As expected, the French Supreme Court has ruled in favor of the Italian company, in its attempt to increase its stake in the geothermal station LaGeo.
In May 2011 the International Chamber of Commerce (ICC) recognized the right of Enel Green Power to increase their investments in geothermal energy in El Salvador and capitalize on these investments through the subscription of new shares in LaGeo.
LaGeo could exploit geothermal energy in a new well located in San Vicente, generating 30 to 40 megawatts.
The company LaGeo invested about $24 million in the exploration which led to the discovery of the new geothermal source.
As outlined in an article in Eleconomista.net, the Executive Hydroelectric Commission of the Lempa River (CEL), a partner in the LA GEO which belongs to the Italian company Enel, states that "a possible plant could generate more than $37 million in annual revenues for the company."
CEL has filed a motion to quash the ruling that would allow Enel to have a majority stake in LaGeo geothermal plant.
Tóchez Irving, president of the Commission of the Lempa River Hydroelectric Executive, said: "It is inappropriate to put a country’s strategic resource, such as a geothermal plant, into private hands," when presenting the proceedings before the court of appeals in Paris, France.
Lack of modern regulation caused the cancellation of an $18 million contract to handle variations in voltage frequency.
Altair Technologies (Altairnano) announced that state power company CEL cancelled the contract for the installation of an advanced 10MW battery system Alti-ESS for frequency control.
The document explains that the contract was cancelled by request from the Electricity Superintendence (Siget), which argued that the country's energy market lacked policies regulating systems like Alti-ESS.
Salvadoran company Energy Investments (INE) will implement a system of energy storage at the Talnique 10MW plant.
The contract will be executed by Altair Nanotechnologies, Inc., who is responsible for the preparation, installation and testing of the system, which will be delivered in a turnkey contract.
The project is expected to be operating in early 2012.
The International Chamber of Commerce will communicate its ruling on the arbitration trial filed by Enel for $120 million.
The complaint filed by Italian company Enel in October 2008 is based on noncompliance by the Salvadoran government with its commitment of handing over shares of company LaGeo.
"Nicolás Salume, president of CEL, informed he has been cited by the International Commerce Chamber for January 10, date when the entity will communicate its ruling on the case", published La Prensa Gráfica in its website.
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