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Guatemala’s Open Tender 1-2025 resulted in the award of 283.43 MW of average capacity, with a strong contribution from renewable energy sources within the contracted portfolio. The process also recorded 291.64 MW of maximum capacity and 140.23 MW of minimum capacity.
Renewable projects—primarily solar PV and hydropower—accounted for 30 awarded initiatives, representing 32% of the total. This outcome reinforces the growing role of clean energy in the short-term supply mix of the national electricity system.
In detail, solar energy led the renewable segment with 22 projects, delivering approximately 83.50 MW of maximum capacity, 30.36 MW of minimum capacity, and 66.23 MW of awarded average capacity.
Hydropower generation, meanwhile, was represented by eight projects, totalling around 35.35 MW of maximum capacity, 12.35 MW minimum, and 25.24 MW of average capacity.
Combined, both renewable technologies exceeded 118 MW of maximum capacity and 91 MW of awarded average capacity, underlining their structural importance within the procurement process.
The tender responded to a technical requirement of the electricity system. Industry sources told Energía Estratégica that such auctions are designed to cover energy shortfalls not addressed by long-term power purchase agreements (PPAs), prompting the adoption of four-year contracting schemes.
In this context, these mechanisms ensure supply continuity until new large-scale projects are commissioned towards 2030, maintaining system reliability.
Sources also highlighted that the requirement for projects to be already in commercial operation favoured the participation of existing renewable assets, particularly in the distributed solar generation segment, as reflected in the awarded results.
The tender forms part of a broader strategy within Guatemala’s power sector, where distribution companies have increasingly launched short-term procurement processes to meet additional capacity needs, intensifying competition among generators.
Regarding auction dynamics, the multi-round bidding scheme once again proved to be a key tool for promoting efficient price signals in the electricity market, although this edition introduced notable variations.
Industry sources noted that the early-stage participation of “Virtual Supply” added downward pressure on prices, altering the usual bidding behaviour.
While permitted under the rules, this intervention partially distorted market dynamics by pushing prices down abruptly.
They further warned that Virtual Supply effectively acted as an “implicit price cap”, shaping bidding strategies and leading to the withdrawal of some participants.
Despite this, stakeholders emphasised that the market’s core challenge remains achieving a balance between competitive prices for demand and sustainable conditions for investment, particularly in an increasingly demanding environment.
This tender and recent sector developments will be central topics at the Future Energy Summit (FES) Guatemala, scheduled for 14 May. The event’s first edition in the country will take place at the Real InterContinental Hotel in Guatemala City.
Public and private sector leaders are expected to attend, analysing investment prospects, new project development and the evolution of the regional energy market. Further information and tickets are available via [email protected].
The full list of awarded projects:
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