El Salvador seeks 40MW wind bids

EL SALVADOR: El Salvador has put a call out for bids for the installation of 40MW of wind capacity.

There are currently has no major wind installations in El Salvador, although Iberinsa's 42MW Metapan project has been given the go ahead.

The country's National Energy Council will accept bids from November and will announce the successful applicants in May 2014. Under the contracts, the projects must be online by 1 October 2016.

Winning bidders will be granted a 20-year power purchase agreement with local electricity distributors. The minimum size of proposed wind projects must be 5MW, with a maximum of 40MW.

El Salvador's government is looking to diversify its energy production and has reiterated its commitment to renewable energy as a policy target every year since 2005.

Its single largest electricity source is gas-fired power stations, which make up 48% of the total. Since El Salvador has no natural gas of its own, it is therefore exposed to the vagaries of international markets.

As part of the same auction, 60MW of solar capacity is up for grabs.