The plant which will generate 35 MW will be built at the industrial sugarcane complex, Benjamin Zeledon, in the town of Potosi, department of Rivas.
The license granted by the Ministry of Energy and Mines, is to build and operate the project for a period of thirty years.
"The nominal and effective generation capacity from sugar cane bagasse in the country at the end of 2011 reached 122MW and 104MW respectively, according to the regulator of the INE sector. The rated capacity represented 11% of the generation," reported Bnamericas.com.
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Nicaragua's sugar industry will invest up to $60 million in power generation plants by 2015 to produce 150 MW.
Due to the yearly growth in planted areas and sugarcane production, Mario Amador, Executive Director of the National Sugar Producers said investments must be made in order to take advantage of the waste material.
Sugar millers in El Salvador have announced new investments to increase power generation using waste from sugarcane processing.
Initially mills worked on producing energy for their own consumption, however, in recent years they have generated more energy than they need and they are transferring it to the national grid.
Nicaraguan millers are preparing investment projects that will increase their sugar production and the generation of energy from sugarcane bagasse.
However, "this industry requires the state to favor them with better incentives and other conditions that were raised in the proposed amendments to the Law on the Promotion of Renewable Electricity Generation, submitted to the Ministry of Energy and Mines (MEM ) ", reported Laprensa.com.ni.
The country surpassed the 1.100 MW mark, as a thermal plant known as “Solidaridad”, started operations.
64% of the energy generated in Nicaragua corresponds to thermal sources, while the remaining 36% corresponds to renewable energy.
Emilio Rappaccioli, Minister of Energy and Mines, told Laprensa.com.ni: “Some of the thermal plants undergo maintenance periods or stop operating due to technical issues.