Costa Rica formalizes its incursion to the electrical network with the rest of Central America

Country may import and export energy to the other nations in Central America

October 16th,2014.

Costa Rica Thursday officially joining the Regional Electricity Market (MER) for importing and exporting energy by Electrical Interconnection System for Central America (Siepac).

After six years of delays, with respect to the other five members-the 29th of September, the country managed to sell cable on a journey of 32 kilometers (km) between Parrita and Palmar, Osa, preventing the flow of energy from Guatemala to Panama.

The exchange is now possible through a transmission line of 1,800 km long, of which 500 km are in the country.

According to the president of the Instituto Costarricense de Electricidad, Carlos Obregon, the link to that network would allow the country to acquire energy at lower prices and sell the surplus, but did not specify how much could be saving for the end consumer.

"It depends on the timing and conditions of the market (...) The processes in these things are slow, you have to go adapting the market, it is assumed that when there is a bigger market there is a possibility to optimize costs, but those are gradual processes that should be giving, "Obregon said.

For now, ICE has budgeted ¢ 19,000 million to import power in 2015, that amount is less because it is expected to increase hydropower generation of 280 megawatts (MW), following the expansion of the plant Cachi and opening blowdown.

The Siepac line has a capacity of 300 MW; more than 15% of the maximum demand of Costa Rica.

The project involved an outlay of nearly $ 500 million, of which the majority (about $ 253 million) was provided by the Inter-American Development Bank (IDB). The line is operated by the Company of the Network Owner (EPR), consisting of partners from different countries. Costa Rica was the 'most expensive' country to implement its incorporation into MER implied invest $ 145 million.

Source: 'La Nación'