Nicaragua obtained $80.2 million to finance state and private projects of renewable energy, part of the Nicaraguan Institute of Energy (INE) and the Ministry of Energy and Mines’ (Minae) plan to have 60% of the electricity generation matrix operating without hydrocarbons by the year 2012.

Currently, hydrocarbon fuels provide 80% of Nicaragua’s energy needs, which makes the Nicaraguan system the most costly in the Central American region owing to constant increases in international oil prices.

The $80.2 million will be distributed in two payments, of $40.2 million and $40 million contributions by the Inter-American Development Bank (BID) and the Central American Bank of Central American Integration (BCIE), respectively.

Executive Director of the INE David Castillo said he didn’t know which projects would be financed with these funds, but praised the steps that led to their acquirement.

“All financing obtained for the transformation of the energy matrix by way of state and private projects are welcome,” Castillo said. “Especially, if they’re geothermic or hydroelectric.”

Mirna Lievano, BID representative for Nicaragua, revealed that among other projects to be funded by these loans are improvements in state hydroelectric plants and wind-power projects.

La Prensa: February 18, 2008

COOKING GAS LOWERS IN PRICE

While fuel prices continued their bullish rise yesterday for the second consecutive week, cooking gas experienced a significant decrease in value, offering a rest to Nicaraguan pocketbooks.

The reduction in the price of butane gas was confirmed yesterday by Public Relations representative Juliana Hernandez of the Nicaraguan Institute of Energy (INE).

Information supplied by Hernandez reflects that beginning Sunday [Feb 17] cooking gas cylinders lowered in price by three-and-a-half, nine, and 41 córdobas in three respective presentations.

While ten-pound gas cylinder sold at 99 córdobas last week, Sunday it began at 95.50 córdobas.

Similarly, the 25-pound tank of butane gas was at 238.50 córdobas [on Sunday], when eight days ago it sold at 247.50 córdobas.

It’s worth highlighting that the 25-pound tank is the product of greatest demand in Nicaraguan households.

And the 100-pound drum at 1,138.25 córdobas eight days ago, since Sunday has begun selling at 1,097.25 córdobas.

The aforementioned prices are only valid in Managua, since in the interior of the country prices for butane gas are higher due to the cost of transport.

Nonetheless, INE assured that prices in Nicaragua’s other departments also experienced variations in the cost of cooking gas cylinders.

Hernandez attributes the decrease in the price of butane gas to the 3.6% lowering of the price of Liquid Petroleum Gas in the international market.

Likewise, Hernandez noted that all distribution posts and agencies for butane gas must post the new INE-established prices on large signs.

For this reason, she announced that beginning [Monday Feb 18] the regulator entity will inspect butane gas distributors on a national level.

EFFECTS ON THE ECONOMY [La Prensa Sidebar]

Various economists have warned the government on the effects of the rising price of oil and its derivatives on the national economy.

For this reason, they’ve recommended working with urgency on proposals to reduce the country’s high dependence on oil, which sits at 80%, according to studies.

Every year Nicaragua imports 10 million barrels of petroleum and its derivatives, whose cost in 2006 added up to $700 million according to information from the Nicaraguan Central Bank (BCN).

*Translation Spanish-English by Aaron Devine

The first experience that comes to mind is that of traveling in Southern Africa.  I was in Botswana, in the Okavango Delta.  I had forgotten to buy batteries for my flashlight so the only light I had was from fire and the sun.  It was interesting how different the nights were compared to the days.  In the US, we don’t realize how much we rely on light because it is constantly available.  However, when your light sources are fairly immobile, you become less free to move around and you become more isolated.  It can literally become pitch black at night, so dark that it becomes a hazard to leave the only available light source that you have.  I was with a man named Philip, a man from Botswana who was my guide.  Because he was used to tourists with flashlights, he was somewhat frightened to climb into the tent without using light to check it out first to make sure no snakes or spiders had crawled into it when we weren’t looking.  I couldn’t read next to the fire because the light was too dim, so I quickly became bored and ended up going to sleep fairly early the three nights I was there.

I’m not saying that this experience is at all analogous to what the people in Nicaragua experience.  I have never been there and have no idea.  I was just hoping to express how my experiences without light weren’t just a minor inconvenience to me, but it was actually dangerous and changed my living patterns during that time.  I was only going through this experience for three nights.  I can’t imagine what it would be like if you couldn’t escape this situation.  This is the experience I come back to when I think about lighting in Nicaragua.  Feel free to share if you have anything similar…

Translation will be posted in the near future.

Bright New Ideas President Patrick Delaney will be attending this conference on February 11th through 13th, 2008 of this year to cover some of the events in this blog and to built additional partnerships for Bright New Ideas.  It is our hope that we will be able to learn more about how HB LEDs can help those in need.