MER aims to exceed the minimum transmission capacity of 300M

The regional electricity market (MER) aims in this decade to exceed the minimum transmission capacity of 300 megawatts (MW) among the countries of Central America.

The institutions of MER are in the process of analysis in order to approve investments that will increase this transmission capacity in the medium term to a value of around 450 to 550 MW, which will allow MER to use the potential for energy exchange. 10 thousand gigawatt-hours per year, the CEO reported Regional Operating Entity (EOR)an engineer Rene Gonzalez.

“The national transmission expansions, identified by the EOR, meet the growth of national demand and in the long term achieve and maintain the minimum operating capacity of the international exchange of 300 MW”, explained the director of the regional entity.

Those 300 MW were initially defined by the designed capacity System of Electrical Interconnection for Central American Countries (SIEPAC).

These conclusions are part of the Regional Transmission Planning Study for the period 2024-2033, which was prepared by the EOR in 2023.

The EOR conducted this study based on information provided by national planning entities and system operators of the six MER member countries, analysis and results that are jointly reviewed and validated.

Production and regional transmission planning is a function that EOR has been carrying out since 2014, in accordance with its goals established by regional regulations.

The report generated by the EOR is presented to the Regional Commission for Electricity Interconnection (CRIE), which is the regulatory body of the MER, and is also sent to Board of Directors of the Regional Electricity Market (CDMER)where the governments of the MER countries are represented, and it is also shared with all national planning entities and national operators.

“All this in order to guarantee a safe, economical, reliable supply of electricity and also to increase the volume of energy transactions in the regional market, fundamentally to ensure a direct benefit to consumers in the countries,” explains Eng. González.

Demand satisfied

The EOR study determines that both energy demand and electricity transmission will be met in the next decade.

“Since all these investments in transmission and all investments in production have been made, no deficit is expected,” explains Eng. González.

Investments required

The EOR analysis identifies 29 transmission projects requiring an investment of $198 million, for the period 2024-2033, which aim to meet national demand growth, as well as achieve and maintain a minimum international exchange operating capacity of 300 MW.

These transmission extensions have primarily been proposed by national planning authorities and are being considered for approval in their latest extension plans.

Mr. González explains that the biggest investments required are in Honduras, 41%, followed by Costa Rica, 37%.

“Not only does it need to reach 300 MW – permanently – but there are also works that have a dual function, helping operational capacity and meeting our own national requirements,” says EOR’s executive director.

Additionally, a complementary investment of $57.68. millions of dollars in the regional expansion of transmission, exceed the minimum capacity of 300 MW and reach a capacity of the order of 450-550 MW. This investment is complementary to national transmission expansions.

“For the period 2024-2033, the goal is to reach 450-550 MW in the southern block of the regional electricity system: Panama-Costa Rica, Costa Rica-Nicaragua and Nicaragua-Honduras,” explains Eng. González.

Strong expansion towards the south of the region

The EOR study visualizes that the energy that will move in the region in the next 10 years will come mainly from the south, from countries like Panama.

“In perspective, towards the future of the next 10 years, the electrical system of Panama will practically be the main exporter of the regional electricity market, unlike Guatemala which behaved historically, where for many years and decades Guatemala practically sold energy to other countries”, explains the executive director of EOR.

According to Mr. González, this is mainly due to the fact that there is a large natural gas installation in the Panamanian power system.

“There is a well-planned development of the Panamanian transmission system that will enable the flow of this energy to the north of Central America,” he points out.

Transaction potential is growing

In addition, the EOR determines that the increase in operational capacity, which would exceed 300 MW, will allow the potential for annual transactions in Regional electricity market (MER) of the order of 10,000 GWh, with associated economic benefits for the residents of our region.

“We will have the transmission capacity to be able to transmit 10,000 GWh during the year, which would triple the value of transactions currently taking place in the regional electricity market,” explained Mr. González.

The director of the EOR indicates that greater electricity transmission capacity provides greater stability and reliability, associated with better infrastructure.