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Renewable energy (Environment)
Triodos Groenfonds has made a third investment in the Emerging markets. The fund has provided a loan to Compania Hondurena de Energia Solar S.A. de CV (hereafter: Cohessa), to build a ground-mounted solar plant on a remote and rugged area in the southeast part of Honduras. The plant has a capacity of 72.5 MWp, enough to provide at least 10.000. households with clean energy.
Honduras is one of the poorest countries in Central America, facing serious (energy) challenges. The country recently signed an agreement with the IMF to reform its energy sector. The energy sector of Honduras is highly dependent on imports. In 2011, energy imports accounted for 51% of net energy use, most of which represented imported oil and electricity. Honduras has one of the highest rates of power generated from oil. The country’s investment requirements in new generation are therefore significant. In addition to new capacity, the government aims to improve the efficiency of the sector and attract investors to help shift the energy matrix to 70% renewable by 2022.
Given the current situation of the Honduran energy sector, the impact of this project will be strong; Cohessa will improve Honduras’ national energy production and make the country less dependent on fossil fuel imports. The extra capacity will also likely reduce the price of electricity and it creates new jobs for people who live nearby the project.
On the other side, the project will add to building Triodos Groenfonds portfolio in emerging markets and provide diversification across technologies, geographies and partners.
Energy is a necessity in modern life but the current dependence on fossil fuels to provide it has a high environmental and social impact. We believe that a fundamental transition is needed away from a carbon based economy to a renewable one. By lending and investing in this sector we try to stimulate this transition, with our main focus on financing solar, wind and hydro energy.