Regional Electric Energy Integration

When I was looking up some other information, I tripped once again on the SIEPAC project. This is a project to connect the electric grids of the countries in the region. It is discussed briefly in Wikipedia's Electricity Sector in Nicaragua page.

When I read this ages ago I just saw it as a way that Nicaragua could improve reliability much like is done in the U.S. But, reading about it now makes me realize there is another huge benefit.

Today, almost all electricity is generated by the use of petroleum. The result is high electricity costs and, because of limited generation capacity, lack of reliability. Two readily available resources that have yet to be seriously explored are geothermal and wind. Recent projects (talked about here on NL) show that there is now some progress in both.

While Nicaragua's high electricity rates and lack of excess capacity should have driven private investment for expansion but it had not. Fear of investing in what is considered by some as an unstable country is one excuse. But, with SIEPAC, this issue is mitigated. That is, if you build capacity in Nicaragua you get the advantage of cheap labor and land costs but also with SIEPAC, you are distributing into the region rather than just the Nicaraguan market.

A maps of the transmission line path and additional information are available SIEPAC site.