Energy potential in Guatemala

According to experts, renewable energies financed with green bonds are currently an important ally in Guatemala, since they facilitate the energy transition and continue to be a safe and profitable investment destination in the long term.

The Association of Generators with Renewable Energy (Ager) considers that the country has the potential to have a renewable and sustainable electricity generation matrix. And that it can achieve that 80% of the electricity matrix comes from renewable sources by 2030.

A great example of the promotion of renewable energies in Guatemala are the actions that CMI has taken by placing the largest green bond for 700 million dollars. CMI Energy is a renewable energy company whose main headquarters are in Guatemala run by Juan José Gutiérrez Mayorga and Luis Bosch Gutiérrez. They have made a successful placement, with which they seek to generate impact investments to promote sustainable development. 

In addition, Juan Carlos Echeverri Montes, General Manager of Transportista Eléctrica Centroamericana, SA (Trelec), explains that for Guatemala and for any country it is very important to diversify its energy matrix. It reduces the possibility of affecting the energy supply due to the lack of any of its sources.

And Edgar Navarro, president of the Wholesale Market Administrator (AMM), explains that it is necessary for the resources to be properly distributed. There are some countries that have set a goal that 100% of their demand is supplied with renewable resources. However, they have the disadvantage that there are times in the year when they do not have these resources and logically they have to resort to imports of electricity from other places.

Best prices in energy

On the other hand, ​​developing an energy matrix based on the use of renewable resources is a State Policy. Therefore, it is expected that more renewable energies such as: hydroelectric, solar, wind, and geothermal will reduce electricity costs. All renewable energy technologies are constantly being developed, causing their application prices in rates to be much more competitive.

Guatemala has a varied generation energy matrix that allows the country to enjoy at all times convenient prices for the country’s electricity demand. And according to Jacobs, president of the Association of Generators with Renewable Energy (Ager) “with the potential of the country, the benefits to 2030 would be reflected in the reduction of 27% in the cost of operating the system to meet demand. A 14% drop in marginal market costs on average (SPOT prices) and a decrease in greenhouse gas emissions up to 62%. As well as the promotion of investment and job creation in rural areas”.

Guatemala is capable of producing enough energy to cover 100% of the country’s demand and generate a surplus that could be exported. Additionally, jobs would be created, boosting the economy and caring for the planet.

Carla Fowler

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