Energy Information Administration
Guatemala is of interest because it is in the process of deregulating
its power sector and is creating a competitive environment in
generation, transmission, and distribution. The end of the 36-year
civil war has also led to renewed interest in developing its hydrocarbon
reserves.
Overall
Energy Situation: The key energy issues in Guatemala center
on electricity and oil. Less than half the people of Guatemala
have access to electricity. Outside of the capital, access falls
to 30 percent, and in rural areas there is virtually no access.
Those with access have inadequate supplies and brownouts. Guatemala
has begun a series of reforms and privatization of the power industry
to address these shortfalls. Thermal plants rely on imported fuel,
as the country has little gas or coal reserves. Oil production
had been hampered by a 36-year civil war. With the end of that
war, Guatemala is pushing to develop its oil resources.
Guatemala is the only oil-producing country in Central America. Its reserves have attracted interest because of their proximity to the similar productive Tabasco formations in Mexico. However, oil reserves are concentrated in remote and inaccessible regions in the Peten basin in northeast Guatemala. The recently ended 36-year guerrilla war had posed a constant problem for oil companies since guerrillas had been most active in the northern areas; in the late 1980s, they had carried out major sabotage campaigns against oil installations. With the end of the war, the government has been opening areas for bidding and granting concessions for oil exploration, as well as encouraging exploration in new regions, such as the Amatique basin in southeast Guatemala and the Pacific basin on the Pacific coast. Nine new concessions were awarded to 5 companies in July 1997. Current production of 23,000 barrels/day of low-grade oil has been limited to one company, Basic Oil, recently acquired by Norcen of Canada . That is expected to change with increased foreign involvement. Production is expected to reach 40,000 barrels/day by the end of 1998, with total investment reaching $127 million.
Guatemala needs to increase power generating capacity in order to expand access to electricity and to end recurring brownouts. Load growth has been averaging 9 percent annually, and Guatemala estimates that it must add about 1400 megawatts (MW) of new and replacement capacity by 2012 (current capacity is about 700 MW). Guatemala has decided that major changes need to be made, since the state-owned power companies are heavily in debt and do not have the resources to add this capacity. To accomplish this, the government of Guatemala has begun instituting reforms. In October 1996, the Congress of Guatemala voted to reform the electric power market, allowing the private sector to participate in a number of projects. The government has identified 15 projects totaling over 400 MW that it wants developed by the private sector over the next 10 years. The reforms also give unrestricted access to the power grid, distributors, and wholesale customers, and provide for a general unbundling of generation, transmission, and distribution. Guatemala still hopes to create a regulatory authority that will end subsidies and design rates along competitive lines.
As part of its reforms, Guatemala has started the process of privatizing its state-owned electric companies: the distribution company, Empresa Electrica de Guatemala (EEGSA), and the primary generating company, Instituto Nacional de Electrificacion (INDE). In August 1997, EEGSA sold its only two generating plants, La Laguna and Stewart & Stevenson, to Guatemalan Generating Group (GGG), a subsidiary of Baltimore-based Constellation Power Development. With the sale of the plants, Guatemala has now begun the process of selling its 92 percent share of EEGSA.
Guatemala has also begun several projects with its neighbors to increase the reliability of its power supplies. A planned connection with Mexico's electricity grid will allow it to import power. In addition, Guatemala and the other Central American nations have also agreed to interconnect their transmission grids to allow power to flow between these nations in order to alleviate periodic power shortages. Since Panama is already linked to Colombia's grid, the two links effectively connect the North American and South American power grids. The $400 million project would not begin until after 2000. The Inter-American Development Bank approved an $185 million loan for improvements in the Central American Transmission grid, owned by Empresa Propiedad de la Red SA (EPR), which is owned by the six Central American countries. In the future, the private sector could also own a stake. The plan calls for 1125 miles of transmission line, with a capacity of 300 MW between Guatemala and Panama, as well as improvements to existing systems. Spain has agreed to provide an additional $70 million of financing, and Spain's Endesa will lead a consortium of national power companies in building this project.
Fuel Mix/Renewables. Guatemala had become heavily reliant on hydropower with the construction of large hydroelectric dams that came on line in the 1970s, and hydropower accounted for 92 percent of generation in 1990, with oil and diesel-fired plants accounting for the rest. However, a series of major droughts since 1990 decreased hydropower's share of total generation to 66 percent by 1994. New capacity will be mostly hydropower and oil-fired but will also include some other fuels. A 25 MW cogeneration plant fueled by bagasse (sugar cane refuse) was recently built by Derivados de Cana. The Teco Power Services' 120 MW pulverized coal power plant at Puerto Quetzal will be Central America's first coal-fired plant when completed in 1999, and it will use low-sulfur coal purchased from world markets. In addition, GGG will build a 150 MW plant which will use either coal or Orimulsion from Venezuela for fuel after 2000 as part of its agreement with EEGSA. Guatemala's first geothermal private power plant, the 24 MW Zunil plant, will begin operations after 2000.
ECONOMIC OVERVIEW
Currency: Quetzal
Market Exchange Rate (9/9/97): US$1=6.08 Quetzals
Gross Domestic Product (GDP - purchasing power parity) (1995):
$36.7 billion
GDP per Capita (1995): $3,300
Real GDP Growth Rate (1995): 5%
Inflation Rate (1995): 9%
Major Trading Partners: Exports: United States, El Salvador,
Costa Rica, Germany, Honduras;
Imports: Mexico, Venezuela, Japan, Germany
Merchandise Exports (1995): $2.3 billion
Merchandise Imports (1995): $2.9 billion
Major Export Products: coffee, sugar, bananas, cardamon,
beef
Major Import Products: fuel and petroleum products, machinery,
grain, fertilizers, motor vehicles
ENERGY OVERVIEW
Minister of Energy and Mines: Leonel Lopez Rodas
Proven Oil Reserves (1/1/97): 200 million barrels
Oil Production (1996E): 23,000 barrels per day (b/d)
Oil Consumption (1995): 38,000 b/d
Crude Oil Refining Capacity (1/1/97): 20,000 b/d
Natural Gas Reserves (1/1/97): 10 billion cubic feet
Natural Gas Production (1996): None
Natural Gas Consumption (1996): None
Coal Reserves (1996): Negligible; deposits found in Amatique
basin in the southeast
Coal Production (1996): None
Coal Consumption (1996): None
Electric Generation Capacity (1995): 700 megawatts
Electricity Production (1995): 2.3 billion kilowatt- hours
(kWh)
Electricity Consumption (1995): 2.9 billion kWh
Electricity Net Exports (1995): -0.6 billion kWh
ENVIRONMENT OVERVIEW
Total Energy Consumption (1995): 99 trillion Btu
Energy Consumption per Capita (1995): 8.8 million Btu (vs.
331.8 million Btu in U.S.)
Energy-Related Carbon Emissions (1995): 1.44 million metric
tons (0.02% of world total)
Carbon Emissions per Capita (1995): 0.13 metric tons (vs.
5.42 metric tons in U.S.)
Major Environmental Issues: deforestation; soil erosion;
water pollution
For more information on Guatemala, see these other sources on
the EIA web site:
International Energy Annual 1995 -
Annual international energy data through 1995
Latest EIA Detailed Annual Data (1994)
WORLD ENERGY Database for
the International Energy Annual (requires Microsoft Access)
Links to other sites:
1997 CIA World Factbook - Guatemala
Consular Information Sheet - Guatemala
from the U.S. Department of State
The following links are provided solely as a service to our customers, and therefore should not be construed as advocating or reflecting any position of the Energy Information Administration (EIA) or the United States Government. In addition, EIA does not guarantee the content or accuracy of any information presented in linked sites.
WorldEnergy's Report on Guatemala
Guatemala Country Profile done by Guatemala Online
Guatemala - Latin American Network Information Center at
the University of Texas
If you liked this Country Analysis Brief or any of our many other Country Analysis Briefs, you can be automatically notified via e-mail of updates. Simply click here, put in your e-mail address, and check the box labeled "Country Analysis Briefs" on the list of products. You will then be notified within an hour of any updates to our Country Analysis Briefs.
Return to Country Analysis Briefs home page
File last modified: September 23, 1997
Contact:
Erik Kreil
ekreil@eia.doe.gov
Phone: (202)586-6573
Fax: (202)586-9753
URL: http://www.eia.doe.gov/emeu/cabs/guatemal.htm