ICE buys less energy to local cogenerators

Acquisition of electricity in Central american gaining more value

Less production due to lack of rains forced to come to the Isthmus, says entity

May 29th,2014.

The Instituto Costarricense de Electricidad (ICE) buy less and less energy to local cogenerators.

In 2013, the state company ¢ 27.583 million allocated for the purchase of electricity to private companies, which was 38% compared to 2009 when the expenditure was ¢ 44.296 million, according to the audited financial statements of the ICE Group.

In fact, in the last five years, sales of local suppliers to ICE lost weight, then went from half the total energy purchases in 2009 to 36% last year.

The low hydroelectric generation, reduced engagement of private providers and the lack of rate adjustments cogenerators, underlying the reduction in power purchase local companies, according to the ICE and the Costa Rican Association of Power Producers (Acope).

To meet energy demand, the company decided to raise state purchases in the Central American market.

In 2013, it acquired more regional providers of ¢ 17,000 million. But this year, ICE made a record purchase of ¢ 26,000 million.

The Institute also has contracts with private companies bidding to build, operate and transfer (BOT, for its acronym in English) that are leased for periods of 10 to 15 years, and then become the property of ICE. These accounted for 42% of spending power purchases in 2013.

Over the past year, the Institute spent a total of ¢ 76,726,000 in buying power, according to its financial statements.

Reasons. Cogenerators retail sale to ICE Group occurred because state company stopped hiring local suppliers, said Mario Alvarado, executive director of Acope.

"The local private sector has lost share of the total growth of the electricity sector in recent years," he said Alvarado.

Another factor is the lack of rain during the past three years, impacting local hydropower stressed Luis Pacheco, manager of the ICE.

This is the reason that the state-owned resort to regional energy market.

"The import permits provide a benefit to users to replace thermal generation," said Pacheco.

Juan Manuel Quesada, mayor of Energy Regulatory Authority for Public Services, said that limiting the ICE to acquire energy in the Isthmus, is that it can not be generated face here.

Source: La Nación