Guatemala Renewable Energy

Guatemala is a country rich in natural resources, which translates into great opportunities for cleaner energy generation. The country currently produces 57% of its energy from renewable sources and has a surplus that allows it to export to neighboring countries. 

Guatemala’s electricity market has been operating as a free market since 1996, when the activities of the electricity industry were separated, opening the generation and commercialization of energy to free competition. Today, the Law of Incentives for the Development of Renewable Energy Projects facilitates the import and purchase of energy generation equipment utilizing renewable technologies and even exempts new projects from certain taxes. However, even though the supply of renewable energy is ample, many rural areas still don’t have access to electricity or prefer to use other sources such as firewood, making the percentage of energy utilization low.  

The lack of development and unsustainable energy consumption of natural resources have a negative impact on Guatemalans, which is why the Government of Guatemala is working on policies aimed at social and productive development through efficient energy supply. Such is the case of the Energy Policy 2019-2050, which establishes guidelines and recommendations to develop the Terms of Reference for the next long-term power generation tenders, which will be issued beginning in 2025, when contracts such as Jaguar Energy, currently the primary electricity generation company in Guatemala, come to an end.  

For more information about renewable energy opportunities in Guatemala, please contact Carolina Barrientos at carolina.barrientos@trade.gov.