Guatemala has launched a competitive solicitation process to secure the supply of up to 1.4 GW of new energy capacity as it unveiled bidding terms for the Open Tender Electricity Generation Expansion Plan (PEG-5) recently. This is the country’s largest energy tender launched to date. 

Through this, the country aims to secure a long-term energy supply and cost reduction for the users. 

The guaranteed power supply from new projects that combine renewable and non-renewable energy technologies, or change their technology, will need to start from May 1, 2030, 2031, 2032 or 2033, with contracts to be signed for up to 15 years.  

Existing eligible projects that do not change their technology or combine technology with renewables will qualify for 5-year contracts. Winning projects will be selected on the basis of the lowest total cost for users.  

The country’s power distributor, Empresa Electrica de Guatemala (EEGSA), said this 1.4 GW tender will open the way to new investments in renewable energies and clean technologies.  

Sharing details of the tender terms, law firm Alta Legal says that the tender seeks to contract up to 1.4 GW of guaranteed power as an efficient firm offer, and up to 150 MW of installed power. It is expected to attract $4 billion in investments.  

Launched on April 24, 2025, the agency will accept technical bids till October 31, 2025. Details are available on the National Electric Energy Commission’s (CNEE) website.  

Guatemala has a hydropower-dominated energy system, thanks to which renewable energy share stood at 71% in 2023. Among renewables, the share of solar was 4%. In 2024, as per the International Renewable Energy Agency (IRENA), the country’s total installed renewable energy capacity reached 2.7 GW, comprising 102 MW of solar PV.  

According to the García & Bodán Law Firm, the Renewable Energy Generators Association (AGER) believes that Guatemala’s grid has the potential to incorporate 3.7 GW of renewable energy capacity into its grid between 2024 and 2040. To make sure this happens, it needs to undertake transmission network upgrades and ease bureaucratic processes.