During the first nine months of 2020, imports of electric generators increased year-on-year in Nicaragua and Guatemala, and decreased in Costa Rica, Panama, Honduras and El Salvador.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with the graphic"].
In the first three months of 2020, Central American companies bought electric motors and generators abroad for $29 million, 39% less than what was reported for the same period in 2019.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with graph"]
Banco Agromercantil de Guatemala announced a $43 million loan for the construction of part of the 54 MW Ventus wind farm to be located in the municipality of Metapán.
The U.S. government approved up to $350 million to finance part of the construction of the liquefied natural gas (LNG) power generation plant EDP in Acajutla, El Salvador.
The U.S. government, through the Overseas Private Investment Corporation (OPIC), approved the financing on March 20, 2019, according to the U.S. Embassy in El Salvador.
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.
In El Salvador, Energía del Pacifico has announced that it has met the requirements to obtain financing, and that it will start construction of the plant in the third quarter of the year.
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.
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.
On October 20th and 21st entrepreneurs from the region will gather together in Panama City to discuss issues such as the electricity market rules, new and renewable energy projects.
From a statement issued by the International Symposium on Energy:
This year the 8th. International Symposium on Energy seeks to promote spaces for reflection on energy issues, to help analyze the performance and limitations of developing new projects, build consensus, define the options for the energy market and, finally, develop a social impact using the media.
From April 15th to July 14th the average electricity tariff will be reduced by 20% due to the drop in oil prices and the diversification of the energy matrix.
From a statement issued by the Superintendency of Electricity and Telecommunications (Siget):
The Superintendency of Electricity and Telecommunications (SIGET) wishes to make known to the Salvadoran population that once again an important and significant reduction was recorded in the prices of electricity corresponding to the adjustment of electricity tariff schedule, which will apply from Wednesday April 15, 2015 and will be in effect until July 14 this year.
An announcement has been made that starting November the Salvadoran Development Bank will have $30 million available for loans to provide clean energy projects developed by SMEs.
All productive sectors can access these loans as long as they are formalized SMEs and their projects are geared towards the areas mentioned. The loans are expected to be available by next November with flexible and competitive conditions for the sector.
On october 15th and 16th companies from the sector will gather together in Panama City in order to discuss issues such as energy efficiency, technology and the use of renewable energy in the region.
From a statement issued by the Union of Industrialists of Panama:
Panama, September 18, 2014. The Union of Industrialists of Panama (SIP), in light of energy issues and the implementation of new regulations that will reduce the cost of energy, will be holding from 15th to 16th of October 2014, at the Hotel El Panama, the 7th International Symposium on Energy entitled: "Industry, Innovative contributions to the electricity market.
As part of the problems related to the regional market's lack of regulation, Guatemala does not enable the flow of Mexican energy through its territory towards the south of the isthmus.
EDITORIAL
Electricity imported from Mexico has a lower cost than that produced in Guatemala, which would allow it to be re-sold -or sell the energy produced from plants installed in their territory- to the rest of Central America, with a profit, because up to now electricity toll rates for using the SIEPAC have not been determined.
Hydroelectric projects and expansion of distribution networks are part of the opportunities that Colombian Power firms are looking to take advantage of in the Isthmus.
There are now three Colombian energy sector companies that have decided to venture into Central America to be part of the development of an activity that still has much room for growth in the region.
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. "