The MEM will put out to tender geothermal energy supply, with an investment of around $500 million per 100 MW.
"It will be the first time that an invitation has been made for this kind of technology," said the chief of the Ministry of Energy and Mines (MEM), Erick Archila. He said the country has the capacity to generate 850 MW but "has not exploited it properly, only 2% is being used."
The four plants in operation in Guatemala increased their share to 22% of the total, up from 15% a year ago.
According to data from the Wholesale Market Administrator (AMM), the Ministry of Energy and Mines and the Association of Independent Cogenerators (ACI), the country has four active coal plants, with an effective power of 284 MW, plus 6 under construction, which will provide 600 MW.
On September 19 a tender will be launched by Empresa Electrica de Guatemala and Energuate for the long-term supply of 250 megawatts .
The information was confirmed by the Minister of Energy and Mines (MEM), Erick Archila.
According to the director of Regulation at Energuate, Dimas Carranza, the plan is to tender 250 megawatts in 15 year contracts , with operations starting in 2017.
Companies which transport energy charged $51 million during 2013 and 2015, $28 million less than in the previous biennium.
As explained by Carmen Urízar, president of the National Energy Commission (CNEE), the change means a "lower income for transport companies," but "has a benefit, impacting the fee for the end user".
The National Energy Commission of Guatemala has approved the amendments in the contract with the concessionaire, in the event that the power plant is not operating in September 2014.
"According to the amendments, there is an increase of $6.5 million in the penalties which add up to a total of $28 million, there is also an increase of $9 million in the preoperative guarantees, going from $36.3 million to $45.3 million," noted an article in S21.com.gt. The penalties would be applied in the event that Jaguar Energy does not have the first phase operational, in which 150 MW will be produced, in September 2014.
Authorities announced a tender next month for another 200 MW of power from renewable resources.
According to the Energy Minister Erick Archila, the investments by companies that were awarded the first 630 MW in two previous tenders, will start to come into effect next year."The investment will be $1.8 billion in solar plants, wind and renewable resources," he added.
The Expansion Plan by the Electricity Transmission Network in Guatemala will not be completed in October 2013, due to problems in the granting of permits and rights of way.
Carmen Urízar, president of the National Energy Commission (CNEE by its initials in Spanish), expressed concern over the delays at Trecsa (subsidiary of the Colombian consortium BSE-EDM Guatemala who won the bid for the project), because now the execution of the work should be 80% complete, but it is only 60% complete, which is about 511 kilometers out of the agreed 853.
Of the 260 MW that were offered in early March, 85.88 MW have now been awarded through short-term contracts.
The companies that were awarded the contracts are Electrogeneración (20 MW), Generadora del Este (12 MW), Renace (40 MW), SIBO (5 MW), and Duke (8.88 MW). The Hydroelectric station Hidroxacbal did not receive any contracts.
Prensalibre reports that "Dimas Carranza, director of regulations at Energuate, said the companies who had not been awarded contracts did not receive them because the technical and economic conditions offered were not within expectations. 'We believe we can get cheaper prices with some other generators, or even with them,' Carranza said."
Eight companies have submitted bids for power generation totaling 268 MW for the period May 2013 to April 2015.
Elperiodico.com.gt reports that "the bids for power generation by the companies Electrogeneración and Generadora del Este are the lowest priced at $7 per kilowatt, while Puerto Quetzal Power (PQP) and Duke Energy submitted offers of between $10.52 and $13.25 ".
The expiration of the contract with Puerto Quetzal Power could mean a decline of 30% in energy costs differentials.
So says Carmen Urízar, president of the National Energy Commission (CNEE).
An article in Prensalibre.com relates, "The costs refer to the amount paid by users for the difference between the price of preexisting contracts, including PQP plants, mills as well as the plants La Alborada and San José, and reference prices on the spot market, which started operating with the enactment of the Electricity Law, in 1998.
The company Mayoristas de Electricidad and the generators Ixtal, Tuncaj Xolhuitz have announced investments of $20 million in three hydroelectric plants.
The Kin Group, composed of Mayoristas de Electricidad (Mel) and the generators Ixtal, Xolhuitz and Tuncaj, before 2020 will participate in the purchase of energy and hydroelectric development of El Zambo, Xaqulew, Hidro Samuc and Hidrosan informed the director the new consortium, José Chacón.
Electricity consumption in 2012 increased by 4.2% compared with the figure for 2011, with demand for power up 1.54%.
An article in Prensalibre.com outlines the main statistics for Guatemala's electricity market during the first ten months of this year.
According to figures from the National Energy Commission (CNEE), last year electricity consumption totaled 8 million 111,27 gigawatt hours (GWh) while this year, including estimated data for November and December, it will be 8 million 453.93 GWh, which represents a variation of 4.2%.
Of the 600MW required, the National Electric Energy Commission has only awarded 421MW because the other bidders did not meet the maximum price established in the tender.
The participants in the tender put forward offers for a total of 57 power plants, but only 40 met the tender requirements.
Regarding the process the Minister of Energy and Mines, Erick Archila said, "..
42 companies presented themselves in the tender for the supply of 600 MW, offering various types of electricity generation, from hydro power to solar energy.
Elperiodico.com.gt reports that "A total of 63 firms purchased the tender documentation, but only 42 made offers, which will be released on November 23, together with the prices of the virtual bids prepared by the National Energy Commission (CNEE). "
With the new law access will be given funding to promote technology changes that generate cost reductions and savings in energy consumption.
A statement from the Ministry of Energy and Mines reads:
MEM and CNEE drive Energy Efficiency Act project
In a workshop organized by the Ministry of Energy and Mines (MEM), and the National Energy Commission (CNEE), with support from the Inter-American Development Bank (IDB), the Economic Commission for Latin America (ECLAC) and the Latin American Electric Power Organization (OLADE) a roadmap has been established in the discussion of the Comprehensive Plan for Energy Efficiency and the Energy Efficiency Act of Guatemala.