With the bid for the hiring of the largest electricity generation that the country has launched, known as PEG 5, positive expectations have emerged, but also questions. In both cases, they derive not only by volume, but by technologies and resources to generate that the possibility of integrating a high volume of natural gas could be hired.
The objective is to supply for a maximum of 15 years to the distributors of Guatemala electricity (EEGSA) and Energuate (Electricity Distributor of the West, SA -deocsa- and Electricity distributor of the East, SA -deorsa-), which together compose 68% of the regulated demand in the country, according to data from the sector.
Of the volume that is being tendered, there are 1,400 megawatts of guaranteed power and 150 megawatts of installed powerexplained Dimas Carranza, a member of the Distributor Board of Distributors by Energuate.
In the first figure mentioned, it is expected that 700 megawatts are for base generation (which operates 24 hours a year) and is pointing out to be with natural gas. Some of the requirements are efficiency issues in the generation and low levels of gas emission regarding other technologies. Based on this, according to the country’s energy authorities, such as the Minister of Energy, Víctor Hugo Ventura, those 700 MW, or even more, would be with natural gas.
Carranza explained that this segment can be up to 700 MW of new plants, with emissions not superior to natural gas, ethane or propane. What is being requested are more friendly technologies with the environment for the generation base, because for renewable technologies it would be very complex to think that they can be covered, due to the characteristics of the resource, to have them 24 hours a day, 365 days a year. However, that characteristic does have fuels such as natural gas, ethane or propane gas.
While the other 700 megawatts (or whatever submits) will be complementary generation, where other resources can be integrated. In this case, they can be generation centrals with existing technologies, but that can be combined with other resources, including renewables.
Meanwhile, the 150 MW segment is related to renewable centrals that, due to their characteristics, cannot guarantee power, such as solar, wind or biomass.
Is it convenient to hire gas at this commercial war situation?
One of the doubts that currently arise is the convenience of hiring high volumes of generation with natural gas in the context of a commercial war in the United States with other countries, since Guatemala does not currently produce a sufficient amount for it and would begin to depend on imports.
At present, the installed generation capacity of effective power to March 2025 is 3,620.7 megawatts, of which 15.10 MW are generated with natural gas, according to AMM data. With a long -term contract, the Caribbean Energy Plant provides Guatemala for electricity produced from natural gas from the United States, while the plant is located in Mexico and the country is imported into the country.
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Asked the Minister of Energy and Mines about the expectation of participation and results of the PEG 5 tender, he commented that it is the key to the energy transition, with which it is planned to award around 700 MW of low -emissions base energy and leave the rest open to proposals of any type of renewable energy.
Regarding that this volume is generation with natural gas that would have to be imported to the country, and the possible conjunctural impact of the commercial war, Ventura considers that this resource is a good option, considering that it is a flexible fuel that provides firm energy, which offers a good combination of efficiency, lower environmental impact compared to other fossils and operational flexibility. He adds that it is ideal as support for renewable energies, since it can quickly come into operation, and would correspond to a geographical advantage that the country has with Mexico.
However, the official explained that importing that gas and other processes with that fuel require investment in infrastructure that does not exist in the country. For example, the regasification infrastructure of that gas and storage, apart from the generation plant. Ventura recently responded to Press Free that this investment must be made by the company that is awarded as part of its generation project.
Carranza explained that there are two possibilities: one is that the income is for the Atlantic or by the Pacific, or by both. In that case, new facilities will also have to be able to receive this fuel. There is also the possibility of having floating or land storage, and that requires a very large investment, explains Ventura. “Then, additionally, who wins the (award of the) offer will have to do all financial operations, which have been built for some time.” However, he considers that it is in time to enter to supply from 2030.
Consulted Carranza on the convenience or not to hire a high volume of generation with natural gas, taking into account the current situation of uncertainty and price volatility in the markets, derived from the decisions of the president of the United States, the member of the Bidding Board responded that it is convenient for the opportunities that are currently.
The investments of the two tenders, PEG 5 and PET 3, can exceed US $ 5 billion, said Mario Naranjo, general manager of EEGSA, while Paulo Parra, general manager of Deocsa and Deorsa, expressed the good conditions that the country has to invest @prensa_libre pic.twitter.com/gyfnbregy
– Rosa María Bolaños (@Rollanos_PL) April 23, 2025
He explained that the United States is at a very important stage of investments in drilling and natural gas exploitation, which could have surpluses to export, and that they can be used in countries such as Guatemala. He added that there are also other supplier markets such as Trinidad and Tobago and part of South America, but it will be the bidders who must analyze them, seek competitiveness and be awarded in the bidding process.
In addition, Alfonso González, president of the Association of Renewable Energy Generators (AGER), indicated that they will enter the analysis stage of the bidding bases to identify the challenges and opportunities that the renewable energy has. However, he said that it is very important that these bases allow the increase in the installation of renewable plants that give certainty to the price of the rate in the long term and environmental sustainability to the country, thus reducing the dependence of fossil fuels.
The desire is that these bidding processes are very oriented towards independence, that is, to the greater extent it is achieved that the country does not depend on importing fuels or electricity. Therefore, it is expected that renewable electricity generation may be included, González said.
Asked about what type of resources they should be hired, the ager manager commented that renewables should be taken into account, and that, in the case of natural gas, he considers that they could be about 400 MW that serve as a transition process while developing the local potential that is of natural resources, which are only used in a minimum. In the case of geothermia, a serious plan should be had to become part of the base plants, since the characteristics of technology allow it.
“When talking about 700 MW for natural gas, we are concerned about the commitment that the country assumes, in some way or another, in the purchase of those fossil fuels that we do not produce.”
He added that some estimates report that the cost of generation with natural gas is higher, compared to other resources such as natural.
Another aspect is the situation with the arrival of the new United States government, which is focused on strengthening industrially, which is the requirement of internal electricity in that country will increase, which could vary the fuel available for export, it was added.
“Then, we as a country close to the United States, that we depend on the production and availability of gas, we are at risk that there is not the supply at some time or that the price is very expected,” Gonzalez said.