Honduras has taken a major step toward strengthening its energy sector through the San Pedro Sula Sur–San Buenaventura Interconnection Project, supported by the Inter-American Development Bank (IDB) with a $155 million investment. The project was designed to address long-standing transmission bottlenecks in the Sula Valley, the country’s largest industrial and commercial hub, where limited grid capacity had increased electricity costs and reduced supply reliability for households and businesses.
The initiative expanded Honduras’ transmission network by upgrading key substations and constructing 48 kilometers of 230-kV transmission lines across five municipalities in the Department of Cortés. These improvements enhanced connectivity between the Sula Valley, the national electricity grid, and the Central American Regional Electricity Market, allowing the country to benefit more effectively from regional energy trading opportunities.
Since becoming operational in March 2025, the project has delivered significant results. Regional electricity transactions increased by 225%, enabling Honduras to access more affordable energy supplies from neighboring countries. Electricity reliability also improved substantially, with a 20% reduction in energy not supplied and fewer power outages in the northern region. In addition, energy costs declined by an estimated 32%, reducing dependence on expensive local power generation and lowering costs for consumers and industries.
The project also supports Honduras’ clean energy transition by integrating 30 MW of renewable energy capacity that was previously restricted by transmission limitations. This amount of clean electricity is sufficient to power approximately 70,000 households or support dozens of food-processing facilities. Furthermore, the infrastructure was designed with climate resilience in mind, incorporating measures to withstand extreme weather events such as Hurricanes Eta and Iota.
Overall, the project demonstrates how strategic investments in electricity transmission can improve energy security, reduce costs, increase renewable energy use, strengthen regional integration, and create a more reliable foundation for sustainable economic growth in Honduras.
