With higher population growth rates and less established energy infrastructures than their first-world counterparts, there’s no question that developing nations will play a major role in dictating which energy technologies become the most widespread over the next century. 

While existing fossil fuels like coal and oil offer relatively inexpensive means for these nations to expand their energy resources, they also carry with them the specter of heat-trapping gases, and vulnerability to the prices of a rapidly fluctuating market.  Renewable resources avoid these issues, but bring in fewer kilowatts for the money.

So which is the best solution? For Nicaragua, the answer is both. With help from oil-rich Venezuela, the country has made a short term investment in fossil fuels to power itself until longer-term investments in hydroelectric and geothermal power can take a larger role in its energy network. Upon the completion of all projects, the Nicaraguan government expects to have enough surplus energy to sell to its neighbors. 

The jump to investments in renewable energies could make a huge contribution to political stability, with a budget devoid of worries about oil crises or carbon taxes. And the immediate boost in energy resources should help keep the country stable until then. It’s a best-of-both worlds arrangement and may serve as a model for other nations in the future.

Photo by Flickr user Trees for the Future