Through Resolution 104 of 2018 (the “Resolution”), the CREG has set forth the date and schedule in which the Administrator of the Energy Wholesale market (“ASIC” by its acronym in Spanish) will carry out the auction for the allocation of OEF’s for the Reliability Charge, for the period between December 1, 2022 to November 30, 2023 (the “Auction”). 

The Auction is opened to: a) owners of in-operation power plants or generation units, or its representatives; b) in-operation power plants but with on- going works or generation units; c) new and special power plants or generation units as they are defined in CREG’s Resolution 071 of 2006 (Article 2). 

Power plants and generation units featured as in operation but with on-going works and, power plants and generation units featured as special, that were awarded with OEF’s for the same period (2022-2023), are allowed to participate only with the non-committed Firm Energy Capacity for the Reliability Charge (“ENFICC” for its acronym in Spanish).

In order to establish the target demand that shall be filled through the Auction the CREG will consider the forecasted demand scenario issued in April 2018 by the Mining and Energy Planning Unit (“UPME” by its acronym in Spanish). Nonetheless, if the UPME issues a new forecasted demand, the CREG might fit the target demand.

The entry cost (“Costo del Entrante” or “CE” by its acronym in Spanish) its worth to 15.4 US$/MWh.

For the purposes of the allocation of OEF’s, the ASIC shall discount the previous allocated OEF’s for the period 2022-2023 and also the ENFICC that are not centrally dispatched by the National Center of Dispatch (“CND” by its acronym in Spanish).

The in-operation power plants but with on- going works or generation units, and the new and special power plants or generation units awarded with OEF’s, might apply for any of the following incentives subject to the ASIC’s verification:

(i) Anticipated date for the OEF validity: This means, the possibility to receive in advance the correlative remuneration in accordance to the OEF allocated to such power plant or generation unit. The incentive only applies to such plants or generation units that begin with their operation (“FPO” for its acronym in Spanish) between the 1st of December 2021 and the 30th of November 2022. The incentive does not mean the modification of the expiration date of the OEF.

(ii) Additional remuneration: This means, the possibility to receive an additional remuneration to the correlative remuneration in accordance to the OEF allocated to such power plant or generation unit (2 USD dollars per MW/h plus the Auction’s closing price). The in-operation power plants but with on- going works or generation units, and the new and special power plants or generation units are also allowed to anticipate the beginning of the OFP. The incentive applies to those power plants and generation units with and FPO dated before the 1st of December of 2021.

The main activities scheduled for the Auction are established in the Annex enclosed to the Resolution and it states in general terms as follows:

• Delivery of the Statements of interest to the CREG to participate in the Action: Until September 28th, 2018.
• Delivery of the Statements of technical parameters to the CREG (as described in Section 5.2. of Annex 5 of CREG’s Resolution 071 of 2006): Until December 14th of 2018. Other documents are required: (i) Certifications of the UPME are required in regards with the inscription within the UPME’s projects database and with the grid’s connection study (ii) Construction schedule; (iii) project’s planning (Curve “S”).
• Publication by the CREG of the documentation of the possible projects that might participate in the Auction: Until December 23rd, 2018.
• Delivery of ENFICC Statement and the guaranties required to participate in the Auction to the CREG: Until January 8th, 2019.
• Issuance by the ASIC the document regarding the enabled participants for the Auction: Until January 22 of 2019.
• Delivery of the offers and performance of the Auction: January 24th, 2019
• Auction Results: January 25th, 2019