Honduras is consolidating a regulatory framework that allows residential and commercial users to produce renewable electricity for self-consumption, incorporate storage systems, and feed their surplus into the distribution grid. The regulation, updated in 2025, also establishes how this energy will be valued and the requirements each installation must meet before connecting to the grid.
One of the key changes is the explicit inclusion of batteries within the Technical Standard for Residential and Commercial Self-Producing Users of the Electric Energy Regulatory Commission (CREE). “ Self-producing users may use Energy Storage Systems to store surplus energy produced by their generation equipment ,” the document stated.
The modification was approved through Agreement CREE-07-2025 , issued on January 27 and published on April 10, 2025. The framework regulates the connection, operation and control of renewable equipment and Energy Storage Systems (ESS) located within the facilities of consumers seeking to supply all or part of their demand.
The scope extends beyond traditional residential self-consumption. The regulation also includes medium-voltage commercial projects and installations exceeding 1 MW , thus creating an area of interest for industries, businesses, and other large consumers considering distributed generation combined with energy storage.
The CREE divides self-producers into three categories . Type A includes all residential and commercial users connected at low voltage; Type B are commercial users at medium voltage with generation equal to or less than 1 MW ; and Type C corresponds to commercial users at medium voltage whose installed capacity exceeds that threshold.
This classification determines the electrical studies, the documentary requirements, and the timeframes that each project must meet before obtaining authorization to operate in parallel with the grid.
Before requesting a connection, the regulations aim to provide greater visibility into the available capacity in distribution systems. Companies will be required to provide technical information so that interested parties can assess beforehand whether there are restrictions at the location where they intend to install generation.
“The information in question will be public, free of charge, and must be updated every six months ,” the regulation stipulated. Among the suggested data are medium-voltage circuits, transformer capacity and nominal voltage, minimum and maximum demands for the last 12 months , and distributed generation already operational or with pending access requests.
This mechanism incorporates infrastructure conditions as a central variable for investments. The availability of the renewable resource will not, by itself, determine the scale of an installation, since the circuit capacity and the impact of new injections will also influence the authorized power output.
Once the documentation has been submitted, the distributors will have 10 business days to respond to type A users and 15 business days for types B and C. The response may approve or reject the initiative, although any rejection must be technically justified.
If the application contains inconsistencies, the user will have 10 business days to correct them . Submitting new documentation will restart the distributor's evaluation period, while failure to correct the inconsistencies will invalidate the process and require restarting the procedure.
The authorization will not be indefinite either. Type A and B projects will have 90 calendar days to complete the connection , while for type C projects, the validity may be extended up to a maximum of six months when expansions or adjustments to the network need to be carried out.
In terms of documentation, the application must detail the technology, number of units, installed capacity, estimated production, and expected start date . If storage is involved, the power in kW and energy capacity in kWh must also be specified.
For types B and C, additional technical requirements apply. The regulations require documentation from the person responsible for the design and assembly, professional certifications, a single-line diagram, and applicable certificates for the main components , including IEC standards for photovoltaic installations.
Type B projects will be subject to an analysis of the circuit's nominal capacity, cumulative distributed generation, and contribution to short-circuit currents . The assessment must include both existing equipment and equipment associated with permits that are still valid.
At this point, batteries once again become a technical factor. To calculate the effect on short circuits, regulations establish different factors depending on the technology and assign a contribution factor of one to equipment with inverters and storage systems , compared to six for asynchronous equipment and eight for synchronous equipment.
For type C users, the requirement extends to power flow, short-circuit, and protection coordination studies . These analyses must verify, among other aspects, that conductors are not overloaded, that voltage profiles remain within operating limits, and that protection systems maintain selectivity and speed.
If the installation causes additional losses, quality problems, or impacts incompatible with the infrastructure, the distribution company must identify the corrective works and determine the maximum capacity that could be connected without causing that impact .
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In this way, the requested power is determined by the electrical behavior of the circuit. When investments are needed to make the connection technically viable, the self-producer can decide whether to implement the corresponding corrective actions.
The second area of interest for the market lies in commercial operations. Before generation begins, distributors must install a bidirectional meter capable of distinguishing between electricity withdrawn from the grid and electricity injected by the user.
The regulation sets a maximum period of 15 days to install this equipment, which must separately record the energy and power values injected and withdrawn by each self-producer.
If the distributor does not have the device, the user may supply it themselves in accordance with the Electricity Distribution Service Regulations. Furthermore, types B and C will have to install a specific meter for generation equipment and SAE (Energy Saving Systems).
This system must be synchronized with the utility company's meter, record the same time parameters, and can be integrated with the inverter or the control and monitoring system . The collected data must be delivered to the distributor in the format they define.
The third element is economic. Renewable surpluses will be credited to the bill through a tariff approved by the CREE and based on avoided supply costs.
“ The compensation will be applied as credits on the electricity bill ,” the regulation stated. When the credit amount exceeds the charge for the period's consumption, the remaining balance will be credited to the user and carried over to the next billing cycle .
At the same time, all self-producers must maintain a dual tariff for the electricity they consume from the grid . The design, therefore, preserves economic signals associated with both energy consumption and the use of the electrical infrastructure.
The distributors will also be required to build a detailed database on self-producers , including installed capacity, technology, location, storage capacity, connection point, monthly surplus energy, purchase tariff, and recognized amount. This information must be submitted quarterly to the CREE.
The framework also incorporates strict safety obligations. Equipment must prevent injection in the event of faults, voltages outside of tolerance, or network outages , while protection systems must be coordinated with the devices used by distribution companies.
The regulations also stipulate consequences for connections made outside the established process. Distributors may disconnect equipment installed without following the established procedure without prior notice and must inform the CREE (Energy Regulatory Commission) for the corresponding sanctioning processes.
The scheme comes at a time of broader transformation in the Honduran electricity market . The country is discussing structural changes to the National Electric Energy Company (ENEE) and preparing for a 1,500 MW tender, the timeline for which has been pushed back to 2027 while seeking greater regulatory and contractual certainty.
Meanwhile, energy storage is beginning to gain a concrete place in electricity planning . Honduras has the state-owned Amarateca battery project, with a capacity of 75 MW/300 MWh , designed to provide frequency services, shift production to periods of higher demand, and support the system in the event of contingencies.
The Amarateca experience demonstrates the incorporation of large-scale storage, while the self-producer standard extends the technology behind the meter , bringing it closer to commercial and residential consumers who develop their own generation.
In addition, the planned 1500 MW tender aims to address structural needs for new capacity, while self-generation offers a decentralized way to add resources directly at the point of consumption. Both processes reinforce the importance of grids, flexibility, and storage for the next stage of the Honduran market.
The regime designed by the CREE thus leaves a concrete signal for developers and installers: Honduras recognizes renewable generation with batteries, enables the injection of surpluses and establishes a mechanism to remunerate them , conditioned on studies that guarantee that the distribution infrastructure can receive that new capacity.
For business consumers, particularly those with sufficient demand to develop medium-voltage solar photovoltaics, the model allows for combining reduced electricity purchases through self-consumption, storage, and injection of surplus energy . The final profitability will depend on the applicable tariff, equipment costs, and any necessary adjustments for grid connection.
Thus, the integration of batteries is incorporated into a procedure that defines access, metering, protections, availability of grid information, and the economic treatment of surplus energy . The available capacity in each circuit will ultimately be one of the determining variables for the growth of renewable self-generation in Honduras.