Saturday, 24 July 2021 02:57

FECAICA seeks to increase participation in the regional electricity market

Written by Alondra Gutiérrez

Central American industrial companies seek to increase participation in the Mercado Eléctrico Regional (MER) and negotiate directly with electricity generators the most convenient price conditions in the market for non-residential consumers or large final purchasers of electricity.

One of the commitments underpinning the MER is to optimize the wholesale electricity markets, so that qualified participants can trade under better price conditions and, consequently, this benefit is transferred to the supply of goods and services of the Central American inhabitants.

National electricity regulations are not harmonized in terms of operation in the MER and, therefore, the participation of a greater number of industrial and commercial companies in this market is limited.

For example, Guatemala has 1,138 large users; El Salvador has 15 end users; Nicaragua has 16 large consumers; and Panama has 82 large customers. Costa Rica is the only country in the region that does not have private participation; only the state-owned electric company has the right and benefit of participating in the MER.

The Federación de Cámaras de Industria de Centroamérica y la República Dominicana (FECAICA) invites the authorities involved in the administration and operation of this valuable project for the region to reach a consensus on favorable conditions for access to the Regional Electricity Market so that all non-residential consumers can receive the benefits proposed by the project.

Energy is a priority issue in FECAICA's agenda. This is a basic input for the productivity of the industries, besides being strategic for the generation and retention of jobs and increase of salaries in the industrial sector.

"Costa Rica has a public and private installed capacity that should be used for the benefit of the country's competitiveness. However, the country does not comply with the principle of competitiveness of the MER since the Costa Rican Electricity Institute (ICE) is the only agent authorized to participate in this market. This results in a legal barrier to the opening of the market and the sale of surplus energy, which makes greater competition and better rates for consumers impossible", explained Lizandro Brenes, Energy Advisor of the Cámara de Industrias de Costa Rica (CICR) and member of FECAICA's regional energy committee.