In Guatemala, the Central American Electric Carrier announced that the works it carries out in sections of the electrical network in Escuintla, Jutiapa, Chiquimula and Santa Rosa, whose global investment reaches $40 million, are about to operate.
Representatives of the company Transportista Eléctrica Centroamericana, S.A. (Trelec), affiliated to Empresa Eléctrica de Guatemala, S.A. (EEGSA), explained that the works that are part of the National Transmission Expansion Plan, such as those executed in the section that goes from Guanagazapa, Escuintla, to Pasaco, Jutiapa, have already been concluded and are in the phase of obtaining permits for connection and start operating.
In Guatemala there is a total of 650 users registered as self-producers of energy made with their own solar panels who upload their surplus to the electricity network.
The state run power company estimated that starting May 2015 the cost of electricity will go down from $165 to $109 MW/h, as a result of its energy diversification.
The entry into force of contracts which were awarded in tender processes using the method of successive rounds will create a reduction of up to $56 MW / h, according to Jorge Alonso, manager of Empresa Eléctrica de Guatemala (EEGSA).
65 companies submitted bids for power generation based on coal, bunker fuel and renewable sources at an average cost of between $112 MW / h and $117 MW / h.
The National Energy Commission is evaluating a second round of bidding for short-term contracts (2014-2017) so that bidders can submit lower prices.
In order for power generating companies to submit bids at lower prices than those offered in the tender a few days ago, the Energy Commission will review the proposals and if it is not satisfied with the prices it will hold a second round.
Prices will be announced on March 20 after which there will be two sealed envelope auctions containing the improved proposals of Energuate and EEGSA.
The bids were led by companies generating using bunker fuel, coal, and others combining coal and biomass, or bunker fuel and biomass, hydropower stations also had their space.
On March 5, bids will be received in the tender of 560 MW needed by distributors in order to meet demand from May 2014 to April 2017.
On March 5 bids will be received for the tender for short-term energy in the amount of 560 MW for Energuate and Empresa Electrica de Guatemala (EEGSA) so that it can meet demand from May 2014 to April 2017. Some 11 companies have acquired the bidding rules.
An evaluation is being made on whether to raise from 250 MW to 400 MW the PG3 tender in order to compensate for the delay in the project by Jaguar Energy, projected to be 600 MW for this year.
The Ministry of Energy and Mines and the National Electric Energy Commission are looking at increasing the energy in the PEG 3 tender from 250 MW to 400 MW. The contest will take place between April and June.
Delays in the construction of 45 power plants which have already been awarded are mainly due to social issues and permits.
According to Edwin Rodas, Deputy Minister of Energy, 40% of these projects have been delayed because of financial issues, social problems and lack of permits for easements. Starting May 2015 these plants will have to supply power to Energuate and Empresa Electrica de Guatemala SA (EEGSA).
For the first quarter of 2014 the Center for International Investment Arbitration could issue a ruling on the suit brought against the Guatemalan State.
This was explained by Silvia Alvarado, director of the National Energy Commission (CNEE).
More than 45 power plants which are being built with an investment of more than $1.1 million face social, technical and financing problems.
Prensalibre.com reports: "The works are part of the tenders in the Generation Expansion Plan made in 2010 and 2012 for long-term contracts, which seek to ensure the supply of energy for Empresa Eléctrica de Guatemala (EEGSA) and Energuate ... ".
With the entry of new players in power generation and use of clean energy sources, electricity prices could fall by between 25% to 30% over the next two years.
An article in Elperiodico.com.gt reports that "...Among the new technologies being utilised in the energy matrix are natural gas, wind and solar power. Among the contracts awarded in tenders in the Expansion Plan Generation (PEG by its initials in Spanish), the most sensitive changes are in the allocation of 120 megawatts (MW) of natural gas, a plant that can be used as a basis, said Edwin Rodas, vice minister of Energy. "
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