Deconstructing permits and concessions to determine how they are used to diversify the energy market

Transcription

1 Deconstructing permits and concessions to determine how they are used to diversify the energy market Presented by Eng. Zaratí Cartin National Secretariat of Energy December 5,

2 Contents Structure of Panama s Electricity Sector Panama s Energy Matrix and goals Diversifying Energy Supply Difference between License and Concession Procedure for obtaining a Concession Procedure for obtaining a License Concessions and Licenses already granted and operating Concessions and Licenses granted but not operating Incentives for Renewable Sources Power Plants References 2

3 Structure of Panama s Electricity Sector Generation Companies Government Involvement (i.e. EGESA, 100% - state owned) AES Panama AES Changuinola Nomenclature: Hydro Hydro-Thermo BLM BLM Carbón EGESA ENEL Fortuna Alternegy Bontex Caldera Thermo GENA Coal Private Hidro Boquerón Hidro Candela Hidro Ibérica Hidro Panama Hydropower Ideal Panamá Gen. Pedregalito I&D Balboa Istmus Hidro Pwr Melo Mendre Melo PanAm Gen. Paso Ancho Pedregal Power Río Chico Saltos de Francoli Térm. del Caribe Auto Generator (State Owned 100%) Distributor (Government Involvement) ACP ESEPSA National Secretariat of Energy Power Transmission Company (Etesa) & National Dispatch Center (CND) Public Services National Authority (ASEP) Big Clients (>100kW) Distribution Companies (Government Involvement) ) ENSA Metro Oeste Chiriquí Ministry of the Presidency Electricity Market OER

4 SECRETARIA NACIONAL DE ENERGIA Primary & Secondary Energy Consumption By energy source Sugar Cane Products 17.10% Hydropower 36.29% Primary Wood 35.72% Cokes, 1.76% Fuel Oil, 1.17% Diesel Oil, 35.19% Coal, 0.11% Non Energetic, 2.36% Electricity, 18.59% LPG, 5.36% Secondary Source: SNE CEE 2011 Kerosene, 14.18% Gasoline/ Alcohol, 21.28% 4

5 SECRETARIA NACIONAL DE ENERGIA Energy Matrix Net Exchange Vegetable Waste Hydropower 25 GWh 459 kbep 4098 GWh 2539 kbep Replace 5571 kbep -64 GWh -40 kbep 2111 GWh 1308 kbep 823 kbep Residential Coal 452 GWh 1196 kbep 3736 GWh 5079 kbep Losses 1080 GWh 669 kbep Power Plants 7834 GWh 4869 kbep 3822 GWh 2368 kbep 322 kbep Commercial & Public Oil Products kbep Transportation kbep 660 GWh 409 kbep 4548 kbep Industrial Source: SNE Energetic Balance GWh 155 kbep 94 kbep Others 5

6 DIVERSIFYING ENERGY SUPPLY The National Energy Secretariat, whose one function is to foster a diversified energy supply, establishes the criteria and policies used by the Electric Transmission Company to prepare the Expansion Plan for the National Interconnected System This document comprises the Transmission System Expansion Plan, which is of mandatory compliance once approved by ASEP, and the Generation System Expansion Plan, which has indicative character. ASEP Approval Criteria & Policies SNE ETESA Expansion Plan for the National Interconnected System Transmission System Expansion Plan Generation System Expansion Plan 6

7 DIVERSIFYING ENERGY SUPPLY Giving the fact that the Generation System Expansion Plan is only indicative, the mechanism to promote the installation of new power plants and supply diversification is to call for international bid acts (for either a specific technology or all technologies) to award long, medium or short term PPA s. 7

8 DIVERSIFYING ENERGY SUPPLY In order to build and operate a power plant in Panama, either a license or a concession is needed. The information about granted and requested licenses/concessions is an input for the SNE for the establishment of criteria and policies. 8

9 License or Concession? Licenses Wind Thermal Photovoltaic Up to 40 years Concessions Hydro Geothermal Up to 50 years

10 LICENSES & CONCESSIONS When is a license needed? A license is mandatory for every natural or juridical person who builds and operates a power plant that is not hydro or geothermal. When is a concession needed? A concession is mandatory for every natural or juridical person who builds and operates either a hydro or geothermal power plant Who grants the licenses and concessions? They are granted by the ASEP. Nonetheless, the petitioner will need to deal with some other agencies to fulfill all requirements. These are: MICI, RP, ANAM, ETESA, distribution companies, municipalities. 10

11 CONCESSIONS Recent changes in regulation make concession to be granted through bid acts and legalized through contracts. Once ASEP receives a concession request, a bid act is organized. ASEP could also organize a bid act for a concession, even if there hasn t been any prior request. 11

12 CONCESSIONS To request a concession/participate in a bid act the petitioner shall submit the Form-150-A which includes: Petitioner information Public Registry, personal ID, Affidavit to indentify the stakeholders, prove to have financial capacity to provide for 30% Equity. Chronogram Activities to obtain the concession. Project Description Location, size, technology, LOI with Operation provider (2+ yr experience), LOI with the E&D provider (5+ yr experience), etc. Warranty deposit USD per MW or fraction 12

13 CONCESSIONS After being successful in the bid act, the concession contract will be sign when the awardee submits: Environmental Impact Assessment, approved by ANAM Approval of natural resource usage, ANAM 13

14 TIME REFERENCE (concessions) 6 months to 1 year 2 years Request Bid act and Evaluation Contract signature 14

15 Requirements to obtain a License What are we looking for? Identification of stakeholders and society Assurance of Project Implementation Technical Description of Project Operational Safety Environmental Impact Study

16 Requirements to obtain a License Be enabled by the MICI (Commerce Ministry) to exercise power generation activities. Application Form No. E-170-A Guarantee by means of a deposit: - $ per MW (any technology) - $ per MW (wind technology -this deposit will be returned when the permanent license is granted).

17 TIME REFERENCE (Licenses) 6 months to 1 year 1-4 years Request Provisional License Permanent License 17

18 Licenses Granted and Operating (thermo power) Source: Public Services Authority (ASEP),

19 Concessions Granted and Operating (hydro power) Source: Public Services Authority (ASEP),

20 Licenses Granted and not Operating (wind Power) Source: Public Services Authority (ASEP),

21 Concessions Granted and not Operating (hydro power) Source: Public Services Authority (ASEP),

22 Total of Licenses and Concessions Source: Public Services Authority (ASEP),

23 REFERENCES Law 6 of February 3, 1997 (unified text as of September 2011): by which the Regulatory and Institutional Framework for the Provision of Public Electricity Service is issued Executive Decree 22 of June 19, 1998: which establishes the regulation of Law-6 Law 43 of August 9, 2012: by which the Regulatory and Institutional Framework for the Provision of Public Electricity Service is reformed Law 45 of August 4, 2004: that establishes a regime of incentives for the promotion of hydroelectric generation systems and other new, renewable and clean resources, and other dispositions are dictated Executive Decree 45 of June 10, 2009: which establishes the regulation of Law

24 REFERENCES Electric Transmission Regulation Operation Regulation Regional Electrical Market Regulation Commercial Rules Purchase Rules 24

25 SECRETARIA NACIONAL DE ENERGIA Thank You! Website: Ing. Zaratí Cartin Secretaría Nacional de Energía Correo Electrónico: Tel: (+507)