The Empresa Nacional de Energia Electrica de Honduras (Honduran National Electric Power Company) is putting out to tender at the international level a high-level individual consultancy service for the preparation of specialized terms of reference and budgets to strengthen the country's electricity transmission capacity.
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.
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.
The National Electric Transmission Company tenders the construction of networks and installation of primary distribution networks in different regions of the country.
Nicaragua Government Purchase 1/2019:
"The contract consists of the construction of Primary and Secondary Distribution Networks in 72 energy areas with 1,230 projects distributed in the Managua Sector with 43 projects, Western Sector with 16 projects, Southern Sector with 10 projects, Northern Sector with 3 projects, grouped in six (6) lots respectively.
Transmission lines in the regional SIEPAC system are being used to distribute electricity internally in countries, curtailing their capacity for international exchange of energy.
When the US President Barack Obama visited Central America in 2013, he warned that "energy costs in this region are three times what electricity costs in Washington, and that represents a huge disadvantage for companies".Two years before that, all countries, from Guatemala to Panama, were committed to creating the necessary infrastructure for the Regional Electricity Market (MER) to be efficient.
Planned investments in the electricity transmission grid and interconnections with its neighbors could position Panama as a regional power distribution center.
Added to the construction of the third transmission line, estimated at $300 million-and whose works are 49% complete according to an announcement in May by the Electricity Transmission Company - comes a fourth line, to be built on the Atlantic area of the country.
Although they have managed to link the last stretch of 32 kilometers which was missing from the electricity grid in the region, there is still not any regulation to define rates and market performance.
After several delays caused by problems related to easements and environmental claims, the construction and electrical connection of the 32 kilometers that were pending between the canton of Parrita and the district of Palmar in Osa, Costa Rica has been completed.
Analysis of the current state of the SIEPAC project and business opportunities in the region especially in electricity generation.
The Regional Electricity Market (MER by its initials in Spanish) is not only a key element to the growth and economic development of Central America, but also an important source of business opportunities for companies.
In 2013 63% of the electrical energy fed into the transmission networks in the region was generated from renewable sources.
From a report entitled "Central America: production statistics for the electricity subsector, 2013", prepared by the Economic Commission for Latin America and the Caribbean (ECLAC):
"... The production of electricity in the six countries amounted to 45,735 GWh, 3.3% higher than in 2012.