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.
Due to a group of demonstrators who have taken over the Chixoy hydroelectric facility, there is a risk that in Guatemala electricity service rates will increase by up to 10%.
Since September 25th, a group of people claiming the payment of a complementary compensation has taken over the hydroelectric plant Chixoy, one of the most important in the country, and threatens to set it on fire.
In Nicaragua, electricity consumption in the industrial sector fell 4% between March and August of this year, mainly due to the political and social crisis the country is currently experiencing.
Sergio Maltez, president of the Nicaraguan Chamber of Industry (Cadin), explained to Laprensa.com.ni about the reduction in electricityconsumption that "... This reduction in the sector could be the result of less activities in construction and mining. In both the construction industry and non-metallic mining, several projects have been stopped. In addition, when the crisis began, some companies temporarily closed and evidently did not consume the same percentage of energy'."
In El Salvador, at least 16 companies have registered as bidders in the tender for 28 MW of non-conventional renewable energy, for distributed solar generation and generation using biogas.
Without giving more details about the interested companies, it was reported that more than 16 investors have registered as bidders for technical and financial projects for alternative energy generation.
Due to social conflicts and various legal processes, 16 hydroelectric projects have been halted in Guatemala, which together amount to an investment of close to $1.5 billion.
The Association of Generators of Renewable Energy (Ager) reported that power generation projects have been suspended because of conflicts with communities in the zones, consultation processes with indigenous peoples, and orders issued by the Constitutional Court, many of which which have been in response to claims raised by environmental organizations.These projects, for which no light can yet be seen at the end of the tunnel, represent an installed capacity of 460 MW.
In the last ten years the use of renewable energy has doubled in the country, and currently sources of generation of this type represent between 65% and 70% of national consumption.
According to the authorities at the National Electricity Commission (CNEE), the stability that has been achieved in electricity rates and the lower dependence on oil derivatives, is due to the fact that the country is consuming more energy generated through renewable sources.
In Panama, Ingenio Alanje plans to invest $50 million in a sugarcane bagasse-based generation plant, with an installed capacity of 34 MW.
The sugar mill that processes 520,000 tons of cane per year is located in the village of El Tejar, district of Alanje, province of Chiriquí, and is planning to construct a biomass-based power plant, which is expected to be operational by the next harvest, in the summer of 2019.
Difficulties in a generating plant in Costa Rica and the growing regional energy demand are some of the reasons of the increase in electricity exports from Guatemala.
Statistics by Banco de Guatemala report that between January and July of this year sales abroad of electric power amounted to $81.7 million, an amount that exceeds by 36% the $60 million registered in the first seven months of 2017.
In Panama, five companies were prequalified in the tender process to design, build and manage the fourth electric transmission line.
From a statement issued by Etesa:
Panama, September 3, 2018. Five proponents prequalified in the first phase of the process to select a contractor who will design, build and manage the Fourth Electric Transmission Line project, by complying with the necessary technical, legal and financial requirements, in the process carried out by Empresa de Transmisión Eléctrica, S.A. (ETESA) with the objective that whoever builds the project has the capabilities that the largest Central American project in its category deserves.
In Panama a project is being developed that aims to promote the use of water heaters that use solar energy, through means of international and national financing.
Local authorities reported that in order to carry out the project, the Global Environment Fund will contribute $1.9 million, and the Ministry of Environment, Panama Green Building Council, the Technological University of Panama, the UN and the General Bank will disburse another $8.1 million.
The union for the sector stated that in the next months 180 MW of wind energy and 58 MW of solar energy will become part of the country's energy matrix.
Representatives from the Dominican Electrical Industry Association (ADIE) announced that in the remainder of 2018 five projects, representing an investment of around $500 million, will start operating.
In Panama, the 18 photovoltaic generation plants that together have an installed capacity of 143 MW, are still waiting for the government to grant new contracts.
According to statistics from the National Energy Secretariat, last year the country had an installed generation capacity of 3,423 MW, of which 4% corresponded to solar energy parks.
The Inter-American Development Bank has granted a loan that will be used to finance energy efficiency projects for small and medium-sized companies.
The funds for this loan come from the Green Climate Fund (GCF) and will be executed by the Development Bank of El Salvador (BANDESAL). The objective of the financing granted is to support the efforts being made by SMEs in El Salvador to reduce electricity consumption and limit greenhouse gas emissions, reported the Inter-American Development Bank (IDB).
From January to May of this year, Guatemala exported $7 million worth of electricity to Mexico, well above the one million dollars reported during the whole of 2017.
According to data from Banco de Guatemala, during the first five months of the year the country exported $51 million worth of electricity, of which 14% was bound for Mexico.
In the Dominican Republic it has been reported that future renewable energy generation projects will be decided on by the government and then put out to tender.
Concessions for renewable energy generation projects will be carried out by means of a tender, gradually moving away from using power purchase agreements (PPA), said the Ministry of Energy and Mines (Mem).
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