The opening of the Honduran electricity market, the creation of an independent operator, and the formal incorporation of energy storage technologies are among the most significant changes in the decree being promoted by the National Electric Energy Company (ENEE) . This initiative comes at a time of significant tension between supply and demand, marked by the postponement of the 1500 MW tender and a growing reliance on the Spot Electricity Market to meet system requirements.
According to Leonardo David , a Project Finance Consultant, both regulatory decisions send a clear signal to the private sector and open the door for bilateral contracts to gain prominence within the Honduran electricity industry.
“With these two regulatory decisions, I see a signal for the bilateral contract market to fill the contracting deficit that ENEE has experienced as the sole offtaker,” said David, who was present at the visit of Guillermo Peña Panting, ENEE Manager, and Héctor Corrales, President Commissioner of CREE, to the Chamber of Commerce and Industries of Cortés , where these points were presented.
The analysis comes in a context where, according to figures from the National Dispatch Center (CND), ENEE began 2026 with a projected peak demand of 2154.13 MW and an availability of only 1541.31 MW between its own and contracted generation. The difference has been covered through purchases in the spot market.
This situation has increased supply costs. “The spot market has filled this gap, with an average marginal cost exceeding US$130/MWh,” the specialist explained.
The decree also introduces structural changes to the organization of the sector. Among these, the creation of the System and Market Operator (OSM) stands out. This independent technical entity will be responsible for the integrated operation of the electricity system and the administration of the wholesale market. Furthermore, the proposal envisions the separation of ENEE into separate generation, transmission, and distribution companies, while maintaining a parent company structure for the management of state assets.
The initiative also reinstates the 400 kW threshold for qualified consumers , reversing the 2022 change that had raised it to 5,000 kW. This modification significantly expands the number of users eligible to contract energy directly with generators or retailers.
“Now that the threshold is back to 400 kW, all these consumers become attractive customers for electricity marketing,” David said.
The measure reopens the market to segments such as corporate towers, residential complexes, medium-sized shopping centers, light manufacturing, private hospitals, hotels, universities, and agro-industrial ventures.
At the same time, the new system strengthens the role of electricity retailers, who will be able to act as intermediaries between generation supply and the demand of qualified consumers. This changes a dynamic that has historically been concentrated around ENEE as the main energy buyer.
David stated that generators will gain new marketing alternatives beyond contracts with the state-owned company and sales on the open market. For large users, the main advantage will lie in the ability to compare prices, contractual terms, and supply providers.
A reform that opens up new business opportunities for renewables and batteries.
One of the most innovative aspects of the decree is the explicit incorporation of energy storage technologies into the General Law of the Electricity Industry. The proposal recognizes these solutions as market participants and establishes that they can withdraw energy for charging without this operation being considered final consumption, thus avoiding charges and tolls applicable to conventional demand.
For David, the text still leaves regulatory questions, although it points in a favorable direction for the development of BESS projects.
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“No more specific details were given, but this suggests that there will be favorable conditions for energy arbitrage,” he noted.
The consultant indicated that the experience of markets such as California, Texas, and New York demonstrates that the profitability of grid-scale batteries depends on the ability to combine different revenue streams.
“The viability of batteries depends on 'revenue stacking': favorable regulation offers operational freedom to stack revenues from arbitrage, firm power and ancillary services,” he explained.
The creation of the OSM also represents a significant change from an institutional perspective. The new entity would assume the functions currently performed by the National Dispatch Center, separating the technical operation of the system from the commercial activities that ENEE will continue to carry out under its new corporate structure.
Drawing on regional experiences, David considered that the measure could strengthen the confidence of investors and financiers.
“If we take the Wholesale Market Administrator of Guatemala as a reference, the creation of the System and Market Operator is a favorable sign for Honduras,” he said.
Along those lines, he added that “maintaining the current CND with the new ENEE structure could be interpreted as 'judge and jury', something that the new regulation wants to avoid.”
Beyond the institutional reorganization, the specialist observed concrete opportunities for the development of hybrid renewable energy and battery storage projects . The combination of high prices in the spot market, a shortage of contracted capacity, and access for qualified consumers creates an attractive scenario for new investments.
“In the short term (2-3 years), the opportunity electricity market is very attractive for renewable energy storage systems,” he said.
As detailed, during the first five months of 2026 the system recorded an average marginal cost of US$135/MWh , with peaks exceeding US$400/MWh , driven mainly by the use of diesel thermal generation to cover the lack of supply.
However, he warned that the addition of new solar projects with batteries and the expansion of private contracting would tend to reduce and stabilize those values in the coming years.
Therefore, he considered that the most solid strategy for developers and investors consists of combining long-term bilateral contracts with participation in the opportunity market.
“For a developer or investor considering renewable generation with storage in Honduras, I think the most viable strategy is to seek bilateral contracts with qualified consumers, taking advantage of the market opportunity as a short-term source of extra income,” David concluded.
If approved by the National Congress, the decree will not only redefine ENEE's role within the Honduran electricity industry, but will also lay the groundwork for a more competitive system, new entrants, rules more aligned with regional markets, and a growing role for renewable energy, BESS (Building Energy Service Systems), and other grid flexibility solutions.