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PUC Gets Through First Phase of Evaluating Power Bids
Mon, October 20, 2014
In October of last year, the Public Utilities Commission put out what's called a request for power for 60 megawatts of firm energy, and 15 megawatts of intermittent energy. Today 54 weeks later, they released the findings of the first phase of evaluation of 22 bids for 37 projects - including solar, wind and hydro power.

Today at a press conference, PUC Chairman John Avery explained that the process to arrive at a power purchase agreement still has a ways to go:...

John Avery, Chairman - PUC
"One of the reasons for this RFP, this process is to have an open transparent and fair process and so releasing this report today its one; to assure people that the RFP is still ongoing and particularly the bidders because since we are a few weeks late with the expected final report. We are looking not only to have enough capacity in country, but we are also looking to minimize our costs to consumers. So there are no guarantees coming out of this thing. This is a request for proposals, we've received proposals. In our estimation it has been a successful RFP. We received enough bids to satisfy what we are looking for. A lot of the bids are credible bids from credible people and the others that weren't we've disqualified. So now basically the rest will rely on our long term strategy in satisfying our needs. Basically after we've done with this BEL will then initiate the negotiation phase with each one of them, to start negotiations with them. We are looking for the projects that best fit our system and that overall will result in the lowest cost to consumers."

No timeline has been given for the final report. But on this first phase, the top ranking bid for firm power came from Southern Renewable Energy Limited - which proposes a fourth hydro power facility for Macal River between the Chalillo dam and the Mollejon Diversionary structure. The second highest ranking proposal comes from GSR Energy which proposes a bio-mass project which includes a cane field and ethanol factory.

Southern Renewable Energy also has the third and fourth highest ranking bids for two more hydro projects - but these ones on the Swasey River.

And coming in at number five is a bagasse project from SS Energy Limited. SS is a subsidiary of a company called Santander, the owner of Green Tropics - which is of Guatemalan origin. Now that has raised some eyebrows - and a cautionary note form the opposition. Today Chairman Avery discussed the project quite candidly:..

John Avery, Chairman - PUC
"However, this is a project that will be base in Belize. The company, the Santander Group have registered 4 different companies in Belize; SS Energy, being of them; you have Green Tropics; you have SS Farms and SS Sugar. These people as best we understand it have already started to implement a fairly huge sugar production facility within this country. They intend to build a production facility for their own purpose. They estimate base on their forecast that they will have additional bagasse to them generate further electricity to sell to BEL. The entire operation will be based in Belize. In their bid, they do admit that the 4 major shareholders for the parent group are 4 business persons in Guatemala. If they are awarded a PPA and that project is built, by setting up here they have agreed to be subjected to our laws and under our laws, before we get to the law, the RFP, we indicated in the RFP that any PPA will include step in rights for BEL. In other words if that project is built and the person who owns the project is not operating the project according to the agreement and that sort of thing - BEL will have the rights under certain circumstances to step in and actually take over operation of the company."

Again, this is just the first phase; the bids will be ranked in the next phase and then go to a simulation exercise. After that the companies can negotiation a power purchase agreement with BEL - which the PUC would still have to approve.

Notable is that the bids for intermittent power include Solar power in Orange Walk, san Ignacio and Dangriga, wind power from Mexico and Solar power from Blair Athol Power Company.

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