In 2023, Nicaragua's electricity consumption reflects a diversified energy mix with a fairly strong emphasis on low-carbon sources. More than half of the country's electricity, approximately 51%, is generated from clean energy types such as biofuels, geothermal, hydropower, and wind. Of these, biofuels contribute more than one-sixth, while geothermal, hydropower, and wind each account for significant portions close to an eighth, an eighth, and a tenth, respectively. On the other hand, fossil fuels account for about 28% of electricity generation, indicating a substantial reliance on non-renewable sources alongside the low-carbon methods. Net imports also play a significant role, making up a little over one-fifth of the electricity consumed in the country.
Is Electricity Growing in Nicaragua?
Examining the growth of electricity consumption in Nicaragua, there has been a slight increase in total electricity usage from 2022 to 2023. The per capita consumption rose modestly from 799 kWh/person to 806 kWh/person, marking a change of 7 kWh/person. However, there is a concerning decline in per capita low-carbon generation, which currently stands at 413 kWh/person — a decrement of 25 kWh/person from the record set in 2021. This decline raises questions and concerns about the stagnation in the growth of green energy, which is crucial both for sustainable development and for reducing the country's reliance on fossil fuels.
Suggestions
To bolster its low-carbon electricity generation, Nicaragua can consider expanding its existing wind capacity given the promising results it already achieves from this technology. Furthermore, exploring an increase in solar and nuclear energy can be highly beneficial, taking cues from successful regions around the world. For instance, Denmark and Iowa demonstrate impressive electricity generation from wind, with more than half and over 60% of their energy, respectively, coming from this source. Additionally, countries like France and Slovakia show that a large fraction of their electricity, more than two-thirds, comes from nuclear energy, affirming the potential of nuclear power in achieving a high level of low-carbon electricity generation.
History
Historically, low-carbon electricity in Nicaragua has shown phases of both growth and decline, with various energy sources experiencing fluctuations. In the 1980s, geothermal energy began making strides with its first notable increases. Throughout the 1990s and early 2000s, hydropower saw both periods of increase and phases of reduction. The early 2010s marked a significant entry of wind energy into the scene, with steady contributions to the electricity mix. While the last decade often saw increments from biofuels, hydropower, and wind, the inconsistency in these sources highlights the need for more stable and scalable low-carbon solutions. This pattern indicates room for improvement and a strong case for strategic investments in more reliable options like solar and nuclear, which can provide consistent, scalable energy to meet the country's growing demands.
Electrification
We estimate the degree of electrification by comparing electricity and total energy emissions. More about methodology.