The Trump administration plan will be aimed at 30 countries of the continent and is called "America Crece", and consists mainly of the development of private investments, granting loans and sale of natural gas surpluses.
The U.S. government's objective is that, with the application of América Crece, job creation will be facilitated through the development of infrastructure in airports, ports, highways, digital networks and telecoms, but the big bet will be energy projects.
From January to June 2019, 52 environmental impact studies were presented to carry out works on electricity networks and build power generation plants in different areas of Central American countries.
The interactive platform "Construction in Central America", compiled by the Business Intelligence Unit at CentralAmericaData, includes an up to date list of public and private construction projects for which environmental impact studies (EIA) were submitted to the respective institutions of each country.
The execution of five energy and infrastructure projects in Southern Mexico and the Northern Triangle of Central America could boost the area's economic growth and slow migration.
The projects discussed now are not new, they have been part of the discussion of the region's businessmen and governments for years, but now they have come back into the discussion, as a possible response to the pressure exerted by the U.S.
After several years of carrying out studies of the work, the governments announced that they plan to begin working on the standardization of regulations to sign the agreement of the electrical interconnection project.
In a press release published on March 19, Panama's Presidency stated that Panama's Energy Secretary, Victor Urrutia, informed that the Agreement required for the implementation of the electric interconnection project that will link the Andean and Central American systems will soon be signed.
Lack of legal certainty, electricity theft and social conflicts are forcing businessmen in Guatemala's energy sector to choose to relocate their investments to El Salvador.
Last year, the companies Applied Energy Services (AES) and Corporación Multi Inversiones (CMI), both US and Guatemalan capital, decided to invest $47 million in solar energy projects, encouraged by the facilities offered to the energy sector in El Salvador.
The Congress of Costa Rica has finally approved a $500 million loan for the state electricity company to carry out electric generation and transmission works, including three geothermal plants.
Of the total amount of the loan with the Inter-American Development Bank (IDB) approved by the Legislative Assembly, close to $200 million will be used to finance the Pailas II, 50 MW, and Borinquen I, 55 MW geothermal projects, both in Liberia, Guanacaste.
As of February 2018, Costa Rica had an installed solar capacity of 27 MW, which is equivalent to only 0.76% of the equipment interconnected in the National Electric System.
According to a study carried out by the Costa Rican Solar Energy Association (Acesolar), whose final results will be published next month, Costa Rica is lagging behind in the use of solar energy, even compared to other Central American countries.
With 19% endemic poverty, 10% open unemployment and 40% informal employment, and some of the highest electricity rates in the region, Costa Rica is opposed to $1 billion in clean energy investments.
EDITORIAL
By Jorge Cobas González
Meanwhile, the bureaucracy of state-owned companies continues to prescribe first-world remuneration, and continues to protect its privileges following ECLAC development concepts from the middle of the last century, which are utterly out of place today.Because Costa Rica does not have the investment capacity or know-how necessary for the development of latest generation renewable energy projects, even though it has all of the necessary primary conditions: sun, wind, thermal energy.
In 2016 44% of foreign direct investment in the region was concentrated in Panama, and a fourth consecutive year of increases was recorded, with 16%, while Costa Rica received 27% and increased by only 1.1%.
From chapter I of the report "Flows of FDI in Latin America and the Caribbean", by the ECLAC:
FDI into Central America grew by 3.7% in 2016 and totaled 11,833 million dollars.The increase in investments to the two main recipients of the subregion -Panama, which recieved 44%, and Costa Rica, 27%- compensated for the drop in FDI to the other Central American countries.
The two 80 MW plants which the state run power company proposes building, will enter production in 2024 and 2025.
The proposal is detailed in the Electricity Generation Expansion Plan (2015/2035) which the Costa Rican Electricity Institute (ICE) detailed in its last request to raise rates, according to Nacion.com.
Of the 34,629 GWh generated in 2015 by the countries included in SICA, 68% came from hydropower, 11% from cogeneration in sugar mills, 11% was geothermal, 9% wind and 0.1% based on biogas.
From a report by Cepal entitled "Statistics of electricity production by countries in the Central American Integration System (SICA)":
Salvadoran authorities outlined investment opportunities in the sector, announced a 150W tender and detailed the inner workings of the electricity market in the country.
INTRODUCTION
The electricity sector in El Salvador is characterized by an electricity market in which public and private investors are able to compete with clear and transparent rules.
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.
Three state banks have approved a syndicated loan for the Hydroelectric Project Los Negros II, 40 MW, whose construction will start in April in Upala, Alajuela.
The three banks are Banco Nacional, Banco de Costa Rica and Banco Popular and Banco de Desarrollo Comunal, and the trust for the Hydroelectric Project Los Negros II, "... emerged as an initiative of the Public Service Company of Heredia (ESPH) as part of its strategy for energy sources.
The Federation of Metropolitan Municipalities has renewed an agreement with the state power company to produce energy from solid waste and sell it for a period of 25 years.
This agreement was renewed despite the fact that there is still a moratorium in effect on power generation from waste, which it is estimated will be suspended in March, once the regulation governing this activity is ready.