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278:, create a competitive energy market in the region, and attract foreign investment in power generation and transmission systems. It has been claimed that the cost of energy for consumers could go down as much as 20% from US$ 0.11 per kWh to US$ 0.09 per kWh as a result of the project. A feasibility study undertaken in 1995 by Power Technologies Inc. outlined various scenarios for the expansion of power demand and supply in the region and associated investments. The median scenario foresaw that SIEPAC would induce annual investments of US$ 700m over a 10-year period once the regional electricity market had begun operating.
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Critics have argued that the project will not make electricity cheaper for consumers in
Central America, but may actually increase tariffs. Some critics also argue that SIEPAC will facilitate electricity exports to Mexico and not contribute to expand access in Central America. It is also argued that
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government, offering $ 70 million and the
Central American nations. The contributions of the Central American nations had been initially estimated at up to US$ 106 million. However, it turned out that they will rather provide around US$ 35 million in-kind contributions, such as land and existing
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of
Honduras, ICE and CNFL of Costa Rica - while in others shares are held by transmission companies - INDE of Guatemala, ETESA of Panama, and ENTE of Nicaragua. In the case of El Salvador the utility CEL and the transmission company ETESAL own the shares jointly. The private shareholders are
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SIEPAC is owned by a
Regional Operations Entity (Empresa Proprietaria de la Red - EPR), created in 1999 with registration in Panama, and comprising the public utilities and transmission companies of the six participating countries (75%) and private capital (25%). In some countries integrated
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with associated social and environmental costs. Also, there are fears that the dominance of the power sector in
Central America by large foreign corporations would be increased. Finally, there are some environmental concerns related to the transmission line itself. The initial
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transmission line with a capacity of 300 MW between
Guatemala and Panama, as well as improvements to existing systems. At the second stage the capacity will be increased up to 600 MW. SIEPAC cost about US$ 320 million without the proposed interconnections with
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facilities. It had also been reported that Endesa would contribute 20% of the project costs through equity, an amount that was later reduced. Subsequently the IDB had to increase its exposure to US$ 240 million and the
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The funding for the project was originally expected to come from the Inter-American
Development Bank, having initially pledged $ 170 million in hard and soft loans to the six Central American countries, the
307:(IDB) had suggested that electricity generating companies should not be allowed to hold shares in the transmission company, this has apparently been accepted by the governments of Central America.
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Proponents of SIEPAC expect that interconnecting the nations' electrical transmission grids will alleviate periodic power shortages in the region, reduce operating costs, optimize shared use of
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More than 90% of the rights of way for the line had been acquired by May 2007. It is expected that the project can benefit from carbon finance under the
328:(CBEI) was called in to provide additional support through three loans totaling US$ 90 million. The Colombian firm ISA also joined EPR as a shareholder.
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The project is currently managed by a unit under the
Central American Electrification Council (Consejo de Electrificación de América Central - CEAC).
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financed by the IDB analyzed only the direct impacts of the transmission line and not its indirect impacts from induced power generation.
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nations. The project was discussed since 1987. The constructed new transmission lines connect 37 million consumers in
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much of the increased generation capacity facilitated by SIEPAC would be in the form of large
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Mexico, Vietnam, and
Central America — Transmission Grids, Global Network Energy Institute
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Please help update this article to reflect recent events or newly available information.
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The establishment of a regional electricity regulator has been envisaged. While the
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SIEPAC network includes a 1,790-kilometre (1,110 mi) 230
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Transnational Electricity Projects within the Americas, DOE
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Regional Indicators: Central America, U.S. Dept. of Energy 2002
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440:"Central American electricity trading to start next month"
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Power in the America’s Overview, U.S. Dept. of Energy
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Electric power transmission systems in North America
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180:Central American Electrical Interconnection System
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507:, p. 1 and p. 6, accessed on September 20, 2007
470:"ICE Finishes Work on SIEPAC Transmission Line"
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631:Electric power infrastructure in El Salvador
616:Electric power infrastructure in Costa Rica
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636:Electric power infrastructure in Guatemala
626:Electric power infrastructure in Nicaragua
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621:Electric power infrastructure in Honduras
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611:Electric power infrastructure in Panama
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438:Johnstone, Heather (2013-03-06).
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300:of Spain and ISA from Colombia.
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445:Power Engineering International
407:Electricity sector in Nicaragua
355:Environmental Impact Assessment
305:Inter-American Development Bank
555:accessed on September 20, 2007
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402:Electricity sector in Honduras
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150:1,790 km (1,110 mi)
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333:Clean Development Mechanism
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32:This article needs to be
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249:Technical description
142:Technical information
114:Ownership information
450:PennWell Corporation
375:Latin America portal
416:Plan Puebla-Panamá)
412:Mesoamerica Project
276:hydroelectric power
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270:Expected benefits
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71:Map of SIEPAC
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155:Power rating
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529:Interaction
505:Interaction
239:El Salvador
158:300 MW
104:El Salvador
605:Categories
455:2013-03-29
422:References
350:hydropower
227:Costa Rica
191:istema de
163:AC voltage
137:April 2013
92:Costa Rica
343:Criticism
314:Financing
243:Guatemala
235:Nicaragua
203:aíses de
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108:Guatemala
100:Nicaragua
44:July 2019
361:See also
231:Honduras
213:) is an
119:Operator
96:Honduras
79:Location
335:of the
321:Spanish
207:mérica
184:Spanish
84:Country
34:updated
531:, p. 5
494:US DOE
483:US DOE
298:Endesa
264:Belize
260:Mexico
241:, and
223:Panama
211:entral
176:SIEPAC
88:Panama
58:SIEPAC
293:ENEE
553:EPR
541:EPR
517:EPR
607::
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209:C
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Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.
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