17 April 2026

The European Union and Honduras’s National Electric Energy Company (ENEE) have signed an agreement to modernise the country’s ageing power grid. As part of a broader €1 bn regional investment, the European Investment Bank (EIB) will provide Honduras with a €200 million loan. This funding prioritises the construction and renovation of seven critical transmission lines, selected from twenty-one identified as high-priority. These upgrades are essential to address a 50-year-old infrastructure that has exceeded its lifespan, including the vital Nicaragua interconnection.

Energy Minister Eduardo Oviedo emphasised that ENEE faces US$6.5 bn in investment pressures over the next decade, necessitating private sector involvement. Currently, private firms generate two-thirds of the nation’s electricity. By combining technical assistance with high-tech industrial offers, the EU aims to improve grid reliability and reduce technical losses. This strategic international cooperation represents a vital step toward securing long-term energy sustainability while meeting the country’s rising annual demand.

Source: Central America Briefing | Vol 14, Issue 8