From January to November last year, the country exported $165 million in electricity to Mexico and Central America, 73% more than in the same period in 2017.
The Report of the Monetary, Exchange and Credit Policy of the Banco de Guatemala, details that the energy exportations are mainly caused by the investments made in the electricity transmission network of the country, which has allowed satisfying the increase of the demand coming from El Salvador and Honduras.
In the first half of the year, Central American countries invested $164 million in purchasing electric transformers for $164 million, equivalent to a 6% increase over the same period in 2017.
Figures from the information system on the Transformers and Electrical Converters and Reactance Coils Market in Central America complied by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
In a new attempt, the authorities of the Regional Electricity Market announced the beginning of the feasibility study for the creation of a market through which electricity can be commercialized between Central America and the North American country.
Currently, Guatemala is the only country in the Northern Triangle that directly commercializes energy with counterparts in the Mexican market. According to reports, El Salvador has also shown interest in buying energy from the northern country, but through the Regional Electricity Market (MER).
Because of the increase in energy demand, last year in Guatemala the Electricity Supply and Water Collection sector was the sector that explained the largest increase in the GDP calculation.
Notwithstanding the conflict that has affected the development of several hydroelectric projects, the electricity supply and water collection sector has reported year-on-year increases of more than 4.5% for the 2010-2018 period.
During the first half of the year, countries in the region imported $197 million in electrical cables and wires, and 63% were bought by companies in Nicaragua, Costa Rica and Guatemala.
Figures from the information system of the Market of Wires, Cables and Other Electrical Conductors in Central America, from the Trade Intelligence Area of CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
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.
The Central American countries imported washing machines and their parts for $29 million between January and March 2018, and 70% were bought by companies in Costa Rica, Guatemala and Panama.
Figures from the information system of the Laundry Machines Market and its Parts in Central America, from the Trade Intelligence Area of CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
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.
Due to a group of demonstrators who have taken over the Chixoy hydroelectric facility, there is a risk that in Guatemala electricity service rates will increase by up to 10%.
Since September 25th, a group of people claiming the payment of a complementary compensation has taken over the hydroelectric plant Chixoy, one of the most important in the country, and threatens to set it on fire.
Guatemala exported $10 million worth of electricity to the neighboring country in the first seven months, significantly more than the one million dollars reported in 2017.
Sergio Recinos, Banco de Guatemala president, said to Dca.gob.gt that "... With regard to this activity, greater dynamism is expected in electricity generation associated with the expected increase in external demand from Mexico and the restructuring of the energy matrix'.”
The National Electrification Institute of Guatemala is putting out to tender the supply and commissioning of boards in the auxiliary services distribution system of the Jurún Marinalá plant.
Due to social conflicts and various legal processes, 16 hydroelectric projects have been halted in Guatemala, which together amount to an investment of close to $1.5 billion.
The Association of Generators of Renewable Energy (Ager) reported that power generation projects have been suspended because of conflicts with communities in the zones, consultation processes with indigenous peoples, and orders issued by the Constitutional Court, many of which which have been in response to claims raised by environmental organizations.These projects, for which no light can yet be seen at the end of the tunnel, represent an installed capacity of 460 MW.
In the last ten years the use of renewable energy has doubled in the country, and currently sources of generation of this type represent between 65% and 70% of national consumption.
According to the authorities at the National Electricity Commission (CNEE), the stability that has been achieved in electricity rates and the lower dependence on oil derivatives, is due to the fact that the country is consuming more energy generated through renewable sources.
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