Aresep suggests ICE close half of thermal plants

Electricity generated costs up to three times that offered at the Isthmus market

Regulator claims that inefficiency is charged to tariffs ; ICE defends its use

October 1st, 2014

Aresep suggested ICE to get rid of half of its thermal plants and replace the energy they produce over imports of Regional Electricity Market (MER) in Central America.

That request came after proving that during the last year, imported energy was cheaper than that generated by four of eight thermal plants of the Costa Rican Electricity Institute (ICE): Canyon, Gas Moin, Moin III and San Antonio.

From June 2013 to May 2014, ICE used those facilities to cover 15% of the thermal energy, even though it meant spending much more: each megawatt hour (MWh) doubled the cost of the average megawatt generated by the four efficient power plants.

In the same period, on average, each "inefficient" megawatt (at $ 381, not including operating costs) doubled the price of imported megawatt MER of about $ 199. Imports led the country to save $ 180 per MWh, and last May, for example, involved a savings of $ 8 million.

The cost per MWh in Barranca, the less efficient heat, was $ 522; almost three times more expensive than the average MWh imported.

These are the results of the first study that reveals the Inspectorate Energy Regulatory Authority of Public Services (Aresep) on the behavior of the ICE in the MER, between June 2013 and May 2014.

This dynamic market purchase directly impact electricity rates paid by consumers, said Juan Quesada, mayor of Energy.

A criterion Luis Pacheco, manager of the ICE, the proposed ARESEP replace the four plants is a "sign of ignorance of the subject."

Shopping versus 'waste'. The Institute has been increasing purchases MER happened to import four gigawatt hours (GWh) in June 2013, to 65 GWh in April 2014 imports came to cover a maximum of 8% of national demand, last April .

"He has had an outstanding performance in energy purchases. Even at a time when El Salvador and Panama were rationing it, this was the country that bought power this year, "he said.

Salvador Lopez, director of the National Center for Energy Control (Cence) of ICE, said in May that it would import the maximum possible power in the region.

"When we have had to use our most expensive plants, we have imported all the energy found in the region, which itself is cheaper. And all we need, we get it, "he said.

Read more: la Nación