Regional Electricity Market: How to Equalize the Unequal

The State of the Region indicates that the asymmetries between the most regulated markets such as Costa Rica and others that are freer such as Guatemala and El Salvador constitute an obstacle to progress of the regional market.

Thursday, August 18, 2016

Regional Integration section, the V Report on the State of the Region:

The regional electricity market in the agenda of the integration process 

The development of a regional electricity market (MER by its initials in Spanish) through the Electric Interconnection System for Central American Countries (SIEPAC) is a central theme in the Central American agenda. To date, the network is complete and operating, after the resolution of problems that had delayed the completion of the last section on Costa Rican territory. This initiative has tested the ability to standardize and coordinate the complex regulatory institutions involved in the issue.   

In 2013 the rules of MER came into force, establishing the "rules of the game" for energy integration through an ad hoc company with representation from all Central American countries plus the Colombian ISA, the Mexican CFE and the Spanish Endesa22. In addition, recently a common regulation was approved that will allow private investment. In the last five years the Regional Electricity Interconnection Commission (CRIE) and the Regional Operating Agency (EOR) 23 began operating.  

Read full document "V Informe Estado de la Región 2016" (in english).

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