SIEPAC is owned by the "Network Owner Company" (EPR), a company created in 1999 with registration in Panama, and which includes public services and transmission companies from the six participating countries (75%) and private capital (25%).

The shareholders of the EPR are divided into regional and extra-regional, with the understanding that the regional ones are those countries in Central America, while the extra-regional ones are Spain (2001), Colombia (2005) and Mexico (2008):.

The regional regulation is made up of:

This regulation must work harmoniously with the six laws of the MER member countries, which implies great challenges for its implementation.

The Framework Treaty and its protocols.

The regulatory architecture of the MER is defined in a series of legal and administrative instruments that include the Central American Electricity Market Framework Treaty, signed in December 1996; the First and Second Protocols to the Framework Treaty, made official in June 1997 and April 2007 respectively; the Regional Electricity Market Regulation (RMER) and the Regulatory Resolutions of the Regional Electrical Interconnection Commission (CRIE). These instruments define the principles, rules, procedures and mechanisms for the operation of the MER in a dynamic manner.

The Framework Treaty, the cornerstone of the MER and the SIEPAC, is aimed at the formation and gradual growth of a competitive Regional Electricity Market, based on reciprocal and non-discriminatory treatment, which contributes to the sustainable development of the region within a framework of respect and protection of the environment.

The Treaty establishes the regional legal framework necessary to open national markets to regional exchange, both in access to electrical transmission and in the opportunities to buy and sell electricity between participants from different countries.

The Framework Treaty, understanding the inherent difficulty of establishing a regional market in six countries, establishes as a basic principle the Graduality of implementation in the region.

CRIE issued the first Regional Electricity Market Regulation (RMER) in December 2005, and the RMER began its validity in 2013, therefore by 2020 there have been 7 years of full operation of the MER.

Limitations have been found such as restrictions on the physical transmission infrastructure, as well as regulatory aspects.

The organizations meet periodically (Tripartite Commission) in a permanent effort to address these challenges to resolve them in the near future.

Regional Electricity Market (MER).

In May 2000, the General design of the MER was approved, establishing it as a seventh market, overlapping with the six existing national markets or systems, with regional regulation and in which agents can carry out international electricity transactions.

The interconnection of Central American countries began with bilateral transmission interconnections between neighboring countries. Previously, energy transfers were carried out only in blocks of between 5 MW and 50 MW under specific provisions

Bilateral connections evolved into a regional transmission line linking six Central American countries, which is known as the SIEPAC line.

In view of the strong support of the Central American countries for the regional project, the Central American Electricity Market Framework Treaty was signed in 1996, which gave rise to the creation of the MER that depends on the SIEPAC infrastructure owned by the EPR.

The MER functions as a permanent activity of commercial electricity transactions, freely agreed between qualified agents, regardless of their geographical location.

Currently, Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica and Panama are part of the MER under a treaty signed by the six governments in 1996, and put into force in 1999, the Central American Electricity Market Framework Treaty which established the Regional Infrastructure Entity (EPR), which owns the SIEPAC Line. Likewise, it led to the creation of a regional regulator, the General Electrical Interconnection Commission (CRIE) and a regional market operator, the Regional Operator Entity (EOR).

• In order to achieve its purpose, the MER pursues the following objectives:

• Increase efficiency in regional energy supply

• Make larger scale generation projects viable for aggregate demand

• Increase the competition and security of the electrical energy supply

• Enable the development of the regional transmission network

• Promote and increase regional exchanges of electrical energy

• Standardize quality and operational safety criteria.

The Regional Regulation has configured the MER as a wholesale market based on the following premises:

• In the Market, commercial electricity transactions are carried out through opportunity exchanges resulting from the regional economic dispatch and through contracts between market agents.

• Market agents, with the exception of transmitters, can buy and sell electrical energy freely, without discrimination of any kind, guaranteeing the free transit of electrical energy through the networks in the member countries.

• Market agents can install their generation plants in any of the MER member countries for regional marketing of the energy produced.

• Market agents have free access to regional and national transmission networks, regional transmission being defined as the transport of energy through the high voltage networks that make up the Regional Transmission Network (RTR).

• The MER is a market with its own rules, independent of the national markets of the member countries, whose transactions are carried out through the RTR infrastructure that includes national networks.

The financing has been the following Inter-American Development Bank US$ 253.5 million, CABEI US$ 109.0 million, CAF US$ 15.0 million, BANCOMEXT US$ 44.5 million, DAVIVIENDA US$ 11.0 million, Others US$ 13.5 million and Shareholders US$ 58.5 million for a total of US$ 505.0 million.

More than 90% of the rights of way for the line had been acquired in May 2007.

It has been argued that the project will not make electricity cheaper for consumers in Central America and that it may increase tariffs. Some critics also argue that SIEPAC will facilitate electricity exports to Mexico and will not contribute to expanding access in Central America.

It is also argued that much of the increased generation capacity facilitated by SIEPAC would be in the form of large hydroelectric plants with associated social and environmental costs. Additionally, there are fears that the dominance of the energy sector in Central America by large foreign corporations would increase. Lastly, there are some environmental concerns related to the transmission line itself. The initial Environmental Impact Assessment funded by the IDB analyzed only the direct impacts of the transmission line and not its indirect effects of induced power generation.

Increase in regional electricity trade and incentive for renewable generation. Total or partial reduction of electrical energy rationing derived from generation deficit conditions as a consequence of adverse weather situations and/or failures

Obtaining energy at a lower cost for member countries. Carrying out coordinated planning among the six countries for the expansion of regional generation and transmission. Strengthening the Regional Electrical Network with new transmission investments, which has allowed us to improve the level of quality and security in the energy supply.

It has been claimed that the cost of energy for consumers could drop by up to 20% from US$0.11 per kWh to US$0.09 per kWh, as a result of the project. A feasibility study conducted in 1995 by Power Technologies Inc. outlined various scenarios for the expansion of energy demand and supply in the region and associated investments. The medium scenario envisaged that SIEPAC would induce annual investments of US$700 million over a 10-year period once the regional electricity market had become operational.

SIEPAC is owned by the "Network Owner Company" (EPR), a company created in 1999 with registration in Panama, and which includes public services and transmission companies from the six participating countries (75%) and private capital (25%).

The shareholders of the EPR are divided into regional and extra-regional, with the understanding that the regional ones are those countries in Central America, while the extra-regional ones are Spain (2001), Colombia (2005) and Mexico (2008):.

The regional regulation is made up of:

This regulation must work harmoniously with the six laws of the MER member countries, which implies great challenges for its implementation.

The Framework Treaty and its protocols.

The regulatory architecture of the MER is defined in a series of legal and administrative instruments that include the Central American Electricity Market Framework Treaty, signed in December 1996; the First and Second Protocols to the Framework Treaty, made official in June 1997 and April 2007 respectively; the Regional Electricity Market Regulation (RMER) and the Regulatory Resolutions of the Regional Electrical Interconnection Commission (CRIE). These instruments define the principles, rules, procedures and mechanisms for the operation of the MER in a dynamic manner.

The Framework Treaty, the cornerstone of the MER and the SIEPAC, is aimed at the formation and gradual growth of a competitive Regional Electricity Market, based on reciprocal and non-discriminatory treatment, which contributes to the sustainable development of the region within a framework of respect and protection of the environment.

The Treaty establishes the regional legal framework necessary to open national markets to regional exchange, both in access to electrical transmission and in the opportunities to buy and sell electricity between participants from different countries.

The Framework Treaty, understanding the inherent difficulty of establishing a regional market in six countries, establishes as a basic principle the Graduality of implementation in the region.

CRIE issued the first Regional Electricity Market Regulation (RMER) in December 2005, and the RMER began its validity in 2013, therefore by 2020 there have been 7 years of full operation of the MER.

Limitations have been found such as restrictions on the physical transmission infrastructure, as well as regulatory aspects.

The organizations meet periodically (Tripartite Commission) in a permanent effort to address these challenges to resolve them in the near future.

Regional Electricity Market (MER).

In May 2000, the General design of the MER was approved, establishing it as a seventh market, overlapping with the six existing national markets or systems, with regional regulation and in which agents can carry out international electricity transactions.

The interconnection of Central American countries began with bilateral transmission interconnections between neighboring countries. Previously, energy transfers were carried out only in blocks of between 5 MW and 50 MW under specific provisions

Bilateral connections evolved into a regional transmission line linking six Central American countries, which is known as the SIEPAC line.

In view of the strong support of the Central American countries for the regional project, the Central American Electricity Market Framework Treaty was signed in 1996, which gave rise to the creation of the MER that depends on the SIEPAC infrastructure owned by the EPR.

The MER functions as a permanent activity of commercial electricity transactions, freely agreed between qualified agents, regardless of their geographical location.

Currently, Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica and Panama are part of the MER under a treaty signed by the six governments in 1996, and put into force in 1999, the Central American Electricity Market Framework Treaty which established the Regional Infrastructure Entity (EPR), which owns the SIEPAC Line. Likewise, it led to the creation of a regional regulator, the General Electrical Interconnection Commission (CRIE) and a regional market operator, the Regional Operator Entity (EOR).

• In order to achieve its purpose, the MER pursues the following objectives:

• Increase efficiency in regional energy supply

• Make larger scale generation projects viable for aggregate demand

• Increase the competition and security of the electrical energy supply

• Enable the development of the regional transmission network

• Promote and increase regional exchanges of electrical energy

• Standardize quality and operational safety criteria.

The Regional Regulation has configured the MER as a wholesale market based on the following premises:

• In the Market, commercial electricity transactions are carried out through opportunity exchanges resulting from the regional economic dispatch and through contracts between market agents.

• Market agents, with the exception of transmitters, can buy and sell electrical energy freely, without discrimination of any kind, guaranteeing the free transit of electrical energy through the networks in the member countries.

• Market agents can install their generation plants in any of the MER member countries for regional marketing of the energy produced.

• Market agents have free access to regional and national transmission networks, regional transmission being defined as the transport of energy through the high voltage networks that make up the Regional Transmission Network (RTR).

• The MER is a market with its own rules, independent of the national markets of the member countries, whose transactions are carried out through the RTR infrastructure that includes national networks.

The financing has been the following Inter-American Development Bank US$ 253.5 million, CABEI US$ 109.0 million, CAF US$ 15.0 million, BANCOMEXT US$ 44.5 million, DAVIVIENDA US$ 11.0 million, Others US$ 13.5 million and Shareholders US$ 58.5 million for a total of US$ 505.0 million.

More than 90% of the rights of way for the line had been acquired in May 2007.

It has been argued that the project will not make electricity cheaper for consumers in Central America and that it may increase tariffs. Some critics also argue that SIEPAC will facilitate electricity exports to Mexico and will not contribute to expanding access in Central America.

It is also argued that much of the increased generation capacity facilitated by SIEPAC would be in the form of large hydroelectric plants with associated social and environmental costs. Additionally, there are fears that the dominance of the energy sector in Central America by large foreign corporations would increase. Lastly, there are some environmental concerns related to the transmission line itself. The initial Environmental Impact Assessment funded by the IDB analyzed only the direct impacts of the transmission line and not its indirect effects of induced power generation.