Energy: Contract Renegotiation Prepared

In Costa Rica, the state-owned electricity company ICE is evaluating the renegotiation of prices and conditions in power purchase contracts with private generation companies.

Monday, March 4, 2019

The adjustments planned by the Costa Rican Electricity Institute (ICE) in contracts with private generators are based on the need to reduce costs and adapt prices and quantities purchased to current demand conditions and the availability of resources to generate energy.

See: "$225 Million Investment in Energy Projects"

"... Without detailing specific names of companies, Irene Cañas, executive president of the entity, explained to that "... the space to review the conditions arises with the expiration in June of a contract for a water plant of installed capacity of 14 megawatts (MW). Subsequently, in the last quarter of the year also expires a contract with a wind project of 17 MW."

You may be interested in "Clean Energy: Growing Business in the Region"

"... Now, the revision for expiration of contracts does not worry Mario Alvarado, director of the Costa Rican Association of Energy Producers (Acope). We have lived it before. It is important to show the best goodwill and that the proposal is a winner for all parties as expressed by Irene Cañas herself," he said."

"... However, he warned that changes in certain contractual conditions could have an impact on financial viability, "and therefore it will have to be determined whether the price defined by the Public Services Regulatory Authority (Aresep) adequately incorporates the effects of such modifications through methodology and tariff calculation."

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