Honduras’ government and company Danasun Energy, part of Chinese group Texhong, have signed an MOU for a US$300 million, 300MW solar project.

The photovoltaic park would connect to the Agua Prieta substation in Choloma, Cortés department and include 60MW of battery storage.

Erick Tejada, energy secretary and head of state power company Enee, inked the deal for the plant, which envisions an initial 100MW online next year.

In a social media post, Tejada said the capacity would boost dispatch in the Valle de Sula, the country’s principal load demand center, he added.

The next step is for Enee and Danasun to establish workgroups to begin feasibility studies for the project, which would include a 138kV transmission line.

Honduras’ installed solar power generation capacity would jump 56% to 835MW with the project.

At end-June, the country’s installed capacity totaled 3,209MW, led by thermal (1,329MW), and the balance hydro (850MW), solar (536MW), wind (235MW), biomass (221MW) and geothermal (39MW), information from the national dispatch center (CND) shows.