Guatemala’s Ministry of Energy and Mines and the National Electric Energy Commission (CNEE) has launched an energy auction to contract up to 1,400 MW of guaranteed capacity and associated energy, to be supplied beginning in 2030 for a 15-year term.

President Bernardo Arévalo said the expected investment in generation and transmission ranges from $3 billion to $5 billion. The Wholesale Market Administrator (AMM) will manage the contractual framework.

Eligible projects include renewable sources—solar, wind, hydroelectric, and geothermal – as well as “low-emission” non-renewables such as natural gas, ethanol, and propane. Authorities will prioritize sustainability and emissions reduction.

The auction will award contracts based on lowest generation cost. Due to its flexible structure, the process includes two energy blocks: a base block for all hours and a complementary block for peak demand.

Winning projects may begin supplying energy on May 1 of 2030, 2031, 2032, or 2033, depending on each plant’s development timeline. Contracts will run up to 15 years for new facilities and five years for existing ones.

Developers must submit bids by Oct. 31.

Guatemala had 102 MW of installed PV capacity at the end of 2024, according to the International Renewable Energy Agency (IRENA).