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 Prensalibre.com 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.

Do you need more information about your business sector?

Request more information:








this site is protected by reCAPTCHA and Google's privacy policy and terms of service.
Need assistance? Contact us
(506) 4001-6423


More on this topic

Energy: Opposition to Regional Treaties

January 2020

Arguing that there is a risk that energy transactions in the region will become more expensive, Guatemalan businessmen are asking the outgoing government to refrain from approving or signing reforms to the Central American Electricity Market Framework Treaty.

Because on January 10 the discussion is programmed within the Director Council of the Regional Electric Market of Central America (CDMER), the subscription of the Third Protocol, which would reform the Framework Treaty of the Electric Market, the private sector of Guatemala has issued an alarm before any change in the regulations, since it could cause increases in the prices of energy transactions or generate negative effects in the Guatemalan market and its interconnection with Mexico.

Energy: Lack of Infrastructure to Benefit from it

April 2019

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.

Guatemala: How to Reactivate Energy Exports

May 2017

The private sector demands more actions from the government to solve the problem of restrictions on the sale of energy in the regional network, imposed by the Regional Operator.

Since October and to date the Regional Operator Entity (EOR) of the Siepac has disconnected Guatemala from the regional network on several occasions, preventing local generators from exporting their surplus to other countries in the region. 

Progress in Regional Energy Market

January 2016

A new regulation will allow for regional energy transactions to be made by auction in annual installments.

Operators subscribed to the Electrical Interconnection System for Central American Countries (SIEPAC) will have a policy to regulate contracts and firm energy rights for term contracts of up to one year, through means of the Regional Electricity Integration Comission (CRIE ).

 close (x)

Receive more news about Energy

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


Looking for Importers and distributors of furniture

Mexican manufacturer of office furniture seeks importers and distributors interested in dealing their products in Central America.
PM Steele is a 100% Mexican company, with more than 67...

Stock Indexes

(Apr 6)
Dow Jones
-5.60%
S&P 500
-5.10%
Nasdaq
-5.64%

Commodities

(Mar 27)
Brent Crude Oil
28.25
Coffee "C"
116.75
Gold
1,644
Silver
14.625