The sustained fall in oil prices has led to record lows on the price paid by Guatemalan wholesalers for energy in the spot market.
The spot price paid by wholesalers in December went down by 12.5% compared to what was paid in the same month in 2014, totaling $41.55 per MW. According to the National Energy Commission (CNEE) and the Wholesale Market Administrator (AMM), it is the lowest amount paid in the last six years.
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.
This not only affects the attraction of investments, but also the potential for banks to finance the projects, because they also need to rely on feasibility analysis for their decision making.
The Minister of Energy and Mines, Romero Rodriguez, confirmed to Emisoras Unidas his resignation from his post.
In an interview with the former minister, he expressed his disagreement with Congress questioning him.
Rodriguez described the interrogation as "a waste of time when they have no specific purpose" and said that during his tenure he came to the Legislative Palace 50 times for different explanations," noted an article in Emisoras Unidas.
The CNEE presented to businessmen and investors the bidding rules and the process for the tender of power plants generating 800 MW.
During the presentation, participating companies have asked the government for guarantees to develop and operate the projects. Recent sabotage of electricity infrastructure and social conflicts discourage investors.
The National Energy Commission (CNEE) expects to receive bids on October 28.
The start of operations of four generation plants during the first quarter of 2011 will add 190 MW to the electrical system.
This will be a result of a $410 million investment in the construction of four plants (one coal-based and three hydroelectric).
Romeo Rodriguez, Minister of Energy and Mines, explained that the first to start operations will be the one by Duke Energy Company, which will add 84 MW to the system.
The country's attorney general has ordered all activity to cease while complaints are investigated.
The order to suspend mining activity, directed at the Guatemalan Ministry of Energy and Mines (MEM), is a response to the precautionary measure issued by the Inter-American Commission on Human Rights (IAHCR).
Elperiodico.com.gt reports that, "Last May, IAHCR ordered the Guatemalan state to suspend the mine's work and requested information on the level of soil, air and water contamination".
The renewal of the concession to Perenco was in doubt and Germany had offered to create a compensation fund to substitute it.
The contract, number 2-85, represents almost 98% of Guatemalan oil production and is unpopular among environmentalists. The extraction operations take place within the area of the Maya Biosphere Reserve, world renowned for its unique qualities and biological diversity.
A record energy demand of 1.457MW was recorded on December 9.
The previous peak was registered on December 6th, 2007, when energy demand rose to 1.443MW.
Romeo Rodríguez, Energy vice minister, "... considers this as evidence of economic recovery. The country is capable of generating up to 1.600MW, according to data from the Energy Ministry".
This electrical interconnection system is expected to operate at full capacity by the end of October.
Testing will last three weeks, beginning next Friday.
"...the first phase will take two days, and comprises the interconnection between Mexico and Guatemala, while the energy systems of the rest of Central America will be synchronized; El Salvador, Honduras, Nicaragua, Costa Rica and Panama", explained Romeo Rodríguez, vice minister of Energy and Mines.
One hundred and fifteen textile plants in Guatemala are negotiating to buy electricity directly from power generators.
Buying electricity in direct form for textile companies will allow a significant savings in production costs, thus increasing sector competitiveness with the rest of the world.
According to Prensalibre.com, Deputy Minister of Energy and Mines, Romeo Rodríguez, said that "there are several companies that have direct contracts with generators to buy power in bulk."
The feasibility study is in its initial phase, perforating wells in order to determine the temperature of the water and the potential of the source.
Fernando Quiñonez writes in Sigloxxi.com: "Taking advantage of the fact that the mining project in the village of Cerro Blanco, in Asunción Mita, Jutiapa, is very close to a geothermal source, the company Gold Corp.
The National Institute of Electricity in Guatemala (INDE) is in preliminary talks with the Federal Electricity Commission of Mexico (CFE) to carry out the study.
Alberto Cohen, president of INDE, said that the institute is not willing to let the construction of the Xalala hydroelectric project just die, and explained that CFE delegates came at the start of December, and visited the area between Alta Verapaz and Quiche where the plant will be built, in order to budget the investment funds for the study. This could be between $5 and $10, said the official.
Romeo Rodriguez, vice minister of Energy, said that the interconnection with Mexico is schedule to come online starting in March 2009.
The construction of the electric interconnection with Mexico is moving at a rate of 22 kilometers per week, and the National Electrification Institute (INDE) expects that the 71 kilometers of the network will be completed by early January.
The National Electric Energy Commission established that in the next few years 38 transmission lines are urgently needed to be built.
The message to investors about which projects in the country's electricity network are priority was published by the National Electric Energy Commission in resolution 189-2008 which establishes which of the current and future lines and substations make up the Main System, Carlos Colom, president of the entity, reported.