Through the Korea-CABEI Partnership Single Donor Trust Fund (KTF), CABEI will carry out the studies to determine the market potential for the integration of Battery Energy Storage Systems (BESS) in Central America
CABEI will support the Central American region through a non-reimbursable Technical Cooperation for $ 350,000 destined to carry out the studies to determine the market potential for the integration of Battery Energy Storage Systems (BESS) in Central America as well as to determine the required conditions that will allow the establishment of such market.
Tegucigalpa, Honduras, january 12, 2020-The Central American Bank for Economic Integration (CABEI), announced today that it will be executing a non-reimbursable Technical Cooperation for $350,000 which was recently approved by the Republic of Korea within the framework of the Korea-CABEI Partnership Single Donor Trust Fund which aims to identify and create an enabling environment (technical, economic and financial) that can enhance power system flexibility and enable high levels of Variable Renewable Energy (VRE) through Battery Energy Storage Systems (BESS) applied to the electric systems in the region.
Through the Technical Cooperation that will be executed by CABEI, an assessment will be conducted for the potential market demand for the use of Grid-Scale BESS collocated with VRE generators and stand-alone in the transmission/distribution network, as applicable, in the national and interconnected power systems of Central America. It is also expected to define the opportunities and limitations in introducing BESS in relation to the regional and national regulatory frameworks of the beneficiary countries, considering incentives and technical and economic benefits that these systems offer to power interconnected grids. Lastly, it will contribute to the execution of pilot projects in the selected member countries and will recommend new business models and a strategic framework for the Bank to identify and develop BESS projects within the region.
The Executive President of CABEI, Dr. Dante Mossi stated that through the execution of this important Technical Cooperation, the countries of our region will be able to rely on an adequate study of demand that will provide, information on the best investment and promotion practices for the implementation of this type of systems and the identification of at least three pilot projects. During the implementation of the above-mentioned, the Republic of Korea will also be contributing with the strengthening of capacities and the transfer of knowledge to the technical teams that will participate in the project.
Likewise, Dr. Mossi mentioned that “the Bank's participation as the implementing entity of this integrative non-reimbursable Technical Cooperation granted within the framework of the Korea-CABEI Partnership Single Donor Trust Fund is one more step towards the consolidation of CABEI's relations, the countries of the Central American region and the Republic of Korea, which will undoubtedly continue to bring many benefits to the countries of our region”.
The execution of the Technical Cooperation is expected to begin during the first quarter of 2021.