The Association of Renewable Energy Generators (AGER) welcomed the appointment of Francisco Tzirin as Guatemala's Vice Minister of Energy and outlined four priorities for his first 100 days: launching PET-4, streamlining authorizations, updating the National Energy Policy, and promoting private investment in geothermal energy.
In a dialogue with Energía Estratégica, Astrid Perdomo, executive director of AGER , highlighted that the official's technical profile could be decisive at a stage in which Guatemala needs to coordinate the expansion of generation and transmission to incorporate the awarded projects and sustain the growth of demand.
“ At AGER, we welcome the appointment of Engineer Francisco Tzirin. His technical background and experience in both power generation and transmission give him firsthand knowledge of the challenges facing the electricity sector ,” Perdomo stated.
The change in leadership coincides with a decisive stage for the Guatemalan electricity market, marked by the incorporation of the capacity awarded in PEG-5, the preparation of new calls for generation and transport, and the need to guarantee continuity to this agenda before the next change of government.
The PEG-5 tender awarded approximately 1258 MW through 57 projects , of which about 73% correspond to renewable technologies, with a strong predominance of hybrid solar with battery storage initiatives. The average single-unit price reached approximately $101/MWh , below current contract values.
This expansion is complemented by Open Tender 1-2026 , whose terms were authorized by the National Electric Energy Commission (CNEE) to cover the remaining 300 MW of PEG-5 and to meet new needs associated with increased consumption.
AGER believes that the incorporation of these projects will depend on the transport infrastructure keeping pace with the operational start-up schedules. Network availability thus emerges as one of the main constraints for the next phase of investment.
“ We hope that, under her leadership, progress will be made on an agenda focused on strengthening the country’s energy security, accelerating the development of new renewable generation, and ensuring that the necessary transmission works allow for the timely incorporation of the plants awarded in the PEG-5 ,” the executive stated.
Four decisions for the first 100 days
The first priority set by AGER is to move forward with PET-4 , whose configuration must take into account both the connection needs of the projects awarded in PEG-5 and those of other initiatives currently under development, especially photovoltaic solar and storage systems.
“One of the main priorities must be the launch of PET-4, with a technical design that ensures that the new transmission works meet the connection needs of the plants awarded in PEG-5 and other projects that are already under development, particularly photovoltaic solar generation and storage systems,” Perdomo stated.
The process takes on greater relevance after PET-3 failed to achieve the expected results , a precedent that once again brought into question the technical, economic and regulatory conditions necessary to develop new electric transport infrastructure.
The need to strengthen the grid was also a central theme during the Future Energy Summit in Guatemala. At the event, officials from the National Energy Commission (CNEE) announced that the country is working on an expansion of over 500 kilometers of transmission lines to accommodate the addition of new capacity.
AGER summarized the risk the system faces if both segments advance at different speeds. “ It's of little use allocating new generation capacity if the transmission infrastructure isn't available when the projects come online ,” Perdomo warned.
Therefore, joint planning between new supply and network infrastructure becomes essential in the face of the expected increase in consumption and the objective of reducing the system's exposure to imported fuels.
The Ministry of Energy and Mines itself presented expansion plans with a 2050 horizon, developed from demand projections and the planned schedule for the entry of new power plants, among other variables of the electrical system.
Authorizations, energy policy and geothermal energy
The second priority indicated by the association is to streamline administrative processes within the Ministry of Energy and Mines (MEM) , along with an effective application of the Law of Incentives for the Development of Renewable Energy Projects.
AGER argued that developers need greater efficiency, transparency, and predictability in permission management.
“ The combination of adequate infrastructure and agile processes is fundamental to maintaining investor confidence ,” Perdomo emphasized.
Guatemala maintains macroeconomic and market conditions that arouse interest among international developers, although obstacles persist that can extend execution times and increase the risk of projects .
One of these issues arises at the municipal level. Several municipalities began requiring licenses or fees for the construction of solar installations without clear support in national legislation, a situation questioned by private actors due to its potential impact on projects awarded under the PEG-5 program.
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The organization called for progress towards standardization of municipal requirements and procedures , as well as establishing clear rules for prior consultation with indigenous peoples, under the responsibility of the State and with predictable deadlines for developers.
AGER also identified the need for better coordination between the MEM and the Ministry of Environment and Natural Resources (MARN) to reduce delays in licenses and authorizations related to both generation and transport.
In this context, the entity is following with interest the progress of bill 6665 , aimed at streamlining the urgent energy transport infrastructure and reducing the times that currently affect the execution of investments.
Adding to this regulatory challenge is the implementation of the new Anti-Money Laundering Law , which requires the market to review and update certain contractual models. Various stakeholders warned that a delayed adaptation could lead to PEG-6 proceeding with outdated contracts and increase legal uncertainty for developers and financiers.
The third measure proposed for the first 100 days has a more structural horizon: updating the National Energy Policy , whose validity ends in 2027.
“ The current policy ends in 2027 and the country needs a long-term vision to guide planning, investments and decision-making, aligned with the energy transition and the international environmental commitments assumed by Guatemala ,” said the executive director of AGER.
The association proposes that this new roadmap be built through a participatory process between the State, the private sector, academia and civil society, with planning for the next 15 years.
The fourth action involves accelerating the development of geothermal energy through conditions that encourage and allow greater private investment , taking advantage of a resource that remains largely underutilized.
“ In particular, geothermal energy represents a strategic opportunity for Guatemala. The country has an estimated potential of close to 1,000 MW and currently only utilizes around 36 MW ,” Perdomo pointed out.
The appeal of this technology lies in its ability to provide renewable baseload generation and continuous availability, characteristics that can complement a matrix with greater solar and storage participation and, at the same time, strengthen security of supply.
PEG-6 and the challenge of maintaining investments
The future PEG-6 completes the agenda that will have to manage the new energy conduction , after the PEG-5 did not cover the entirety of the initially required demand.
During Future Energy Summit Guatemala, authorities announced a new call for bids aimed at adding approximately 300 MW of firm power , while the market closely follows the definition of its conditions and timeline.
AGER considers it essential that this contracting be linked from the outset to the network expansion. The eventual addition of natural gas and geothermal generation will require available transmission capacity when the projects begin commercial operation.
“ The main challenge is to ensure that PET-4 sends clear signals to the market through proper planning and a framework that provides technical and legal certainty for transmission investments ,” Perdomo stated.
The continuity of PEG-6 and PET-4 also acquired an institutional dimension in light of the general elections scheduled for 2027 and the recent changes registered in the Ministry of Energy and Mines.
The departure of Víctor Hugo Ventura , one of the main proponents of both upcoming tenders, raised questions within the sector about the pace at which the processes could be maintained. His replacement by Erwin Barrios was interpreted as a sign of continuity in the government's energy policy.
During that period, changes also occurred at the Vice Ministry of Energy. The private market is particularly focused on the new leadership's ability to maintain generation and transmission schedules before the next change in administration , thus preserving predictability for investors.
For AGER, this scenario requires transforming the announced processes into effective infrastructure and simultaneously resolving the administrative and regulatory obstacles that condition construction times.
The association also considers it essential that the State strengthen communication with the population about the strategic importance of expanding the electrical infrastructure , due to its impact on supply, the arrival of capital, job creation and the economic development of communities.
“ The coordinated expansion of generation and transmission will be crucial to meeting growing demand and reducing dependence on imported fuels, thus strengthening Guatemala’s energy independence ,” Perdomo concluded.