Guatemala’s Generation Expansion Plan 5 (PEG-5) tender has attracted 51 bids for a total of almost 4.7 GW – more than triple the 1.4 GW sought – with around 2 GW of solar projects, including hybrids with storage, competing for long-term supply contracts starting between 2030 and 2033.
Guatemala’s PEG-5 electricity tender has attracted 51 companies offering almost 4.7 GW of capacity – more than three times the requested 1,400 MW. About 2,000 MW of the proposals concern solar energy projects, including hybrid systems with storage.
The Ministry of Energy and Mines and the National Electric Energy Commission (CNEE) opened the technical bids under the PEG-5, which is considered the largest electricity tender in Guatemala’s history. The process seeks to contract firm capacity and associated energy for distributors EEGSA and Energuate to ensure long-term supply amid expected demand growth.
A total of 59 companies purchased the tender documents and 51 submitted formal bids. Of the nearly 4,700 MW proposed, approximately 2,000 MW corresponds to solar photovoltaic projects, including hybrid systems combined with storage. About 700 MW are thermal projects, mainly natural gas, while the rest comes from other renewable and conventional sources.
The contracts, which can have a term of up to 15 years, are expected to start between 2030 and 2033. Authorities estimate that the tender could mobilize more than $3.7 billion in investments, making it one of the largest investment engines for energy infrastructure in Central America.
Oversubscription is expected to increase competitive pressure during the reverse auction scheduled for March 25, when financial bids will be made public. The contracts are scheduled to be awarded on April 16, with projects set to begin supplying power in phases between 2030 and 2033.
Energy Minister Víctor Hugo Ventura said the process is part of the government’s strategy to promote universal electrification and tackle new peaks in hourly demand caused by industrial expansion and rising residential consumption.
The tender falls within the law of incentives for the development of renewable energy projects, which grants tax and tariff exemptions of up to ten years for technologies such as solar energy, wind energy, hydropower and geothermal energy. When the process was presented in April 2025, estimated investments in generation and transmission were estimated at between $3 billion and $5 billion.
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