Technical and Finance Facility for Micro-hydroelectric Market Development in Central America.

This Facility supports micro-hydroelectric investments ranging from 1 kW up to 50 kW of installed capacity for off-grid productive end-uses and rural household electrification to a lesser degree.

COUNTRY IN WHICH THE PROJECT WAS EXECUTED

Guatemala (Gt), Honduras (Hn), Nicaragua (Ni)

DESCRIPTION OF THE PROJECT 

The project complements existing funding to support the launch of the Facility for market take-off carried out by BUN-CA, with financial and technical support from GIZ/EnDev; by creating a dedicated second-tier technical and financial Facility to increase energy access mainly for off-grid micro hydro (MCH) projects based on a theoretical investment pipeline of about 5,000 kW.

TARGET MARKET FOR THE PROJECT

It primarily targets agricultural and commercial productive end-uses in off-grid areas, and to a lesser degree, supports nearby-isolated household electrification.

THE DEVELOPMENT OBJECTIVE OF PROJECT

The objective of this project is to contribute to poverty reduction, rural economic development, gender inclusion, inclusiveness, and climate change mitigation and adaptation in off-grid rural areas of Central America. This first-of-a-kind Facility in the regional context will address requirements along the value chain by developing a business-like mechanism based on a technology package for micro-hydroelectric developments, including small-hydro (peak and micro) as well as customized protocols for hydraulic design and civil works, operation, and maintenance.