IEEE Power & Energy Magazine - September/October 2016 - 40

(-) Imports GWh (+) Exports

energy prices in the wholesale
markets in the countries of cenHonduras
Guatemala
tral america are highly dependent on petroleum fuels prices; in
y
tor
a
l
2015, these prices were as follows
gu ace
Re terf
(in Us$/mwh): Guatemala, 68;
In
el salvador, 105; nicaragua, 89;
costa rica, 53; honduras, 109;
and panama, 100-for an average
Panama
Costa Rica
of Us$88/mwh. figure 2 shows
energy transactions within mer
MER
for the years 2013-2015.
as figure 2 suggests, in recent
years Guatemala has been a main
exporting country, while el salvador has been a main importing
Nicaragua
El Salvador
country. however, it is noteworthy that none of the countries
of central america has installed
generation plants with a regional
perspective in mind.
figure 1. The interaction between MER and national energy markets in Central
among the main obstacles to
America.
the development of generation projects in mer, three stand out. the
first
is
the
uncertainty
in
transmission
charges, mainly because
the regional operator entity is responsible for the operation
of the regional electricity system, and the council Director current regional regulation allows transmission rights to be
of the regional electricity market (a political body that obtained for only up to one year. the second relates to each
ensures compliance with electrical integration) works har- country's protectionism of its own supply, which leads to each
moniously with the crie for the development of mer. country selling only surplus generation. the third is the use of
national markets interact with mer through regulatory mer lines to solve national energy problems without adequate
interfaces harmonizing national regulations with regional expansion of national transmission among different countries.
all of these issues are currently under review by mer.
ones (figure 1).
mer does not yet provide a specific regulation for interimplemented through mer was an electrical line joining
six counties, the electric interconnection system for central mittent renewable generation sources. however, these kinds
american countries (siepac). this line, in conjunction with of projects require the authorization of the regional crie
existing bilateral interconnection lines and each individual to connect to the regional transmission grid. in this way,
country's national electrical networks, can take advantage of regional standards must be modified for the new requiresurplus energy within the country and support and implement ments of this technology.
regarding renewable generation, all countries in central
future-generation projects at the regional level.
america encourage the development of such technologies,
usually based on tax and hiring incentives through specific,
long-term contracts establishing a unit price for the electricity
produced. specifically regarding the development of ncres,
1,500
some countries with competitive generation markets-such
1,000
as
el salvador, Guatemala, and panama-have power pur500
chase
agreements that have resulted in prices for energy from
0
wind
sources
ranging between Us$95 and Us$132/mwh and
-500
prices
for
power
from photovoltaic generation ranging between
-1,000
Us$80
and
Us$138/mwh.
-1,500
2013

2014

2015

Guatemala

El Salvador

Honduras

Nicaragua

Costa Rica

Panama

figure 2. Energy transactions within MER, 2013-2015.
40

ieee power & energy magazine

Panama: A Context for NCRES
in panama, whose energy matrix is approximately 65%
based on renewable energy, specified incentives are established by law that benefit renewable generation. the incentives are exemptions from any payment associated with
september/october 2016

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