The wholesale energy distribution companies of El Salvador ("Distribution Companies"), under the supervision of the Superintendence for Electricity and Telecommunications (SIGET), has announced the beginning of the process of an International Public Call for Bidding for the supply of 150 MW generated from non-conventional renewable energy sources, for the next twenty years. From the total of 150 MW, 50 MW must be generated from wind power, and 100 MW must be generated from solar (Photovoltaic) power.
Currently, the Distribution Companies have published the preliminary version of the bidding rules, in order to enable the stage of submission of comments and suggestions, which may be filed by any interested party no later than March, 8 of this year. According to the information contained within the preliminary version of the bidding rules the sale of these and the registration for bidders shall be in the period between May 5 and July 15, 2016. The initial cost of the bidding rules will be U.S. $ 8,000.00.
Bidders may participate in the bidding process either individually, or by forming a joint venture. The bidders may develop their generation project offers with a capacity from 5MW to 40 MW in the case of solar (Photovoltaic) plants andfrom 5MW to 50 MW in the case of wind power generator plants. Activities related to power generation within the bidding rules will be able to obtain the tax incentives established in Salvadoran law.
Companies that meet the following requirements may participate in the bidding process:
- Submit legal documentation required by the bidding rules in a timely manner.
- Have direct or indirect access to at least five hundred thousand dollars (U.S. $ 500,000.00) for each MW of power to be installed, which may also be obtained via partners, strategic shareholders, controlling partner or shareholder, related companies, subsidiaries or affiliates.
- Demonstrate the necessary experience in the development and operation of power generation projects.
All qualifying bidders will be considered in the selection process. The Offer Evaluation Committee, formed by representatives of the Distribution Companies, will analyze all qualifying offers to choose the combination which generates the lowest cost for the supply of all the energy required. This selection will be based on the formulas detailed within the bidding rules.
The bid is expected to be awarded in December 2016, and the projects should begin to operate by January 1, 2019 for solar (Photovoltaic) plants, and January 1, 2020 for wind plants.