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.
In El Salvador, at least 16 companies have registered as bidders in the tender for 28 MW of non-conventional renewable energy, for distributed solar generation and generation using biogas.
Without giving more details about the interested companies, it was reported that more than 16 investors have registered as bidders for technical and financial projects for alternative energy generation.
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.
In Panama a project is being developed that aims to promote the use of water heaters that use solar energy, through means of international and national financing.
Local authorities reported that in order to carry out the project, the Global Environment Fund will contribute $1.9 million, and the Ministry of Environment, Panama Green Building Council, the Technological University of Panama, the UN and the General Bank will disburse another $8.1 million.
In the first six months of the year, electricity consumption in Panama reported an increase of 3.2% compared to the same period in the previous year.
According to figures from the Office of the Comptroller General of the Republic, between the first half of 2017 and the same period in 2018, the country reported an increase in electricityconsumption, rising from 5,200,849 thousand Kwh to 5,366,318 thousand Kwh.
The union for the sector stated that in the next months 180 MW of wind energy and 58 MW of solar energy will become part of the country's energy matrix.
Representatives from the Dominican Electrical Industry Association (ADIE) announced that in the remainder of 2018 five projects, representing an investment of around $500 million, will start operating.
In Panama, the 18 photovoltaic generation plants that together have an installed capacity of 143 MW, are still waiting for the government to grant new contracts.
According to statistics from the National Energy Secretariat, last year the country had an installed generation capacity of 3,423 MW, of which 4% corresponded to solar energy parks.
In the Dominican Republic it has been reported that future renewable energy generation projects will be decided on by the government and then put out to tender.
Concessions for renewable energy generation projects will be carried out by means of a tender, gradually moving away from using power purchase agreements (PPA), said the Ministry of Energy and Mines (Mem).
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.
Panamanian authorities have declared the deadline passed for Panama NG Power to present evidence of economic backing for the construction of the 670 MW natural gas plant.
During the first four months of the year, 64% of electricity was generated from hydraulic sources, 21% from thermal, 10% from wind, 2% from solar and 2% was from self-generation.
According to the most recent figures from the Comptroller General of Panama, in April 2018, 908 million kwh were generated, equivalent to an increase of 3.3% compared to the 879 million supplied in the same month in 2017.
In El Salvador, 28 MW of non-conventional renewable solar and biogas-based energy for distributed generation will be put out to tender, and the presentation of offers is scheduled for December.
The Salvadoran government reported that "...The total power to be tendered is 28 Megawatts, of which 20 Megawatts correspond to solar photovoltaic and 8 Megawatts to Biogas, the winners will be hired for a period of 15 years and are expected to start operations from the year 2020 and 2021 respectively."
Due to the controversy that has arisen, the ASEP has decided to exclude from the discussion of adjustments to the Tariff Regime the proposal to tax the use of solar panels for self-consumption purposes.
Although the imposition of a fee for the use of solar panels for self-consumption purposes has been removed from the discussion, the Public Services Authority (Asep) stated that the 60-day deadline to receive comments on the subject is still valid.
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