PRESENTATION Mercados Eléctricos de Centroamérica, S.A. de C.V. (MERELEC)

Transcription

1 PRESENTATION Mercados Eléctricos de Centroamérica, S.A. de C.V. (MERELEC)

2 What is MERELEC? Trading Cia. Founded in SAL in 2001 Subsidiary Trading Cia. Founded in 2011 Subsidiary Trading Cia. Founded in II Sem 2016 Subsidiary Trading Cia. Expected To be Founded: 2017 Our business consist in looking out opportunities for trading energy within the region conformed from Guatemala to Panamá, within a legal Framework called Mercado Eléctrico Regional (MER) based on a Treaty signed by all six countries. Mexican Market (formed in 2016), functions outside MER Legal Framework. However trading between Mexico and Central America thru Guatemala is possible due to physical interconnection.

3 What do we do? Export Import In the case of Guatemala, El Salvador, and México, Trading is possible within the Country due to a Market based National legal frameworks In the Near Future Panamá and Honduras will join. Internacional Trading Local Trading However, all six C.A. countries and México allow country level trading through Import and Export

4 Why is that important? E/Country in search of energy autonomy and promoting Renewable Energy Sources (RES) through their own energy policies. Energy Matrix of the C.A. Countries characterized by different mixes of technologies compared with each other (Renewable, Non Renewable) and different weights for each type of technology within each matrix. Each country and their respective energy prices being affected by different variables: i.e. International Price of Fuel, Coal, LNG; Weather: (Niño/Niña), Winds, Solar Radiation; idiosyncrasy( Use of A/C, importance of Energy Efficiency) This generate variable prices (margins $$$) between the countries and opportunities to trade

5 Meet the team Foto Foto Gustavo Napoleon Chávez (63 Yrs.) President Board of Directors Electrical engineer (MBA) 30+ years of experience in SAL Electric Sector Gustavo Enrique Chávez (37 Yrs.) General Manager Economist (MBA) 10+ year of experience in Central American Energy Trading Foto Foto Foto Carlos Mauricio Juarez (30 Yrs.) Market Intelligence Manager Electrical engineer (MBA) 5+ year of experience in Central American Energy Trading Carlos Guillermo Chávez (30 Yrs.) Investment Finance Manager Economist (MBA) 5+ years of experience in international equity and bonds investment and Risk Management Oscar Salvador Girón Operations Manager (28 Yrs.) Electrical engineer (Renewable Energy Master) 3+ year of experience in Central American Energy Trading

6 Some of our Suppliers /Buyers through the years

7 What have we achieved so far? 180,00 GWh's Traded (1 GWh = 1,000 MWh*) 160,00 145,24 157,81 140,00 120,57 111,25 120,00 95,61 100,00 82,22 80,25 80,00 59,70 60,00 40,00 20,00 0,00 MWH s Traded Outsourced trade Exportation Importation Triangulation ,00 239, , ,00 145, , , , ,00 0,00 *Average hourly total national demand ESA = 700 MWh Sales Last 3 years Year Import ESA (National Sales) Export ESA (International Sales) Triangulation (International Sales) Total sales MWh s Traded Sale Price $/MWh 2014 $7,793,377 $8,221,716 $9,524,225 $25,539, ,238 $ $13,736,822 $674,627 $79,848 $14,491, ,807 $ $10,227,367 $1,348,672 $2,424,992 $14,001, ,832 $74.15

8 Where does Germany fit into this - Energiewende Germany Promise to switch from nuclear to renewable was one reason for the Green Party to be elected as part of the Government: 20 years later the nuclear power should phase out Renewable Energy Sources (RES) receives support for 20 year = a lot of RES Parallel the German Energy Market was liberalized, starting in the 90 s like C.A. (and now 15 years later México) In Germany, connected electricity markets results in lower prices; Maximization of efficiency Security of Supply Some Principles of German Market relevant to RES Cross Border Market Integration Forecast of RES Production and integration into Markets and Cross Border Trading RES requires markets that are as large as possible, compensation of weather differences and use of payment for exceeding Electricity production All these Sounds Familiar. For Central America, the German Electricity market is an example to learn from. It faces today, Central America s future challenges

9 And the best part is. It also has Traders So, Why don t we bring a German Trader s Knowhow, Systems, Risk Management Models, to El Salvador, for it to develop and benefit from Trading in Central America and México with Zero Risk for it? The business structure is already in place and running (MERELEC GROUP) The Proposition for the German Trader is to Tropicalize his capabilities (Sunk Cost) for Plug and Play them in Group MERELEC Business Structure in return of Equity

10 What could be achieved and why it could be successful? Export Import Promotion of Renewable Energy Sources Best National Energy Surplus allocation Create Larger Market for National RES Allocate More Cost Efficient Energy where is needed Obtain Regional Integration benefits MWH s traded in C.A Through Regional (C.A.) efficiencies In Current Level Prices, the Annual trading market in C.A. equals an $100MM Market (Mex could be 5 times as big)

11 Vielen Dank!! Lic. Gustavo Enrique Chávez Gerente General PBX.: +(503) (502) (52) (55) Fax: +(503)