Insecurity and Conflict Discourage Investments

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.

Monday, October 15, 2018

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.

Juan Carlos Méndez, CEO of CMI Energía, explained to Elperiodico.com.gt that "... El Salvador offers less induced resistance to clean energy generation projects. In addition, it has legal certainty to develop and implement investment projects. Now our priority is to finalize the co-investment with AES in El Salvador, which is expected to reach 100 MW. Only 30 are in operation now."

You may be interested in "Central America: $1.6 billion in Energy Projects"

Méndez added that the conditions offered by El Salvador "... The energy distribution has not the problem of energy theft, which makes it a highly efficient country in that regard"

The illegal seizure of the Chixoy hydroelectric plant, the largest in the country, which since September 25th has been taken over by a group of people claiming a compensation supplement, is part of the conflict in Guatemala.

Also see "Energy Disputes and Costs"

In addition, the Association of Renewable Energy Generators reported weeks ago that 16 hydroelectric projects are suspended, mainly due to issues of social conflict, which together represent an investment of approximately $1.5 billion.

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More on this topic

New 10 MW Solar Power Plant

October 2019

AES and Corporación Multi Inversiones inaugurated a 10 megawatt solar power plant in Guazapa, El Salvador.

The plant was inaugurated on 29 October and forms part of the Bosphorus project, which consists of the commissioning of 10 power generation parks of 10 MW each.

You may be interested in "$1.2 Billion in Energy Investments"

More Renewable Energy

November 2018

In El Salvador, twelve renewable energy generation projects with a total capacity of 23 MW are preparing to start operations between 2018 and 2020.

The National Energy Council (CNE) reported that the dozen energy generation projects, which will begin operations in the period between 2018, 2019 and 2020, will have the capacity to supply electricity to 771.350 households in the country.

Renewable Energy: New 100 MW Solar Plant

May 2018

The plant that AES El Salvador has inaugurated in La Union, required a $160 million investment, and has 44 thousand polycrystalline-type photovoltaic modules, in an area of ​​149 sqm.

Pasaquina is the first of ten solar power generation plants that AES El Salvador and Corporación Multi Inversiones plan to build in the three phases of the project.  It is expected that the plants will start operations gradually over the next two years.

Difficulties in Power Generation in Guatemala

October 2013

More than 45 power plants which are being built with an investment of more than $1.1 million face social, technical and financing problems.

Prensalibre.com reports: "The works are part of the tenders in the Generation Expansion Plan made in 2010 and 2012 for long-term contracts, which seek to ensure the supply of energy for Empresa Eléctrica de Guatemala (EEGSA) and Energuate ... ".

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