The expansion of transmission will be crucial for the success of the future PEG-6 and for converting the newly awarded capacity into operational projects , warned José Ramón Miralda, CEO of INVESA, during an exclusive interview at the Future Energy Summit (FES) Guatemala 2026.
The next call for tenders will be based on the results of PEG-5, but the contracting of more generation capacity must be accompanied by infrastructure capable of interconnecting the power plants and transporting their production to consumption centers .
“Expectations are high because PEG 6 will rely on the success of PEG 5 to truly be capitalized on,” said José Ramón Miralda , CEO of INVESA , in an exclusive interview with Energía Estratégica .
WATCH THE FULL INTERVIEW HERE: https://www.youtube.com/watch?v=aznAp7r74H0
The analysis comes as Guatemala moves forward with new processes to cover the remaining capacity after the PEG-5. The National Electric Energy Commission authorized the terms of Open Tender 1-2026 , aimed at contracting 300 MW guaranteed per seasonal year starting May 1, 2027 , and addressing the immediate needs of distributors from August 2026.
The bidding process will allow participation from generators, marketers, existing power plants, and new developments. Empresa Eléctrica de Guatemala, Distribuidora de Electricidad de Occidente, and Distribuidora de Electricidad de Oriente will conduct the process under the regulator's supervision.
Miralda stated that the planning of generation and the network must advance in a coordinated manner to avoid connection restrictions, contractual breaches or difficulties in delivering the committed production.
“For the link that renewables can provide to be fulfilled, it is extremely important that PEG 6 is accompanied by a transmission solution,” the executive pointed out.
This position aligns with the agenda presented by the National Electricity Commission during the FES Guatemala. The agency announced a new call for firm power capacity and a transmission plan exceeding 500 kilometers of infrastructure , designed to reduce bottlenecks and facilitate the integration of the awarded power plants.
“If that transmission solution doesn’t exist, there won’t be a successful PEG 5 or PEG 6 either,” Miralda warned.
The network as a condition for realizing the investments
For INVESA, the outcome of a tender will be verified by the number of power plants that obtain financing, complete their construction, connect and begin operating within the contractual deadlines , beyond the awarded capacity or the number of bids received.
“We are working from the private sector to ensure that transmission solutions support all this investment in generation and that, eventually, what is planned to be connected can be interconnected effectively,” the CEO explained.
This infrastructure will allow for supplying both regulated users and the unregulated market. The executive also noted that the procurement process should prioritize sustainable and feasible proposals, rather than focusing exclusively on the lowest nominal values.
“In this way, that energy will reach where it needs to go, both to regulated and unregulated demand, at competitive prices. Note: not the cheapest, but the most competitive and viable to meet real needs,” he emphasized.
The PEG-5 awarded 1258 MW distributed among 57 projects , of which approximately 73% correspond to renewable sources , with a prominent participation of solar plants combined with storage systems.
The process reached an average mononomic price of 101.09 USD/MWh , after an extensive reverse auction and competition that far exceeded the required volume.
The award sent a favorable signal to the market, although it opened a more complex stage: transforming contractual commitments into operational infrastructure and completing the works within the planned schedules .
“PEG 5 is not a tender that ends with the awarding of the contract, but rather that is precisely where the process of fulfilling and executing all the awarded projects that have received that vote of confidence to take the next step begins,” Miralda stated.
INVESA expects swift implementation and mechanisms to address obstacles as development progresses. Speed of response will be key to meeting the needs of distributors and maintaining the confidence of developers and financial institutions.
“The success of these tenders will be reflected in how many projects manage to become operational on time and finalize those investments,” the executive stressed.
From storage to new firm technologies
The PEG-5 modified the technological profile of the Guatemalan market by incorporating storage within projects capable of providing energy, power and flexibility , instead of considering it only as a complementary solution.
The high participation of hybrid solar plants with batteries demonstrated that these configurations can compete within long-term contracting schemes. The process also solidified Guatemala's position as one of the Central American markets with the most progress in integrating BESS systems into its electricity planning.
INVESA interprets this evolution as part of a technological sequence. The company began its operations in Guatemala with hydroelectric plants, then entered the wind power generation sector, and currently owns a solar plant that is about to become operational.
“Every technology has its right time, and that development eventually brings you storage, which is precisely the moment we are experiencing today with the incorporation of hybrid projects,” Miralda said.
The company operates the Xacbal and Xacbal Delta hydroelectric plants and participated in the development of some of the country's first wind farms. Its next phase incorporates photovoltaic generation and includes the integration of batteries according to market requirements.
“Storage is part of the solution—not the only one, but a fundamental part—and regulation is supporting it in that sense to be able to incorporate it,” the CEO stated.
INVESA also expects that PEG-6 will enable technologies that are not yet consolidated in Guatemala, including natural gas, identified by Miralda as a possible component of the transition process and the national decarbonization plan.
The incorporation of these resources must take into account the effective capacity of the system. The growth of solar power generation increases the pressure on Central American grids , so transmission constraints and the need for reliability become more important when defining the viability of new developments.
Legal certainty and free demand sustain interest
Guatemala's appeal also lies in the stability of its electricity framework. The country is approaching three decades of regulatory continuity , a condition that facilitates project structuring and access to financing.
“The country is celebrating almost 30 years of having a stable energy law, without changes, where the regulatory framework and the legal certainty it provides have been very well protected,” Miralda emphasized.
This environment allows investment decisions to transcend distributor tenders. Contracts with large consumers and other free market schemes constitute a second avenue for growth and the development of new capacity.
Miralda explained that respect for the rules, certainty, and legal security favor projects independent of public calls for proposals and support the confidence of funders in their business models.
The executive identified a significant portion of consumption that is not covered by distributors or the PEG-5 scheme. The outstanding regulated demand and the unregulated market open up additional opportunities for renewable energy plants, hybrid solutions, and private contracts .
“There is a significant portion of the demand that is not covered by distributors or by PEG 5, which represents a great opportunity for everyone,” he said.
The progress of investments also faces regulatory challenges. The implementation of new anti-money laundering requirements necessitates a review of corporate documents, due diligence procedures, and contractual models used in procurement processes. Delayed compliance could lead to adjustments during bid evaluation or financial closing of PEG-6 projects.
At the municipal level, various local governments began requiring licenses or fees for the construction of solar plants without clear support in national legislation. The private sector warned that these measures could delay projects awarded under the PEG-5 program, increase costs, and create new areas of legal uncertainty.
INVESA analyzes its expansion in Central America
Beyond Guatemala, INVESA is evaluating investments in El Salvador and maintains a regional platform with participation in Panama, Honduras, and Nicaragua .
“In terms of the region, El Salvador is part of our expansion plans as a group. We are working on and evaluating some investment projects there,” Miralda anticipated.
The strategy leverages accumulated experience in various Central American markets and the relationships built with financial institutions. The track record of existing assets allows the bank to analyze new transactions based on concrete precedents of execution and compliance.
The CEO believes Guatemala assumed regional leadership thanks to its regulatory adjustments, the stability of its electricity system, and the signals generated by the PEG-5. Replicating these conditions in other countries could extend the flow of capital to the rest of Central America.
“Guatemala is rebounding and has taken the lead with timely regulatory changes and stability, which is the same we hope for other countries,” he assessed.
From INVESA's perspective, regional interconnection and the consolidation of a shared ecosystem can expand the scale of projects , improve complementarity between systems, and extend the benefits of infrastructure beyond national borders.
“It is positive for everyone that the ecosystem we are building not only benefits one country, but is also part of what connects us regionally,” Miralda concluded.
The PEG-6 represents a new test for the Guatemalan market. Its scope will be defined by the volume and technologies contracted, but especially by the ability to coordinate grid expansion, storage, firm generation, and regulatory compliance with the progress of the awards .
Guatemala has already demonstrated its capacity to attract capital and structure competitive processes. The next challenge will be to ensure that the new power generation capacity is built, interconnected, and effectively supplied to both distributors and the free market.