The National Electric Energy Commission of Guatemala (CNEE) has approved Resolution CNEE-270-2024, which establishes the Terms of Reference (TOR) for the PEG-5 Tender aimed at ensuring the supply of electricity to the country’s distribution companies.
The tender is open to generating agents already registered in the national electricity market, as well as those who, once awarded, could become generators in accordance with current regulations. Participants will be able to offer both power and electricity, either from operational plants or from new plants that begin operations after January 1, 2024.
Permitted Energy Sources:
The following energy sources are allowed in the process:
New Generation Plants with Renewable Generation Technologies:
- This includes technologies such as solar, wind, hydroelectric, and others recognized under the Renewable Energy Project Development Incentives Law.
- Projects that incorporate energy storage systems are also allowed.
New Generation Plants with Non-Renewable Generation Technologies:
- Sources whose CO2 emission factor is equal to or lower than that of natural gas.
- This emission factor must be based on values published by the Intergovernmental Panel on Climate Change (IPCC).
Operational Generation Plants:
- Energy sources available in the current generation fleet at the time of the tender call.
The contract may take different forms, including: Difference with Load Curve, Energy Purchase Option, and Energy Generated, as outlined in the Commercial Coordination Standard No. 13. The contracts will have a duration of up to 15 years for new plants and up to 5 consecutive years for existing plants. Participants must offer energy in two blocks: the base block, which covers the majority of the energy requirement, and the complementary block, which covers the difference.
The tender process will be led by the distribution companies Empresa Eléctrica de Guatemala (EEGSA) and Energuate, which have 80 days to develop the Tender Bases in accordance with the TOR approved by CNEE. These bases must be approved by the commission before proceeding with the next stages, which include acquiring the bases, informational meetings, clarifications, and submission of bids.
The expected start dates for energy supply are planned for the years 2030, 2031, 2032, and 2033, providing a broad timeframe for the implementation of new generation projects.
carlos.tellez@garciabodan.com
Managing Partner
García & Bodán
Guatemala