Due to changes in people's habits, energy consumption in commercial establishments, offices and industrial complexes has decreased, contrasting with the rise in demand in residential areas.
The quarantines and restrictions on mobility that Central America has experienced due to the covid-19 outbreak and the latent risk of contagion, has caused radical changes in the region's electricity market.
The Empresa Nacional de Energia Electrica de Honduras (Honduran National Electric Power Company) is putting out to tender at the international level a high-level individual consultancy service for the preparation of specialized terms of reference and budgets to strengthen the country's electricity transmission capacity.
Due to the drop in economic activity generated by the covid-19 crisis, a 7.9% reduction in domestic electricity consumption was reported in the region between March and June 2020, when compared to the levels of the same period in 2019.
Regarding the reduction of internal consumption of electricity in the countries from March to June 2020, we have that Guatemala had a drop in its demand of 239 GWh (Gigawatt hours), which corresponds to 6.6% compared to the consumption of electricity in 2019, in the case of El Salvador with a reduction of 335 GWh, equivalent to 15.4%, says a report from the Regional Operating Agency (EOR).
If the quarantine and mobility restriction measures are extended by two months, it is forecast that by the end of the year the annualized demand for electricity generation, transmission and distribution in Central America will have fallen by 4%.
The "Information System for the Impact Analysis of Covid-19 on Business", prepared by the Trade Intelligence Unit of CentralAmericaData, measures the degree of impact that the crisis will have on companies according to their sector or economic activity, considering various scenarios for the coming months.
During 2019, electricity purchase and sale transactions between Central American countries amounted to 3,074 GWh, a 14% increase compared to 2018.
Figures from the Regional Operating Entity (EOR) show that the average price recorded in regional transactions during 2018 and 2019 also increased, going from $74.05 per MWh to $90.11 per MWh.
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.
From November 20 to 22, the second edition of the Gas and Energy Summit of the Americas will be held in Panama City, where topics related to the financing of energy projects will be discussed.
The second edition of the Gas and Energy Summit of the Americas will combine conferences on strategic topics with high-level government presentations, thematic debates on innovative content, as well as discussion panels for the collective construction of solutions, led by prominent figures from the regional and global energy sector, informed the Ministry of Commerce and Industries (MICI).
About $200 million is estimated to be invested in improvements to the Central American network, both nationally and regionally, to avoid the recurrence of service interruptions that occurred days ago.
On September 16, a power failure in Honduras caused the interruption of the service of approximately 40% of the area that make up the Central American countries that are interconnected.
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.
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.
In the first three months of 2019, 14 environmental impact studies were presented in the countries of the region to perform work on electricity grids and develop power generation plants.
The interactive platform "Construction in Central America", compiled by the Trade Intelligence Unit at CentralAmericaData, includes an up to date list of public and private construction projects for which environmental impact studies (EIA) were submitted to the respective institutions of each country.
The National Electric Transmission Company tenders the construction of networks and installation of primary distribution networks in different regions of the country.
Nicaragua Government Purchase 1/2019:
"The contract consists of the construction of Primary and Secondary Distribution Networks in 72 energy areas with 1,230 projects distributed in the Managua Sector with 43 projects, Western Sector with 16 projects, Southern Sector with 10 projects, Northern Sector with 3 projects, grouped in six (6) lots respectively.
During 2018, the country registered exports of electric energy for $181 million, 76% more than reported in 2017, and its main buyers were El Salvador, Honduras and Mexico.
The most recent data from the Bank of Guatemala show that last year Guatemala sold $119 million in electricity to El Salvador, $37 million to Honduras, $1.2 million to Nicaragua and $930,000 to Costa Rica.
National Electric Energy Company of Honduras tenders at international level the supply of electrical energy and solid capacity of 17 MW.
Honduras Government Purchase LPI-031-2018:
"Announces the International Public Tender to contract 17MW of solid capacity and its associated energy in a block, for up to twelve (12) months. This is because of the operating condition of the eastern zone that is fed through a 150 km line at a voltage of 69 kV from the Santa Fe Substation in Tegucigalpa.
From January to November last year, the country exported $165 million in electricity to Mexico and Central America, 73% more than in the same period in 2017.
The Report of the Monetary, Exchange and Credit Policy of the Banco de Guatemala, details that the energy exportations are mainly caused by the investments made in the electricity transmission network of the country, which has allowed satisfying the increase of the demand coming from El Salvador and Honduras.
In a new attempt, the authorities of the Regional Electricity Market announced the beginning of the feasibility study for the creation of a market through which electricity can be commercialized between Central America and the North American country.
Currently, Guatemala is the only country in the Northern Triangle that directly commercializes energy with counterparts in the Mexican market.