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Comisión Ejecutiva Hidroeléctrica del Río Lempa (CEL) CEL, the National Electric Utility Company of El Salvador, is in the process of being privatized following the General Law of Electricity passed in 1996. CEL’s geothermal division, renamed Geothermia Salvadorena S.A., is looking for a “strategic partner” to help Geo-CELrunthegeothermalplantsinBerlínand Ahuachapanaswellasexploitnewprojects. Partners currently are AES, Unocal, Calpine, Oxbow, Enron, Constellation Power, Caithness Corp., and Florida Power & Light. CEL has evaluated future options for developing and exploiting geothermal resources, according to three schemes: 1. CEL retains ownership and management of theresourceandsellsthesteamtoanIPP, following the model set in the Philippines, Indonesia, and Costa Rica; 2. Total concession to the IPP who will completely manage the resource and the plant;and 3. A variant of 2 in which CEL participates in the capital of the local company created by the IPP. General Law of Electricity (Decree No. 843) The General Law of Electricity, passed October 10, 1996, established the legal framework for privatizing all aspects of electricity production, transmission, and distribution currentlyownedbythestateorganization,CEL. Thetime frameforcompleteprivatizationofCEListhreeyears. The Law also created SIGET as an independent agency to regulate the industry. The price of electricity at generation will be market driven but the GOES will regulate the prices charged for transmission and distribution. The Wholesale Market will have two components: the Contracts Market (MC) or fixed market, and the System Regulating Market (MRS) or spot market. To participate in any phase of the fixed market (MC),validcontractsarenecessary. Contractsarenot necessary to participate in the spot market (MRS). Charges for use of the transmission and distribution system will be determined by the UT based upon the costs of investment, operation and maintenance associated with each componentofthesystem. TheUTwillassess Geothermal Resources in Latin America & the Caribbean 19PDF Image | Geothermal Resources in the Caribbean and Latin America
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