Clean Energy Corridor for Central America

The Clean Energy Corridor Central America (CECCA) was initiated to promote accelerated development and cross-border trade of renewable power in Central America. The CECCA initiative aims at facilitating the integration of larger shares of renewables into the regional transmission network (SIEPAC). The initiative has been developed based on a regional stakeholder consultative process leading to better understanding of specific country needs and priorities and in line with the region’s strategic plan for the regional electricity market, national and regional energy policies and climate change strategies. The resulting CECCA Strategy document was endorsed by the Energy Ministers of the region in December 2015. During this biennium (2016-2017), the CECCA work focuses on the improvement of the enabling conditions both at technical and regulatory level for reliable integration of renewables. The regulatory enabling component focuses on the strengthening of the policy and regulatory framework, while the technical enabling component addresses key issues related to grid stability as well as standards and best practices to improve management at the control rooms both at national and regional levels.

CECCA-Pilot Projects:

Technical Component: Ensuring reliable integration of renewables in the national and regional grid systems possess new challenges to overcome compared with traditional energy generation systems. Variable renewable energy (VRE) characteristics like solar and wind are spread in different locations causing not only variability for the different environments they are located but also the uncertainty in its forecast, different weather conditions, voltage control issues due to wind-solar variability, and the increasing curtailment resulting from the high penetrations. The project will be implemented in the context of the regional system operator and partners (EOR, MER, among others) and Panama as a national pilot country in close cooperation with stakeholders (ETESA, TSO, among others).

Regulatory Component: Strengthening Enabling Frameworks in support of the Clean Energy Corridor Central America (CECCA) – Policy and Regulatory Component. The project will evaluate the conditions for renewable power purchase under PPAs in Panama and explore alternatives to improve them by accommodating the peculiarities of renewable energy technologies.

It is common that PPAs incorporate details on who pays for network infrastructure costs; system balancing costs; forecast errors; permits and other factors. It is also common that price development risks are covered by some form of price indexation.

Resource assessment: The mapping efforts provide a pre-feasibility assessment of solar and wind opportunities in Central America, for both grid connected and off-grid systems. The mapping shows the high resource potential areas suitable for solar PV and Wind power development. Maps are available here Investment Opportunities in Latin America (Global Atlas)