Lack of regulation and legal certainty for energy projects creates doubt and uncertainty among potential investors in the sector.
Although this year "... They have committed an average of $250 million in renewable energy projects, "members of El Salvador's energy sector state that they lack incentives and standards to foster a safe environment for investment.
The Honduran government has announced that China has approved a $297 million loan, after a year of negotiations, which will be used to finish work which has been on hold since June 2014.
The loan term is 15 years plus a 5 year grace period, with an interest rate of 4.5% and it is expected that the first disbursement will be made in the next 30-60 days.
On November 4th, Guatemala City will host a regional summit on energy investments in Central America.
From A statement issued by the Government of Guatemala:
The minister Erick Archila has announced that Guatemala will host a summit on energy investment in the countries of the Mesoamerican region which will take place on November 4, convened by the Ministry of Energy and Mines (MEM).
In the view of entrepreneurs it is not enough to change the energy mix towards the renewable sources and they are proposing a long term strategy in order to compete in the region.
A proposal to create a long-term policy between business and government "..." where the private sector makes a commitment to invest in renewable energy and this energy somehow, goes to those great industries that generate employment in the country, such as the free zone ', said César Zamora, country manager of the energy company IC Power .
Roatan Electric Company has announced that it will install a liquefied gas plant on the island, which will add to the wind farm currently under construction and which is expected to start operations in late 2014.
From a statement issued by Roatán Electric Company, (RECO):
Roatan Electric Company (RECO) held a press conference in which they announced the progress of the projects which will benefit the islanders by reducing electricity costs on the island.
On october 15th and 16th companies from the sector will gather together in Panama City in order to discuss issues such as energy efficiency, technology and the use of renewable energy in the region.
From a statement issued by the Union of Industrialists of Panama:
Panama, September 18, 2014. The Union of Industrialists of Panama (SIP), in light of energy issues and the implementation of new regulations that will reduce the cost of energy, will be holding from 15th to 16th of October 2014, at the Hotel El Panama, the 7th International Symposium on Energy entitled: "Industry, Innovative contributions to the electricity market.
The Energy Department has announced that it will revise regulations on the market and energy contracts in order to make it more competitive and attract more investment to the sector.
Generating the conditions in the electricity market to encourage more private companies to invest is the aim of the Energy Department, whose chief, Victor Urrutia, said that "...
Using an auction mechanism consisting of successive rounds contracts were awarded to 21 power plants for energy supply at an average price of $109.38 per MW.
Dimas Carranza, coordinator of the Tender Board, told Prensalibre.com that the average price of $109.38 per MW "... refers to the amount projected for 2018, when contracts must be operational ... those prices equate to $97.74 at 2013 prices."
The textile firm Hanes Brands has announced the construction of a power plant based on Kingras, capable of generating between 2.5 MW and 5.5 MW.
Representatives from Hanes Brands in El Salvador indicated that the purpose of the investment is "... to reduce energy demand and reduce costs. It has been estimated that the installed capacity will allow for a self-sufficiency energy level of 60% for making textiles. "
65 companies submitted bids for power generation based on coal, bunker fuel and renewable sources at an average cost of between $112 MW / h and $117 MW / h.
Starting now "... the technical teams of the Empresa Electrica de Guatemala, SA (EEGSA) Energuate will be evaluating the proposals for three weeks. "
"...The award is scheduled to be made by a virtual auction on August 26, meaning that contracts will take effect in May 2017.
To alleviate a projected shortfall of 300 MW, thermal power plants will be contracted for 2015 and more electricity will be purchased from other Central American countries.
The National Secretariat of Energy of Panama presented a "... Comprehensive Short Term and Medium Term Plan, where the priority action areas are transmission and generation of electricity. "
In the first five months of the year the country bought nineteen times more energy than the in the whole of 2012 and in 2015 it is projected that 200 MW will be purchased abroad.
While it is expected that in the coming years several renewable energy generation projects will start up, Panama is already planning to alleviate possible shortages in the short term by importing energy from neighboring countries.
On August 20th and 21st energy companies in the sector in Latin America will meet in Managua to discuss issues related to energy management in the countries of the continent.
The Latin American Energy Organization and the Ministry of Energy and Mines of Nicaragua are organizing the event, to be held on 20th and 21st August in Managua.
Final approval has been granted for the construction and operation of a photovoltaic system for electricity generation called Paris in the province of Herrera.
From a statement issued by the National Authority of Public Services Panama:
Resolution:
"...GRANT to the corporation by SOLAR PANAMA, VENTURE SA, registered on Listing 814178, Document 2465685 of the Public Record A FINAL LICENSE for the construction and operation of a photovoltaic plant for electricity generation called PARIS, to be located in the district of Paris, district Parita, Herrera Province, with an installed capacity of 8.99 MW.
Like the entire private sector, the Association of Free Zones of Costa Rica is complaining about the high cost of electricity and lack of concrete actions to resolve the situation.
Before considering Petrocaribe, companies operating under this regime in Costa Rica are suggesting a further diversification of the energy matrix in order to lower costs.