There are dozens of large and small power generation projects in various stages of implementation that run parallel with the growth of energy demand.
The list of energy projects is led by the Chan II hydroelectric station which is expected generate 220 MW and will begin operations in 2019. It is followed by 13 independent hydroelectric projects that are already under construction and which together will add 200 MW to the system from 2014 to 2015.
Panama NG Power has received a final license for the installation and operation of a thermoelectric power plant using natural gas in San Cristobal.
The project began in 2011 with the permit procedures for the construction of a plant that would generate 270 MW, and now the approved schedule foresees its operation in early 2017.
The regional electricity market, renewable energy and energy efficiency will be the topics addressed at the event to be held on 27, 28 and 29 August in San Salvador.
From a press release issued by the Salvadoran Association of Industrialists:
The Salvadoran Association of Industrialists, ASI, will be holding the 1st Regional Congress of Energy on 27th, 28th and 29th of August.
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. "
With up to 22% reductions in the prices offered, the tender for short-term energy has concluded with 565 MW being awarded to thirteen companies.
After having been called for a second round requesting lower prices, the National Energy Commission (CNEE) awarded 565 MW in power contracts to thirteen distribution companies.
The report of the CNEE:
Price Decrease in Short-Term Contracts: The prices of this process show a decline from the prices obtained in previous processes, eg for the period 2013-2014 the bidding process TNS-2-2012 and 1-2013 TNS- they reflected a monomial average purchase of U.S. $ 157/ MWh and U.S. $166 / MWh respectively, compared to U.S. $149.8 $ / MWh obtained for the period 2014-2015 in Short Term Bid 1-2013. Furthermore it is estimated, with the results obtained in this process, an average monomic purchase price of U.S. $124 / MWh for the period 2015-2017.
In order to alleviate the energy shortage, the government has authorized companies in the commercial sector to use power plants generation .
Companies whose energy demand is high and who they have power plants can use them to support themselves until there is a resolution to the power supply problem affecting the country ever since supplies of 96 MW of thermoelectric power from PanAm Generating stopped.
In a second round of bidding for the period 2015/2017 the bidders had lower prices, but the government believes these can be further reduced.
The same 14 generators who took part in the first round had sales prices ranging from $0.50 to $10.
"Dimas Carranza, Member of the Tender Board of the distributor Energuate, said they hope that with these new offers they will manage to reduce rates for users."
IC Power has acquired two power plants based on bunker fuel and two using wind power through its subsidiary Inkia Energy.
The company of Israeli origin with market presence in the Central American market signed with AEI Power a contract to purchase four power plants capable of generating 185 MW.
From a press release by IC Power Group:
"The total capacity is approximately 185 MW, including a wind farm capable of generating 63MW.
The National Energy Commission is evaluating a second round of bidding for short-term contracts (2014-2017) so that bidders can submit lower prices.
In order for power generating companies to submit bids at lower prices than those offered in the tender a few days ago, the Energy Commission will review the proposals and if it is not satisfied with the prices it will hold a second round.
From June 3th to 7th energy companies in Central America and other regions will meet in San Pedro Sula in order to take part in business conferences.
The Ministry of Natural Resources and Environment of Honduras is organizing the V edition of Energy Expo, an event involving companies and national and international exhibitors from the Generation and Renewable Energy Development sector.
Drastic changes shown by the new government in the way it manages energy contracts will culminate in an international tender.
The government of Juan Orlando Hernandez is preparing the groundwork for an international tender for the purchase of energy for supply within two years.
"If the government wants to achieve independence from energy from thermal plants, it will have to launch in the next few days a call for a public international tender which could take 10 to 12 months, under normal conditions, in order to contract this energy at lower prices than the current ones."
As part of the company's recapitalization plan, the Panamanian government will provide up to $48 million to the Bahía Las Minas project.
The state has had to adopt, for the third time in five years, an agreement to support the thermal electricity station and try move a complicated investment plan forward.
"With the 49 % stake held by the state , the government of Ricardo Martinelli pledged up to $48 million on a plan to recapitalize the company. " " ... Suez Energy International Luxembourg SA will have to provide up to 52 million dollars as the majority shareholder."
The Government has managed to get Elcosa to sign a contract under the same terms agreed with Lufussa, the other main thermal generator.
The agreement with Executives from Electricidad de Cortés, S.A. (Elcosa) means that this company will continue to provide a total of 80 megawatts at a lower price than originally required by the thermal generator.
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.
An agreement has been made with one of the companies supplying 33 MW at a cost of $0.25 per KW, which signifies savings of $41 million over four years.
The Government has agreed to renew a contract for two years with the company Luz y Fuerza de San Lorenzo SA (Lufussa). An agreement was made to purchase 33 MW of power at a cost of 25.46 cents per kilowatt, which saves about $41 million over a period of 4 years.