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.
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.
Actis and Mesoamerica have agreed to sell SunEdison 100% of its interest in Globeleq Mesoamerica Energy, which operates in the area of renewable energy plants.
From a statement issued by Globeleq Mesoamerica Energy:
Actis and Mesoamerica, investment and consultancy firms based in Costa Rica and Colombia have agreed to sell 100% of their combined interest in Globeleq Mesoamerica Energy (GME), a leader in the business of wind energy and solar energy in Central America, to SundEdison. SunEdison is the largest developer of renewable energy in the world.
A proposal has been made for the price per KW / h produced from wind and solar energy in private plants to be established according to a price band in which the maximum and minimum would be below current levels.
It is expected that in February the reform which aims to change the methodology for fixing the selling prices of solar and wind energy from private companies will be put to public consultation, with the goal of creating a more competitive range. This setting only applies to new companies since for existing ones specific prices have been established.
The wind power projects currently under development in the country by national and foreign investors have a combined capacity of 185 MW.
Data from the Costa Rican Electricity Institute (ICE) shows that during 2013 energy from renewable sources accounted for 88% of total production in the country. Among the companies currently investing and seeking further development in the energy sector are Globeleq Mesoamerica Energy, Group Ecoenergía and Coopeguanacaste, Tilawind.
Although the installed capacity is currently small, strong growth is projected in the region as a result of tenders with prices that favor large-scale projects.
A report by IHS Technology predicts rapid growth of photovoltaic capacity in Central America, which will supposedly reach 22 megawatts in 2018.
In reading this report, it should be noted that the country experiencing the largest part of that growth is Honduras, where multiple large-scale projects have been announced in which we have not yet seen the required economic viability, which casts serious doubts on their actual realization.
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.
Twelve hydroelectric plants and seven wind parks are scheduled to start operations in the next three years, having capacity to generate up to 800 MW.
Of the 19 projects spread across the country, 15 will be implemented by private producers and cooperatives. The largest project, the Reventazón hydroelectric dam, with a capacity to generate 307 MW and supply 525,000 homes, is being developed by the state-owned Instituto Costarricense de Electricidad (ICE). This entity is also carrying out the expansion of the Cachi and Rio Macho dams with an approximate generation of 20 MW and 53 MW, respectively.
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. "
A new regulation on quality of electricity includes the interconnection and operation of micro and mini generators using renewable sources for their own consumption.
It will allow users to install on their properties, wind power, biomass and / or solar equipment, in order to meet their own electricity needs and they would be able to deliver surplus production to distribution companies, to be consumed at a later date (kWh Exchange).
Latin America is one of the most promising renewable energy markets for Enel Green Power, which plans to invest more than 2 billion Euros by 2016 for the development of renewable energy in the region.
Latin America is a rapidly expanding market, where it is expected that energy demand will have an average annual growth of 3.5% by 2020.
To meet this growing demand, "renewables will play an important role and we have about 830 MW of renewable capacity in operation, capable of producing over 3.4 million kilowatt hours of energy with zero emissions," said Enel Green Power (EGP)’s area manager for Iberia and Latin America Maurizio Bezzeccheri in a recent interview.
A regional legal framework is required that will allow for long-term contracts, not only between countries but also between plants located in one country selling power to another.
Central America’s electrical integration requires not only enabling the Electrical Interconnection System but also an appropriate regional framework.
With the current drive seen in several Central American countries to develop power generation projects, it is essential to look beyond national perspectives and visualize the possibilities for optimization of available resources and complementation of the energy matrices of the region.
In 2011 Costa Rica increased its use of fossil fuels by 24% in order to meet the demand for energy.
Data from the Regulatory Authority for Public Services (Aresep) shows that power generation based on diesel and bunker fuel grew by 24% in 2011 compared to 2010, going from 706.529 MW / h to 930.970 MW / h.
The total electricity generation in Costa Rica was 9.8 million MW / h last year and thermal plants contributed 9.48%, according to the institution quoted by Nacion.com. Domestic demand grew by 2%.
Acciona Energía will construct and operate the 49.5 MW wind power plant in Chiripa, north west Costa Rica.
The energy company was awarded the contract as a result of an invitation to tender held by Costa Rica's state-owned electricity and telecommunications provider (ICE).
Acciona Energía will sell the energy produced by the wind power plant to ICE for a period of 20 years as part of a Power Purchase Agreement (PPA).
Eight hydro and wind power plants will begin operating in 2013.
325 MW will be added to the country’s power supply once the power plants being implemented in various parts of the country become functional.
The new energy will be managed by the Instituto Costarricense de Electricidad (ICE), the National Power and Light Company (CNFL) and private companies, who have focused primarily on wind energy projects.