Solar Power in Honduras: Unfulfilled Promises and Negative Impacts
In 2013, officials in Honduras made renewable energy development a national priority, with a special interest in attracting foreign investment in new solar power technology. Over the last 20 years, the government introduced tax cuts and other economic benefits to accelerate solar projects, in one case approving 23 solar parks in an overnight legislative session. However, a new report from the Institute for Policy Studies, also published by the Transnational Institute, TerraJusta, and Honduras Solidarity Network, reveals that solar projects throughout southern Honduras have negatively impacted the local economy and health of surrounding communities. The state awarded contracts that avoided rigorous environmental oversight, leading to tree cover loss and pollution. Meanwhile, solar power development has done little to transition Honduras away from fossil fuels, which continue to be the largest contributor to the country’s electricity generation.
How Rapid Approval Led to Environmental Harm
The Los Prados Solar Energy Project
In 2014, congress approved nine contracts for the Los Prados solar energy project in the southern department of Choluteca. These contracts allowed companies to operate for 50 years and supply energy to the government for 20 years. Los Prados is a single complex, but contracts were awarded in pieces — company by company — making them small enough to require more lenient environmental permits. Consequently, large swaths of old-growth Calabash trees (Crescentia cujete) were destroyed to make room for the 145.61-hectare (359.8-acre) complex. Its location near streams, rivers, and estuaries limited access to drinking water and killed fish. Residents reported that solar panels are cleaned and kept clear of weeds with harmful chemicals. “People who fish using traditional methods can no longer fish where the estuaries reach their communities, but have to go even further inland. Why? Because the waters are contaminated, so the fish don’t come,” said Darwin Pineda, a member of the Social Environmental Movement of the South for Life (MASSVida). Residents also said they weren’t adequately consulted about potential impacts. An outside 2024 legal analysis by EcoJuris noted that companies Scatec Solar, Norfund, and KLP Norfund Investments met with the community on a “by farm” basis rather than organizing entire community meetings. Over 30 complaints about prior consultation and other irregularities have been filed by residents, MASSVida, and the Network of Women Human Rights Defense Lawyers, but none have advanced. In 2016, residents stopped heavy machinery and set up a resistance camp. Companies filed criminal complaints, and police evicted the camps. Some people still have travel restrictions and mandatory court check-ins. Protests stopped six of the nine projects from moving forward, but residents say the threat persists. “People believe that the problem has disappeared because the project has not been implemented. But the companies have the permits. They can come at any time,” said local leader Leonardo Amador.
Inequality and Scarcity Despite Growth in Solar Generation
Since 2014, electricity generation from solar power has consistently risen in Honduras, with the only decline during the COVID-19 pandemic. In 2024, the country generated 1,020.04 GWh from solar, about 8% of its total energy. However, fossil fuels generated 5,028.71 GWh, or 40.50% of total national electricity, similar to its annual contribution over the last decade. The IPS report states that solar development did not lead to a planned withdrawal of fossil fuel power plants; instead, it created a new market for wealthy investors. Many households still lack access to modern energy for cooking. Some communities around solar parks lack consistent electricity access or pay 60% higher prices than before. Companies agreed to pay communities up to $7,000 annually for “community development,” but payments have not always come, and funds went only to minor repairs. Residents need better roads and bridges. “They offered us many things, they sang to us very prettily in order to build these solar plants, and now none of those beautiful promises have come true,” said one resident from Choluteca.
Community Resistance and Ongoing Threats
Despite the lack of benefits, communities continue to resist. The report highlights that many projects were halted due to protests, but permits remain active. The promise of green energy has not materialized for locals, who face environmental degradation and economic hardship. The report calls into question who truly benefits from Honduras’ solar expansion.