Renewable energy opportunities in Nicaragua for sustainable development

This paper originated from a collaboration between the National University of Engineering in Managua (UNI), Universitd Politecnico di Milano (PM) and Nicaraguan Institute of Tourism (INTUR). Nicaragua has a good potential in natural resources that can be used for renewable energy production. The power sector is strongly dependent on fossil fuels at present, but the government plans to power the country by 94% renewable energy by 2017. The main objective of this work was to perform a brief survey of renewable energy resources in Nicaragua, together with a description of government policies and business development opportunities. Secondly, it aimed to give some indications on strategic renewable energy sources, which would encourage local development if projects are supported. Part of the research was conducted in Nicaragua, where a series of interviews, participation in conferences and visits to power plants were organized thanks to the contribution of the UNI. The analysis of the energy market revealed a great potential for hydro, geothermal and wind power. In particular the small hydropower sector offers good prospects for development, above all in those areas not reached by the national grid, e.g. Costa Caribe. It was identified that hydro plants in the range of 100 kW to 5 MW are the most appropriate technology to meet electricity demand in those rural areas without current access to the grid. The abundance of water available, combined with the current political support for environmentally friendly technologies and the motivation of stakeholders, offers a promising environment for a sustainable energy development in the region.