Private power generation from the perspective of a developing country: a case study of Honduras

The trend throughout the world is towards restructuring, deregulation and increased involvement of the private sector in the generation and distribution and, to a lesser extent, in the transmission of electricity. The trend can be observed in OECD countries such as Britain, Norway and New Zealand, but also in the less developed countries such as Chile, Argentina, the Philippines and many others. This paper focuses on the generation aspect of the power industry. The viewpoint however is that of the developing country rather than the independent power producer. In taking this approach it is believed that useful insights may be provided as to what strategies may be valid for independent power producers as they approach the power generating markets of developing countries. Rather than discuss developing countries in general, the paper considers the specific case of Honduras. While each country must be considered as a unique case, a number of the issues being faced by Honduras, many of which are yet to be resolved, can be expected to occur elsewhere