A new report from the Institute for Policy Studies reveals how solar projects throughout southern Honduras have negatively impacted the local economy and health of surrounding communities.It says the state awarded contracts that avoided rigorous environmental oversight, leading to tree cover loss and pollution.At the same time, 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.
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 has introduced tax cuts and other economic benefits to accelerate the creation of solar projects, in one case approving 23 solar parks in an overnight legislative session.
But the speed of approval for those projects has drawn criticism from human rights and conservation groups that say the state awarded contracts that avoided more rigorous environmental oversight. At the same time, the energy companies continue to see disproportionate profits compared to local communities living near the projects, often without access to electricity themselves.
