June 26 (Bloomberg) -- Three renewable-energy developers were awarded contracts to sell 94 megawatts of capacity from solar farms they’re planning to build in El Salvador.
UDP Neoen-Almaval agreed to sell 60 megawatts of capacity for $101.90 a megawatt-hour, Georgina de Flores, director of El Salvador’s National Energy Board, said in an interview yesterday.
UDP Proyecto La Trinidad will sell 14 megawatts for $123.41 a megawatt-hour and Solar Reserve Development Co. will sell 20 megawatts at the same price. The 20-year contracts are expected to be finalized July 25 and the projects will begin supplying power in 2016.
The maximum acceptable price for solar power in the auction was set at $165.53 a megawatt hour. The auction involved 26 companies from El Salvador, Spain, France and Mexico.
Two companies submitted proposals to supply wind power and both exceeded the maximum level for wind of $123.41.
El Salvador’s government is seeking to spur new investments in power generation. The contracts offered in the auction are worth a total of about $300 million. In a similar event in November, developers agreed to sell 355 megawatts of capacity in deals worth $800 million to $1 billion, according to a statement from the Energy Board.
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