In 2014 Honduras approved its new Law of Electrical Industry (Decree-Law 404-2013), which provides the legal framework for the electricity sector and replaces the previous Electricity Subsector Framework Law (Decree 158 of 1994, regulated by Accord 934 of 1997).
The new Law of Electrical Industry emphasises the previous 2007 Law on the Promotion of Electricity from Renewable Energy Resources (Decree 70 of 2007) and its modifications (Decree 138 of 2013).
The law establishes technology-specific auctions for renewable energy. The Regulatory Commission of Electric Power (Comisión Reguladora de Energía Eléctrica, CREE) is in charge of supervising the bidding process and the awarding of contracts. It also establishes that all new capacity must be contracted through auctions and that the government can set a minimum quota for renewables in each auction. The law also establishes that hydropower facilities providing flood control can obtain PPAs for up to 30 years.
Net metering was established in the ammedment of the Law on the Promotion of Electricity from Renewable Energy Resources (Decree 138-2013). The decree 404-2013 of 2014 mandates utilities to buy excess power and credit it towards monthly bills, as well as to install bi-directional meters.
The Regulatory Commission of Electric Power (CREE) is also responsible for granting study permits for the construction of generation projects that use renewable natural resources. Permits will have a maximum duration of two years, and will be revoked if, no studies have been initiated within a period of six months and the reports required by the CREE have not been submitted.