In Guatemala a bill has been presented to create an autonomous entity, made up of government and private investors, which would be responsible for planning and contracting out infrastructure works.
The legislative project that emerged at the National Entrepreneurs Meeting (Enade) 2017, includes the creation of a Superintendency of Road Infrastructure (Sivial), which would be an autonomous entity with the function of planning, tendering and contracting out infrastructure works.
The drop in oil prices has made clean energy less profitable, going from 30%, in previous years to 12%.
The approval of the General Electricity Law passed in Guatemala ten years ago encouraged a boom in the generation and transmission of electricity in the country, including from renewable sources.
Guatemala needs to invest $400 million a year in new generating plants in order to add 1,685 megawatts to the electricity supply in 2026.
Of these 1,685 MW, 1,110 would be provided by hydropower, 300 from geothermal plants, and 275 with the use of coal, said Carlos Colom, president of the National Energy Commission (CNEE).
In the 80's, feasibility studies, essential guides to the interest of investors, were not carried out.
The lack of feasibility analysis is affecting investment flows coming into the country, as many investors are withdrawing from participating in projects where there are no feasibility studies.
In the first nine months of the year, electricity demand increased by 7.8% compared to the same period in 2010.
Prior to this, the average increase up to 2007 was between 4% and 6% annually, however 2008, 2009 and 2010 showed increases of 0.29%, 0.87% and 3.7% respectively.
Carlos Colom president of National Energy Commission (CNEE) and Romeo Rodriguez, coordinator of Competitiveness, "agree that this improvement is an indicator of a more buoyant national economy.
17.3% of Guatemalan households have no electrical connection at all, and the growth of distribution networks is lower than the natural population increase.
The electricity índex went from 85.1% in 2006 to 82.7% in 2010, demonstrating a stagnation in electricity coverage.
The Guatemalan authorities have changed the bidding conditions and extended the deadline by three months.
The changes are designed to ensure the participation of more bidders and resolve some of the concerns of interested companies.
Carlos Colom, president of the National Electric Energy Comission (ENEE), explained that the most important change is to the ‘Act of God’ clause, which protects investors against possible actions by groups opposed to energy projects.
Potential investors say they have the money and the intent to invest, but need basic information and potential projects.
In talks between energy distribution company officials and the National Electric Energy Commission (CNEE) with executives of foreign companies in the sector, a major setback has been indentified: Guatemala does not have essential information regarding the registration of river flows, rain and wind data, or a portfolio of potential projects.
Small generators may participate in bidding processes called by the country´s electricity distributors.
The official Resolution 268-2010 of the National Electric Energy Committee (ENEE) was published on November 22nd, and includes changes to technical clause number 13, proposed by the Wholesale Market Administrator.
"This leaves the door open for small hydro, solar and wind producers to obtain contracts not just in the spot market.
The percentage comes from the purchase of 54 thousand 106.1 megawatt hours (MWh).
The purchase serves some 180 thousand 300 houses with an average consumption of 300 kilowatt hours per month, according to data from the National Energy Commission (CNEE).
"Carlos Colom, president of the National Energy Commission (CNEE), indicated that the result of the interconnection, besides stabilizing the system to avoid blackouts or reinforce what is generated by the country, is that at certain times during the day it helps lower the price (spot price for energy market opportunity)", reports Prensalibre.com.
The Electric Energy Commission could launch a bidding process to build and install secondary transmission lines.
Carlos Colom, president of the Energy Commission, explained that these lines (69 and 138 volts) are included in the Electrical Transmission Expansion Plan (PET).
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