Lack of Regulation Prevents Power Purchase

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.

Monday, January 16, 2012

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.

René González, executive director of the Regional Operating Agency (EOR in Spanish), affirmed that the contract would not take effect until the Regional Electricity Market Regulations (RMER) come into operation.

"Gonzalez said that for the hydro station, located in Guatemala, to carry out the transaction, it needs permission for 'transmission rights' on the line, a concept that only exists within the RMER and is not in the current regulations.

The RMER is the legal framework within which countries in Central America and Panama may purchase and sale of energy to each other within the Electrical Interconnection System (SIEPAC).

So, Gonzalez explained, if this regulation is not in force, the Xacbal contract does not have the legal framework 'to be made operational'", reported Laprensagrafica.com.



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.

Lack of Regulation Prevents Energy Delivery (2)

February 2013

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

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:

El Salvador Receives Bids for Tender for 350MW

March 2012

On Monday March 19th bids will be opened for the tender for the procurement of 350MW, equivalent to one third of domestic consumption, for a period of 15 years.

The contract is being administered by the distributor DelSur, which belongs to the Colombian company EPM, but the energy will be acquired by this distributor as well as the distributors AES El Salvador: CAESS, EEO, CLESA, and DEUSEM.

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