Guatemala’s Renewable Energy Auction: A Bold Step Toward Sustainability
Guatemala has launched a significant renewable energy auction for 1.4 gigawatts (GW) of capacity, a strategic move to diversify its portfolio with a focus on solar, wind, and geothermal projects. This initiative is set to bolster the country’s renewable energy infrastructure.
Auction Details
The Guatemalan Ministry of Energy and Mines (MEM) has announced a national auction to expand the country’s renewable energy infrastructure. Open to solar, wind, and geothermal projects, the auction reflects a strong commitment to sustainable development.
The auction is divided into three categories by project scale: small plants with a capacity of up to 10 megawatts (MW), medium plants up to 100 MW, and large plants exceeding 100 MW. In total, 1.4 GW of capacity will be awarded to successful bidders across these categories.
Capacity Allotment and Timeline
The MEM has allocated the capacity as follows: 300 MW for small plants, 300 MW for medium plants, and 800 MW for large plants. Interested bidders must register by December 13, with winners to be announced on March 6, 2025.
Currently, Guatemala’s energy grid has 1.77 GW of renewable capacity, including 1.1 GW from hydropower, 439 MW from bioenergy, 149 MW from wind, and 84 MW from solar power. With an ambitious goal to add another 1.6 GW of new renewables by 2028—including 1 GW of solar and 400 MW of wind—the country is setting the stage for a significant energy transformation.
Future Plans and Past Successes
Looking ahead, the MEM plans to launch another auction in April 2025 for an additional 1 GW of renewable energy capacity. This upcoming auction will again prioritize solar and wind projects, reinforcing Guatemala’s commitment to green energy.
Building on past successes, Guatemala’s previous renewable energy auction awarded contracts for 110 MW of solar capacity and 60 MW of hydropower. These efforts highlight the country’s dedication to expanding its renewable energy landscape and reducing its reliance on non-renewable sources.
This auction is part of a broader trend of growing investment in renewable energy across Latin America. For instance, Grenergy’s acquisition of a 1-GW solar portfolio in Chile for $128M illustrates this trend, highlighting the potential of sustainable energy solutions in the region.
Through these auctions and future plans, Guatemala is setting a precedent for renewable energy development, working to ensure a sustainable and reliable energy future for its citizens.
