El Salvador awards power supply contracts

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Monday, December 15, 2014

Four companies picked up contracts in El Salvador's call to supply 100MW capacity and associated energy for three years starting January 1.

Caess in September launched the process on behalf of fellow distributors AES Clesa, B&D, Delsur, Deusem, Edesal and EEO.

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The winners were Duke Energy International El Salvador (32.6MW), Nejapa Power (30MW), Poliwatt (20MW) and Inversiones Energéticas (17.4MW), according to a Caess announcement.

DEMAND

October maximum demand hit 990MW compared with 968MW a year earlier, according to latest data from power market administrator Unidad de Transacciones. A record 1,035MW was set this July.

October grid injections and offtake totaled 543GWh and 513GWh, respectively, versus 543GWh and 515GWh in the year ago month.

Of the 543GWh this October, 49.5% came from hydro, 21.7% geothermal, 18% thermo and 8.4% imports compared with 45.9% hydro, 20.8% thermo, 19.9% geothermal and 10.7% imports.

State power company CEL was the sole hydro producer this October, Duke Energy the principal thermo generator and LaGeo the sole geothermal generator.

EGP-INE ROW

Also from El Salvador, CEL signed an agreement with Enel Green Power (EGP) whereby the latter transferred its 36.2% stake in LaGeo to CEL subsidiary INE which now holds 100% of the geothermal operator.

The transaction for some US$280mn ends international arbitration between EGP, which has closed operations in the country, and INE.

EGP in 2008 began arbitration against INE which the Italian groups says did not recognize its rights to further buy-in to La Geo through reserved capital injections in exchange of investments, as provided in the shareholder agreement.

El Salvadoran authorities have pointed to alleged irregularities in the contract.