In a new attempt, the authorities of the Regional Electricity Market announced the beginning of the feasibility study for the creation of a market through which electricity can be commercialized between Central America and the North American country.
Monday, November 26, 2018
Currently, Guatemala is the only country in the Northern Triangle that directly commercializes energy with counterparts in the Mexican market. According to reports, El Salvador has also shown interest in buying energy from the northern country, but through the Regional Electricity Market (MER).
Representatives of the Consejo Director del Mercado Eléctrico Regional (CDMER) reported that the general design of the framework to be established in the electrical integration between Mexico and Central America was launched.
In this regard, Edgardo Calderon, executive secretary of CDMER, explained to Elmundo.sv "... that an international firm has already been hired to develop the stages of the general design of the possible Mexico-Siepac electrical relationship. So that the governments of Central America have an idea of the technical and economic feasibility of creating a market."
Calderon added that integration "... could be given through the Framework Agreement although 'it is possible that there will be a simultaneous change in the regulations of Mexico and Central America to achieve harmonization enough to exchange energy. The depth or the way of doing it is what we are studying."
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.
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.
Central American countries do not take advantage of the electric transmission line that connects them, because the poor infrastructure at the local level prevents the exchange of energy at the maximum level.
Managers of the Central American Bank for Economic Integration (CABEI) believe that the lack of electrical installations, especially in the stations of each country, are an obstacle to achieve a reduction in final tariffs to consumers.
As part of the problems related to the regional market's lack of regulation, Guatemala does not enable the flow of Mexican energy through its territory towards the south of the isthmus.
EDITORIAL
Electricity imported from Mexico has a lower cost than that produced in Guatemala, which would allow it to be re-sold -or sell the energy produced from plants installed in their territory- to the rest of Central America, with a profit, because up to now electricity toll rates for using the SIEPAC have not been determined.
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