WSHPDR_2013_Final_Report-updated_version

2.2.4 Guatemala
Lina Saldarriaga, Pan American Hydro, United States of
America
Key facts
Population 14,099,032 1
Area 108,889 km 2
Climate Tropical; hot, humid in lowlands;
cooler in highlands 1
Topography
Rain pattern
Mostly mountains with narrow
coastal plains and rolling limestone
plateau (highest point: Volcán
Tajamulco, 4,211 m) 1
Average annual rainfall varies
between 900 mm and 3,000 mm,
depending on the region. 2 Rainy
season from May to November
Electricity sector overview
The electricity generation capacity (2011) was 2,510
MW. Hydropower currently provides 50 per cent of
Guatemala’s electricity generation (figure 1), and its
share is expected to grow significantly in the next
decade. Nineteen large and small hydropower plants
are in operation with a total installed capacity of 891
MW. 3
Due to the steady growth of energy demand of nearly
five per cent per year, Guatemala foresees the need to
add an additional 2,000 MW to its current 2,510 MW
capacity (2011). Poor grid infrastructure results in
transmission and distribution losses of approximately
five per cent of the electricity generation. 4
Gas turbines 0.1%
Geothermal 3.1%
Electricity imports 4.4%
Cogeneration
11.8%
Steam turbines
12.6%
Reciprocating
22.5%
Hydropower
45.5%
0% 10% 20% 30% 40% 50%
Figure 1 Electricity generation in Guatemala
Source: Administrador del Mercado Mayorista
Guatemala 4
The Sistema de Interconexión Eléctrica de los Países de
América Central (SIEPAC, or Central American
Electrical Interconnection System) line, which is
scheduled to be completed by 2014, will aid in the
consolidation of the Regional Electrical Market (MER)
and increase the security of supply. This is likely to
reduce electricity and transmission costs in general
throughout Central America, by facilitating a shift
towards renewable resources. This will also allow for
the convergence of supply and demand of energy
throughout the area. The Mexico-Guatemala
interconnection line has allowed energy imports from
Mexico since early 2010.
In 1996 the General Law of Electricity was enacted,
establishing the freedom to produce electricity. The
law allows free production, as well as private
transportation and distribution of electricity, without
authorization from the state. Authorization is required
only if the use of goods from public domain is involved.
The prices for the use of electrical services are subject
to authorization as well. The transfer of energy
between generators, traders, importers and exporters,
which result from the operation of a wholesale market,
are subject to the terms and conditions of the law.
Small hydropower sector overview and potential
Guatemala possesses a technically usable hydropower
potential of about 5,000 MW, of which 13.5 per cent is
currently being utilized. The specific small hydropower
potential has not been identified. However, six small
hydropower plants are under construction in
Guatemala totalling 35.6 MW, with individual installed
capacities ranging from 2 MW to 10 MW.
SHP installed
capacity
SHP potential
35.6 MW
62.7 MW
0 25 50 75
Figure 2 Small hydropower capacities in Guatemala
Two additional sites are in the pipeline, with individual
installed capacities of 7 MW and 10 MW, having
received authorization and included in Guatemala’s
Energy Expansion Plan 2010-2015. 5 Hidro Izabal (10
MW) is a third small hydropower site in the pipeline,
which, despite being included in the Energy Expansion
Plan 2008-2022, has neither received authorization
nor has started construction yet (operation was
planned to commence in 2012). Once these projects
are finalized, Guatemala will have an installed small
hydropower capacity of 62.6 MW (figure 3).
The small hydro value chain is significantly developed
offering investors services in civil works, engineering,
operations and maintenance, power purchase and
matters concerning turbines. 6
Renewable energy policy
In November 2003, the Guatemalan Government
decreed the law 52-2003 Incentive Law for Renewable
Energy Projects Development for establishment of
fiscal, financial and administrative incentive measures.
It declares the urgent need to ensure rational
development of renewable energies, instructing the
Ministry of Energy and Mines to harness these
resources and award incentives (exemptions from
customs tariff and value-added tax during the
construction stage, and income tax during the first 10
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