Although the installed capacity is currently small, strong growth is projected in the region as a result of tenders with prices that favor large-scale projects.
A report by IHS Technology predicts rapid growth of photovoltaic capacity in Central America, which will supposedly reach 22 megawatts in 2018.
In reading this report, it should be noted that the country experiencing the largest part of that growth is Honduras, where multiple large-scale projects have been announced in which we have not yet seen the required economic viability, which casts serious doubts on their actual realization.
The Colombian Celsia has purchased from GDF Suez thermal and renewable energy plants which were operated in Central America by the french company, worth $840 million.
From a statement posted on Celsia.com:
Celsia has taken the first step in its strategy of international expansion with the purchase of assets in the electricity sector in Panama and Costa Rica with an enterprise value of USD 840 million.
The absence of regulations defining rates and market operations prevents the region from taking advantage of the energy that Mexico will be able to export under the new energy law.
As Mexico prepares to increase its power generation and export surpluses, the lack of a legal framework establishing the conditions for selling energy through the Electrical Interconnection System for Central America (SIEPAC) is delaying the possibility of accessing less expensive energy.
In 2013 63% of the electrical energy fed into the transmission networks in the region was generated from renewable sources.
From a report entitled "Central America: production statistics for the electricity subsector, 2013", prepared by the Economic Commission for Latin America and the Caribbean (ECLAC):
"... The production of electricity in the six countries amounted to 45,735 GWh, 3.3% higher than in 2012.
Reports have arisen that the document signed by the Presidents of both countries, is not even accessible and there is even less basic information about the project's feasibility.
To date there has been no information available on the technical studies, financial analysis and feasibility reports. Neither is the data on the geographical path of the project, rights of way to be acquired, the intended beneficiaries, the source of the total funding required and the overall impact of the mega project.
By 2026, the country will generate 78% of its energy from renewable sources.
The changes proposed to the Generation System Expansion Plan 2012-2026 have already been approved by the Ministry of Energy and Mines (MEM).
In 2012, it is is expected to generate 50.5% from hydroelectric sources, 3.6% from geothermal sources, 3.5% from bunker fuel, 12% from biomass, 9% from the electrical interconnection with Mexico and 21.3% from coal.