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235 megawatts will be tendered to supply electricity distributors operating in the country under long-term contracts.


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    The volume determined is 235 megawatts that must be available as of May 1, 2026, in contracts of up to 15 years, informed the president of the National Electric Energy Commission (CNEE), Luis Ortiz.

    It will be the fourth event of the Generation Expansion Plan (called PEG-4-2022) that seeks to establish long-term contracts and will serve to meet the demand of Empresa El├ęctrica de Guatemala, S. A. (EEGSA) and Energuate's two distribution companies (Deocsa and Deorsa).

    The open bidding process has not yet been officially called by the distributors and the deadline for such call is August 9, 2022, although they are seeking to launch it before that date, the official added.

    It is designed to incorporate new generation projects with clean energies, which are hydroelectric, wind, solar, biomass, geothermal and natural gas, and it is also planned that existing plants in Guatemala will participate for the first 4-year period.

    Contracting quotas

    For this event, contracting quota objectives were established for renewable and non-renewable resources. With the former, a minimum of 50% of the total required through new generation plants was established. This means that a minimum of 117.5 MW must be contracted with renewable resources, subject to the existence of competitive conditions. But it can go up to 100%.

    Meanwhile, with non-renewable resources, the maximum to be awarded will be 50% with new generation plants, unless for any reason the quota cannot be filled with renewable resources.

    According to the schedule included in the bidding conditions approved by the CNEE, the award would be in January 2023 and the signing of the contract, up to three months after the award.

    This document establishes that the start of supply dates for the new generation plants are May 1, 2026, 2027 or 2028.

    In 2021 the CNEE approved the terms of reference, but on that occasion it was for 400 megawatts, however that same year it suspended the authorization. The then directors of the Commission indicated that it was due to the conditions generated by the pandemic, which would not allow competition.

    Now, Ortiz indicated, the amount of 235 MW approved for the bidding was adjusted to what was required by the distributors to cover their demand with projections to 2030.

    Both Ortiz and the former president of CNEE, Carlos Colom, and the current Minister of Energy, Alberto Pimentel, agreed that it is necessary to attract more investment to continue diversifying the energy matrix and meet the demand because the long-term contracts awarded from 2008 to 2013 will begin to expire. Colom added that it is necessary to constantly incorporate plants with more efficient technology.

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