Nicaragua President Daniel Ortega Greenlights Major Solar Power Project

Nicaraguan President Daniel Ortega has inked two pivotal agreements sanctioning the Ministry of Energy and Mines (MEM) to enter a contract with Chinese firm China Communications Contry Limited (CCCC) for the development of a significant solar power venture. The project, titled the El Photovoltaic Plant, is slated to boast a capacity of 67.35 MW and will be situated in Ciudad Darío, Matagalpa, in the nation’s northern region.

Outlined in Presidential Agreements 55-2024 and 56-2024, published in the Official Gazette La Gaceta, the contract specifies a value of 492.3 million yuan, equating to approximately $68 million.

Previously, in December, the Production, Economy, and Budget Commission of Nicaragua’s National Assembly greenlit a Legislative Decree initiative for a Credit Facility Agreement with CCCC worth 65.97 million euros. This financing is earmarked for the construction of the photovoltaic plant in Matagalpa.

The proposed project aims to significantly reduce energy costs for the Nicaraguan Company of Aqueducts and Sanitary Sewers (Enacal) by an estimated 40%. Given that 95% of water pumping in Nicaragua relies on electricity, the solar plant is deemed crucial for Enacal’s operations.

Upon completion, the El Photovoltaic Plant is poised to become the largest solar installation in Nicaragua. Presently, the nation hosts only two solar plants: Solaris, with a capacity of 12 MW operational since 2017, and La Trinidad, generating 1.4 MW since 2013.

While completion dates for the El Photovoltaic Plant remain undisclosed, the initiative signifies a significant stride toward enhancing Nicaragua’s renewable energy infrastructure.