In El Salvador, the competition rules are being prepared to design and build a plant that will generate energy from solid waste and wastewater, which will be located on the Acelhuate River.
The project of the new plant, which will have an installed capacity of 5.2 MW and whose investment will amount to $32 million, was announced by the presidency of the Executive Hydroelectric Commission of the Lempa River (CEL).
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.
Lack of legal certainty, electricity theft and social conflicts are forcing businessmen in Guatemala's energy sector to choose to relocate their investments to El Salvador.
Last year, the companies Applied Energy Services (AES) and Corporación Multi Inversiones (CMI), both US and Guatemalan capital, decided to invest $47 million in solar energy projects, encouraged by the facilities offered to the energy sector in El Salvador.
Last year, 87 environmental impact studies were submitted in the countries in the region, for the construction of power generation plants and works on electricity networks.
Panama is the country in the region where the largest investment is concentrated, with an approximate $1.29 billion in energy projects, corresponding to 32 environmental impact studies submitted to the Ministry of the Environment between January and December 2017.
AES El Salvador and Corporación Multi Inversiones have announced an investment plan that includes the construction of ten solar plants with capacity to generate 10 MW each in different areas around the country.
The solar power generation project will be operated by AES El Salvador, and is expected to be developed in three phases, according to the two companies involved in the initiative.
Of the 34,629 GWh generated in 2015 by the countries included in SICA, 68% came from hydropower, 11% from cogeneration in sugar mills, 11% was geothermal, 9% wind and 0.1% based on biogas.
From a report by Cepal entitled "Statistics of electricity production by countries in the Central American Integration System (SICA)":
The company that won the tender to build a 14 Mw photovoltaic plant has withdrawn from the project, meaning that it will be put out to tender again.
The Autonomous Executive Commission of the Lempa River (CEL) argues that Juwi, the company that initially won the contract to develop the project, wanted to make changes to the contract, arguing that the document did not contain "satisfactory conditions".
On October 20th and 21st entrepreneurs from the region will gather together in Panama City to discuss issues such as the electricity market rules, new and renewable energy projects.
From a statement issued by the International Symposium on Energy:
This year the 8th. International Symposium on Energy seeks to promote spaces for reflection on energy issues, to help analyze the performance and limitations of developing new projects, build consensus, define the options for the energy market and, finally, develop a social impact using the media.
Actis and Mesoamerica have agreed to sell SunEdison 100% of its interest in Globeleq Mesoamerica Energy, which operates in the area of renewable energy plants.
From a statement issued by Globeleq Mesoamerica Energy:
Actis and Mesoamerica, investment and consultancy firms based in Costa Rica and Colombia have agreed to sell 100% of their combined interest in Globeleq Mesoamerica Energy (GME), a leader in the business of wind energy and solar energy in Central America, to SundEdison. SunEdison is the largest developer of renewable energy in the world.
An announcement has been made that starting November the Salvadoran Development Bank will have $30 million available for loans to provide clean energy projects developed by SMEs.
All productive sectors can access these loans as long as they are formalized SMEs and their projects are geared towards the areas mentioned. The loans are expected to be available by next November with flexible and competitive conditions for the sector.
Although the installed capacity is currently small, strong growth is projected in the region as a result of tenders with prices that favor large-scale projects.
A report by IHS Technology predicts rapid growth of photovoltaic capacity in Central America, which will supposedly reach 22 megawatts in 2018.
In reading this report, it should be noted that the country experiencing the largest part of that growth is Honduras, where multiple large-scale projects have been announced in which we have not yet seen the required economic viability, which casts serious doubts on their actual realization.
SMEs in developing countries could generate jobs and significant growth by taking advantage of the market opportunities offered by clean technologies.
From a report by the World Bank:
SMEs in developing countries could generate significant growth and jobs if they take advantage of market opportunities that offer clean technologies, which reach up to $1.6 trillion.
On october 15th and 16th companies from the sector will gather together in Panama City in order to discuss issues such as energy efficiency, technology and the use of renewable energy in the region.
From a statement issued by the Union of Industrialists of Panama:
Panama, September 18, 2014. The Union of Industrialists of Panama (SIP), in light of energy issues and the implementation of new regulations that will reduce the cost of energy, will be holding from 15th to 16th of October 2014, at the Hotel El Panama, the 7th International Symposium on Energy entitled: "Industry, Innovative contributions to the electricity market.
So far this year the Central American countries have sold 120 GW/h, equivalent to $20 million.
An analysis piece on Eleconomista.net shows the levels of energy consumption of the Central American countries and the ability of each of them to trade their surpluses, with generation depending, among other things, on variables such as the weather.
"Hugo Ventura, Head of the Energy and Natural Resources at the Economic Commission for Latin America and the Caribbean (ECLAC), said that energy imports for some countries "is a lifesaver" and could be kept up in the future if the conditions are not met to encourage more investment in energy or there are delays in some major projects. "
There are now twenty companies, both Salvadoran and from other countries that have purchased bidding rules for the supply of energy.
About 20 companies have acquired the bidding rules for the supply of 100 MW of power to be contracted out with two technologies of generation; they are 60 MW using photovoltaic systems and 40 MW using wind power.
Luis Reyes, executive secretary of the National Energy Council (CNE) said that "there are companies from different countries, including Spanish, Italian, German and Salvadoran. Companies are very interested in this tender . We have received a lot of inquiries from companies."