Regional Energy System Operating at Half Speed

The absence of regulations defining rates and market operations prevents the region from taking advantage of the energy that Mexico will be able to export under the new energy law.

Wednesday, August 13, 2014

As Mexico prepares to increase its power generation and export surpluses, the lack of a legal framework establishing the conditions for selling energy through the Electrical Interconnection System for Central America (SIEPAC) is delaying the possibility of accessing less expensive energy.

According to Mexico's ambassador to El Salvador, Raul Lopez Lira, "... the country can not export electricity to Central America, even though adequate infrastructure already exists. 'The idea is to sell electricity to all of the countries in the region (Central American) at competitive prices. Here, the only problem is that I feel that there is a lack of agreement with Guatemala which is an obligatory step."

Roberto Gonzalez, general manager at the dealership DELSUR told Laprensagrafica.com that "... although the connection line is ready, traders are hesitant to use the SIEPAC as there are still issues to be defined, such as transmission charges or tolls for the passage of energy in each country. 'That's one of the risks that importers face. Because if companies make their numbers and sign a contract, what happens if the rates are changed afterwards? This is where the regulatory problem lies.'"

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EDITORIAL

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