Cerro Azul Power Plant, Panama
International Development: 2 GE LM600 92 MW
The Republic of Panama has been experiencing an increasing amount of rolling brownouts over the past few years. This is largely due to the previous government’s inactions in expanding and repairing the existing transmission infrastructure. As of July 2014, under the leadership of Panama’s new, Juan Carlos Varela, the government is committed to solving this energy crisis. While it will take at least two years to improve the transmission infrastructure, the Republic of Panama has issued an emergency bid to add 200MW into the grid at three locations.
On September 5, 2014, the Republic of Panama issued an emergency request for proposals for 200 MW of thermally-generated power through the state-owned transmission company, Empresa de Transmision Electrica, S.A. Bids were accepted through September 29, 2014, and on October 31, 2014, International Electric Power, LLC (“IEP”) was officially notified that its wholly-owned subsidiary Erryl Capital, Inc., a Panamanian corporation, had been awarded a series of Power Purchase Agreements (“PPAs”) for the supply of 60 MW of electric power to the Panamanian electricity distribution companies. On December 10, 2014, ETESA increased Erryl’s supply contracts to 80 MW. IEP planned to construct a simple-cycle facility fired with #2 diesel fuel oil employing two GE LM6000 PC Sprint aero-derivative turbine generators nominally producing 92 MW of energy.
The Project was situated on the existing Cerro Azul site, currently leased by Del Mar Asset Management with whom IEP had negotiated a stock purchase agreement. The site is located between Tocumen and Pacora, approximately 3 km north of Highway 1, off of Avenue Jose Augustin Arango. The project was subsequently acquired by Applied Energy Services (AES) in 2015.