Nuevos paradigmas en energía para Centroamérica - Carrillo & Asociados

New energy paradigms for Central America

Bulletin #155

On August 23 to 25 we participated in the Regional Energy Congress (Coren) 2023, held in El Salvador.

We spoke with international experts and local authorities about the region's energy outlook, the future of the electricity market, new investment and financing developments in the energy transition, the role of technology and the future of the carbon offset market.

Among the main projects that were discussed, we highlight the following:

A US$1 billion investment in a natural gas plant in El Salvador, with capacities to generate 380 MW.
The implementation of storage technologies, through batteries, to have energy injection availability during peak hours.
The recent award of highly competitive power and energy supply contracts in the PEG4 tender in Guatemala. This tender sought to cover 235MW and bids were received for more than 1500 MW.

Guatemala is an attractive market in the region given the high potential for solar, geothermal, and even natural gas generation.

Central American countries have great opportunities in the field of renewable energies, in the development of different generation technologies, in storage capacity and in electric mobility. In addition, they have a great opportunity to raise awareness among large productive industries to generate energy needs in the heavy land, maritime and air transport sector, to use geothermal energy in industrial applications, and to generate greater regional exchange and the development of the carbon offset market. Furthermore, to generate the basis for the future production of green hydrogen in the region.

It is important to continue educating and encouraging the market, industry and authorities about the relevance and benefits of these sources of energy generation, as well as the opportunities, and to complement this with state policies, tax incentives and legal adaptations that encourage investment in the region and the energy transition.

Respect for the environment generates many economic opportunities and we can all contribute to this.

[1] https://www.energiaestrategica.com/guatemala-recibio-ofertas-por-mas-de-1000-mw-en-su-licitacion-de-largo-plazo/

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