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electrification with the understanding that the private sector would not be interested in the business without a subsidy. Companies engaged in the generation of electricity must coordinate their operations for the country’s Central Interconnected Power System (SIN) and the NorthernInterconnected Power System (SING) with the Economic Load Dispatch Center (CDEC). The CDEC as an independent operator, plans and coordinates the operation of the plants to ensure secure and economic efficiency in the electricity sector irrespective of ownership. Demand is met by dispatching the available plants according to their variable production costs, fromlowesttohighest,and is thus always done at the minimum attainable cost. Generation companies sell to three markets: the spot market, the unregulated market, and the regulated market. Draft “Law for the Development of Geothermal Resources” Sent to National Congress (1991) A draft “Law for the Development of Geothermal Resources “ was sent to the National Congress for consideration in 1991 and is presently nearing passage. Approval, and the process needed to develop the regulations neededtotransformtheLawintooperation, shouldtake less than a year. The Draft Geothermal Law attempts to regulate the exploitation of geothermal energy and the terms of concessions and licenses, to establish the procedures necessary for the development of the resource, to lay out the conditions for the environmental development of the resource, and finally to establish how the proprietor or owner of a geothermal concession is related as much to the State as to the private sector. The Draft Geothermal Law defines geothermal energy as “a bodyless property, unappropriable in ownership, but useable and enjoyable in the way assigned by authority.” It notes that a franchise implies property rights and that it can be establishedoverotherfranchisesorrights. Itisgranted through a Supreme Resolution of the Mining Ministry with a previous application or public bid and a report by the CNE. Geothermal Resources in Latin America & the Caribbean 143PDF Image | Geothermal Resources in the Caribbean and Latin America
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