What the Regional Electricity Market Needs

It has been estimated that $200 million need to be invested in Central American countries to strengthen the transmission capacity of the regional electricity market.

Monday, August 28, 2017

A study prepared at the request of the Wholesale Market Manager of Guatemala (AMM) details that for the regional market to operate in a comprehensive way, countries must invest more in order to improve transmission capacity. According to Edgar Navarro, president of the AMM, this investment should be concentrated in Nicaragua, Honduras, El Salvador and Costa Rica. 

Elmundo.sv reports that "...In the case of Panama and Guatemala, they did not appear in the investigation, he explained, because they have developed plans to expand transmission through a financial mechanism that allows for the launch of an international public tender.

"... El Salvador could need between $25 and $35 million, Navarro said; While the largest backlogs are in Honduras and Nicaragua, countries that require investments in the order of $80 and $45 million. Costa Rica, meanwhile, needs between $15 million and $17 million."

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More on this topic

Mexican Connection to the Regional Electricity Market

September 2016

Negotiations have started to evaluate alternatives for integrating the Mexican electricity market into Siepac.

Salvador Lopez, temporary president of the Electric Interconnection System for Central American Countries (SIEPAC) told Prensalibre.com that in the meeting they will start to assess the legal mechanisms that could be used to realize the integration.

Electricity Integration Requires More Infrastructure

February 2016

Transmission lines in the regional SIEPAC system are being used to distribute electricity internally in countries, curtailing their capacity for international exchange of energy.

When the US President Barack Obama visited Central America in 2013, he warned that "energy costs in this region are three times what electricity costs in Washington, and that represents a huge disadvantage for companies".Two years before that, all countries, from Guatemala to Panama, were committed to creating the necessary infrastructure for the Regional Electricity Market (MER) to be efficient.

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 ).

The Electricity That Central America Needs

June 2015

"The region still needs to install at least 7,000 MW by the end of the decade and make investments of between $12,000 million and $18,000 million."

While in Panama the energy supply needed to meet the demand of its growing economy falls short, to the north of the region, in Guatemala, there is surplus energy but generators are unable to sell it due to the lack of regulations governing the futures contracts and because the Siepac (Regional Electricity Transmission System) project is still does not working 100%.

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