Nicaragua: Supporting Renewable Energy Deployment through Tax Incentives and a Broader Policy Framework

To support an ambitious goal of providing 94% of electricity from renewable sources, including hydropower, geothermal, wind, and solar by 2017, Nicaragua is facilitating investment in renewable energy. As a notable example, the government implemented tax incentives for renewable energy that encouraged increased private investment in renewable energy projects (NPR 2015).

Building on these successful tax incentives—and to support a robust policy environment—the Clean Energy Solutions Center partnered with the Nicaragua Ministry of Energy and Mines to identify additional policy actions to support renewable energy deployment. Collaboration included a gap analysis of the current wind, solar and biogas policies, evaluation of major market barriers, and identification of policies and regulations that could be adopted to address these barriers. Ultimately, the partnership sought to complement Nicaragua’s tax incentives by supporting development of a strong policy framework that aligns with the country’s ambitious renewable energy goals.