In 2023, just over half of Nicaragua’s electricity consumption came from low-carbon sources, while fossil fuels supplied about 28% and net imports accounted for roughly 21%. Within the clean electricity contribution, biofuels accounted for about 16% of total consumption, geothermal for 13%, hydropower for 12%, and wind for 10%. The electricity mix of net imports is not specified, so they should be kept separate rather than classified as either clean or fossil-based electricity.

Is Electricity Growing in Nicaragua?

Electricity consumption per person grew slightly in 2023, reaching a new record of 806 kWh, compared with 799 kWh in 2022—an increase of just 7 kWh, or less than 1%. This modest progress is welcome, but stronger growth would help support electrification and future electricity demand. Low-carbon electricity generation, meanwhile, reached 413 kWh per person, about 25 kWh below its 2021 record of 438 kWh—a disappointing shortfall of roughly 6%. Nicaragua therefore needs both more electricity overall and renewed growth in clean generation.

Suggestions

Nicaragua can build on its existing wind generation while expanding solar and considering nuclear electricity as a long-term option. Uruguay offers a relevant Latin American example, generating about a third of its electricity from wind; Denmark and the US state of Iowa demonstrate that wind can supply well over half. For solar, neighboring El Salvador generates about 17% of its electricity from this source, while Chile reaches roughly a quarter, offering useful regional examples. Nuclear should also be considered in long-term electricity planning, informed by regions such as France, where it supplies about two-thirds of electricity, and the United Arab Emirates, where it supplies a fifth. Investment in generation, transmission, and regional cooperation could help Nicaragua increase clean electricity availability and reduce reliance on fossil fuels, cutting climate pollution and harmful air pollution.

History

Nicaragua’s low-carbon electricity history shows uneven hydropower output followed by a broader expansion of clean sources. Hydropower rose by 0.2 TWh in 1972, then fell by the same amount in both 1977 and 1983 before recovering somewhat in 1989 and 1993. Further fluctuations followed: declines of 0.2 TWh in 2000 and 2009 contrasted with equivalent gains in 2008 and 2010. The early 2010s brought encouraging diversification, with geothermal gains totaling 0.5 TWh across 2012–2013 and wind gains totaling 0.5 TWh across 2013–2014. Wind fell by 0.1 TWh in 2016 before adding 0.2 TWh in 2018. In 2019–2020, hydropower fell by 0.2 TWh and then rebounded by 0.3 TWh, while wind declined by 0.2 TWh in 2020. Biofuel generation increased by 0.1 TWh in 2019 and 0.2 TWh in 2021. These gains demonstrate Nicaragua’s ability to expand clean electricity, but the setbacks underline the need for sustained growth.

Electricity Imports and Exports

Balance of Trade