In 2023, Nicaragua's electricity consumption reveals a promising yet mixed landscape when it comes to energy sources. More than half of Nicaragua's electricity, approximately 51%, comes from low-carbon or clean sources, including biofuels, geothermal, hydropower, and wind. Biofuels account for around 16%, geothermal makes up nearly 13%, hydropower provides about 12%, and wind contributes approximately 10% to the overall electricity mix. In contrast, over a quarter, specifically 28%, of electricity is derived from fossil fuels, which have adverse effects such as air pollution and climate change. The remaining portion of electricity, slightly over one-fifth, is acquired through net imports. The reliance on low-carbon sources highlights Nicaragua's commitment to sustainable energy, but the significant dependence on fossil fuels and imports indicates an opportunity for improvement and self-reliance.
Is Electricity Growing in Nicaragua?
In terms of electricity growth, Nicaragua shows a positive yet cautious trend. The latest figures for electricity consumption in 2023 reached 806 kWh per person, only a marginal increase from the historic record of 799 kWh per person in 2022, marking a modest increase of 7 kWh per person. However, the scenario is less optimistic for low-carbon electricity generation, which saw a decrease. The latest low-carbon consumption was 413 kWh per person, which is a decline of 25 kWh per person compared to the record set in 2021, which was 438 kWh per person. While there is an overall increase in electricity consumption, the decline in low-carbon electricity generation underscores a challenge for the country to enhance the share of clean energy within its growing electricity demand.
Suggestions
To boost Nicaragua's share of low-carbon electricity generation, further investments and expansion in wind power could be beneficial, given its current role as a significant part of the country's clean energy portfolio. Learning from countries such as Uruguay, where 28% of electricity is generated from wind energy, could offer valuable insights into maximizing this resource. Additionally, considering nuclear energy as a long-term solution like France, which generates 68% of its electricity from nuclear, presents another avenue for transforming Nicaragua's energy mix. Furthermore, exploring solar energy opportunities in line with Lebanon's achievement, where solar accounts for 31% of electricity, could vastly increase green energy production. By adopting best practices and technologies from these examples, Nicaragua could significantly bolster its low-carbon electricity generation, achieving greater sustainability and energy security.
History
Historically, Nicaragua's journey with low-carbon electricity has been mixed. During the 1970s and 1980s, the focus was on hydropower, with fluctuating contributions such as a slight increase in 1972 and setbacks in 1977 and 1983. The 1980s and early 1990s saw the introduction and growth of geothermal energy, with notable developments in 1984 and 1989. The new millennium witnessed a renewed interest in multiple low-carbon sources, with advancements in hydropower from 2008, albeit interspersed with occasional declines. Noteworthy growth in geothermal energy was observed in 2012 and 2013, alongside the emergence of wind energy the same year. This diversified approach continued in recent years, with significant contributions from wind and biofuels, particularly in 2020 and 2021. Nicaragua's energy history underscores the potential to leverage these experiences towards a more robust and resilient low-carbon electricity future.
Electrification
We estimate the degree of electrification by comparing electricity and total energy emissions. More about methodology.