The consortium Quantum-GLU would be the winner of a long-term contract to supply 335 MW generated from a power plant that would be built by the company.
A statement from the National Energy Board reads:
The electricity distribution company DELSUR has made public the financial bids offered by two companies who submitted documents for the tender for 355 megawatts (MW) of power and associated energy, namely: Asocio Quantum-GLU and AES Fonseca Energía, who on October 1 submitted the information required to participate in the tender for the supply of power for 20 years.
Interested parties have until 31 October to submit the terms of the tendering procedure to the Superintendency of Electricity and Telecommunications.
According to the calendar of the Superintendency of Electricity and Telecommunications (SIGET) on January 9, 2014 the winner of the tender will be announced.
To date about 78 companies have purchased the bidding documents for the project to generate 15 megawatts from renewable resources.
A series of tenders are being prepared to replace expiring energy contracts which are equivalent to an output of 380 megawatts.
This was confirmed by Luis Mendez, chief of the General Superintendency of Electricity and Telecommunications (SIGET), who added that "right now they are in process, but we are going to beat the deadlines ...".
"We will probably put out additional tenders in the medium term and then, rest assured that we are seriously backing a joint investment," Mendez said.
More than 70 investors have acquired the rules for the tender aimed at generating energy on a small scale.
"So far we have registered over 70 projects, and this could mean we end up with double the amount of supply we would have had based on the projections of 15 MW. In the end this is going to open a gap enabling the entry of renewable energy into the mix," said Carlos Najera, head of Renewable Energy at Consejo Nacional de Energía (CNE).
Small scale power facilities will be allowed to bid in a tender to provide 15 MW of renewable energy.
The Superintendency of Electricity and Telecommunications (Siget), the National Energy Council (CNE) and electricity distribution companies announced the provisions and requirements for developers who generate up to 1,000 kW to connect to the network of distributors and deliver energy.
Under the new law, concessions for small-scale electricity generation projects must be approved by the Legislative Assembly of El Salvador.
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.
In El Salvador a tender is being launched for long-term contracts to supply power for 15 MW, for a period of 15 years, with generation from renewable sources.
A statement from the National Energy Council (CNE) reads:
Electricity distribution companies, together with the National Energy Council (CNE) and the Superintendency of Electricity and Telecommunications (SIGET) announced today the start of the bidding process for long-term contracts for power supply of 15 MW, for a period of 15 years, with generation from renewable sources.
For the tender of 310 MW, awards were granted to six generators in El Salvador, for a term of four years.
All of the proposals submitted were below the $186.39, price ceiling set by the Superintendency of Electricity and Telecommunications (Siget). According to the chief of the Siget, Luis Mendez, the total amount transacted is approximately $1 billion.
The technical and regulatory requirements, and exclusive financing options of the tender for long-term contracts for the supply of 350 MW, have been explained to investors in El Salvador.
From a press release published by the Agency for the Promotion of Exports and Investments of El Salvador (PROESA):
The Electricity Distributer DELSUR, together with the National Energy Board (CNE), the Superintendency of Electricity and Telecommunications (SIGET), and other public and private institutions, developed this day the Second Information Meeting of the bidding process for the long-term supply of 350 MW of power and associated energy, which is being coordinated by DELSUR, to start this new generation capacity in July 2017, with a term of 20 years.
The Superintendency of Electricity and Telecommunications is evaluating extending the deadline until July so as to receive more offers in the tender for the generation of 350 MW in the country.
Elsalvador.com reports that "seven companies of international capital collected the requirements to participate in the tender process for power generation, which is divided into two blocks of 250 and 100 MW based on the requirements of the distribution network operating in the country. "
The Congress of El Salvador is evaluating implementing a tax which would in principle would apply only to LaGeo, a subsidiary of the Italian company Enel.
Against the backdrop of the dispute between the Government and the Italian company Enel over the capitalization of the geothermal LaGeo, "...an ad-hoc committee of the Legislature which is studying the LaGeo concession, the only cmpany with state permission to exploit subterranean heat sources, has proposed a series of amendments to the Electricity Law, including a tax that would be incurred by the activity of the geothermal company. "
A year ago the news was the same: the rules for the Electric Interconnection System for Central America have not yet been defined.
This is preventing the confirmation of a power purchasing deal between AES El Salvador and Hydro-Xacbal of Guatemala.
On Monday January 16, 2012 we published in CentralAmericaData.com:
"In Jan the Hydroelectricity station Xacbal, belonging to Grupo Terra, should have started selling 30MW to the distributor CAESS, according to a contract signed by both companies in 2008.
AES El Salvador will launch a tender in March for 310 megawatts of energy to replace medium-term contracts which will expire at the end of July this year.
Miguel Bolinaga, vice president of the electricity market and external relations at AES El Salvador, said the opening of bids and the award will take place no later than April.
"However, he confirmed that pursuant to the General Electricity Law, the tender conditions, subject to review by the Superintendency of Electricity and Telecommunications (Siget), were sold in January to all bidders, who should by now have sent their comments to be incorporated into the definitive competition conditions, as this is a dictate of the General Electricity Law.
The volume of investment required to generate 350 MW, the provision of which is being put out to tender, requires flexibility in the consideration of the bids.
Laprensagrafica.com reports that regarding the second attempt to contract out the generation of 350 megawatts of electricity over the long term, with renewable sources, Robert Brogstörm, a U.S.
The Superintendency of Electricity and Telecommunications and the Legislature are blaming each other for the project grinding to a standstill.
Elmundo.com.sv reports that "After two years and an equal number of extensions granted by the legislature to the Superintendency of Electricity and Telecommunications (Siget) to implement number portability, the project is still on hold, despite having been a law of the Republic for more than a year.