Decree 198-2026, which contains the Energy Justice Law, introduces changes to the structure and operation of the Honduran electricity market. The reform changes the rules for industry participants, sets new conditions for contracts and opens up investment opportunities that companies should assess.
Key changes under the reform:
Restructuring of ENEE
The National Electric Energy Company (ENEE) will be reorganized into three state-owned companies dedicated to generation, transmission, and distribution. The reform also provides for an independent System and Market Operator (OSM).
Existing contracts and obligations
In general terms, the law allows firm capacity and energy contracts to remain in effect until they expire, although it sets specific conditions for amending and approving them. Companies should review how these provisions may affect their existing agreements.
New investment opportunities
The reform calls for new international tenders for transmission projects and recognizes energy storage systems as a regulated activity, which creates opportunities for industry participants.
Implementation and pending regulations
Some provisions will only take effect once the Electric Energy Regulatory Commission (CREE) issues the corresponding regulations, so it will be important to keep track of upcoming regulatory developments.
Companies that operate or invest in the Honduran electricity sector should assess:
- Their existing contracts and the conditions for amending them.
- The regulatory implications for their operations.
- Opportunities linked to upcoming tenders and new projects.
At BLP, our team can support you in assessing the regulatory and contractual impact of this reform.