The postponement of the 1500 MW electricity tender until 2027 has opened a window of opportunity for the Honduran renewable energy sector to strengthen the process before entering the market. The positive aspect of the postponement lies in the possibility of correcting regulatory, contractual, and technical aspects that currently cause caution among potential developers and financiers.
The Honduran Renewable Energy Association (AHER) believes that moving forward with a call for proposals of this scale without addressing certain structural weaknesses could limit the outcome of the process or increase the cost of future investments.
“If time is used correctly to refine the technical foundations, improve the regulatory framework, redefine contractual schemes, and rebuild financial confidence, the process could emerge stronger and attract higher-quality investments at a lower cost ,” said Eduardo Bennaton, president of AHER.
The analysis follows a specific logic: in energy infrastructure, the quality of the resource alone no longer defines the attractiveness of a market. Regulatory stability, contractual compliance, and the perception of the system's financial capacity directly impact the cost of financing and the availability of capital to undertake long-term projects.
“No international investor makes a decision based solely on whether a country has good solar, hydroelectric, or biomass resources. They need to trust the institutions and have certainty that the energy they deliver will be paid for,” Bennaton stated.
This debate is even more relevant because Honduras is undergoing a period of broader energy expansion. The country is seeking to transform its energy mix with a projected portfolio exceeding 3,000 MW of renewable energy, making it all the more important to create conditions that allow this development to materialize with competitive financing.
It is worth emphasizing that Honduras starts from a competitive position that is uncommon in the region: in addition to the resources mentioned, the country has a strategic location within the Regional Electricity Market , at a time when the energy transition is accelerating opportunities linked to storage, more flexible networks and new generation infrastructure.
However, AHER cautioned that this window of opportunity is not indefinite. If the postponement leads to regulatory uncertainty or a lack of concrete signals, the impact could also be significant for Honduras.
“If the pause turns into prolonged uncertainty, the cost is also real: international markets are not just looking for natural resources, they are looking for predictability, transparency and institutional consistency,” Bennaton warned.
In a context where Latin America is accelerating reforms to attract new energy developments, prolonged uncertainty could translate into a loss of competitiveness compared to other destinations. International capital simultaneously evaluates multiple markets and prioritizes those with greater clarity regarding rules, timelines, and execution capacity.
This risk is even more significant because Honduras is not only competing to attract new generations of consumers, but also to position itself within a regional transformation marked by BESS (Basic Energy Saving Services), more flexible networks, and new business models. A pause without a clear roadmap could increase financing costs, reduce interest from potential suppliers, and delay investment decisions that are currently finding alternatives in other markets.
The challenge arises if this pause turns into a lack of clarity. While Honduras reviews its roadmap, other markets in the region have already moved forward with concrete decisions to incorporate new capacity. Guatemala recently awarded PEG-5, while Panama did the same with the LPI ETESA 01-25 and LPI ETESA 01-26 processes, following highly competitive market participation.
For AHER, the underlying debate goes beyond the timeline of a specific auction and is connected to the role that energy will play in the country's economic development.
“Energy is no longer just about engineering: it’s about competitiveness, industrialization, and development,” Bennaton concluded.
What Honduras decides in the coming months will not only shape the future of this initiative, but also its ability to convert its renewable energy potential into concrete projects within an increasingly competitive regional market.