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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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.

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

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