Bilampí Hydroelectric Plant in Matagalpa, northern Nicaragua

Just 55% of the population in Nicaragua enjoys access to elec-tric energy, and in rural areas, the figure sinks to even only 25%. With the construction of small hydroelectric power plants, the SDC aims at improving this deficit in basic services, thereby making a contribution to the economic development of the country.

Unexploited Potential
In contrast to the other Central American countries, Nicaragua dis-poses of poor electricity supplies. Yet, this situation need not be so, for indeed hydropower, organic substances, wind energy, and the heat of the earth offer enormous possibilities yet to be tapped. The potential for the creation of renewable energy sources amounts to an estimated 3,000 megawatts of which, at present, Nicaragua util-izes but some 250. Nearly 70% of Nicaragua’s energy needs are supplied by fossil fuels. Given the unstable price situation and the damaging environmental impact, the import of petroleum is neither economical, nor sustainable.

The National Energy Plan
In 2003, the Nicaraguan government drafted a National Plan on providing energy with the goal of substantially enhancing the supply of electric current to rural areas, primarily from renewable energy sources. By 2015, around 55% of the rural population is to be en-abled access to electric energy, as opposed to the mere 25% of the rural population today. Moreover, the Ministry of Energy predicts that demand will double over the next 10 years, and the National Energy Plan has been designed to satisfy this demand.

The big Impact of Small Power Plants
With the construction of small hydroelectric power plants, the SDC is making a large contribution to resolving Nicaragua’s energy problems. These small plants produce electric energy in a sustainable manner, while simultaneously helping to reduce CO2 emissions in the rural countryside.
Within the 7-year period running from 2004 to 2010, 9 such hydroelectric power plants are to be built and 20 micro-turbines to be installed. This represents an overall energy production of 5 mega-watts. The beneficiaries are to be the approx. 8,000 families, i.e., some 50,000 individuals in northern Nicaragua and in the provinces bordering the Atlantic coast. Furthermore, the Ministry of Energy has identified another 20 localities in 18 different communities as mani-festing hydroelectric potential. Should proof emerge with time that the first 9 hydroelectric power plants have successfully fulfilled expectations, the project will be replicated in the newly determined localities. This would mean that a total of 90,000 persons will then enjoy access to electric energy.

This small hydroelectric power plant is able to create 320 kW of current. Ever since it was commis-sioned in March 2007, 380 families in three communities are benefiting from this new plant, and its potential is still far from being exhausted.

Multiple Improvements
For the moment, in the absence of any qualitative evaluations of the project, initial observations show the positive effects that access to electric energy and its sustainable production have had on the lives of the rural population.

• More Education: The educational level of the rural population is rising. For instance, electric energy makes it possible to expand the hours during which classes can be given in the schools. In particular, the adults who spend their day at work can now go to evening classes. This holds especially true for the women.
• Better Healthcare: The communities are now able to set up healthcare centers that can continue to operate after sunset. For one thing, this means that a woman giving birth during night-time can benefit from better techni-cal assistance. Furthermore, doctors can take advantage of using specific medicines that must be kept in refrigerators.
• A Boost to the regional Economy: Access to electric energy is crucial to the economic growth of rural areas. It fosters the creation of enterprises that are dependent on electric current for their production and the services they offer, i.e., carpenter’s workshops, cheese-makers, and hair-dressing salons, to name a few. This in turn creates jobs and helps the population to become more prosperous. Restaurant owners and canteen manag-ers can keep foodstuffs refrigerated, thereby increasing their storage period. In addition, initial calculations have shown that the average cost for lighting per household using e.g., candles and kerosene, is three times more expensive than the cost for electric current.
• Enhanced Networking and Communication: Electric current provides households with access to telephone and to Internet. Business deals can be more efficiently concluded using Internet.
• More Respect for the Environment: Thanks to the hydroelectric power plants, the local populations advance the cause of environmental protection. Land owners in the power plant’s catchment area are also obliged to show active concern for the forests and the river basins so as not to jeopardize the water supply (and in turn, the creation of current).