Under the Presidency of Carlos Flores, decrees No. 85-98 and 267-98 were approved in 1998 by the Honduras Congress with the aim of promoting the development of renewable energy-generating plants. The new legislation included tax breaks to developers and a secure buyer arrangement for energy at prices equivalent to the system’s short-term marginal cost. ENEE, which is the default buyer, must pay a premium (10% of the same short-run marginal cost) for the electricity generated when the installed capacity is below 50 MW. This framework has facilitated the negotiation of about 30 public-private partnerships with ENEE for small renewable energy plants. In addition, Decree No. 85-98 also established tax exemptions in favor of developers: import and sales taxes on equipment, and a five-year income tax holiday.