Guatemala Opens 1500 MW Power Tender with Focus on LNG
Guatemala has launched a significant tender to secure 1500 megawatts (MW) of new electricity generation capacity to meet the growing energy demand in the country, as reported by Reutersl. The tender is part of the country’s efforts to diversify its energy sources and ensure a stable power supply.
Among the 1500 MW, approximately 700 MW will be allocated to projects based on liquefied natural gas (LNG), with the aim of providing reliable and consistent power to meet the country’s dynamic energy needs.
Victor Hugo Ventura, Guatemala’s Minister of Energy and Mines, said, “Guatemala expects to contract at least 700 MW of firm power, in one or two facilities located in the coasts of the Atlantic Ocean or in the Pacific, which will receive LNG ships. This will satisfy the dynamic electricity demand of our country.”
The tender, which is open to international companies, is expected to close in November. The successful bidders will help Guatemala build out its energy infrastructure, ensuring reliable power production through a combination of natural gas and renewable sources.
Addressing Climate Change Challenges and Ensuring Energy Security
According to Reuters, Guatemala faces considerable climate change challenges, including prolonged droughts and extreme weather events, such as hurricanes, that have caused significant damage to infrastructure, including power plants, transmission lines, and distribution networks.
The country is situated within the Central American Dry Corridor, a region particularly vulnerable to climate change impacts.
To address these challenges, Guatemala has made strides in energy transition by increasing its share of renewable energy in the power mix. Currently, the country produces between 55% and 70% of its electricity from renewable sources.
However, in dry years with insufficient rainfall, the country experiences energy deficits. As a result, the government is seeking to secure firm energy contracts through this LNG-focused tender, ensuring reliable power generation throughout the year, even during periods of drought.
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A Balanced Approach to Energy Sustainability
Minister Ventura further explained that the goal of the tender is to secure energy that can be reliably produced year-round with lower emissions. He pointed out that “"this can only be achieved with fuels such as natural gas," emphasizing the critical role of LNG in stabilizing the energy grid while supporting the country's clean energy ambitions.
This tender is a pivotal step for Guatemala in balancing the need for reliable, low-emission power generation with its broader sustainability goals.
