Attempts to Reduce Costs in Regional Electricity Market

Starting October the Regional Electric Interconnection Commission will implement a pilot program to authorize priority supply contracts and reduce the cost of energy exports.

Wednesday, August 20, 2014

In the absence of long-term contracts for regional energy transactions, the Regional Electric Interconnection Comission "... asked the Regional Operator Entity (EOR by its initials in Spanish) to conduct studies to identify the levels of maximum power transfer for each country and for supply contracts to be authorized according to priority in order to reduce the cost of energy exports. "

Deputy energy minister, Edwin Rodas, told that "... prior to reforming the MER regulation we will have these contracts as a pilot plan which if successful will be incorporated into the amendments. With this procedure, toll collection would be regulated and it would be used in the absence of strong, long-term contracts. "

Rodas explained that "... the costs of congestion and losses are what is increasing the value of transactions conducted in the MER and also 'toll costs are high and mean that exports from Guatemala with a price of $170 reach Panama with a price of $193 per megawatt. '"

More on this topic

Electricity Integration Requires More Infrastructure

February 2016

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.

Mexico Wants to Export Electricity to Central America

September 2014

As part of the problems related to the regional market's lack of regulation, Guatemala does not enable the flow of Mexican energy through its territory towards the south of the isthmus.


Electricity imported from Mexico has a lower cost than that produced in Guatemala, which would allow it to be re-sold -or sell the energy produced from plants installed in their territory- to the rest of Central America, with a profit, because up to now electricity toll rates for using the SIEPAC have not been determined.

Guatemala Has Exportable Surplus of Electricity

November 2013

Guatemala is the most interested country in speeding up regulation establishing the model of firm contracts within the regional electricity market.

This was explained by Guatemalan Vice Minister of energy, Edwin Rodas.

The idea of this is to harness the Electrical Interconnection System for Central America (Siepac) not only for the sale of energy to other countries, but also to provide telecommunications services over optical fibers which these lines have.

Guatemala Doubles Energy Exports

August 2013

This year, the country went from exporting 14GW per hour between January and May to 35GW per hour in June and July, with the entry into force of the regulation on regional integration.

According to Jorge Alvarez, market manager of the Wholesale Market Administration (AMM by its initials in Spanish), in July 50 GWh were sold, and in the first 20 days of August 22 GWh have been exported.

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