IRENA developed the Clean Energy Corridor for Central America (CECCA) in 2015 to promote the accelerated deployment and cross-border trade of renewable power in Central America, in the context of the regional electricity market and the regional transmission network (SIEPAC). Within the implementation of the CECCA initiative, IRENA identified a regulatory component focus for CECCA: assessing power purchase agreements (PPAs) for solar and wind energy.
Aiming to expand IRENA’s support on assessing PPAs to other Central American countries, the Agency has identified the concept of firm capacity as a key component affecting the remuneration system for variable renewable energy (VRE) in the region. The firm capacity concept is used in energy markets throughout Central America with the purpose of assessing the reliability of the power supply, with a direct effect on the cost structure for the power generator as well as for the final price and payment received for the energy provided.
Identifying this issue as an important barrier for an accelerated deployment of VRE, IRENA hosted this consultation workshop to gain insights on this topic from stakeholders throughout the region. The outcomes of this workshop were enhanced by a follow-up questionnaire that contributed to the development of a guidebook and an ensuing capacity building programme that focused on providing guidelines for the definition of firm capacity for VRE, analysing its impacts in contracts for power RE projects via Power Purchase Agreements (PPAs) in Central America.
Closed event by invitation only.