During 2019, electricity purchase and sale transactions between Central American countries amounted to 3,074 GWh, a 14% increase compared to 2018.
Figures from the Regional Operating Entity (EOR) show that the average price recorded in regional transactions during 2018 and 2019 also increased, going from $74.05 per MWh to $90.11 per MWh.
About $200 million is estimated to be invested in improvements to the Central American network, both nationally and regionally, to avoid the recurrence of service interruptions that occurred days ago.
On September 16, a power failure in Honduras caused the interruption of the service of approximately 40% of the area that make up the Central American countries that are interconnected.
From January to November last year, the country exported $165 million in electricity to Mexico and Central America, 73% more than in the same period in 2017.
The Report of the Monetary, Exchange and Credit Policy of the Banco de Guatemala, details that the energy exportations are mainly caused by the investments made in the electricity transmission network of the country, which has allowed satisfying the increase of the demand coming from El Salvador and Honduras.
In response to the energy exports to Mexico, the CRIE warned Guatemala last month that it must comply with rules that protect the stability of the regional system.
Arguing that Guatemala is a signatory of the Framework Treaty for the Central American Electricity Market, the Regional Electricity Interconnection Commission (CRIE) warned that the norms designed to protect the stability of the Regional Electricity System (SER) must be fulfilled.
A new regulation will allow for regional energy transactions to be made by auction in annual installments.
Operators subscribed to the Electrical Interconnection System for Central American Countries (SIEPAC) will have a policy to regulate contracts and firm energy rights for term contracts of up to one year, through means of the Regional Electricity Integration Comission (CRIE ).
The transport of electricity between El Salvador and Guatemala through the Electrical Interconnection System for the Countries of Central America is limited to 170 MW.
This is despite the fact that the Electric Interconnection System for Central American Countries (Siepac) has capacity to transmit 300 MW, said Luis Herrera, manager of the Wholesale Market Administrator (AMM) in Guatemala.
This year, the country went from exporting 14GW per hour between January and May to 35GW per hour in June and July, with the entry into force of the regulation on regional integration.
According to Jorge Alvarez, market manager of the Wholesale Market Administration (AMM by its initials in Spanish), in July 50 GWh were sold, and in the first 20 days of August 22 GWh have been exported.
On June 1 the Regional Electricity Market Rules and the Supplementary Detailed Procedure Electrical Interconnection System for Central America became effective.
"It's a big step forward for electrical integration. These are rules designed to operate the SIEPAC line and power transmission capacity between countries with greater intensity," said the executive director of the Regional Operating Agency (EOR), Rene Gonzalez.
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.
The non-enactment of the Regional Electricity Market Regulations (RMER) is preventing the Guatemalan hydroelectric station Xacbal from selling 30MW to a distributor in El Salvador.
On 1st January the Hydroelectric station Xacbal, part of the Terra Group, should have initiated the sale of 30MW to Salvadoran distributor CAESS, according to a contract signed by both companies in 2008.
New investment opportunities open up with the coming into force in November of the regional regulations for the sale and purchase of electrical power.
EOR's executive director, René González, indicated during the third Regional Electricity Market Convention in San Salvador that, "we are now moving from the transitional phase into the main stage in the project, from a regulatory point of view, which will enable greater integration," according to an article published on 7dias.com.do.
The third "Regional Electricity Market Convention", held on 29 and 30 July, will focus on the market's current status and its outlook.
The event is organised by Ente Operador Regional (EOR) and seeks to raise awareness of the regional electricity market's current status and prospects for development.
EOR, with headquarters in El Salvador, was created in 1966 by the Central American Electricity Market Framework Agreement as part of a project to interconnect the region's electricity networks.
Costa Rica’s difficulties in expropriating terrains will delay the construction of 70km of electric lines.
The countries members of Siepac, the Central American Electric Interconnection System, expect to conclude their respective stretches of the line in September 2010, while Costa Rica would deliver it on October 2011.
Nacion.com reports that the rest of the countries are unhappy with this, and want the network to be operating as soon as possible, to improve energy supply and commercialization.