Lack of Regulation Prevents Power Purchase

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.

Monday, January 16, 2012

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.

René González, executive director of the Regional Operating Agency (EOR in Spanish), affirmed that the contract would not take effect until the Regional Electricity Market Regulations (RMER) come into operation.

"Gonzalez said that for the hydro station, located in Guatemala, to carry out the transaction, it needs permission for 'transmission rights' on the line, a concept that only exists within the RMER and is not in the current regulations.

The RMER is the legal framework within which countries in Central America and Panama may purchase and sale of energy to each other within the Electrical Interconnection System (SIEPAC).

So, Gonzalez explained, if this regulation is not in force, the Xacbal contract does not have the legal framework 'to be made operational'", reported Laprensagrafica.com.

More on this topic

El Salvador Receives Bids for Tender for 350MW

March 2012

On Monday March 19th bids will be opened for the tender for the procurement of 350MW, equivalent to one third of domestic consumption, for a period of 15 years.

The contract is being administered by the distributor DelSur, which belongs to the Colombian company EPM, but the energy will be acquired by this distributor as well as the distributors AES El Salvador: CAESS, EEO, CLESA, and DEUSEM.

Regional Electricity Market Regulations

August 2010

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.

El Salvador: Tender for 100MW

July 2011

The contract is to supply 100MW of power and associated energy from February 1, 2012

Any company interested in providing the supply of 100MW of power and associated energy for the following businesses may participate: CAESS, DELSUR; AES CLESA and CIA.;EEO DEUSEM, B&D and EDESAL.

Regional Electricity Market in 2011

January 2012

Report of technical and commercial management of the Regional Operating Agency in December 2011.

The Regional Operating Agency (EOR in Spanish) is responsible for "leading and coordinating the operation of the Regional Electricity System (SER in Spanish) and administrating the Regional Electricity Market (MER in Spanish), with transparency and excellence, according to the Regional Regulations."

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