The main concerns raised included the qualification criteria, types of contracts and prices, and indexing of fuels.
An article in Prensalibre.com reports that "Some 40 representatives from companies who are potential bidders for the 600 MW tender attended the convocation by the National Energy Commission (CNEE) and the Ministry of Energy and Mines (MEM) in order to exchange concerns, create feedback and define the specifications. "
The directors of the CEE, Carmen Urízar, Silvia de Córdova and Jorge Arauz stated that "Guatemala has been very successful in building trust with private investors, but there are nuances. In the previous proposal the topic of indexing was discussed thoroughly and the Tender Board considered that it should not to be taken into account. It is worthwhile reviewing it, because it could at least make the cost of the proposals received more efficient."
The commissioners indicated that they are not only trying to fill the needs of the volume in demand, but to find the lowest price possible. The long-term contract,15 years, is attractive because it allows investors to establish their projects, they added.
"Also there was doubts about costs of integrated technologies such as gas and coal, to which the Minister of Energy and Mines, Erick Archila responded that all costs are to be integrated -fuel, transport and import costs."
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On September 19 a tender will be launched by Empresa Electrica de Guatemala and Energuate for the long-term supply of 250 megawatts .
The information was confirmed by the Minister of Energy and Mines (MEM), Erick Archila.
According to the director of Regulation at Energuate, Dimas Carranza, the plan is to tender 250 megawatts in 15 year contracts , with operations starting in 2017.
The Guatemalan authorities have changed the bidding conditions and extended the deadline by three months.
The changes are designed to ensure the participation of more bidders and resolve some of the concerns of interested companies.
Carlos Colom, president of the National Electric Energy Comission (ENEE), explained that the most important change is to the ‘Act of God’ clause, which protects investors against possible actions by groups opposed to energy projects.
The four plants in operation in Guatemala increased their share to 22% of the total, up from 15% a year ago.
According to data from the Wholesale Market Administrator (AMM), the Ministry of Energy and Mines and the Association of Independent Cogenerators (ACI), the country has four active coal plants, with an effective power of 284 MW, plus 6 under construction, which will provide 600 MW.
The National Energy Commission (CNEE) has issued new tenders for energy supply, which will take place in April.
Of the 53 bids received in the last tender for 800MW, 35 were out of price range, quoting in excess of $ 0.1175 per kilowatt hour.
"There was some controversy over the fact that suppliers who use coal and gas were not able to stay within the price range when factoring in the cost of transportation and import, which left them at a disadvantage," reads an article on Prensalibre.com.