Electricity Sector in Nicaragua

Electricity Sector In Nicaragua

Nicaragua is the country in Central America with the lowest electricity generation, as well as the lowest percentage of population with access to electricity. The unbundling and privatization process of the 1990s did not achieve the expected objectives, resulting in very little generation capacity added to the system. This, together with its high dependence on oil for electricity generation (the highest in the region), led to an energy crisis in 2006 from which the country has not fully recovered yet.

The Nicaraguan electricity system comprises the National Interconnected System (SIN), which covers more than 90% of the territory where the population of the country lives (the entire Pacific, Central and North zone of the country). The remaining regions are covered by small isolated generation systems. The SIEPAC project will integrate the electricity network of the country with the rest of the Central American countries, which is expected to improve reliability of supply and reduce costs.