Photo: Electricity in Nicaragua
The Inter-American Development Bank (IDB) has approved a $35 million loan to improve electricity service in Nicaragua, the third part for the National Sustainable Electrification and Renewable Energy Program (PNESER, the Spanish acronym).
PNESER aims to support the transformation of the country’s energy matrix and increase electricity coverage from 65 percent to 85 percent of the population, improving the quality of life for the more than 1.7 million Nicaraguans. It will also lower electricity costs for families by reducing dependence on fossil fuel-generated electrical power and by implementing energy efficiency measures.
The operation brings the IDB contribution for PNESER to $87.5 million over three loans. The first was provided in 2010 and the second the following year.
The program’s overarching objectives will address Nicaragua’s lack of electricity in rural areas, insufficient transmission and grid infrastructure, systemic inefficiencies, high dependence on fossil fuels, and lack of investment in renewable sources.
Over the next four years PNESER will provide service to 117,390 new users, totaling 702,000 people in 3,666 rural communities. The IDB loans will help finance electricity service connections to 6,762 of these homes. Service will also be normalized for 164,000 households, totaling 984,000 people, who currently have illegal electrical connections.