Electricity: Private Generators Could Export

A bill presented to the Legislative Assembly proposes to reform the Protocol that currently prevents private generators from commercializing electricity in the Central American market.

Thursday, September 26, 2019

Since October 4, 2011, when the Costa Rican Assembly approved the Second Protocol to the Framework Treaty for the Central American Electricity Market, limitations were established on the participation of local generators in the regional market.

In order to eliminate these limitations, Congressman Pedro Muñoz prepared a bill to overcome these obstacles to the sale of energy in the region.

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Muñoz explained to Crhoy.com that "... The regional electricity market must evolve from a limited situation to a broader, more open and competitive one, supported by existing and future infrastructure, both national and regional. For this, the greater participation of agents is fundamental and it should be promoted that companies dedicated to the generation, transmission, distribution and commercialization of electricity, as well as large consumers, have effective access to the Regional Electricity Market (MER)."

The deputy added that "... All the actors of the national wholesale markets should have the possibility of becoming agents of the regional electricity market with the rights and obligations deriving from the Framework Treaty."

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January 2020

Arguing that there is a risk that energy transactions in the region will become more expensive, Guatemalan businessmen are asking the outgoing government to refrain from approving or signing reforms to the Central American Electricity Market Framework Treaty.

Because on January 10 the discussion is programmed within the Director Council of the Regional Electric Market of Central America (CDMER), the subscription of the Third Protocol, which would reform the Framework Treaty of the Electric Market, the private sector of Guatemala has issued an alarm before any change in the regulations, since it could cause increases in the prices of energy transactions or generate negative effects in the Guatemalan market and its interconnection with Mexico.

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Electricity generators claim that the Regional Operator Entity arbitrarily disconnects Guatemala from the rest of the countries in the region, and that since 2016 up to date the disconnections already add up to 600 hours.

The National Association of Generators of Guatemala (ANG) claims that the Regional Electricity Interconnection Commission (CRIE) does not comply with the resolutions of the Central American Court of Justice (CCJ), which ordered Guatemala to stop disconnections from the regional electricity system.

Electricity Interconnection Opens Market in Honduras

March 2014

The link through SIEPAC allows Honduras to purchase cheaper energy from Guatemalan private power generators.

The opening of the penultimate stage of the Central American network opens up a new way for Honduras to obtain energy from outside of its domestic market at lower prices.

Costa Rica: One Single Electricity Exporter

August 2011

The Instituto Costarricense de Electricidad (ICE) is the only company authorized to sell electricity to other countries in the region.

Approval of the ICE as the sole exporter of energy to the Central American market was granted after a vote on a bill entitled the Second Protocol for the Framework of the Central American Electricity Market Treaty, which was approved with 35 votes from the 42 representatives in attendance.

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