Guatemala is currently at the limit of its ability to meet the demand for electricity which requires the population, according to Alfonso González, director of the Association of Generators with renewable energy. For users to continue using mobile devices, electric vehicles and even artificial intelligence, It is necessary to continue with the energy supply at the same rate that the demand grows. For this reason, this April 23, 2025 The tender for the hiring of electricity that will begin to be supplied from 2030 was launched.
It is a large group of contracts to ensure the generation and transmission of energy. This is the fifth public tender for 1,400 megawatts of the Electricity Generation Expansion Plan (PEG-5), essential to cover the demand for EEGSA and Energuate over the next 15 years. Likewise, the third tender of the expansion plan of the transmission network (PET-3) was launched.
Juan Esteban Sánchez, director of Invest Guatemala, said that the country has a solid energy matrix; However, in the face of increased demand, it is essential to hire greater energy. “We are at the mercy of the failure of a large plant. Just one is enough to have a problem, so that there is crisis”said González, who revealed that the demand for electricity grows around 4% annually.
Carlos Colom, former president of the National Electricity Commission of Guatemala, said that Guatemala is experiencing accelerated growth in energy consumption, which is essential for the economic and social development of the country. In addition, Sanchez warned that while demand exceeds the supply of energy, prices will begin to rise.
What is PEG and PET?
According to Wendy Mena, Investment Promotion Manager in Invest Guatemala, the tender is based on identifying future energy needs based on user demand growthboth commercial and residential. Currently, the PEG-2 and PEG-3 tenders are being concluded, so Mena explained, it is necessary to sign a new contract.
The PEG-5 refers to the electricity generation expansion plan, which to date has had four previous events in recent years, explained Raúl Buscaol, president of the Guatemalan Chamber of Industry (CIG). From these tenders, The construction of new plants that generate the energy that Guatemala is demanding is sought.
On the other hand, the PET refers to the energy transmission expansion plan. The generation of energy, according to Carlos Colom, It does not always occur in the places where it is consumed, so it must be transported.
“The transmission lines are highways that serve to take energy from where it occurs to where it is consumed. It is like a road,” said Colom, who added that generation plants must be efficiently interconnected to the national electrical system to ensure that energy reaches all sectors that require it.
In addition, Colom stressed that not only the transmission lines must be built, but also Electrical substationswhich allow to increase or decrease the voltage of energy to facilitate its transport efficiently.
Why is it important for Guatemalan?
To improve the quality of life of the Guatemalans, Juan Esteban Sánchez cited the Bank of Guatemala, which indicates that three essential foundations are required: institutional and legal certainty, local and foreign investment, and infrastructure. In particular, according to Sánchez, the ability of infrastructure to meet the needs of entrepreneurs, both local and international: “There the issue of energy” is key.
“Installing a generation plant is not done overnight,” said Carlos Colom, who added that about five years are needed to develop, finance it and build it. The tender was carried out in advance, Colom explained, so that in 2030 the energy that will be required at that time can be supplied.
In addition, Colom stressed that this anticipation allows greater competition, which generates market efficiencies and improves prices for the final consumer. These tenders, being long -term, contribute to rates stabilityconfirmed Alfonso González. “In 2026 there is already a rates projection for 2030 and the next 15 years.”
On the other hand, Colom mentioned that PET-3 tenders They are necessary to increase rural electrification. “Actually, if you want to increase access and electrification in rural areas, transmission lines with greater voltage and more substations are also needed,” said Colom, who added that this tender could boost the rural electrification plan in the country.
Why should it be executed in time?
Raúl Busyol said the bidding processes are backward. “We have stated that many years have passed between the third and the fourth tender, and that puts at risk the fulfillment of electrical demand,” he said. As indicated, the PEG-4 had to have been carried out in 2021 or 2022, while the PEG-5 corresponded to the 2023 or 2024 years, especially due to the delays in the processing for obtaining permits and authorizations, he said.
Given these administrative scratches, Alfonso González stressed that the authorities must assume a high commitment to expedite permits. Among the entities involved, he mentioned the Ministry of Energy and Mines, the Ministry of Environment and Natural Resources and the mayors, responsible for granting construction licenses.
Currently, the demand can still be attended, according to González. “This year the demand record was already broken, approaching the 2,200 megawatts, and most likely that from here to May, or end of May, that record will break again.”
For Juan Esteban Sánchez, having the PEG-5 is of national urgency. “The domestic energy demand is leading to, at a given time, the provisions of the supply.” He added that it should be treated urgently to avoid situations such as energy rations.
If the bidding process is delayed, González warned that the installation of plants would also be delayed. This would directly impact the construction deadlines and cause them to enter into operation after 2030.
New forms of energy
According to Alfonso González, there is currently an opportunity that described as “gold.” In Guatemala, he said, around 20 solar energy plants projects are in the process, which, he reiterated, will relieve pressure on the current energy supply limit.
These plants will be installed within 18 months, González reported. They could represent a capacity of more than 300 megawatts.
At present, he explained, hydroelectric plants are those that usually relieve pressure for much of the year. However, he stressed that its operation depends on the start of the winter season.