Guatemala Energy Market

On April 23, 2025, the Government of Guatemala announced its most ambitious energy generation and transmission expansion plans (PEG-5 and PET-3), marking a pivotal shift in the country’s energy strategy—and a major opportunity for U.S. exporters ready to support a modernizing energy sector in Central America.

With demand for electricity expected to double over the next decade, Guatemala is aiming to position itself as a regional hub for energy investment and infrastructure development. PEG-5 and PET-3 offer not only procurement of new generation capacity and transmission lines, but also a long-term transformation of the national energy landscape. These projects open the door for U.S. firms with solutions in natural gas, renewable power, smart grid systems, energy storage and grid stability.

With the goal of securing between 1,200 and 1,400 MW of installed capacity, the process encourages participation from both renewable and low-emission non-renewable energy sources.  Long-term Power Purchase Agreements of up to 15 years will be awarded, offering financial certainty and predictability for investors. In addition to generation, the PET-3 process incorporates 508 km of new transmission lines, creating additional business opportunities for companies involved in electrical infrastructure.

Beyond direct contract awards, Guatemala’s shift will require significant private-sector participation in planning, engineering, equipment supply, and long-term technical partnerships. U.S. companies with a presence—or those looking to enter the region—can leverage existing U.S. support through trade and investment facilitation programs, as well as growing interest from international lenders and development agencies focused on clean energy and infrastructure.

In short, while the upcoming tenders are an entry point, the real opportunity lies in building long-term commercial relationships in a market committed to growth, sustainability, and regional connectivity. U.S. exporters interested in energy, engineering, or environmental technologies should take a closer look at Guatemala as a platform for expansion in the years ahead.

With the official launch in April, the PEG-5 and PET-3 tender processes are now open. Bids are expected to open October 2025, with the final award being issued June 2026, and service beginning in 2030. Companies interested in participating must designate a local legal representative and complete additional steps and submit a one-time payment. Only upon completion of all steps will companies be granted access to the full bidding terms and conditions.

For more information contact on these projects and upcoming webinars on the topic, please contact: Carolina.Barrientos@trade.gov