Endesa to Take Over Presidency of Siepac

Spanish electric utility Endesa has announced that it will take over the presidency of EPR, which owns Siepac, the electricity interconnection between the six Central American countries, in 2008. The 1,800km line is expected to increase transmission capacity between each country in the region to a maximum of 600MW.

The company will also take over the presidency of Redca, a subsidiary of Empresa Propietaria de la Red (EPR) set up in 2007 to operate Siepac’s fiber optic networks. Endesa has held a 12.5% stake in Siepac since 2001.

The construction of this line, which will entail an investment of $370 million, is expected to allow the rollout of a region-wide wholesale market, the regional electricity market, which will help improve the quality, cost and reliability of the electricity service. The network is also expected to foment new electricity generation projects in the region. The project is expected to be completed in 2009.