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Latin America Investment News on Viva Tropical

Expensive Electric Bills Will Continue in Nicaragua; New Hydroelectric Plants Too Costly

Article Summary:

It’s too costly to build new hydroelectric plants in Nicaragua, and the mounting debt swallowed by these companies is being passed onto the consumer in the former of higher electrical rates. Two current hydroelectric projects, whose combined value exceeds $1 billion, have yet to finish necessary infrastructure projects to bring the plants on-line, and this continues to hinder the process of bringing cheaper electrical rates to the nation.

Photo Credit: La Prensa

Original Article Text From La Prensa via Google Translate :

More Expensive Renewable Energy

Nicaragua is intended to continue paying higher prices for electricity than other countries, because here the construction of infrastructure to generate cost an average of three million dollars per megawatt, which in the rest of the continent.

Economist Adolfo Acevedo said as an example of this disparity, that while the hydroelectric Tumarín be invested 1.100 billion dollars to produce 253 megawatts (4.3 million dollars per mega) in Ecuador Blow hydro invest $ 672 million to produce 487 megawatts (1.3 million dollars per mega).

Although the difference to the economist is striking, the president of the Nicaraguan Chamber of Construction, Benjamin Spears, and entrepreneurs in the sector, claim there are two factors influencing the high costs.

On one hand the “isolation of the project”, which is located more than 300 kilometers from the capital, in the municipality of Rio Grande Cross in the South Atlantic Autonomous Region (RAAS).

The project includes the construction Tumarín a large bridge over the Rio Grande de Matagalpa, over 50 kilometers of road to link North San Pedro with Tumarín and repair of over 80 kilometers of roads.

They add that you should purchase land to build a new village which will house the more than 3,000 people will be displaced from Apawás.

Spears and employers agree that these costs must be escaped hikes that have been building materials, steel, machinery and transport product of oil increases, and remember that for this construction must be from Managua whole material will occupy.

Representatives of the Nicaraguan Chamber of Construction (NCC) and construction companies justify investments in hydroelectric generation plants is higher, but these are “more noble, last longer and have more time to amortize the investment.”

The cheapest investment, they note, is what generates heat, but lasts an average of eight years, while a hydro turbine can last about 50 years.

The agreement for the construction of Tumarín was signed between the authorities of the Ministry of Energy and Mines and Brazilian businessmen on July 31, 2008. At that time, said the project would be operational this year, but just being built.

Link to Original Article:

From La Prensa

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