El Salvador: Renewed Tender for Energy

The bids submitted exceeded the maximum price, and 69.9 megawatts still remain to be awarded.

Tuesday, October 4, 2011

For the second time the full concession of 100 megawatts has not been awarded, an amount that is needed for the generation of more than 11% of El Salvador’s energy over the next two years.

The Superintendency of Electricity and Telecommunications (SIGET) will have to create a new tender for the missing amount, equivalent to 69.9 megawatts.

An article in Laprensagrafica.com states: "Hilcasa and Textufil, both thermal generators, were awarded 30.1 megawatts. Two companies, Duke and Nejapa Power joined together, but bids from both generators exceeded the maximum price set by the SIGET. "

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More on this topic

15 MW to be Awarded in El Salvador In January

October 2013

Interested parties have until 31 October to submit the terms of the tendering procedure to the Superintendency of Electricity and Telecommunications.

According to the calendar of the Superintendency of Electricity and Telecommunications (SIGET) on January 9, 2014 the winner of the tender will be announced.

Contracts for 310 MW Awarded in El Salvador

April 2013

For the tender of 310 MW, awards were granted to six generators in El Salvador, for a term of four years.

All of the proposals submitted were below the $186.39, price ceiling set by the Superintendency of Electricity and Telecommunications (Siget). According to the chief of the Siget, Luis Mendez, the total amount transacted is approximately $1 billion.

Renewed Tender for 350 MW in El Salvador

October 2012

The Salvadoran electricity distributor will relaunch the tender that was unsuccessful in March, having only received a single bid which was above the established reference price.

In March the company EMCE El Salvador was the only bidder to submit a proposal in the tender, with a price of $148.58 per megawatt (MW) hour, but the Superintendent of Electricity and Communications (SIGET) had set the price cap at $136.61 MW per hour.

High Electricity Prices in El Salvador

August 2012

Distributors have under contract only 60% of demand, forcing them to buy at expensive spot prices.

An article in Elsalvador.com reports that "The distributor’s failure to purchase power from generators under short, medium and long term contracts means that the bill continues to be passed on to consumers, who have still not yet received the benefits of this legislation which will come into full effect on February 1 next year. "

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