Tenders for Generation (PEG-5) and Transmission of Electric Energy in Guatemala

Guatemala is preparing to launch the upcoming PEG-5 bidding process, designed to add over 1,000 MW of installed capacity, with a strong focus on renewable technologies such as solar, wind, hydroelectric, and geothermal energy.

This process, set to be announced soon, will include 15-year contracts for new power plants and 5-year contracts for existing facilities, aligning with the country’s sustainability goals and emissions reduction commitments. Additionally, fiscal incentives for clean energy and electric mobility will further enhance the investment climate.

Guatemala stands out for its macroeconomic stability, a robust regulatory framework, and the most extensive energy network in Central America, with 5,072 km of transmission lines and ongoing expansion of its distribution infrastructure. In recent years, energy demand has grown at an annual rate of 3.5%, while renewable generation has reached 66%, underscoring its role as a key pillar of sustainable development.

The PEG-5 bidding process will also include upgrades to transmission networks, adding 508 km of new lines and increasing capacity by 6%, along with the integration of energy storage technologies. These initiatives reflect Guatemala’s commitment to modernizing its energy sector and attracting private investment for sustainable growth.