Guatemala: expansion in electricity generation

Attractive conditions for investment in power generation can be found in Guatemala, where the country's largest distributors tendered this month awarded contracts for 600 megawatts (MW) of power under the Power-generation Expansion Plan, mainly in renewable technologies such as hydro, wind and solar.

The tender involved the second phase of the plan, under which a total 800 MW was auctioned, including 210 MW in a precious round, with a view to changing the country's energy mix, in order to reduce dependence on petroleum--based generation.

In total there are over 40 projects, with an investment that includes domestic capital and foreign investment, as well as partnerships between Guatemalan and foreign companies.

Projects not exceeding five megawatts have special conditions, including the simplification of procedures for obtaining the contract, and easier access to public domain.

Contracts are valid for up to 15 years, a period which assures that generators have economic stability for their projects.

In addition, in the case of national oversupply, generators can sell to the wholesale market, which in turn can exported any excess through the Regional Electricity Market that connects Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica and Panama.

Guatemala and Mexico also have interconnection.

Guatemalan installed capacity is up to about 2,400 MW, depending on the type of technology and the time of year, enough to cover peak demand of around 1,500 MW.

However, with the growth in consumption, both the country and the region will need more energy.

For more information, please contact Alejandra Bermudez [email protected], or (502) 2279 3939, or (502) 2324 3939.