Honduras pushes energy reforms and grid upgrades to attract US investment and curb outages

Honduran officials are advancing legislation to reform the electricity sector, aiming to create a more attractive environment for private, especially U.S., investors. Commissioner Héctor Corrales of the Comisión Reguladora de Energía Eléctrica said U.S. support for the reforms could unlock significant capital and improve the performance of the state utility ENEE.

The government’s energy plan includes a rescue package for ENEE, which has been losing more than 20 million lempiras daily. Lawmakers are urged to approve the proposal promptly, with the National Party backing it, liberals seeking additional analysis, and opposition parties resisting.

Meanwhile, ENEE reports increasing power interruptions in western Honduras due to transmission lines over 40 years old and damage from heavy rains. The utility is undertaking projects such as repowering the Santa Rosa sub‑station, installing new voltage regulators, pruning trees, and deploying thermal and acoustic inspections to improve reliability.

International partners, including the United States and multilateral financiers, are backing the reforms and modernization efforts, positioning the country to secure new investments and stabilize its electricity supply.