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.
Explained by exports to El Salvador and Honduras, between January and March Guatemala's electricity sales totaled $31 million, 54% more than was reported in the same period in 2017.
According to figures from Banco de Guatemala, between the first quarter of 2017 and the same period in 2018, thevalue of electricity sales increased from $20 million to $31 million. In relation to the behavior of sales, records belonging to the Regional Operator confirm that since 2014 the country began its consolidation as a leader in the sale of electricity in Central America.
Last year, 87 environmental impact studies were submitted in the countries in the region, for the construction of power generation plants and works on electricity networks.
Panama is the country in the region where the largest investment is concentrated, with an approximate $1.29 billion in energy projects, corresponding to 32 environmental impact studies submitted to the Ministry of the Environment between January and December 2017.
In Guatemala, plans are underway to implement a smart metering system for electricity consumption, where SMEs and residential users will be integrated with small businesses.
Representatives from the Electricity Company of Guatemala (Empresa Eléctrica de Guatemala or Eegsa) announced that within the framework of studies for the New Value Added Distribution (VAD), next year they plan to install smart consumption meters with the option of prepaid payment.
In 2017, electric energy exports totaled $103 million, 104% more than was sold in 2017, reversing the falls registered in the two previous years.
According to figures from the Banco de Guatemala, over the past year the country sold abroad a monthly average $8.5 million worth of electricity, with the Central American region being the main destination market.
The National Electrification Institute in Guatemala (Instituto Nacional de Electrificación de Guatemala) is putting out to tender dam security tests at the Chixoy hydroelectric plant.
Guatemala Government Purchase 7531036:
"The structures that comprise the security test are the following:
The electricity rates that will apply from February 1 to April 30 are between 1.5% and 2.2% higher than those in the previous period.
The slight increase announced by the National Electricity Commission (Comisión Nacional de Energía Eléctrica or CNEE) in the tariffs corresponding to the February - April period is attributed to higher generation costs that were reported in the previous quarter.
In 2016, the average cost of 1 kWh in Central America was 13.48 cents, while in Costa Rica, it was 18.47 cents.
A report from the CEPAL indicates that in 2016, the average cost of one kilowatt hour (kWh) in Central America was 13.48 cents, while in Costa Rica it was 18.47 cents; 37% more for industrial consumption of 100,000 kWh.In El Salvador and Guatemala, it was 11.03 and 11.54 cents respectively. In Panama, 10.92 cents.
A new report by the Ministry of Energy and Mines provides detailed statistics on the electricity subsector, the generation matrix for 2011-2016, and data on renewable energy, among other things.
From the Introduction of the report entitled "Guatemala's New Energy Statistics Module", by the Ministry of Energy and Mines:
The purpose of this Energy Module is to show, in a synthetic way, the behavior of the main variables of the energy sector, especially the electricity subsector, which includes electricity generation by type of source and consumption of fuels used for said generation; effective installed capacity and power demand in the National Interconnected System; Supply and Consumption of electrical energy, imports and exports of energy, and electricity tariffs at the national and regional levels. Likewise, general aspects of renewable energies in electricity generation are shown, with an emphasis on solar and wind power.
The company Fersa S.A. has been awarded a contract for three of the five blocks in the tender to expand the electricity transmission network.
Prensalibre.com reports that "...The total contained in the tender was 400 kilometers, of which three of the five blocks were awarded to Fersa.The first will cover the communities of Quiché and will interconnect with San Marcos."
Since May 1, increases of between 0.04% and 5.8% in the non-social tariffs of the distributors Eegsa, Deocsa and Deorsa have been put into effect.
From a statement issued by the National Energy Commission (CNEE):
The National Electric Energy Commission (CNEE) reports current rates for the quarter from May to July 2017. This rate adjustment is calculated based on power purchases made by the Distributors, EEGSA, DEOCSA and DEORSA during the months of January to March 2017.Therefore, the electricity distribution tariffs of these distributors, which will be in force from May 1 to July 31, 2017.
Due to late payments by Salvadoran distributors, generators in Guatemala are reducing sales to the neighboring country and in some cases, suspending them altogether.
As warned by the business sector days ago,the situation in the local electricity market is starting to unravel, as Salvadoran distributors can not meet their obligations to Guatemalan generators due to a delay of of a $53 million payment from the governmentby way of subsidy.
The National Electrification Institute plans to invest $27 million in strengthening generation and electricity transmission systems and improving coverage in five departments.
The goal of the National Electrification Institute (INDE) is to use its own resources of about $2.5 million to improve coverage in the departments of Alta Verapaz, Baja Verapaz, Huehuetenango, Izabal and San Marcos.Electricity distribution networks will be built to expand coverage in 26 communities.
Selling energy on the futures and not only on the spot market is the aim of the Guatemalan energy sector, in order to take advantage of local generation capacity.
Changes in the Mexican energy market and the increased capacity of power generation in Guatemala are the factors that the electricity sector wants to harness in this country and lay a legal foundation for developing a "futures market", through which long-term energy can be sold.
Entrepreneurs in the sector will be meeting in Guatemala City on November 16 to assess alternatives for developing the electricity market in an efficient and competitive manner.
From a statement issued by Agexport:
In order to learn about about different strategic actors, the issues that most impact the National Electricity Market, as well as risks, in order to ensure sustainability, we invite you to participate this November 16, 2016, in a free discussion meeting on the "Electricity Market in Guatemala: Challenges to achieving a more efficient, competitive and sustainable" market.