The Ministry of Mines and Energy (MinEnergia) and the National Energy Secretariat of Panama signed an agreement to regulate electrical interconnection.
The agreement aims to define the principles, basic criteria and general guidelines for regulatory harmonization of the development and operation of the electrical interconnection between the two countries, La Republica reported.
MinEnergia Diego Mesa said that this agreement is a fundamental step in the process of making electrical interconnection viable.
“It will allow us to optimize use of energy resources and surplus generation, improve the quality of electric power services, strengthen systems reliability and guarantee reciprocal assistance in case of emergency,” Mesa highlighted.
Jorge Rivera Staff, Panama’s Secretary of Energy said that this is another milestone to promote projects that guarantee energy security for the region.
“This through a diversified, safe, reliable and environmentally responsible supply, where integration acquires a new social scope,” Rivera said.
Colombia’s Energy and Gas Regulatory Commission (CREG) and Panama’s Public Services Authority (ASEP) will develop the regulatory harmonization scheme, including the necessary mechanisms for the development and remuneration of the infrastructure contemplated in the project and the conditions for the energy exchange.
Both entities will define the rules for the commercial and technical operation of the Colombia-Panama Electrical Interconnection, which contemplates the construction of a transmission line from the Panama II substation (Province of Panama) to the Cerromatoso substation (Department of Cordoba).
This line will have a transmission capacity of 400MW and an approximate length of 500km, which includes two land sections of 220km and 150km and a submarine section of 130km.
Bottom-Line: The electricity interconnection represents great opportunities for both countries.
However, there is still a long way to go, such as defining regulations, agreements and developing the transmission line project, which will be the most relevant issue.