- Honduras, the Republic of Korea, and the IDB are working together to modernize electricity distribution through infrastructure, digital technology, technical expertise, and training.
- The new Distribution Control Center, in Tegucigalpa, will use real-time data and automated equipment to help operators locate faults, isolate affected sections, and restore service more quickly.
- Beyond technology, the initiative invests in institutional capacity and knowledge transfer, with training and technical cooperation designed to strengthen local operational capabilities and create a model that can inform future electricity distribution modernization efforts across Honduras.
Behind every thriving economy is a reliable flow of electricity. In Honduras, efficient electricity distribution is essential for powering businesses, creating jobs, improving public services, and connecting more communities to opportunity. This is why the country is investing in the modernization of the electricity distribution system, with support from the Republic of Korea and the Inter-American Development Bank (IDB).
With the inauguration of a new Distribution Control Center (DCC) in Tegucigalpa, Honduras is taking an important step to upgrade electricity distribution in the country’s central-southern region. This is one of the three operational regions in the country within the distribution sector operated by the national power utility. From this center, operators will be able to monitor network conditions using real-time field data and remotely operate automated equipment across 79 distribution feeders interfacing with 22 substations from the central-southern region.
The DCC is the most visible milestone to date in the partnership between the IDB, Korea, and Honduras to modernize electricity distribution operations. Combining infrastructure investments, digital tools, technical expertise, and workforce training, the initiative is strengthening the management of the distribution network and helping deliver more reliable and efficient electricity service.
Modernizing a Complex Distribution Network
Reliable electricity depends not only on how much power a country can generate, but also on how effectively electricity reaches homes, businesses, and communities. In Honduras, this can be a challenge because electricity distribution takes place across a network shaped by long lines, difficult terrain, aging equipment, and radial configurations.
When faults occur, these conditions can make it harder for operators to identify the source of the problem, isolate affected areas, and restore service quickly. The result is greater operational inefficiencies and electricity losses, which are estimated at 34% for Honduras' National Electric Energy Company (ENEE).
Improving performance therefore requires a combination of measures. Physical investments can reinforce and reconfigure the network, while automation can give operators better information and greater control over equipment in the field. The project brings these elements together in a coordinated modernization effort focused on the central-southern region.
Using Automation to Enhance Electricity Grid Control
Through the new Distribution Automation System (DAS), the DCC provides a central platform for monitoring grid conditions and operating automated devices remotely. The project includes the installation of 295 automated switches at strategic points across the 79 distribution feeders interfacing with 22 substations, alongside network reinforcement and reconfiguration works. Once the equipment is fully integrated, operators will have greater visibility of the network and more options for responding when a fault occurs.
For example, field data can help operators identify the location of a problem and remotely isolate the affected section. Where network conditions allow, service can then be restored more quickly to sections that are not directly affected. The technology does not replace the underlying infrastructure or the people who operate it; it strengthens their ability to respond using timely information and remote controls.
The project also includes an Advanced Metering Infrastructure (AMI) pilot for 2,500 customers. Smart meters and related communications infrastructure will allow more detailed consumption data to be collected and analyzed. The pilot will provide practical experience with remote metering and control, load-profile analysis, and the use of consumption data to identify potential losses and irregularities.
The DAS and DCC provide operators with greater visibility and control over the distribution network, while AMI provides more granular information on electricity consumption. Together, they offer Honduras practical experience with different elements of a more digital distribution system.
Cooperation from Project Design to Implementation
The initiative reflects a sustained collaboration among Honduran institutions, Korea, and the IDB. Korea contributed 17.9 billion Korean won (equivalent to approximately $13 million) in grant funding as well as technical expertise, while the IDB has supported project development and implementation as part of its broader work with Honduras to modernize transmission and distribution infrastructure. A Korean consortium is carrying out the project in coordination with Honduran counterparts.
The partnership also places emphasis on the people who will operate and maintain the new systems. Workforce training provided in Honduras and Korea is helping ENEE personnel build the technical and operational capacity needed to manage the DCC, integrate the new field equipment, and sustain the investments over time. This transfer of knowledge is essential for turning the new technology into lasting improvements in day-to-day operations.
Expected Improvements and the Work Ahead
Once fully implemented, the project is expected to reduce the duration of power outages by approximately 67%, as measured by the System Average Interruption Duration Index (SAIDI), and lower electricity losses in the central-southern region by around 1.5 percentage points.
Achieving these targets will depend on the full implementation and integration of the various project components, including network upgrades, automated switches, control systems, a metering pilot, training, testing, and commissioning scheduled until the end of 2026.
As the systems become fully operational, the lessons learned from the 79 feeders can inform future distribution investments in Honduras. The DCC stands as a compelling example of what international cooperation can achieve. By bringing together Korea’s automation know-how, the IDB’s development expertise, and the Honduran government's vision for the sector, the initiative aligns financing, technology, and institutional capacity around a practical objective: empowering system operators to manage the network more effectively and provide more reliable electricity service to households and businesses.
Learn more about how Honduras is strengthening its energy systems.