And how much light will be at the end of it? Rotating four-hour power cuts throughout the land have caused a boom in the sale of candles and portable generators. If you believe what you hear from the president, the shortfall in electricity production is coming to an end, but not any time soon. In his speech at the rally to commemorate the 28th anniversary of the overthrow of dictator Anastasio Somoza in 1979, President Daniel Ortega promised that the problem will be resolved early next year. Such optimism is uncommon here and may be unfounded, but Nicaraguans are well accustomed to hearing bold promises.
Next March is when the Canadian-based geothermal power company PENSA says it will complete four more wells to produce steam for its plant, bringing 37 more megawatts on line. Representatives from Taiwan announced $30 million in aid to build a new 27.2 MW plant that will run on bunker oil. Work on getting it built and running will reportedly start soon and the electricity will be cranked out into the national grid sometime during the first quarter of next year. Iran is looking into providing support for a large hydroelectricity project in the country’s interior, but the construction of a dam and power plant would take quite some time.
Other investors are looking at setting up a wind farm, most likely along the west shore of Lake Nicaragua, and an American company has proposed the construction of a power plant that would burn gasified coal.
The Spanish power distribution firm Union Fenosa, involved in a long-running dispute with the government about its responsibilities, recently signed an agreement with national authorities that would have them invest $33.7 million in the distribution network from now till 2011. Let’s hope they don’t wait until October 2010 to begin.
The company won the bidding process when the country privatized distribution back in the 1990s and now, it may also be permitted to generate electricity. Fenosa wants a review of the rates charged to consumers. Meanwhile, the government promised to move a law through the National Assembly by December that would make it a criminal offense to steal electricity, a not uncommon practice here given the high price charged.
