Lack of Regulation Prevents Energy Delivery (2)

A year ago the news was the same: the rules for the Electric Interconnection System for Central America have not yet been defined.

Thursday, February 28, 2013

This is preventing the confirmation of a power purchasing deal between AES El Salvador and Hydro-Xacbal of Guatemala.

On Monday January 16, 2012 we published in CentralAmericaData.com:

"In Jan the Hydroelectricity station Xacbal, belonging to Grupo Terra, should have started selling 30MW to the distributor CAESS, according to a contract signed by both companies in 2008.
Rene Gonzalez, executive director of the Regional Operating Agency (EOR), affirmed that the contract will not take effect until the Regional Electricity Market Rules (RMER) start working.
'Gonzalez said that in order for the hydropower station, located in Guatemala, to be able to perform the transaction it needs permission for the 'transmission rights' on the line, a concept that only exists within the framework of the RMER and not under current regulations.
The RMER will be the legal framework within which the countries of Central America and Panama will be able to make the purchase and sale of energy to each other within the Electrical Interconnection System (SIEPAC).
Therefore, Gonzalez explained, if this regulation is not in effect, the contract with the Hydro station Xacbal does not have the legal framework in which to 'be operating'", noted an article in Laprensagrafica.com."

A current article in Elmundo.com.sv reports that "The group AES El Salvador has said that the purchase of power which it had planned with the Guatemalan Hydro station Xacbal remains elusive, mainly because the rules for the Electric Interconnection System Central American Countries (Siepac) have not yet been defined. The Superintendency of Electricity and Telecommunications (Siget) is negotiating with its Guatemalan counterpart for the operation to be performed outside of the Siepac, but this still has not born fruit, the company said. Luis Mendez, head of the Siget said mid-month that Guatemalan law is holding up negotiations.

One year on and the bureaucratic (or political?) situation is still the same...



More on this topic

Progress in Regional Energy Market

January 2016

A new regulation will allow for regional energy transactions to be made by auction in annual installments.

Operators subscribed to the Electrical Interconnection System for Central American Countries (SIEPAC) will have a policy to regulate contracts and firm energy rights for term contracts of up to one year, through means of the Regional Electricity Integration Comission (CRIE ).

Lack of Regulation Prevents Power Purchase (3)

April 2014

Paying lip service: For the third consecutive year the news is the same, there are still no definitions of the regulations for the Electrical Interconnection System for Central American Countries.

The electricity purchase that AES El Salvador has agreed with Hydro-Xacbal of Guatemala remains elusive.

Official Start of Regional Electricity Market

June 2013

On June 1 the Regional Electricity Market Rules and the Supplementary Detailed Procedure Electrical Interconnection System for Central America became effective.

"It's a big step forward for electrical integration. These are rules designed to operate the SIEPAC line and power transmission capacity between countries with greater intensity," said the executive director of the Regional Operating Agency (EOR), Rene Gonzalez.

Lack of Regulation Prevents Power Purchase

January 2012

The non-enactment of the Regional Electricity Market Regulations (RMER) is preventing the Guatemalan hydroelectric station Xacbal from selling 30MW to a distributor in El Salvador.

On 1st January the Hydroelectric station Xacbal, part of the Terra Group, should have initiated the sale of 30MW to Salvadoran distributor CAESS, according to a contract signed by both companies in 2008.

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