Central American countries do not take advantage of the electric transmission line that connects them, because the poor infrastructure at the local level prevents the exchange of energy at the maximum level.
Managers of the Central American Bank for Economic Integration (CABEI) believe that the lack of electrical installations, especially in the stations of each country, are an obstacle to achieve a reduction in final tariffs to consumers.
Last year, 87 environmental impact studies were submitted in the countries in the region, for the construction of power generation plants and works on electricity networks.
Panama is the country in the region where the largest investment is concentrated, with an approximate $1.29 billion in energy projects, corresponding to 32 environmental impact studies submitted to the Ministry of the Environment between January and December 2017.
For the third time, the contractor in charge of the Transmission Expansion Plan in Guatemala, will not meet the deadline to finalize the works.
The amount of progress on the Electric Expansion Plan (PET), whose contract was awarded to the Colombian company Trecsa more than seven years ago, is only 66%.The project was supposed to have been be ready and in operation since 2013, but the company contracted asked the governments in office at the time for two extensions - in 2013 and 2015.
In May, 56% of energy came from renewable sources, of which 72% was from hydroelectric power.
From the Energy Monitor June 2017, by Agexport: Historical Average Monthly Spot Price (US $ / KWh) The behavior of the SPOT Price for the month of May varied with respect to the previous 4 months in 2017, since at the moment it is the lowest that has been reached in the year, standing at 59.52 USD / kWh.This represents a decrease of 8% in relation to the year 2016. According to historical behavior, during the months of May, due to climatic and generation conditions, the monthly price has always been higher than the annual average.
In the past year 440.5 MW were installed, of which 60% correspond to hydroelectric plants and the remaining 40% to thermal plants.
From the "2016 Statistical Report on the electricity subsector", by the Ministry of Energy and Mines:
In 2016, there was an increase in Guatemala's generation park with the entry into operation of several plants and hydroelectric generation plants, as well as cogeneration plants using biomass and coal.
Seven new companies received business licenses as heavy users of the wholesale market in March.
From a Bulletin by the Wholesale Market Authority:
In March commercial ratings were processed and finalized for Renewable Distributed Generators (GDRs by their initials in Spanish) with solar technology, for Granja Solar La Avellana, Granja Solar El Jobo, Granja Solar Pedro de Alvarado each with an installed capacity of 1,000 MW, and Granja Solar Taxisco with an installed capacity of 1,500 MW. Also enabled were the following GDRs with hydraulic technology: Proyecto Hidroeléctrio El Salto - Marinalá with 5,000 MW of installed capacity, Pequeña Hidroeléctrica Xolhuitz with 2,300 MW of installed capacity and Hidroeléctrica Carmen Amalia with 0.686 MW of capacity.
The State of the Region indicates that the asymmetries between the most regulated markets such as Costa Rica and others that are freer such as Guatemala and El Salvador constitute an obstacle to progress of the regional market.
Regional Integration section, the V Report on the State of the Region:
The regional electricity market in the agenda of the integration process
After several delays, the natural gas power plant Energía del Caribe located in Monterrey will start to supply Eegsa and Energuate the 120 MW agreed in the contract awarded in 2012.
Steffan Lehnhoff, project developer,"... reported that from todaythe contract is in effect for the first 60 MW and on July 25 the other 60 MW will be added."
Transmission lines in the regional SIEPAC system are being used to distribute electricity internally in countries, curtailing their capacity for international exchange of energy.
When the US President Barack Obama visited Central America in 2013, he warned that "energy costs in this region are three times what electricity costs in Washington, and that represents a huge disadvantage for companies".Two years before that, all countries, from Guatemala to Panama, were committed to creating the necessary infrastructure for the Regional Electricity Market (MER) to be efficient.
On October 20th and 21st entrepreneurs from the region will gather together in Panama City to discuss issues such as the electricity market rules, new and renewable energy projects.
From a statement issued by the International Symposium on Energy:
This year the 8th. International Symposium on Energy seeks to promote spaces for reflection on energy issues, to help analyze the performance and limitations of developing new projects, build consensus, define the options for the energy market and, finally, develop a social impact using the media.
Beyond the apparent financial difficulties of an indispensable regional development project, there appears to be an immovable mental stance on removing the Darien Gap.
The electrical interconnection between South and Central America and Mexico, through Colombia and Panama, is the basis for a viable system for an electricity supply which is safe from weather contingencies or other constraints on generation.
"Of the 4,115 GWh imported from Guatemala to Panama, more than 80% could have been obtained from the accumulated water on Lake Arenal in Costa Rica".
The lack of more and better transmission lines between Costa Rica and Panama prevents the sale of the surplus energy which it is foreseen will be generated in Costa Rica once operations start of the new generation plants Chucas, Torito, Capulin, Reventazón, Bijagua, Orosi and expansion of La Joya.
Although the installed capacity is currently small, strong growth is projected in the region as a result of tenders with prices that favor large-scale projects.
A report by IHS Technology predicts rapid growth of photovoltaic capacity in Central America, which will supposedly reach 22 megawatts in 2018.
In reading this report, it should be noted that the country experiencing the largest part of that growth is Honduras, where multiple large-scale projects have been announced in which we have not yet seen the required economic viability, which casts serious doubts on their actual realization.
On october 15th and 16th companies from the sector will gather together in Panama City in order to discuss issues such as energy efficiency, technology and the use of renewable energy in the region.
From a statement issued by the Union of Industrialists of Panama:
Panama, September 18, 2014. The Union of Industrialists of Panama (SIP), in light of energy issues and the implementation of new regulations that will reduce the cost of energy, will be holding from 15th to 16th of October 2014, at the Hotel El Panama, the 7th International Symposium on Energy entitled: "Industry, Innovative contributions to the electricity market.
The absence of regulations defining rates and market operations prevents the region from taking advantage of the energy that Mexico will be able to export under the new energy law.
As Mexico prepares to increase its power generation and export surpluses, the lack of a legal framework establishing the conditions for selling energy through the Electrical Interconnection System for Central America (SIEPAC) is delaying the possibility of accessing less expensive energy.