renewable energy Project is financed by a grant from the Nordic Development Fund. The Project is carried out by the Inter-American Development Bank and the Honduran Ministry of Energy, Natural Resources, Environment and Mining.

More information

Renewable Energy in the Bay Islands [NDF C75]