In 2023, Nicaragua's electricity consumption presents a notable balance between low-carbon energy sources and fossil fuels. More than half of the country's electricity, about 51%, comes from low-carbon sources such as biofuels, geothermal, hydropower, and wind energy. Biofuels make up about 16% of the electricity mix, geothermal provides close to 13%, while hydropower and wind contribute approximately 12% and 10%, respectively. Fossil fuels account for less than a third, about 28% of the electricity generation, providing a significant share but still underlining the country's commitment to cleaner energy sources. Besides domestic production, the country relies on net imports for roughly 21% of its electricity, adding another dimension to its electricity mix.
Is Electricity Growing in Nicaragua?
The growth in Nicaragua's electricity usage is evident yet modest. In 2023, the electricity consumption reached 806 kWh per person, a slight increment from 799 kWh per person in 2022, marking an increase of 7 kWh per person compared to the prior historic record. However, the low-carbon electricity generation per person has seen a decline; it stands at 413 kWh in 2023, down from the previous high of 438 kWh in 2021, showing a decrease of 25 kWh per person. This reduction is worrying as it underscores the challenges in expanding or maintaining clean energy development in tandem with rising electricity demand.
Suggestions
To bolster its low-carbon electricity generation, Nicaragua should consider expanding its existing wind energy infrastructure, given its current substantial contribution to the electricity mix. By exploring successful examples globally, such as Denmark and Iowa, where wind power makes up about half to almost two-thirds of their electricity, Nicaragua could enhance its wind energy capabilities. Moreover, incorporating solar power could be notably advantageous as well. Regions like Chile and Lebanon have done extensively well by integrating solar power, where it constitutes between 22% and 31% of their electricity generation. Exploring nuclear energy possibilities should also be on the agenda, as seen in countries like France and Slovakia, with nuclear supplying significant proportions of their electricity needs. These strategies could help alleviate the dependence on fossil fuels and reduce the share of net imports, thereby fostering a greener and more self-sufficient energy landscape.
History
Over the decades, Nicaragua's low-carbon electricity generation has experienced periodic fluctuations. In the 1970s, the hydropower sector exhibited minor expansion and contractions, a trend that continued sporadically into the 2000s, with both increments and reductions in generation. Geothermal energy started contributing in the mid-1980s and saw further positive growth particularly notable in the 2010s. The wind energy sector has shown promising growth since its inception in 2013, with incremental increases observed into the late 2010s. Biofuels began contributing to the mix in 2019 and have continued to grow modestly. Despite these fluctuations, the overarching narrative suggests a steady albeit cautious growth in low-carbon electricity production, highlighting the need for strengthened and more resilient energy policies to support future demands.
Electrification
We estimate the degree of electrification by comparing electricity and total energy emissions. More about methodology.