In the first three months of 2019, 14 environmental impact studies were presented in the countries of the region to perform work on electricity grids and develop power generation plants.
The interactive platform "Construction in Central America", compiled by the Trade Intelligence Unit at CentralAmericaData, includes an up to date list of public and private construction projects for which environmental impact studies (EIA) were submitted to the respective institutions of each country.
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.
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'.”
In 2017, electric energy exports totaled $103 million, 104% more than was sold in 2017, reversing the falls registered in the two previous years.
According to figures from the Banco de Guatemala, over the past year the country sold abroad a monthly average $8.5 million worth of electricity, with the Central American region being the main destination market.
In 2016, the average cost of 1 kWh in Central America was 13.48 cents, while in Costa Rica, it was 18.47 cents.
A report from the CEPAL indicates that in 2016, the average cost of one kilowatt hour (kWh) in Central America was 13.48 cents, while in Costa Rica it was 18.47 cents; 37% more for industrial consumption of 100,000 kWh.In El Salvador and Guatemala, it was 11.03 and 11.54 cents respectively. In Panama, 10.92 cents.
73% of the energy generated during July came from renewable sources, of which 66% corresponded to energy from hydroelectric plants.
From a report by Agexport entitled "Energy Monitor - August 2017":
Historical Average Monthly Spot Price (US $/KWh) The behavior of the SPOT Price for the month of July was the lowest so far in 2017, standing at 45.08 USD / kWh. This represents a decrease of 28% in relation to the year 2016. According to historical behavior, during the months of July, due to climatic and generation conditions, the monthly price has always been very close to or above the annual average.
It has been estimated that $200 million need to be invested in Central American countries to strengthen the transmission capacity of the regional electricity market.
A study prepared at the request of the Wholesale Market Manager of Guatemala (AMM) details that for the regional market to operate in a comprehensive way, countries must invest more in order to improve transmission capacity.According to Edgar Navarro, president of the AMM, this investment should be concentrated in Nicaragua, Honduras, El Salvador and Costa Rica.
For the third time, the contractor in charge of the Transmission Expansion Plan in Guatemala, will not meet the deadline to finalize the works.
The amount of progress on the Electric Expansion Plan (PET), whose contract was awarded to the Colombian company Trecsa more than seven years ago, is only 66%.The project was supposed to have been be ready and in operation since 2013, but the company contracted asked the governments in office at the time for two extensions - in 2013 and 2015.
The Quetzal Port Company is putting out to tender a supply of electricity and power with its respective connections, repairs and maintenance.
Guatemala Government Purchase 6380352:
"The point of delivery of electricity and power will be made in the busbars of the 69 KV substation owned by the EPQ located inside the port area.
A new electric meter must be installed, which must be approved by the Wholesale Market Manager and comply with the minimum standards of the commercial metering system set for this type of voltage.
In the month of July nine companies received commercial authorization as Large Users in the Wholesale Market.
From a Bulletin by the Wholesale Market Authority:
During the month of July, authorization was granted to Mercado Mayorista la Unidad 1 del Proyecto HidroXacbal Delta, with an installed capacity of 29.22MW, and to Generador Distribuido Renovable Hidroeléctrica Cutzán with an installed capacity of 1.95MW.
In May, 56% of energy came from renewable sources, of which 72% was from hydroelectric power.
From the Energy Monitor June 2017, by Agexport: Historical Average Monthly Spot Price (US $ / KWh) The behavior of the SPOT Price for the month of May varied with respect to the previous 4 months in 2017, since at the moment it is the lowest that has been reached in the year, standing at 59.52 USD / kWh.This represents a decrease of 8% in relation to the year 2016. According to historical behavior, during the months of May, due to climatic and generation conditions, the monthly price has always been higher than the annual average.
The private sector demands more actions from the government to solve the problem of restrictions on the sale of energy in the regional network, imposed by the Regional Operator.
Since October and to date the Regional Operator Entity (EOR) of the Siepac has disconnected Guatemala from the regional network on several occasions, preventing local generators from exporting their surplus to other countries in the region.
AES and Engie have agreed to create a joint venture to market and sell liquefied natural gas to third parties in Central America.
The new company will use infrastructure of the Costa Norte LNG Terminal, which is currently under construction in Colón, Panama, owned 50/50 by AES and Inversiones Bahia.
The total capacity of Costa Norte LNG Terminal is approximately 1.5 million metric tons per year (mtpa), of which 25% will go to AES Colón's 380 MW combined cycle plant (CCGT), currently under construction at the same site.
In the past year 440.5 MW were installed, of which 60% correspond to hydroelectric plants and the remaining 40% to thermal plants.
From the "2016 Statistical Report on the electricity subsector", by the Ministry of Energy and Mines:
In 2016, there was an increase in Guatemala's generation park with the entry into operation of several plants and hydroelectric generation plants, as well as cogeneration plants using biomass and coal.
Seven new companies received business licenses as heavy users of the wholesale market in March.
From a Bulletin by the Wholesale Market Authority:
In March commercial ratings were processed and finalized for Renewable Distributed Generators (GDRs by their initials in Spanish) with solar technology, for Granja Solar La Avellana, Granja Solar El Jobo, Granja Solar Pedro de Alvarado each with an installed capacity of 1,000 MW, and Granja Solar Taxisco with an installed capacity of 1,500 MW. Also enabled were the following GDRs with hydraulic technology: Proyecto Hidroeléctrio El Salto - Marinalá with 5,000 MW of installed capacity, Pequeña Hidroeléctrica Xolhuitz with 2,300 MW of installed capacity and Hidroeléctrica Carmen Amalia with 0.686 MW of capacity.