Central America has over 1,800 MW in confirmed or pending tenders , distributed between the 300 MW planned for Guatemala and the 1,500 MW that Honduras is seeking to contract. This volume will be increased by the capacity of Panama's upcoming tenders, the amount of which has not yet been determined.
The regional scenario also includes a structural reform in Costa Rica , where the transition from a centralized model to a wholesale electricity market with greater competition and private participation is being discussed.
Quantum America is involved in various aspects of this agenda , from designing contracting mechanisms to regulatory analysis and process structuring in Guatemala, Panama, Honduras, and Costa Rica. Storage, flexibility, and hybrid configurations are emerging as the main pillars of this new phase.
In contact with Energía Estratégica , Julián Nobrega, consultant and project manager at Quantum América , identified the incorporation of battery storage systems as the most relevant change in recent regional contracts.
“Without a doubt, the main novelty of the latest generation tenders in the region has been the incorporation of BESS systems. It is no longer enough to compare only the generation price,” he stated.
The new models must take into account delivery schedule, firm capacity, seasonal variations, flexibility, and services provided to the grid. An evaluation focused solely on the price per MWh may underestimate solutions that reduce systemic costs or improve security of supply.
Quantum anticipates that this contractual evolution will drive an expansion of projects capable of integrating different sources and operational resources .
“In the coming years we expect a strong expansion of hybrid projects that combine renewable generation, thermal generation and storage,” Nobrega said.
The technological combination would allow for optimizing supply costs and increasing reliability , especially in markets with sustained demand growth and greater penetration of variable resources.
Guatemala: 300 MW short-term and the impact of PEG-5
Guatemala is moving forward with Open Tender 1-2026 , a short-term process aimed at covering approximately 300 MW.
The National Electric Energy Commission authorized the bases for the main distributors to contract power and energy from 2026, while the developments awarded in PEG-5 begin to be incorporated .
“LA-01-2026 is a short-term tender designed primarily to supply the energy and power needs of distributors until the projects awarded in PEG-5 begin to come online,” Nobrega explained.
Although new installations may be submitted, the planned dates for the start of supply, between November 2026 and May 2027, anticipate a majority participation of existing power plants .
The main challenge will be the opportunity cost for these generators , whose alternative market is the spot market. Bids must reflect the value of committing capacity to contracts versus the potential revenue from short-term trading.
The delays in bidding schedules caused by the pandemic and the subsequent recovery in demand temporarily reduced the available supply. This imbalance increased the importance of bridging contracts until new capacity became available.
Quantum estimated that the situation will tend to normalize with the commissioning of the remaining PEG-4 projects and the first power plants awarded in PEG-5 .
This latest process represented a turning point for the Guatemalan market . PEG-5 awarded 1258 MW through 57 projects, of which approximately 73% corresponded to renewable technologies.
A significant proportion of the winning proposals consisted of hybrid solar installations with batteries. The average single-unit price reached $101 per MWh, below current contract prices.
For Quantum, the high participation was related to regulatory stability, compliance with contracts and the predictability of the Guatemalan electricity market .
“Securing bids for more than 3 GW in a market the size of Guatemala is no coincidence,” Nobrega stated.
The consultant indicated that developers especially value the institutional conditions necessary to sustain investments with horizons of 20 or 30 years .
“Investors perceive the country as a serious market, with clear rules and predictability,” he emphasized.
Looking ahead to a future PEG-6, Quantum considered it advisable to maintain continuous planning and avoid prolonged intervals without new calls .
More frequent, lower-volume processes could increase the number of bidders, intensify competition, and pass on better economic conditions to end users .
Panama is preparing new tenders focused on BESS.
Panama appears as one of the markets with the greatest immediate potential for renewables and storage in Central America.
Quantum has been supporting processes in the country since 2019 and works with the National Energy Secretariat in the design of new contracting mechanisms .
The Panamanian market resumed large-scale renewable energy tenders through the LPI ETESA 01-25, which awarded long-term contracts with an average price of $23.86 per MWh .
Wind power generation dominated that process , favored by its capacity factors and a more competitive production profile compared to solar energy for the required conditions.
Subsequently, the LPI ETESA 01-26 awarded 22.6 TWh of renewable energy through agreements of up to 20 years , with an average value of $33.7 per MWh.
Although batteries were not mandatory in those calls, the greater penetration of renewables and the sustained reduction in prices increase the need for resources capable of providing flexibility and displacing energy .
Panama also defined a roadmap with four new tenders between 2026 and 2028 , aimed at reducing exposure to the spot market and ensuring future supply through long-term contracts.
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Within that planning, storage systems are beginning to occupy a strategic position to integrate new renewable plants, manage demand and strengthen the reliability of the grid.
Currently, Quantum is collaborating with the Energy Secretariat in designing a call for bids that will allow competition among BESS providers , even though the market still lacks comprehensive regulations to remunerate all the auxiliary services they can provide .
“The idea is to design a tender that, within the current regulatory framework, recognizes the true value that storage brings to the electrical system,” Nobrega explained.
The scheme will seek to prevent batteries from being evaluated solely on the price of the energy injected , incorporating their contribution to power, flexibility and operational stability.
For Quantum, Panama offers immediate opportunities due to the continuity of its planning and the still limited participation of storage , which leaves room for significant expansion over the next few years.
Honduras: 1500 MW conditioned by the reform
In Honduras, Quantum participated in the design of the 1500 MW tender promoted by the National Electric Energy Company (ENEE) .
The procedure seeks to incorporate renewable, thermal and storage capacity to support the growth in demand , although its development was subject to the definitions of the electricity reform.
The regulatory transformation includes modifying the single buyer model, introducing new contracting mechanisms, and expanding competition within the market .
It also includes the creation of an Independent System Operator (ISO) by separating functions currently concentrated in ENEE, a measure intended to improve transparency and network operation.
Quantum remains awaiting the definitions related to this reform and maintains the expectation of continuing to collaborate when the contracting processes are reactivated .
The consulting firm noted that contractual security and the ability to pay will be key factors in attracting private capital and obtaining competitive prices.
“To attract private investment, it will be essential to provide certainty regarding the fulfillment of contracts,” Nobrega emphasized.
The executive outlined two possible paths: resolve the financial situation of the state-owned company or incorporate robust guarantees backed by international financial organizations .
These instruments would reduce the risk perceived by developers, improve the financeability of projects, and foster more favorable economic conditions .
According to information provided by ENEE, the intention to move forward with the contracting process remains firm , although the timeline will depend on the implementation of regulatory changes.
Costa Rica is considering opening its electricity market
Costa Rica is analyzing a profound transformation of its electricity sector , which could modify one of the most centralized schemes in Central America.
The reform proposes to move from a model in which the Costa Rican Electricity Institute (ICE) concentrates a large part of the generation and acts as the main buyer , towards a wholesale market with new actors.
Despite its high hydroelectric share, the country maintains a low penetration of solar and wind power generation , which opens up space for greater technological diversification.
According to Quantum, this situation could enable new renewable developments, storage facilities and private investments , provided that the modifications establish clear and predictable signals.
“ If the reforms move forward, we believe it will be one of the markets with the greatest potential for the development of new renewable projects and, especially, storage ,” Nobrega projected.
The consulting firm also participates in the technical debate. The Project Manager of Quantum America was invited to speak about international experiences in market and auction design at the National Energy Congress organized by the Costa Rican Chamber of Industries on July 30.
The Costa Rican case could become one of the most relevant regulatory changes in the region , although its ability to mobilize capital will depend on access rules, contracting mechanisms, and legal certainty.
The role of Quantum and the auctions towards 2030
Quantum's participation in these markets encompasses tender design, regulatory framework analysis, contractual mechanism structuring, and competitive bid evaluation .
The firm seeks to develop processes capable of comparing technologies with different operational profiles and recognizing the comprehensive contribution of each alternative , instead of limiting the award to the lowest nominal price.
Looking ahead to 2030, Quantum anticipates a growing presence of BESS and more innovative private proposals , with configurations that combine different resources to maximize their contribution to the system.
The challenge will not necessarily be to establish mandatory storage quotas, but to formulate rules that adequately weigh energy, power, flexibility, and ancillary services.
“Rather than imposing regulatory obligations to incorporate storage or contract a certain firm capacity, we believe the challenge will be in designing the tenders correctly,” Nobrega remarked.
A suitable design would allow competition to determine the most efficient technological configuration for each system , according to its operational, seasonal, and economic needs.
“If the process properly assesses all the attributes of each technology—energy, power, flexibility, and system services—the market itself will find the optimal combination to minimize costs and maximize the reliability of supply for end users,” he concluded.
With Guatemala moving forward with short-term contracting, Panama preparing new calls for bids, Honduras debating the reform that will condition its 1500 MW, and Costa Rica evaluating the opening of its market, Central America is heading towards a new generation of electricity tenders .
In this scenario, Quantum America seeks to consolidate its technical participation in processes that recognize not only the price of energy, but also the firmness, flexibility and reliability that each project can contribute to the system.