Empresa Eléctrica de Guatemala, S.A. (EEGSA), along with Distribuidora de Electricidad de Oriente, S.A. (Deorsa) and Distribuidora de Electricidad de Occidente, S.A. (Deocsa), has announced the launch of PEG-5-2025, described as the largest electricity generation tender in Guatemala’s history. The process is supported by the Comisión Nacional de Energía Eléctrica (CNEE).
The tender seeks up to 1,400 MW of guaranteed power and associated energy supply starting in 2030 for a period of up to 15 years. The initiative follows CNEE resolution number 270-2024 from October 30, 2024, which approved the Terms of Reference (TDR) forming the basis for this process.
According to the TDR, “the objective is the contracting of the total requirement of power and electric energy that guarantees coverage of Firm Demand for distributors for final distribution service.” The TDR also defines two energy curves: a base block to be supplied at all hours throughout the contract period and a complementary block covering additional requirements.
These technical criteria are expected to influence technology selection in the bidding process. Both new renewable plants and low-emission non-renewable technologies will be considered, as well as existing generation facilities or combinations with new renewable sources.
The tender offers four possible supply start dates: May 1st of 2030, 2031, 2032, or 2033.
One challenge highlighted is that Guatemala’s interconnected transmission system has not been updated in over eight years. This underscores an urgent need to modernize energy transport infrastructure. Additionally, when current contracts end between 2030 and 2033, many renewable plants will still have operational life remaining. These facilities may continue operating through spot market sales or bilateral agreements.
Renewable technologies are expected to remain central to Guatemala’s national energy mix if complemented by low-emission non-renewable solutions that ensure system stability and competitive consumer prices.
As of April 23rd, interested parties can acquire bidding documents directly from the distributors.
“Guatemala moves toward a modern, sustainable and diversified energy matrix with PEG-5,” states EEGSA in its announcement. “This attracts significant foreign investment that will strengthen energy security, drive economic development and consolidate the country as a regional reference in electricity sector planning.”
EEGSA is part of EPM Guatemala.
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