In El Salvador during 2021, AES announced that it plans to invest between $60 and $75 million in the development of new solar energy projects and works in the distribution network.
In El Salvador, the initial plan was that the new Energia del Pacifico power plant would begin operations in early 2022; however, it is currently projected to begin operations until July 1 of next year.
The project located in the Acajutla port area, which will have an installed capacity of 378 megawatts and began construction in 2015, will be delayed a few months.
Empresa Nacional de Energía Electrica de Honduras is bidding for the supply, installation and commissioning of meters to be used in the Metering System of the National Transmission Network.
Honduras Government Purchase AIHMER-13-LPI-B:
"The contract price will include all materials and labor required for the complete execution of the works and the correct and complete execution of the works, as well as equipment, auxiliary and protection elements, tools, auxiliary labor, and generally everything related to a complete and perfect finish of each of the energy meters to be installed in the National Transmission Grid indicated in these bidding documents, as well as any indirect costs of the works, general expenses, wages, salaries, fees, hauling of materials and any other payment required in the work.
In El Salvador, the electricity distribution company Delsur announced that this year it plans to invest in building a substation, increasing power transfer capacity and electrifying rural areas.
Directors of the company reported that for this year it is considered to start the construction of the new substation El Volcán, which will serve as an energy supply point for the metropolitan area of Santa Tecla and will require about $2.6 million.
During 2019, electricity purchase and sale transactions between Central American countries amounted to 3,074 GWh, a 14% increase compared to 2018.
Figures from the Regional Operating Entity (EOR) show that the average price recorded in regional transactions during 2018 and 2019 also increased, going from $74.05 per MWh to $90.11 per MWh.
Electricity distributor AES El Salvador announced that this year it plans to invest $36 million in modernizing the network, which includes the renovation of 8,120 residential and industrial meters.
The company's directors informed that they are contemplating works to expand the electricity distribution networks, the renovation of smart meters, the maintenance of overhead lines and the growth in the construction of underground networks.
Arguing that there is a risk that energy transactions in the region will become more expensive, Guatemalan businessmen are asking the outgoing government to refrain from approving or signing reforms to the Central American Electricity Market Framework Treaty.
Because on January 10 the discussion is programmed within the Director Council of the Regional Electric Market of Central America (CDMER), the subscription of the Third Protocol, which would reform the Framework Treaty of the Electric Market, the private sector of Guatemala has issued an alarm before any change in the regulations, since it could cause increases in the prices of energy transactions or generate negative effects in the Guatemalan market and its interconnection with Mexico.
Electricity generators claim that the Regional Operator Entity arbitrarily disconnects Guatemala from the rest of the countries in the region, and that since 2016 up to date the disconnections already add up to 600 hours.
The National Association of Generators of Guatemala (ANG) claims that the Regional Electricity Interconnection Commission (CRIE) does not comply with the resolutions of the Central American Court of Justice (CCJ), which ordered Guatemala to stop disconnections from the regional electricity system.
In the first three months of 2019, 14 environmental impact studies were presented in the countries of the region to perform work on electricity grids and develop power generation plants.
The interactive platform "Construction in Central America", compiled by the Trade Intelligence Unit at CentralAmericaData, includes an up to date list of public and private construction projects for which environmental impact studies (EIA) were submitted to the respective institutions of each country.
In Nicaragua, the supply of goods and related services of the Villa Nueva substation and civil works in the 138 Kv El Sauce - Villa Nueva Transmission Line are tendered.
Nicaragua Government Purchase 11/2019:
"Some descriptions of the supplies and works to be carried out:
Lot I: Villa Nueva Substation and Expansion of El Sauce Substation
Central American countries do not take advantage of the electric transmission line that connects them, because the poor infrastructure at the local level prevents the exchange of energy at the maximum level.
Managers of the Central American Bank for Economic Integration (CABEI) believe that the lack of electrical installations, especially in the stations of each country, are an obstacle to achieve a reduction in final tariffs to consumers.
After several years of carrying out studies of the work, the governments announced that they plan to begin working on the standardization of regulations to sign the agreement of the electrical interconnection project.
In a press release published on March 19, Panama's Presidency stated that Panama's Energy Secretary, Victor Urrutia, informed that the Agreement required for the implementation of the electric interconnection project that will link the Andean and Central American systems will soon be signed.
During the first three months of the year, companies in El Salvador imported $18 million worth of electric cables, 10% less than in the same period in 2017.
Figures from the information system on the Electric Cables Market in El Salvador, compiled by the Business Intelligence Unit at CentralAmericaData : [GRAFICA caption = "Click to interact with graph"]
According to entrepreneurs dedicated to the distribution of electricity in El Salvador, the rigid legal regulations prevent progress being made on issues such as the development of distribution networks and improvements to the quality of service.
Representatives from the Association of Distributors of Salvadoran Electric Power (Asdees), believe that due to the gap between technological advances and the backlog of the regulatory framework for the sector, the country is losing competitiveness.
In 2017, purchases of electric wires and cables from Central American countries totaled $791 million and grew by 74% with respect to the previous year, in contrast to the fall recorded between 2015 and 2016.
Figures from the information system of the Market of Wires, Cables and Other Electricity Conductors in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with graph"]