After Holy Week, at the end of April or at the beginning of May, it is planned to launch the tender for 1,400 megawatts (MW), this process aims to hire the greatest amount of electricity that has been carried out in Guatemala to cover the demand of the distributors and where 50% would be with gas.
The Minister of Energy and Mines, Víctor Hugo Ventura, indicated that they plan to publish after Holy Week the call for tender and the bases for the event, so it is estimated that this event may mean investments of around US $ 2,500 to US $ 3 billion. “It is the most important investment tender in the history of the electricity sector.”
This is the fifth tender for long-term contracts of up to 15 years that will require electricity to meet the demand for the distributors of Guatemala, SA (EEGSA) and Energuate (Deocsa and Deorsa) from 2030, and as part of the Generation Expansion Plan (PEG), known as PEG-5.
Additional The tender is being prepared to expand the electricity transmission network in the country. If investment estimates are added to generation and transmission, plus those that will be made in distribution, an amount is estimated between US $ 3,500 million and US $ 4 billion.
Ventura’s information and statements were given within the framework of their participation in the Energy, Environmental and Cultural Development Forum in Guatemala, organized by the Foundation for the Development of Guatemala (Fundesa).
Bases refine
Currently the EEGSA, Deocsa and Deorsa distributors are working on the construction of the bidding bases and plan to deliver the document during this March, said Daniel Carías, head of the EGSA electricity market transactions unit.
Regarding the schedule, the tender between the end of April and the beginning of May 2025 is planned, he added.
The process is intended to culminate with the award of contracts in March or April 2026.
Regarding the quotas per resource of generation, the details are still refining, which will be reflected in the bases, Carías replied through the communication office of said company.
Provide stability
Ventura said that the requirement will be made based on the demand profile of each distributor, but the idea is to strengthen the generation of firm power in the energy matrix, the existing contracts and the deadlines they have are also being taken into account. Also, the one that has to do with prospecting regarding the need for different types of energy.
For new generation plants, the award will be for 15 years and for existing for up to five consecutive years, new plants and in operation may also participate, and all types of renewable resources including storage systems, as well as non -renewable resources, case in which the condition is added that its CO2 emission must be lower than that of natural gas, adds the resolution of the entity, according to the MEM.
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Ventura explained that in the Guatemalan electricity system firm energy that conventional renewable energies (such as hydroelectric plant without reservoir) or wind and wind can not provide.
Based on this, the structure or distribution of the resources tender is created and it is estimated that it will be between 600 to 700 MW of firm energy with fuels of low ecological footprint and low emissions that would have to point to fuels such as natural gas that would be the important bulk in production, the minister added.
That is, the new thermal where natural gas would be included will represent 50% of the total to tender.
While the other 50% would be made up of existing thermal plants and new generation plants with renewable resources such as wind and solar energy as well as geothermal which is a great resource, but also has its own difficulties.
It would lower prices
A consideration of the official hiring with generation resources as it is expected to launch the event will also help lower the price of the electricity rate because it is sought to be more technologically efficient energy.
For example, it can be with combined cycles or other natural gas technologies with which 60%efficiencies would be had, while a conventional thermoelectric plant is 35%, and from there “it is derived than better efficiency better price,” he said.
They will import gas
The fuel would be mostly imported since in the country there is little production that could be destined for Petén. There is no certified discovery of great natural gas production in the country that can be a national solution, but it should be taken into account that in the regional fuel market (in America) there is a surplus of gaseous fuels so Guatemala can take advantage of it, Ventura explained.
He added that investments in importing infrastructure and logistics will be required, for example, for the regasification of that fuel, the storage if it were the case can be an inside or on the mainland, so the investments will be large and are only viable with long -term contracts, in this case of 15 years. Consider that the deadlines will help because new plants must start operating in 2030.
In addition, by the end of the year it is expected to have a new energy policy that will possibly include innovations such as energy storage for solar plants and natural gas generation technology that would help to have a lower greenhouse gas emission factor.
Regarding how the new energy generation matrix would be formed, the minister said that old centrals for obsolescence and high operating costs will have to leave, an aspect like that has already happened when there was excess offer years ago and many agents dismantled their generation plants or transferred some assets to other countries, which could happen again in the following years.
In the case of the energy cogeneradores sector with biomass, such as sugar mills, it is still a very active actor and will surely continue to offer, he added.
Ager advocates for more renewable generation
Consulted with respect to the structure or fees of generation resources that could be required in the tender PEG 5, Rudolf Jacobs, president of the Association of Generators with Renewable Energy (AGER), considers that a portion of natural gas that would have to be of flexible technology would have to be complemented with the renewable technologies and avoid the waste of the renewables, because if it were inflected, the solar energies would be wasteful and wind, which would be complemented.
The second aspect is that in this tender the distributors will seek to fill a base block (the first to call themselves to generate all the time), and according to the terms of reference they want that block to be filled by natural gas technology. However, as ager believe that it is necessary that in that segment the hydroelectric plants that have the generating plants that have batteries such as wind or sun, and geothermal can also compete. In this case, there are several current hydroelectric plants that should be able to compete in that segment.
All the rest, that is, the other 700 MW, Jacobs said that it is very important that it is renewable with a combination of existing and new generating plants, so investment in lots, wind, geothermal and hydroelectric. In this case, the ager does not include existing thermal as the minister mentioned, according to the proposal made by the entity so that the energy matrix can create energy supply security, stable rates and competitiveness for the country in the long term.
If the goal of 80% renewable energy in the future is achieved, it is important that the necessary minimum fossil fuels be awarded.
Oil and other reserves
In the hydrocarbons sector, Ventura said that an important cycle is closing in oil production, since, next August he will overcome the largest oil extraction contract that Guatemala has had, so there is now a job to do for closing, including the recovery of the Laguna del Tigre reserve, which is being discussed.
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According to the statistical data of the MEM, it is the XAN field by the Pereco company. The current legislation does not allow another extension of the contracts, and in Congress a law initiative did not prosper with which the contracts whose deadlines come could be extended by the President of the Republic in the Council of Ministers.
You will also follow up on the issue of the future of the reserves that Guatemala has, since there are indications of the existence of important natural gas reserves, and would begin to take advantage of this year for the generation of around 60 MW in Petén. The official said that this can be the way for new oil investments for which a strategy will be discussed to promote them.
In addition, Guatemala has the pipeline whose concession contract ends in 2042, but there is concern because if no one uses it (when the largest oil production contract is expired), the worst scenario is that it was invaded and dismantled, but considers that the government must maintain it, so it is being worked on an inter -institutional commission for the issue of these assets.
Mining
In mining, the official explained that there are important resources but that the great challenge is to modernize mining legislation in the short term for which they work with the aim of transparent the mining sector, so they expect Guatemala to return to the EITI system (transparency initiative of the extractive industries). The intention is to change the image of a sector that can be important for Guatemala, he said.
The Community consultation process for Campo El Escobal continues, while in the case of Mayaniquel, with the Sechol field, it maintains its demand for international arbitration, he added.