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Wednesday, 30 June 2010 00:00 |
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Minerco Resources, Inc. (Minerco Resources) has received official
verification and confirmation of the long-term rate structure from the
Honduran National Commission of Energy (NCE) for its Chiligatoro
hydro-electric project's 30 year operations contract.
The Honduran NCE verified and confirmed the long-term rate structure
for the 30 year operations contract for the Chiligatoro project. The
NCE previously approved all the terms of the operations contract with
the exception of the energy sales rate structure, which it has now done.
The
sales rate is published annually by Secretaria de Recursos Naturales y
Ambiente (SERNA), Honduras's Natural Resources and Environmental
Ministry. The average rate, based on short-term marginal cost, for year
2010 is $97.96 per MWh as published by SERNA in La Gaceta on January
15, 2010.
As previously released, the operations contract
defines an initial capacity of 5.2MWh for a term of 30 years.
Consideration for increased capacity can be obtained based on final
plant design. Minerco Resources expects to receive increased capacity
approval after submission of the Final Design. The contract also grants
a first right of refusal for renewal and allowances for all generation,
sales and transmission of energy from the Chiligatoro project.
Additionally, the transmission clause provides Minerco Resources with
the ability to charge transmission fees from other operators through
the Minerco Resources owned transmission lines.
For electricity
generation projects utilizing renewable energy, Honduran law has
provided a 10% price incentive over the short-term marginal cost for a
period of 15 years and a tax exemption for a period of 10 years.
Therefore, the operations contract contains a sales rate of $107.76 per
MWh (with incentive) for the first 15 years, or $73.6 million. The
following 15 years will utilize a rate of $97.96 per MWh, or $66.9
million. Based on the quoted short-term marginal costs and legislative
incentives, the 30 year Chiligatoro operations contract is valued at
$140.5 million.
Source: http://www.researchviews.com/energy/clean-technology/green-energy/NewsReport.aspx?ArticleID=296429
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