Liberalization of the Honduran Electricity Market: A Review of the Current Process

This paper provides an overview of the electricity market liberalization in Honduras, which started in 2014. It consists of a review of the persistent dominance of the state-owned electric utility company, the transition of the traditional model to a more competitive market, and the particularities of the electricity subsector of Honduras. The establishment of a wholesale electricity market with the intention to promote competition in the production and commercialization of electricity is developing gradually. To that, the electricity reform includes restructuring of the electric utility company, the creation of an independent regulator, and of an independent system operator. However, many of these key aspects of the reform are still pendant.