VZCZCXYZ0000
RR RUEHWEB

DE RUEHMU #0889/01 2512047
ZNR UUUUU ZZH
R 082047Z SEP 09
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 4540
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RHEBAAA/DEPT OF ENERGY WASHINGTON DC

UNCLAS MANAGUA 000889 
 
SENSITIVE 
SIPDIS 
 
DEPT PASS USDOE DAN BIRNS 
DEPT FOR EEB/ESC DANIELLE MONOSSON 
DEPT FOR OES/EGC GRIFF THOMPSON 
 
E.O. 12958: N/A 
TAGS: ENRG SENV ECON NU
SUBJECT: NICARAGUA - FEEDBACK ON ECPA AND RENEWABLE ENERGY 
 
REF: A. STATE 67032 
     ¶B. STATE 73217 
     ¶C. MANAGUA 166 
 
¶1. (U) Summary: Econoffs met recently with Vice Minister of 
Energy and Mines Lorena Lanza to encourage Nicaraguan 
participation in the Energy and Climate Partnership of the 
Americas (ECPA) and to solicit feedback on the Americas 
Energy and Climate Symposium in Lima.  Lanza generally agreed 
with USG policy on renewable energy development and noted her 
attendance at the recent preparatory meeting for the 
International Renewable Energy Agency (IRENA) in Egypt. 
Lanza did not comment, however, on Nicaragua's failure to 
participate in the ECPA or attend the Lima Symposium. 
According to Lanza, Nicaragua is implementing its portion of 
the Central American Electrical Interconnection System, or 
SIEPAC, and expects to complete work by the end of 2009.  End 
summary. 
 
¶2. (U) Econoffs met recently with Vice Minister of Energy and 
Mines Lorena Lanza to encourage Nicaraguan participation in 
the Energy and Climate Partnership of the Americas (ECPA) and 
to solicit feedback on the ECPA and on the Americas Energy 
and Climate Symposium in Lima.  Topics of discussion also 
included the International Renewable Energy Agency (IRENA) 
and the Central American Electrical Interconnection System 
(SIEPAC).  Lanza did not specifically address the possibility 
that Nicaragua would participate in the ECPA or submit a 
proposal for the Low Carbon Communities program, but she was 
open to further discussion on Nicaragua's support for joint 
renewable resource efforts. 
 
POSITIVE ON IRENA AND RENEWABLE ENERGY 
-------------------------------------- 
 
¶3. (U) Econoffs explained the U.S. decision to sign the 
International Renewable Energy Agency (IRENA) Statute on June 
29, 2009.  Lanza, who attended the IRENA meeting in Egypt 
June 28-30, expressed Nicaragua's strong interest in 
renewable energy.  She said that the Government of Nicaragua 
(GON) has developed a strategic energy plan dedicated to 
Nicaragua's transition--within the next 5 years--from 
dependence on fossil fuels for 80% of its energy production 
(primarily imported fuel oil) to the use of renewable 
resources to produce 80% of its energy.  Although Lanza 
provided no additional details, she believes that the 
national energy strategy will encourage private investment 
for renewable energy projects. 
 
CURIOUS ABOUT THE ECPA 
---------------------- 
 
¶4. (U) Lanza expressed general agreement with USG policy 
goals on renewable energy.  She was interested in 
international cooperative efforts related to the ECPA and 
wanted to know which countries attended the Lima symposium. 
Lanza, however, offered no comment on Nicaragua's failure to 
participate in the ECPA or to attend the Lima Symposium. 
Lanza did not express any concrete interest in technical 
assistance from the Low Carbon Communities project of the 
U.S. Department of Energy.  She added that "little countries" 
like Nicaragua are suffering the consequences of climate 
change caused by large, industrialized countries like the 
United States. 
 
AND OPTIMISTIC ON SIEPAC 
------------------------ 
 
¶5. (U) Lanza stated that the SIEPAC (Sistema de Interconexion 
Electrica para America Central, or Central American 
Electrical Interconnection System) project was being 
implemented successfully in Nicaragua and would give the 
country a way to sell any future electricity surpluses. 
Lanza said that Nicaragua expects to complete construction of 
its SIEPAC infrastructure by the end of 2009.  On the 
regulatory side, Lanza claimed that Nicaragua will have no 
difficulties making the changes necessary to implement 
SIEPAC.  Lanza was optimistic that SIEPAC would begin to 
operate in 2010, and she expressed hope that developing a 
regional energy grid would promote much-needed investment in 
Nicaragua. The primary challenges with this project and other 
energy-related projects, she said, are financial.  For 
example, Nicaragua's main transmission line is 40 years old 
and in need of up of an upgrade. 
 
COMMENT 
------- 
 
¶6. (SBU) Lanza was positive about regional cooperation in 
pursuit of renewable energy, but the GON's support for the 
"alternative" policies of ALBA, the Bolivarian Alliance for 
the Americas, make it politically unlikely for the time being 
that Nicaragua will participate in the U.S.-led ECPA or 
related projects in any significant way.  Nicaragua has made 
some progress in developing its abundant renewable energy 
resources by facilitating and approving private investment in 
wind and hydroelectric power projects, but a highly uncertain 
investment climate means that the country will continue to 
remain dependent on fossil fuels for the foreseeable future. 
CALLAHAN