Expanding energy access through the improvement of the regulatory framework for renewable distributed generation in Nicaragua

摘要

Most of the distributed generation (DG) systems in Nicaragua are based on micro hydroelectric and photovoltaic systems (less than 1.5 MW). Their main purpose is to provide energy to rural communities, which are not profitable business for utilities due to their socioeconomic characteristics and the high cost of extension of the national grid. This paper provides an analysis of the Nicaraguan legal framework related to DG connected to the electrical grid. The point of view of the electrical market agents is included. Laws are analyzed based on how they were designed to support the particular use of rural electrification by incorporating renewable energies. Findings reveal that while DG is considered in different laws, aspects such as tax exemptions and financial incentives are not properly addressed. Furthermore, grid interconnection standards and commercial regulation are not included at all. These facts represent a real threat to the sustainability model of small energy producers. Additionally, a comparative analysis of the Nicaraguan DG regulatory framework with that of Costa Rica is carried out in order to identify lessons learned as well as failure and success factors. Finally, we provide recommendations for improving Nicaraguan regulation, to support small producers of energy, serving rural communities.