After a $7.4 million investment, Transportista Eléctrica Centroamericana launched the power transmission work that will link the substations of Iztapa and Taxisco.
The completed work that will connect the substations in the departments of Escuintla and Santa Rosa, was awarded in January 2015 and consists of 16 kilometers. These works are part of lot D of the National Transmission Expansion Plan (Petnac).
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.
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.
It has been estimated that $200 million need to be invested in Central American countries to strengthen the transmission capacity of the regional electricity market.
A study prepared at the request of the Wholesale Market Manager of Guatemala (AMM) details that for the regional market to operate in a comprehensive way, countries must invest more in order to improve transmission capacity.According to Edgar Navarro, president of the AMM, this investment should be concentrated in Nicaragua, Honduras, El Salvador and Costa Rica.
The signing of the FTA with China could open up opportunities for Korean companies to sell turbines to hydro electric stations and invest in energy projects which use other sources.
Kwang Seok Rhee, vice president of the Korean Electric Power Corporation (KEPCO), one of the largest energy companies in South Korea, visited Guatemala as part of a new round of FTA negotiations and told Dca.gob.gt that ".
As part of the expansion plan of the PETNAC 2016 transport system, investments have been planned in construction of new power substations, remodeling work on existing lines and construction of new ones.
From the document "Indicative Generation and Transmission Plans 2016" by the National Electric Energy Commission:
The Expansion Plan for the Transportation System -PETNAC 2016- includes expanding coverage of electricity services for communities in the departments of the southwest of the country through the following measures:
At the end of August 2015 production was 2.4 million barrels, 2.5% less than in the same month in 2014, mainly because of lower investment on the part of operators.
Low international oil prices are the main reason that companies drilling and extracting oil in the country have reduced their investments and therefore their production, taking advantage of the situation to carry out maintenance work in the fields.
Of a potential of 1,000 MW of power generated through wind in the country, 101 MW will start to be generated from three wind projects which will start operations in May 2015.
The three projects referred to are those of the companies Viento Blanco which will generate 21 MW, Tresca, with 30MW, and the most advanced, Eólico San Antonio del Sitio, with 52.8 MW, which already has 90% of the necessary infrastructure for it to operate.
Banking, energy and industry are the sectors where Gazprombank, the largest private bank in Russia, are exploring opportunities to finance projects in Guatemala and Latin America.
Representatives from the Russian company visited Guatemala to analyze the market and consider potential investment opportunities in sectors such as banking, energy and industry.
So far this year the Central American countries have sold 120 GW/h, equivalent to $20 million.
An analysis piece on Eleconomista.net shows the levels of energy consumption of the Central American countries and the ability of each of them to trade their surpluses, with generation depending, among other things, on variables such as the weather.
"Hugo Ventura, Head of the Energy and Natural Resources at the Economic Commission for Latin America and the Caribbean (ECLAC), said that energy imports for some countries "is a lifesaver" and could be kept up in the future if the conditions are not met to encourage more investment in energy or there are delays in some major projects. "
With an investment of $15 million in a second well, the reservoir volume and economic viability of its operation can be confirmed.
The company City Petén has invested $15 million in order to begin drilling a second well in the field at Ocultún in Petén. The Panamanian company plans to confirm the finding of a large reservoir of natural top quality gas and its production potential.
In Guatemala Grupo Tomza has launched a plan to convert gasoline engines to use propane gas, at an average cost of $1,000.
The company recently made a presentation of the project in which it will invest $90,000.
"All investments are welcome in this country, because things like this will help family economies and contribute to the environment. This plan is important because energy prices often hit Guatemalans hard," said the president, Otto Perez Molina.
The European Investment Bank will support investment in hydropower, wind, geothermal and photovoltaic systems in Central America.
The program is being conducted in partnership with the Central American Bank for Economic Integration (BCIE) and seeks to free up more than $500 million for investments in public and private projects using clean energy in Honduras, Nicaragua, El Salvador, Guatemala, Costa Rica and Panama.
Tebian Electric Apparatus Stock has announced its intention to open an office in the country in order to market its products through its local partner Provelec SA
According to Jian Jun Kang, the company's marketing manager, the intention is to invest in three stages. The first step is to sell their products ranging from high-voltage cables and transformers, to solar panels, the second is to participate in electricity generation, either hydro or solar projects, and the third is set up a manufacturing plant in the country for their products to be exported to the U.S.