An Efficient Regional Energy Market

A regional legal framework is required that will allow for long-term contracts, not only between countries but also between plants located in one country selling power to another.

Friday, October 12, 2012

Central America’s electrical integration requires not only enabling the Electrical Interconnection System but also an appropriate regional framework.

With the current drive seen in several Central American countries to develop power generation projects, it is essential to look beyond national perspectives and visualize the possibilities for optimization of available resources and complementation of the energy matrices of the region. reports that "According to the Aeolus’ country manager, Sean Porter, Nicaragua is ideal not only for generating wind power to meet domestic demand, ranging from 500 megawatts during the day, and 300 megawatts at night, but also to sell power to other countries in the region. "

"To realize this idea, Porter argues that it is necessary to clarify two points: Electrical Interconnection System for Central America (Siepac) needs to be enabled and commissioned, and as a second aspect a legal framework is required that allows for regional long-term contracts not only between countries but also between plants located in one country selling power to another.

More on this topic

Energy: $410 Million in New Projects

July 2019

In the first three months of 2019, 14 environmental impact studies were presented in the countries of the region to perform work on electricity grids and develop power generation plants.

The interactive platform "Construction in Central America", compiled by the Trade Intelligence Unit at CentralAmericaData, includes an up to date list of public and private construction projects for which environmental impact studies (EIA) were submitted to the respective institutions of each country.

Electricity Integration Requires More Infrastructure

February 2016

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 Road for Power Generation in Panama

May 2015

The exhaustion of the potential of hydroelectricity and social resistance to its use, is bringing to the forefront alternative energy as a solution to meeting electricity demand which is growing at 5% a year.

Energy imports from Central America and Colombia, through the interconnection network and the possibility of building more thermal power plants and renewable options are choices the country has to meet future electricity demand, not only because of social opposition to hydroelectric projects, but also because of the lack of rivers with enough channels to operate a dam.

Tender for Wind Farm Announced in Panama

October 2011

On 8th November, a tender for a new wind power plant, to be developed in the central provinces, will be launched.

The announcement was made by the National Secretary of Energy, Juan Manuel Urriola, at the opening of the IV Regional Integration Forum .

In addition, the strong winds in some areas of the country will be tapped by building the first wind project in the country, the tender process for which will start on November 8th.

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