Today Nicaragua's economy faces a triple squeeze: high power prices, power shortages, and increased costs for imported fuels. Despite the country's economically-viable renewable energy (RE) potential, risk-averse private investors prefer diesel power plants, with their low upfront costs. This note highlights lessons from the country's failed power-sector reform of 1998-99 and recent measures to ease barriers to RE investment.
Details
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Author
Mostert, Wolfgang
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Document Date
2009/01/01
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Document Type
Working Paper (Numbered Series)
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Report Number
48646
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Volume No
1
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Total Volume(s)
1
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Country
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Region
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Disclosure Date
2010/07/01
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Disclosure Status
Disclosed
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Doc Name
Easing investment barriers : Nicaragua's renewable energy potential
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Keywords
Hydropower;market rule;law;legislative branch of government;international price of oil;barriers to investment;electricity theft;renewable energy specialist;natural resource tax;diesel power plant;bulk power market;act of parliament;cost of capital;power purchase agreement;national power production;energy policy maker;barrel of crude;global power;average price;hydropower plant;rural resident;reform process;kilowatt hour;fuel price;water right;Geothermal Power;potential hydropower;production cost;energy price;distribution asset;capacity payment;policy strategy;contract market;enabling conditions;capacity market;investor confidence;financial viability;Rural Poor;private investment;transition economy;Transition economies;energy requirement;sustainable way;investment barrier;quantitative targets;political pressure;international supply;competitive effect;marginal price;hydrocarbon fuel;market design;risk premium;tax incentive;criminal offense;holding company;regulatory contract;project finance;power producer;battery charge;market price;Power Generation;market liberalization;power price;spot market;price evaluation;distribution company;tariff bid;automatic adjustment;political issue;competitive power;supply side;capita income;high power;power shortage;private investor;price competitiveness;installed capacity;commercial power;thermal plant;private capital;foreign exchange;price stability;capital requirement;family benefit;power supply;governance function;financial closure;market access;energy planning;Property tax;social cost;political power;import duty;financial framework;global knowledge;Energy Sector;virtuous cycle;coherent approach;executive power;energy legislation;national assembly;
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Citation
Mostert, Wolfgang
Easing investment barriers : Nicaragua's renewable energy potential (English). Knowledge exchange series ; no. 12 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/622521468288978550/Easing-investment-barriers-Nicaraguas-renewable-energy-potential