Home Business & Finance Lion’s Share Of 170 MW Renewables Capacity Tendered In El Salvador Goes To PV With Capella Solar Securing 100 MW
Lion’s Share Of 170 MW Renewables Capacity Tendered In El Salvador Goes To PV With Capella Solar Securing 100 MW

Lion’s Share Of 170 MW Renewables Capacity Tendered In El Salvador Goes To PV With Capella Solar Securing 100 MW

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In El Salvador’s 170 MW renewables tender solar not only was awarded a much bigger chunk (120 MW) than wind power, but solar’s winning power price was around 50% cheaper. Moreover, the solar power prices were 56% below the ceiling price, while wind was only 6% lower.Central American country El Salvador has awarded around 120 MW of solar PV capacity in a renewables tender it floated in June 2016. Out of the total 170 MW tendered, 50 MW went to wind power. Superintendencia General De Electricidad Y Telecommunicaciones (SIGET), the electricity regulator conducted the exercise along with the electricity distribution company DELSUR, the National Energy Council (CNE) and the Export Promotion and Investment Agency of El Salvador (PROESA).

The price ceiling for solar power technology was fixed at $113.14 per MWh, for wind it was set at $105.30 per MWh. In the auction, 20-year contracts were signed for a price of $49.55 per MWh for solar PV projects, and $98.78 per MWh for wind. The winning prices were much lower than the ceiling price for solar power (56.1%), while wind power capacities were awarded at prices 6.19% under the ceiling price. The 4 companies that won the solar power capacity were Capella Solar (100 MW), Sonsonate Energia (10 MW) and Asocio Ecosolar (9.9 MW). The four solar PV projects and one wind power project are anticipated to attract an investment of $340 million. Successful bidders will be required to allocate an annual amount of 3% of their income to make investments in social development programs for the benefit of the area where the projects will be installed. PV projects under this auction will have to be connected to the grid by April 1, 2019, wind projects will have to come online by April 1, 2020. The tender results will now be reviewed by SIGET. Once the agency approves these, contracts are scheduled to be signed by March 27, 2017.

Anand Gupta Editor - EQ Int'l Media Network

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