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Table 4.6 Main electricity subsector indicators, 2010-2015
2010 2011 2012 2013 2014 2015a
State hydroelectric 2,707,504 2,468,570 2,399,389 2,275,066 1,882,110 1,119,894
Private hydroelectric 372,782 346,539 387,310 464,147 720,268 435,250
Biomass 148,109 164,539 181,521 192,371 176,789 247,188
Wind n.a. 116,668 338,283 310,234 398,306 499,823
Photovoltaic n.a. n.a. n.a. n.a. n.a. 164,199
Hydroelectric 3,080 2,815 2,787 2,739 2,602 1,555
Public 2,708 2,469 2,399 2,275 1,882 1,120
Private 373 347 387 464 720 435
Biomass 148 165 182 192 177 247
Wind 0 117 338 310 398 500
Photovoltaic 0 0 0 0 0 135
(...)

(...) Generating companies that use hydro resources must obtain the corresponding water utilization rights concession, in accordance with the provisions of the Law on Incentives for Renewable Energy Generation (Decree No. 70-2007) and amendments thereto, and the General Water Law. The concession specifies the period, conditions and scope and the corresponding area in which the renewable natural resource is located and the process infrastructure. For all generating companies that use renewable energy sources the duration of the respective concession, the licence to use the non hydro renewable resource and the environmental permit will be equal to the economic life of the project, as defined by the CREE (Electricity Regulatory Commission) by means of regulatory provisions. (...)

Under the new Law the CREE (Electricity Regulatory Commission) may grant study permits for building generating plants that have to use renewable natural resources. The permits are valid for two years, once renewable for the same period of time, and confer exclusivity; the granting of these permits may be made subject to economic conditions.

The authorities have been promoting the implementation of renewable energy projects by means of a series of tax incentives. These include: exemption from sales tax on equipment, accessories and spare parts during the pre-investment and construction period; exemption from the payment of import taxes, charges, tariffs and levies, during the pre investment and construction period; for projects of up to 50 MW, exemption from the payment of income tax, the temporary solidarity contribution, the net assets tax, and all taxes related to income over a ten year period from the commencement of commercial operation; relief from taxes on temporary importation; exemption from income tax and withholdings on payments for services or fees agreed with foreign natural or legal persons, necessary for studies, development, installation, engineering, administration and construction, and monitoring of the renewable energy project.

Incentives are also granted with regard to the sale of energy through concession of the right to sell to the ENEE (National Electricity Compapy) under a renewable energy supply contract (PPA), with a maximum duration of 20 years for projects up to 50 MW and 30 years for those that exceed that capacity. The Law stipulates that projects of less than 3 MW may be exempted from the need to sign an operating contract under a simplified procedure to be established by the SERNA (State Secretariat for Natural Resources and the Environment). The base price for the energy is established in the contracts in accordance with the short run marginal cost (CMCP) in effect at the time of signature. For the first ten years, there is an incentive of 10% above the base price for projects of up to 50 MW. The base price is indexed annually in accordance with the United States inflation index, up to an annual maximum of 1.5%.

Policy in the subsector is defined by the National Sustainable Tourism Strategy 2006 2021 (ENTS) and the four year tourism plans. Honduras is implementing an integrated tourism model, which takes the local communities and the environment into account, while consolidating existing tourism products and designing new ones. In 2014, tourism was declared a priority sector for socio economic development and the promotion of investment.

In 2011, in order to promote tourism, Honduras enacted the Law on the Development of Sustainable Rural Tourism, which also provides for a series of tax incentives. However, it has not yet been implemented, since implementing regulations have still to be enacted.

Table A3.2 Conditions for loans granted by BANHPROVI
Financing of "production sectors"
BANHPROVI funds BCH Trust Fund
Agriculture, agro industry, industry, services sector Sowing of staple grains, vegetables Oil palm Marketing of coffee, staple grains and vegetables Renewable energy generation Agricultural, poultry, aquaculture production, agro industry and industry, manufacturing Clean energy generation
Maximum amount (L million) 50 30 50 30 10 50 10 50
Maximum term 7 years 1 year 10 years 12 months 6 months 3 years 10 years 1 year 12 years
Use Fixed assets Working capital Fixed assets Working capital Working capital Fixed assets Fixed assets Working capital Fixed assets
Interest rate for intermediary financial institutions (IFI) (%) 6.0 6.0 6.0 8.0 8.0 6.0 6.0 6.0
Interest rate for end customer (%) 10.0 10.0 10.0 12.0 12.0 10.0 10.0 10.0
(...)

(...) Open markets and liberal trade regimes have put the emphasis on the need to undertake deep structural reforms to boost economic growth, safeguard macroeconomic stability and ensure sustainable development, with the ultimate objective, the increase of welfare and Albanian citizens' quality of life. (...)

During 2013, 100% of the state-owned shares in two companies in the strategic sector operating respectively one and two hydropower plants ("HEC Ulez-Shkopet Sh.A." and "HEC Bistrica 1 dhe Bistrica 2 Sh.A.") were privatized. (...)