On April 23, 2025, the Guatemala Electric Company (EEGSA), the Distribuidora de Electricidad de Occidente (DEOCSA) and the Distribuidora de Electricidad de Oriente (DEORSA) launched a call for bids and the bidding Terms and Conditions of the Electricity Generation Expansion Plan 5[1] (PEG 5) to contract 1,400 megawatts (MW) of guaranteed power as an efficient firm offer to cover the firm demand and up to 150 MW of installed power.
The contracts[2], which may be for up to 15 years for new plants, and 5-year for existing plants, could begin on May 1, 2030, 2031, 2032 or 2033. The Bidding Terms and Conditions that give the right to participate in the process may be acquired in Guatemala City upon payment of US $20,000.
The demand for energy in Guatemala has increased considerably. Between the three distributors, they meet 68% of the country's demand with almost 255 MW between Distributed Renewable Generator (GDRs) and self-producing users with energy surpluses. The energy to be contracted exceeds the four tenders that were carried out between 2010 and 2022.
All generating agents that are already incorporated as such in Guatemala or that will be incorporated because of the corresponding contract awards and signings may participate in the bidding process.
It is possible to participate through another participant or strategic partner, which must meet technical experience requirements and at least 30% of the economic participation of the group and of the Guatemalan company to be incorporated to sign the contracts.
The plants that can participate and the generation technologies accepted are the following:
- New generation plants (started or will start operations after January 1, 2024) with renewable energies. They will be able to obtain contracts of up to 15 years.
- New non-renewable generation plants, whose sources have low CO2 emission factors equal to or lower than natural gas, ethanol and propane. They will also be able to obtain contracts for up to 15 years.
- Generation plants in operation (those that began operations before January 1, 2024) that offer a change of energy source or make new investments, renewable or non-renewable, may have contracts for up to 15 years. If they do not offer additional investments, the maximum term of the contract will be 5 years.
The maximum power of each generating unit in the plants must not exceed 140 MW
Transmission projects
The Ministry of Energy and Mines (MEM) also announced the bidding process for the Transmission Expansion Plan (PET-3) that seeks to bring energy to all communities in the country and improve the quality of service..
Fourteen new electrical substations and more than 500 kilometers of new power transmission lines will be put out to tender. Investors will have to design, build, commission, and provide maintenance in exchange for a fee. Investments of more than US$200 million are expected for these projects
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