After several years of carrying out studies of the work, the governments announced that they plan to begin working on the standardization of regulations to sign the agreement of the electrical interconnection project.
In a press release published on March 19, Panama's Presidency stated that Panama's Energy Secretary, Victor Urrutia, informed that the Agreement required for the implementation of the electric interconnection project that will link the Andean and Central American systems will soon be signed.
Transmission lines in the regional SIEPAC system are being used to distribute electricity internally in countries, curtailing their capacity for international exchange of energy.
When the US President Barack Obama visited Central America in 2013, he warned that "energy costs in this region are three times what electricity costs in Washington, and that represents a huge disadvantage for companies".Two years before that, all countries, from Guatemala to Panama, were committed to creating the necessary infrastructure for the Regional Electricity Market (MER) to be efficient.
The Nicaraguan government's plan for this year includes substantial investments in electricity coverage and electrification.
From the Plan of the Government of Nicaragua 2016:
NATIONAL ELECTRICITY TRANSMISSION COMPANY AND MINISTRY OF ENERGY (ENATREL AND MEM)
In 2016 we will reach a national electricity coverage rate of 90%, electrifying 86,553 urban and rural houses, serving more than 452,000 protagonists with the construction of 623 kilometers of electricity distribution networks in: Boaco, Carazo, Chinandega, Chontales, Estelí , Granada, Jinotega, León, Madriz, Managua, Masaya, Matagalpa, Nueva Segovia, RAAN, RASS, Rio San Juan and Rivas.
A new regulation will allow for regional energy transactions to be made by auction in annual installments.
Operators subscribed to the Electrical Interconnection System for Central American Countries (SIEPAC) will have a policy to regulate contracts and firm energy rights for term contracts of up to one year, through means of the Regional Electricity Integration Comission (CRIE ).
With a loan from the IDB works will be carried out on electrical transmission infrastructure in 16 municipalities in the center and north of the country.
The project profile published on the website of the Inter-American Development Bank indicates that one feature of the project is "... Improving transmission infrastructure to support increased comprehensive coverage ", for which $37.31 million has been earmarked.
Beyond the apparent financial difficulties of an indispensable regional development project, there appears to be an immovable mental stance on removing the Darien Gap.
The electrical interconnection between South and Central America and Mexico, through Colombia and Panama, is the basis for a viable system for an electricity supply which is safe from weather contingencies or other constraints on generation.
Planned investments in the electricity transmission grid and interconnections with its neighbors could position Panama as a regional power distribution center.
Added to the construction of the third transmission line, estimated at $300 million-and whose works are 49% complete according to an announcement in May by the Electricity Transmission Company - comes a fourth line, to be built on the Atlantic area of the country.
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.
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.
An announcement has been made that in October procedures and studies will be started in order for work to begin a year later.
The meeting attended by the presidents of Colombia and Panama, Juan Manuel Santos and Juan Carlos Varela, respectively, confirmed the revival of the project for energy interconnection between the two countries, whose construction could begin in 2016 for completion in 2018.
In 2013 63% of the electrical energy fed into the transmission networks in the region was generated from renewable sources.
From a report entitled "Central America: production statistics for the electricity subsector, 2013", prepared by the Economic Commission for Latin America and the Caribbean (ECLAC):
"... The production of electricity in the six countries amounted to 45,735 GWh, 3.3% higher than in 2012.
Solutions have been found to the problems of easement and complaints from environmentalists, and the Electrical Interconnection System for Central America will be complete in its entirety in July.
The works on the last stretch of 32 km of the Electric Interconnection System for Central America (SIEPAC) in Costa Rica are 80% finished, after having suffered delays due to complaints about environmental damage and legal claims.
So far this year the Central American countries have sold 120 GW/h, equivalent to $20 million.
An analysis piece on Eleconomista.net shows the levels of energy consumption of the Central American countries and the ability of each of them to trade their surpluses, with generation depending, among other things, on variables such as the weather.
"Hugo Ventura, Head of the Energy and Natural Resources at the Economic Commission for Latin America and the Caribbean (ECLAC), said that energy imports for some countries "is a lifesaver" and could be kept up in the future if the conditions are not met to encourage more investment in energy or there are delays in some major projects. "
Generators will be prevented from exporting energy if they dont agree on a price for the country similar to the regional reference electricity price.
An article on Laprensa.hn reports that the new president of Honduras, Juan Orlando Hernández, has said they have still "not reached an agreement with the thermal utilities companies who supply power to the country.
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The transport of electricity between El Salvador and Guatemala through the Electrical Interconnection System for the Countries of Central America is limited to 170 MW.
This is despite the fact that the Electric Interconnection System for Central American Countries (Siepac) has capacity to transmit 300 MW, said Luis Herrera, manager of the Wholesale Market Administrator (AMM) in Guatemala.