Select Country Guide
Guatemala Energy
Last published date:

Overview

Guatemala’s energy sector reflects a mature, market-oriented structure that has enabled diversification and sustained growth. It was among the first countries in Central America to adopt a private electricity law focused on efficiency and results, creating the foundation for a competitive, transparent, and investment-friendly power market. This framework has enabled the development of a diversified energy mix, led by hydropower and complemented by solar, biomass, and other renewables. Today, Guatemala is recognized as a regional leader in energy market operations, noted for its transparent tender mechanisms, competitive procurement processes, and structured public-private partnerships that serve as a model in Central America.

Looking ahead, national plans project a doubling of energy demand over the next decade, requiring significant expansion in both generation and transmission. In response, Guatemala launched in April 2025 its largest simultaneous procurement process: PEG5 (generation) and PET3 (transmission). These initiatives aim to add 1,400 MW of firm capacity and hundreds of kilometers of new transmission lines by 2030. By the end of 2024, Guatemala’s installed renewable capacity totaled 2,700 MW.

Energy Trade Balance

  • Electricity Trade: Guatemala both imports and exports electricity, depending on seasonal hydrology. In 2024, the country exported 969.6 GWh (valued at approx. USD 112.9M) mainly to El Salvador, Nicaragua, Honduras, and Mexico, while importing 1,794 GWh (valued at approx. USD 208.9M) from Mexico and El Salvador via SIEPAC. Exports are largely surplus hydro/renewable generation during high-rain periods.
  • Petroleum Imports: In 2023, Guatemala imported USD 4.12B in refined petroleum, ranking 55th globally (OEC). The United States supplied 90% of these imports (USD 3.71B), with the remainder sourced from Ecuador, South Korea, and Taiwan.

Opportunities: Energy Sub-Sectors

Generation (utility-scale & distributed)

  • Renewables: Large-scale hydropower forms the existing base, with rapid growth potential in utility-scale solar and additional opportunities in wind and biomass. Government auctions under the PEG series serve as the main procurement mechanism.
  • LNG: The ongoing PEG-5 tender includes up to 900 MW of LNG-based firm power, reflecting Guatemala’s strategy to diversify its energy mix, reduce reliance on hydropower, and strengthen supply reliability.

Transmission & grid expansion (T&D)

  • PET transmission packages (new lines / substations) to relieve congestion and integrate new generators.
  • Energy storage & hybridization
  • In Guatemala, the Battery Energy Storage System (BESS) is emerging, driven by significant growth in solar PV. Multi-hour storage projects & solar+storage hybrids are high value.
  • Rural electrification & mini grids / distribution upgrades
  • Guatemala’s electrification rate reached 92% in 2024 (MEM), leaving opportunities for IDB and multilateral-backed programs targeting rural and off-grid areas.

Resources: 

  • Ministry of Energy and Mines (MEM) national energy policy, expansion plans (PEG/PET). Primary entry point for policy & permitting. https://mem.gob.gt/
  • National Electric Energy Commission (CNEE) regulator enforcing electricity law, grid access rules. https://www.cnee.gob.gt/
  • Wholesale Market Administrator / AMM (Administrador del Mercado Mayorista) market operator & market information. amm.org.gt
  • Ministry of Environment and Natural Resources (MARN) environmental permits. https://www.marn.gob.gt/
  • Energuate (DEOCSA / DEORSA) — largest distribution operator. https://www.energuate.com/
  • EEGSA (Empresa Eléctrica de Guatemala) — major distributor in remaining departments and counterparty in generation/distribution tenders. https://eegsa.com/
  • AGER (Asociación de Generadores con Energía Renovable) — renewables industry association. https://ager.org.gt/
  • ANG (Asociacion Nacional de Generadores) associations representing broader generator community; track membership and market positions. https://ang.org.gt/

×

Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

Limitations

As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

Privacy

The Chatbot does not collect information about users and does not use the contents of users’ chat history to learn new information. All feedback is anonymous. Please do not enter personally identifiable information (PII), sensitive, or proprietary information into the Chatbot. Your conversations will not be connected to other interactions or accounts with ITA. Conversations with the Chatbot may be reviewed to help ITA improve the tool and address harmful, illegal, or otherwise inappropriate questions.

Translation

The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

Privacy Program | Information Quality Guidelines | Accessibility