Guatemala is beginning to meet the conditions to become one of the most attractive markets for energy storage development in Central America. Projected growth in electricity demand, new tenders, and the need to expand the grid are changing the design of renewable energy projects and how developers and investors evaluate their investments. In this context, Schletter believes the country has the potential to "consolidate itself as a regional storage hub."
During FES Guatemala , Ángel Alegría , Head of Commercial at Schletter , explained that the company has redefined the country's role within its Latin American strategy. "Guatemala and Central America have definitely gone from being a market we served to a pillar of our growth strategy," he stated.
REVIVE FES GUATEMALA: https://www.youtube.com/watch?v=-fQIrVqwZYk
The investment responds to the current situation in Guatemala's electricity sector. Official projections anticipate that demand could double over the next decade , making it necessary to incorporate new generation capacity, expand transmission infrastructure, and add technologies capable of providing flexibility and firm power to the system.
In that context, Guatemala awarded the PEG-5 tender in April 2025, aimed at contracting up to 1258 MW of firm power and its associated energy through contracts of up to 15 years with supply starting in 2030. In parallel, the country promoted PET-3 , the largest call for tenders to expand the transmission network, although it was ultimately declared void.
During FES Guatemala, the National Electric Energy Commission (CNEE) also confirmed that it is preparing a future PEG-6 , close to 300 MW , along with a new PET-4 , which will seek to relaunch the expansion of the network under more attractive conditions for investors.
For Schletter, regulatory signals and the new needs of the electrical system are accelerating the consolidation of storage as one of the pillars of the Guatemalan energy market.
"We see that Guatemala has all the necessary foundations to become a storage hub, with even greater momentum than larger markets," Alegría stated. He explained that this scenario also presents an opportunity to add value through engineering, "helping with bankability and ensuring the integrity of the modules and batteries."
The company also sees a turning point in regulation. Alegría maintained that CNE Resolution 126-2024 confirms the growing importance of energy storage systems within the country's energy planning. "We are at a point of accelerated maturation, and we can clearly see this in Guatemala with CNE Resolution 126-2024, which sets the guidelines for how battery-powered electricity generation plants are a key infrastructure," he stated.
Future tenders also reflect this change. The demand for firm power favors the development of hybrid projects capable of combining solar generation and storage to meet system needs.
Guatemala's electricity grid continues to rely primarily on hydroelectric power , which generated 5.33 TWh in 2024, down from 5.57 TWh the previous year. This dependence on hydrological conditions explains the need to diversify the grid with new renewable sources and resources that provide operational flexibility.
In this process, solar energy emerges as one of the technologies with the greatest potential for expansion , especially in distributed generation. Installed capacity increased from 7.5 MW in 2009 to over 160 MW in 2024 , while national energy planning projects reaching 1200 MW by 2050 .
Quality trumps lower price
The growth of storage is also changing how developers analyze their investments. According to Schletter, the Central American market is beginning to move away from a logic focused solely on initial cost and toward prioritizing the reliability of assets throughout the plants' lifespan.
Alegría explained that historically the region has made decisions based on CAPEX , but warned that the incorporation of hybrid projects has increased the technical complexity of the facilities. "Historically, the region has made decisions based on the project's CAPEX, but the market is experiencing a technical shock with much more complex hybrid projects," he stated.
Continue reading
According to the executive, the requirement is no longer solely about producing energy. Power plants must also provide stability, power, and complementary services to the grid, which increases the importance of the quality of each of their components.
In that context, Alegría warned that cutting costs in the structure could end up generating much larger losses during operation. "Clients are realizing that perhaps saving 5% on a structure that doesn't maintain the required quality throughout the plant's lifespan will generate significantly higher costs, in addition to the risk of downtime and the consequences that can have for these types of contracts," he stated.
This paradigm shift also changes how project profitability is measured. "All of this is leading to a move away from solely focusing on CAPEX and towards considering the distributed cost of energy (CAPEX plus OPEX), which gives us a more realistic view of the plant's profitability," he explained.
For the company, this evolution also reflects increased demands from financiers and investors. Alegría pointed out that developers are increasingly seeking bankability , backed by certified products and established manufacturers. "Customers are primarily looking for bankability, something we can only achieve by using products from reputable companies with certified quality," he stated.
When asked what the main competitive factor will be over the next five years, the executive didn't hesitate: "If I had to name one, I'd say real bankability." He added: "I definitely believe the market will reward developers and owners who move from buying components to manufacturing strategic infrastructure for power generation."
Engineering for a more demanding market
The potential that Schletter identifies in Central America is also linked to the region's climatic conditions. Hurricanes and wind gusts necessitate the design of structures capable of guaranteeing the stability of the plants for decades.
Alegría explained that this situation presents an opportunity for manufacturers with experience in structural engineering. "In Central America, we have areas affected by hurricanes or strong gusts of wind that can compromise the stability of structures," he stated. He added, "As a German manufacturer with a strong engineering design background, we can provide significant added value and demonstrate our expertise."
Schletter's technological strategy is based on two pillars: optimizing the use of materials and simplifying field installation.
In the first case, the company is opting for ribbed profiles and high-strength materials to reduce weight without compromising structural performance, while also improving transport logistics.
"We use the best materials on the market with the greatest resistance and the best protection against corrosion, using ribbed profiles," Alegría explained.
The second focus is on reducing assembly times through pre-assembled components and systems that decrease the amount of screws needed during installation.
"We are applying click and top technologies to reduce screws and shipping pre-assembled parts to reduce time and ensure that the field installation is done correctly," he said.
The company's roadmap goes even further. "We work on structures that can practically be installed without using tools," Alegría concluded.
In a market where energy storage is gaining prominence and projects are becoming increasingly complex, Schletter believes that competitiveness will no longer be measured solely by price . The combination of engineering, speed of installation, reliability, and bankability will be, for the company, the differentiating factor in the next stage of expansion of the Guatemalan electricity market.