In order to replace the contracts that will soon come to an end electricity distributors are preparing to launch tenders in the coming months for the supply of 380 MW.
It is expected that in the coming months approval will be given by the National Electric Energy Commission (CNEE) for the distributors Empresa Electrica de Guatemala (EEGSA) and Energuate to start the tender processes.In the case of the first entity, the tender will serve to replace a contract with the San Jose plant, which provides 120 MW.
Due to delays in some of the projects where contracts had been signed to supply power starting from May 2015, Energuate will be receiving bids in March in order to replace part of that supply.
Bids will be received in late March and in the adjudication of these 180 MW of power the lowest price offerings will be favored. Among the projects which have been delayed are Energía del Caribe (120MW) and the hydroelectric stations Tres Ríos (5MW) and San Luis (6.56 MW).
A third of the generation contracts signed before the date of efficacy of the General Electricity Law, which expire in 2019, will be renovated under tender PEG-4 which is being prepared by the state run power company for 2015.
To renew these contracts is important that Empresa Electrica de Guatemala SA (EEGs) "... Suggests and asks for the terms of reference from the entity it is responsible for ...
The National Energy Commission has started a new recruitment process for the shortfall of 113 MW of energy required from May 1.
Due to the fact that in the short term tender for the period 2015-2017 113 MW was not awarded, the National Energy Commission expedited the preparation of the recruitment process for the missing MWs.
"Dimas Carranza, member of the tender board at Energuate, reported that this week the tender conditions will be defined for the recruitment process for the energy required from May 1, 2014, which means they have less than a month to make the contract."
With up to 22% reductions in the prices offered, the tender for short-term energy has concluded with 565 MW being awarded to thirteen companies.
After having been called for a second round requesting lower prices, the National Energy Commission (CNEE) awarded 565 MW in power contracts to thirteen distribution companies.
The report of the CNEE:
Price Decrease in Short-Term Contracts: The prices of this process show a decline from the prices obtained in previous processes, eg for the period 2013-2014 the bidding process TNS-2-2012 and 1-2013 TNS- they reflected a monomial average purchase of U.S. $ 157/ MWh and U.S. $166 / MWh respectively, compared to U.S. $149.8 $ / MWh obtained for the period 2014-2015 in Short Term Bid 1-2013. Furthermore it is estimated, with the results obtained in this process, an average monomic purchase price of U.S. $124 / MWh for the period 2015-2017.
In a second round of bidding for the period 2015/2017 the bidders had lower prices, but the government believes these can be further reduced.
The same 14 generators who took part in the first round had sales prices ranging from $0.50 to $10.
"Dimas Carranza, Member of the Tender Board of the distributor Energuate, said they hope that with these new offers they will manage to reduce rates for users."
The National Energy Commission is evaluating a second round of bidding for short-term contracts (2014-2017) so that bidders can submit lower prices.
In order for power generating companies to submit bids at lower prices than those offered in the tender a few days ago, the Energy Commission will review the proposals and if it is not satisfied with the prices it will hold a second round.
Prices will be announced on March 20 after which there will be two sealed envelope auctions containing the improved proposals of Energuate and EEGSA.
The bids were led by companies generating using bunker fuel, coal, and others combining coal and biomass, or bunker fuel and biomass, hydropower stations also had their space.
"Carmen Urízar, president of the National Electricity Energy Commission (CNEE), said are expecting strong competition in prices, which are to be announced on 20 March."
On March 5, bids will be received in the tender of 560 MW needed by distributors in order to meet demand from May 2014 to April 2017.
On March 5 bids will be received for the tender for short-term energy in the amount of 560 MW for Energuate and Empresa Electrica de Guatemala (EEGSA) so that it can meet demand from May 2014 to April 2017. Some 11 companies have acquired the bidding rules.
An evaluation is being made on whether to raise from 250 MW to 400 MW the PG3 tender in order to compensate for the delay in the project by Jaguar Energy, projected to be 600 MW for this year.
The Ministry of Energy and Mines and the National Electric Energy Commission are looking at increasing the energy in the PEG 3 tender from 250 MW to 400 MW. The contest will take place between April and June.
A convocation by the National Electric Energy Commission of Guatemala brought together 40 companies who raised several questions regarding the draft bill.
The main concerns raised included the qualification criteria, types of contracts and prices, and indexing of fuels.
An article in Prensalibre.com reports that "Some 40 representatives from companies who are potential bidders for the 600 MW tender attended the convocation by the National Energy Commission (CNEE) and the Ministry of Energy and Mines (MEM) in order to exchange concerns, create feedback and define the specifications. "
The Guatemalan judiciary has granted temporary protection to Ingenio Magdalena, who appealed against the rejection of its 110 MW bid.
The Tender Board had awarded 210 MW to 16 hydroelectric plants, disregarding the supply of 110 MW by Ingenio Magdalena, even though it was below the reference price, and postponing the award of 590 MW for a new bidding process.
The National Energy Commission (CNEE) has issued new tenders for energy supply, which will take place in April.
Of the 53 bids received in the last tender for 800MW, 35 were out of price range, quoting in excess of $ 0.1175 per kilowatt hour.
"There was some controversy over the fact that suppliers who use coal and gas were not able to stay within the price range when factoring in the cost of transportation and import, which left them at a disadvantage," reads an article on Prensalibre.com.
Thirty-three companies have submitted their technical and financial bids for the tender for the provision of 800 MW of power over the next fifteen years.
Participating in the process are four power stations providing energy using biomass and coal, two windmills and several hydroelectric power companies.
"Jorge Alonso, manager of the Empresa Electrica de Guatemala, SA (EEGSA), said they have yet to define how many megawatts will be awarded, but considered that the target will be exceeded, as more than 60 percent of the bids received were from companies using renewable sources", reported Prensalibre.com.
A tender for the provision of 800 MW of electricity for the next 15 years has attracted companies producing energy using wind power, hydro power, biomass, bunker fuel, coal and natural gas.
Among the companies interested in the bidding which will take place in January 2012 are, Cutuco Energy, Italy's Enel, los ingenios Pantaleón, La Unión and Magdalena, among others, said Carlos Colom Bickford, president of the National Energy Commission (CNEE).