Regional Conflict in Energy Trading

Electricity generators claim that the Regional Operator Entity arbitrarily disconnects Guatemala from the rest of the countries in the region, and that since 2016 up to date the disconnections already add up to 600 hours.

Thursday, September 5, 2019

The National Association of Generators of Guatemala (ANG) claims that the Regional Electricity Interconnection Commission (CRIE) does not comply with the resolutions of the Central American Court of Justice (CCJ), which ordered Guatemala to stop disconnections from the regional electricity system.

Representatives of the ANG stated that after the disconnections were registered, they filed complaints with the CRIE and the Regional Operator Entity (EOR), without receiving favorable responses.

You may be interested in "Electric Generators: Market Figures up to 2018

They then opted to take the case to the CCJ, which in January 2019 ruled in favor of the country and ordered that Guatemala not be disconnected, a situation that would allow local generators to export more electricity. However, the CRIE has decided to ignore the ruling, the businessmen said.

Oswaldo Smith, president of the ANG, explained to that "... after the sentence was issued, the EOR disconnected the country again during July on five occasions, representing 15 hours. Aside from affecting the investments of energy generators that have been installed in the country with the vision of taking advantage of exports to the regional market, the CRIE is creating a negative precedent that puts at risk the Central American integration has already maintained that it does not recognize the CCJ and its resolutions."

The article adds that "... This conflict began in 2016 when the EOR argued that Guatemala could not import more than 120 megawatts of energy from Mexico through its interconnection with the neighboring country because it jeopardized the region's electricity system. From 2017 the country began to import not only the 120 megawatts from the contract with Mexico, but 120 megawatts from the gas generator Energía del Caribe, which is Guatemalan, but was installed in northern Mexico."

Also see "Energy: Regional Regulator Warns Guatemala

The guild of generators estimates that for every hour disconnected, 200 megawatts of energy from Guatemala are no longer exported.

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