PERÚ - Observatory for Renewable Energy in Latin America and

Perú- Products I and II
In each tender, the OSINERGMIN fixes a top price of awarding, which is not
known by the bidders after opening the envelopes. The power sales price is the
one offered by each bidder and awarded, and the power price corresponds to the
basic price of power (fixed by OSINERGMIN) valid till the day of the tender’s
announcement, both prices have a strong character, so they will keep on during
the term of validity established in each tender for the contracts of supply.
In the case of hydroelectric power station’s tenders, the law in mention establishes
a discount factor (currently 15 %) to the economic offers for their evaluation,
considering that those projects imply higher investmen costs in respect of thermal
ones. Discount factors are applicable only for effects of the evaluation of supply
in the tender process, because every awardee will always receive the price that
had offered in the tender. Over this frame it has been executing the hydroelectric
project “Quitaracsa” of 112 MW, which will get into commercial transaction on
April of 2014.
Additionally, the MEM could order PRO-INVESTMENT to convoke and conduct
tenders of electricity supply for a special technology, like hydroelectric power
stations, with the same characteristics that establishes the framework of the Law
Nº 28832. Thanks to the application of this mechanism the following
hydroelectric projects are under execution:
• H. P. S. “Santa Teresa” of 90 MW (October, 2013).
• H. P. S. “Cheves” of 168 MW (April, 2014).
• H. P. S. “Pucará” of 150 MW, H. P. S. “Chaglla” of 360 MW and H. P.
S. “Cerro del Águila” of 402 MW (January, 2016).
In accordance with the valid general legal framework, every generator can
commercialize its production under four (04) modes:
a) Contracts with distributors, through electricity supply tenders that are
convoked according to their power needs for the supply of their
regulated/free market, where the price has a fixed character and it is equal to
the price that offers each generator.
b) Contracts with distributors according to their requierements to supply the its
regulated market, where the price corresponds to the bus-bar tariff that the
OSINERGMIN fixes.
c) Contract with free users with a negotiated price.
d) Transferences on the short term market managed by the COES, where is
considerate the spot price or marginal cost.
It is expected that in very short term the total regulated market demand would be
supplied trough electricity supplying tenders. This is the best mode to viable the
investments in generation projects, because the long-term supply contracts (up to
20 years) have a fixed price for the energy supplied according to the needs of the
distributor and to the energy offered to cover up that needs.
42