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.
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).
In Guatemala, the Central American Electric Carrier announced that the works it carries out in sections of the electrical network in Escuintla, Jutiapa, Chiquimula and Santa Rosa, whose global investment reaches $40 million, are about to operate.
Representatives of the company Transportista Eléctrica Centroamericana, S.A. (Trelec), affiliated to Empresa Eléctrica de Guatemala, S.A.
Central American countries do not take advantage of the electric transmission line that connects them, because the poor infrastructure at the local level prevents the exchange of energy at the maximum level.
Managers of the Central American Bank for Economic Integration (CABEI) believe that the lack of electrical installations, especially in the stations of each country, are an obstacle to achieve a reduction in final tariffs to consumers.
In Guatemala, interested companies are invited to participate in the energy supply contracting process, which will run for one year and begin in May 2019.
Empresa Eléctrica de Guatemala, S.A. (EEGSA) called on all electricity generating companies to participate in the tender process for the purchase of electric power for the supply of final distribution service users for the timeframe from 1 May 2019 to 30 April 2020.
The lack of incentives for investment in extractive activity could be one of the reasons behind the downward trend in oil production in the country.
During the first ten months of the year, the country reported 2.78 million barrels of production, 5% less than the same period in 2017.
The Ministry of Energy and Mines (MEM) reported that the crude exploitation in the country continues its downward trend, since between the first ten months of 2017 and the same period this year, it fell from 2.93 million to 2.78 million barrels.
In response to the energy exports to Mexico, the CRIE warned Guatemala last month that it must comply with rules that protect the stability of the regional system.
Arguing that Guatemala is a signatory of the Framework Treaty for the Central American Electricity Market, the Regional Electricity Interconnection Commission (CRIE) warned that the norms designed to protect the stability of the Regional Electricity System (SER) must be fulfilled.
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.
From June 5 to 9, companies from the energy industry will be gathering together in San Pedro Sula to take part in business conferences and discuss issues that are relevant to the sector.
The initiative is being run by state entities and the private sector, and will take place between June 5 and 9 at the Convention Center of the Chamber of Commerce and Industry of Cortés (CCIC) in San Pedro Sula.
In the last 20 years sugar mills in Guatemala increased their energy generation from 160 MW to 700 MW, and currently their contribution is equivalent to 27% of the energy matrix.
The union for the sector estimates that over the last decades mills have invested around $820 million in the generation of electric power.
With these investments yields have improved, as according to figures from the Association of Independent Cogenerators of Guatemala (ACI) for " ... every ton of ground cane, the mills used to be able to generate 44 kilowatt hours (kWh), but with the research development they generate 91 kWh."
With 19% endemic poverty, 10% open unemployment and 40% informal employment, and some of the highest electricity rates in the region, Costa Rica is opposed to $1 billion in clean energy investments.
EDITORIAL
By Jorge Cobas González
Meanwhile, the bureaucracy of state-owned companies continues to prescribe first-world remuneration, and continues to protect its privileges following ECLAC development concepts from the middle of the last century, which are utterly out of place today.Because Costa Rica does not have the investment capacity or know-how necessary for the development of latest generation renewable energy projects, even though it has all of the necessary primary conditions: sun, wind, thermal energy.
In May, 56% of energy came from renewable sources, of which 72% was from hydroelectric power.
From the Energy Monitor June 2017, by Agexport: Historical Average Monthly Spot Price (US $ / KWh) The behavior of the SPOT Price for the month of May varied with respect to the previous 4 months in 2017, since at the moment it is the lowest that has been reached in the year, standing at 59.52 USD / kWh.This represents a decrease of 8% in relation to the year 2016. According to historical behavior, during the months of May, due to climatic and generation conditions, the monthly price has always been higher than the annual average.
The change in the energy matrix towards renewable sources is at risk "because of social unrest and systemic opposition to the development that Guatemala so desperately needs."
From the executive summary of the report"Impact of ungovernability and systemic opposition to renewable electricity generators and their socio economic effects locally and nationally both now and in the future 2015-2030":
In March 2016 the electricity generation matrix was made up of 34% plant-based biomass, 22% coal, 24% hydroelectric, 14% bunker, 2.8% geothermal, 1.2% wind and the rest was biogas and diesel.
The report"Electricity Subsector Statistics up to May 2016"prepared by the Directorate General for Energy, at the Ministry of Energy and Mines, summarizes the main data for the sector up to May 2016.
The 380 MW natural gas plant to be built by AES in Panama promises to change the country's energy matrix, and the way energy is generated and distributed in Central America.
The economic flow that has already started with the construction of the gas plant in the province of Colon will be felt not only in the energy sector in Panama, which could become an energy generating and distribution hub in the region, but also in other productive sectors that will benefit from greater stability in energy costs and generate greater dynamism in logistics and shipping.