NDF - Financing for climate change and development projects

Nicaragua - Sustainable Electrification and Renewable Energy Program


Nicaragua has one of the lowest electrification levels in Latin America and the Caribbean. A large share of the population lacks access to electricity, which constitutes a serious obstacle to economic and social development.

In spite of a considerable potential for power generation from renewable energy sources, in particular from geothermal plants, hydro and wind turbines, Nicaragua continues to be highly dependent on fossil fuels.
To change this situation NDF will participate with a number of other bilateral and multilateral donors in an energy sector program, which will change the Nicaraguan energy sector from a total dependence on fossil fuels to using renewable energy sources. NDF provides a grant of EUR 4.5 million to be used for studies related to hydro power development plans, wind power feasibility studies and geothermal investigations.
The NDF intervention is part of the Sustainable Electrification and Renewable Energy Programme funded by several donors. The programme aims at reducing poverty by increasing access to efficient and sustainable energy services as well as at mitigating climate change through a structural change in the sources used for energy generation. The Inter-American Development Bank is the lead agency for the programme.
More information
Sustainable Electrification and Renewable Energy Programme