The awarding of 1258 MW in the PEG-5 project shifted the focus of Guatemala's electricity sector to transmission infrastructure. For the National Electrification Institute (INDE) , the next step will be to accelerate the construction projects that will allow this new capacity to be integrated into the system and prevent future bottlenecks.
" We have to support all these investors who were awarded in the PEG-5 to make viable the projects that allow that energy to be evacuated to the grid ," said Armando Martínez , general manager of INDE, during Future Energy Summit (FES) Guatemala 2026 .
The executive praised the outcome of the tender, which awarded 1,258 MW across 57 projects , with approximately 73% renewable energy participation and a strong emphasis on solar power with storage. However, he cautioned that the process's success now hinges on the country's ability to develop the necessary infrastructure and keep pace with growing demand.
Martínez considered that the bidding process fulfilled its objective of guaranteeing supply to distributors. "The awarding of contracts to more than 50 agents for these more than 1000 MW of energy that were allocated indicates that it achieved its main objective," he stated.
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However, he acknowledged that the process left some firm power contracting unfinished, an aspect that will have to be addressed in the next bidding round. " Firm power demand was an issue that certainly wasn't fully met, but we understand that there will be a subsequent tender that will try to fill these gaps to ensure the sustainability and security of the country's electrical system ," he stated.
This scenario aligns with Guatemala's roadmap for the coming months. PEG-6 aims to add approximately 300 MW of firm power , while PET-4 will redefine transmission expansion to accommodate the new renewable generation capacity awarded under PEG-5.
According to the general manager of INDE, expanding the transmission network will be crucial for connecting the new capacity. He noted that supply and demand are currently almost balanced , so the addition of new projects must keep pace with the expansion of the electrical infrastructure.
" The speed with which we resolve the incorporation of generation implies that we, as agents where we participate in the issue of transmission, quickly resolve that connection between supply and demand ," he stated.
The proposal gains relevance after PET-3 was declared void and while the Government is working on PET-4 , which would incorporate more than 500 km of transmission lines and more than 18 substations , in addition to a new scheme to better distribute risks between the State and investors.
Martínez also suggested that INDE should create better conditions to accelerate project implementation. In this regard, he emphasized the need to expedite permits, strengthen institutional support, and reduce administrative processing times.
" We must send the right signals and also receive the correct feedback from government policies. This should allow us to make solutions viable and known to all stakeholders, from streamlining permitting processes and providing socio-political support to making procedures more accessible and faster, and truly debureaucratizing the entire project development process ," he explained.
The executive also maintained that it will be necessary to strengthen the confidence of developers through mechanisms that allow attracting private investment and international financing.
" We need to incorporate more agile mechanisms, generate trust in other agents, and even open up the space to co-invest, participate and generate alliances where capital can be brought in by making projects bankable, with the support of multilateral banks that will be interested in doing so ," he added.
Generation, rural electrification and storage
Martínez identified three priorities for INDE in the coming years: strengthening generation, expanding transmission, and advancing rural electrification.
Regarding the first point, he assured that the organization will seek to promote alliances that will allow it to sustain future calls for generation.
" Primarily generation, from the perspective of being able to support the creation of alliances so that there can be participation in a subsequent tender that will allow for the sustainability and energy security of the grid ," he noted.
The third focus will be on access to electricity. He specified that Guatemala still has a 9% to 10% electrification deficit, equivalent to approximately 340,000 households , which will need to be connected to the grid in the coming years through conventional networks or specific solutions for isolated areas.
" Today it turns out to be a variable in which we have a debt of approximately 9% or 10% of pending electrification in the country, which results in some 340,000 homes that, without a doubt, will be part of that demand that will be incorporated into the network ," he said.
In this process, storage will play a central role. Martínez explained that, in rural electrification, batteries are essential to guarantee supply in isolated systems, from individual kits to mini-grids.
" Storage is proving to be a very important variable today for the satisfaction of every household that is going to be electrified ," he stated.
Furthermore, he considered that this technology should also be progressively incorporated into INDE's hydroelectric park, especially in run-of-river power plants, to improve energy availability during peak consumption hours.
" Gradually incorporating storage, especially in those areas that are run-of-river, will allow us to cover certain times when the flow is clearly unavailable, and thus provide solutions during the hours when consumption is most needed ," Martínez concluded.