Legislature Approves Power Generation Concessions

Under the new law, concessions for small-scale electricity generation projects must be approved by the Legislative Assembly of El Salvador.

Friday, August 23, 2013

The legislature approved on August 21 the Regulatory Act for granting concessions for electricity generation projects on a small scale (less than 5MW), which limits the maximum concession period to 50 years and requires that energy projects be approved by the Assembly.

Previously, the approval of the concessions was the responsibility of the Superintendency of Electricity and Telecommunications (Siget). Under the new law, "the Siget will be responsible only for the proceedings, but it will be the deputies who must approve the concessions."

"After a year of study, legislators attended a ruling by the Constitutional Chamber of the Supreme Court on June 27, 2012, which resolved to put limits on the concessions and require that they be approved by the Assembly.

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