Guatemala's National Electric Energy Commission (CNEE) provided Energía Estratégica with firsthand details of the schedule and conditions of Open Tender 1-2026, the process through which Guatemalan distributors will seek to contract around 300 MW to cover short and medium-term needs.
“According to the schedule proposed by the Bidding Board, the submission of technical bids is scheduled for September 25, 2026, and the economic evaluation of the bids is scheduled for October 7, 2026,” the CNEE informed Energía Estratégica .
The regulator also anticipated that firm energy will be one of the pillars of PEG-6 and confirmed that defining the mandatory works constitutes the next step of PET-4, aimed at expanding the transmission infrastructure.
The call for tenders was launched on July 20, 2026 , and includes the contracting of power and energy for the remaining months of the 2026-2027 seasonal year and the period ending in April 2032.
Open Tender 1-2026 will cover some of the capacity that was not awarded in PEG-5 and address new needs arising from increased consumption. It will also cover the natural expiration of short-term contracts signed in previous processes.
The General Electricity Law requires distributors to maintain their power and energy requirements covered for at least two years. On this occasion, the companies decided to pool their needs for a longer period to anticipate an expansion of demand that the regulatory body described as extraordinary.
The scheme will also open an opportunity for projects awarded under PEG-5, capable of starting operations before their contractual date, to offer supply during the pre-season period.
“ This also allows some projects that were awarded in PEG-5-2025 and have the possibility of entering before the start of supply, to offer in this tender ,” the Commission noted.
The call for bids will accept both existing and new power plants. Offers from the Regional Electricity Market and the Guatemala-Mexico interconnection will also be accepted, expanding the range of options available to distributors.
“Although any open tender in Guatemala seeks to guarantee the supply of electricity to almost 60% of the country's demand, the common factor of all of them is to minimize the costs of purchasing power and energy,” the regulator stated.
Competition will therefore be one of the main mechanisms for containing prices. The load curve, the contract term, the energy sources, and the technical requirements may differ from other processes.
Guatemala has already conducted six long-term tenders , in addition to numerous shorter-term competitions. Each call for bids responded to specific market conditions and different supply profiles.
Firm energy gains ground on the road to PEG-6
While Open Tender 1-2026 progresses, distributors and the CNEE are working on structuring PEG-6 . Its conditions are still under analysis, although the agency confirmed one of its main concepts.
“ One element to highlight for the new tender is the concept of firm energy; everything else is under analysis between the distributors and the CNEE ,” the Commission stated.
The definition indicates that the next call will seek resources capable of guaranteeing availability and responding to the required time conditions, in addition to incorporating new installed capacity.
The approach incorporates some of the signals left by PEG-5, which awarded 1258 MW distributed across 57 projects , with approximately 73% associated with renewable technologies and a significant participation of hybrid solar plants with batteries.
The average single-unit price was around $101/MWh , below current contract prices. The results confirmed that renewable energy solutions with storage can compete in long-term supply schemes.
PEG-5 also changed the market's investment criteria. The ability to provide energy, power, and flexibility gained importance compared to the isolated cost of generation, especially when distributors require deliveries during specific time slots.
This condition reduced the competitiveness of technologies with less controllable production. Although wind power maintains low levelized costs globally, solar systems with BESS were able to offer more predictable delivery at the times specified by the bases.
The CNEE did not anticipate exclusive incentives or specific requirements for PEG-6 storage. Its position is that batteries will have to demonstrate their value within the competitive process itself.
“ The best incentive in any tender is competition, so it is estimated that the elements will focus on that aspect and on covering the demand of the distributors with firm energy ,” the agency stated.
BESS systems can consolidate their market share if they manage to combine technical compliance with competitive pricing. Their main advantage will be the ability to displace energy, provide backup power, and respond more predictably to the required profile.
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Guatemala is thus positioning itself as one of the most dynamic markets in Central America for energy storage. While other countries still rely on specific regulations or ancillary services markets, PEG-5 has incorporated batteries into long-term contracts.
The growth of solar power generation and hybrid projects, however, is increasing the pressure on existing infrastructure. The new capacity will require sufficient grids, clear access rules, and facilities capable of managing more complex electrical flows.
PET-4 moves towards the definition of mandatory works
PET-4 will be implemented alongside the commissioning of awarded projects and future generation tenders. Its next milestone will be to determine which transmission works will be mandatory and must be carried out through public bidding.
“ The next step in the Public Bidding process to add new transmission infrastructure corresponds to the identification of the works that must be carried out through bidding ,” the CNEE explained.
Once that portfolio is formed, the Commission will issue the bases for the Ministry of Energy and Mines to approve them and enable the launch of the process, in accordance with article 54 Bis of the Regulations of the General Electricity Law.
The ministerial bidding process will not be the only available option. Guatemalan regulations allow for the development of transportation infrastructure through self-initiative or by agreements between the parties approved by the relevant agency.
“ This does not limit private investors from also undertaking, through their own initiative, the necessary transmission investments for their connection ,” the Commission pointed out.
This alternative provides flexibility to developers who need to build lines, substations, or expansions to connect their projects. At the same time, it requires coordinating these investments with central planning to avoid isolated assets and new congestion.
The need to expand the grid gained relevance after the problems recorded with PET-3 and the warnings about the risk of not having enough capacity to evacuate the awarded solar generation.
Adding to this challenge is a new regulation that redefines the conditions for accessing the grid and is generating concern among Renewable Distributed Generation projects that were already under development.
The market is closely monitoring the processing of ongoing applications, the criteria applicable to connection points, and the works that may be required for each project. Regulatory predictability will be crucial to avoid delays and cost overruns.
PET-4 must coordinate the construction of new infrastructure with access procedures and investments promoted by the developers themselves. The effectiveness of the process will depend on these three dimensions advancing in a coordinated manner.
The distributors that carry out the tenders concentrate 58% of the total demand of the system , so their requirements have a decisive weight on the planning of generation and transport.
“ All coordination efforts are aimed at meeting this requirement ,” the CNEE stated, referring to the participation of these companies in national consumption.
The Transportation System Expansion Plan includes the projects that the Ministry deems necessary. These may be carried out through open bidding, on its own initiative, or through agreements between the parties authorized by the Commission.
Open Tender 1-2026, PEG-6, and PET-4 address different needs within the same strategy. The first will meet immediate requirements and contract expirations; the second will need to add firm energy; and the third will have to enable sufficient capacity to transport the new generation.
The development of these processes coincides with a stage of institutional transition prior to the general elections scheduled for 2027. The sector is closely monitoring the continuity of the timelines following the changes in the leadership of the Ministry of Energy and Mines.
The departure of Víctor Hugo Ventura and his replacement by Erwin Barrios raised questions about the pace of implementation, although the change was interpreted by some in the market as a sign of continuity. The appointment of Luis Rolando Barillas as Vice Minister of Energy strengthened the ministry's technical profile.
The agenda also faces legal challenges. Implementation of the new Anti-Money Laundering Law requires a review of contractual models used by the electricity market, while some municipalities have begun demanding licenses or payments for solar projects without clear national backing.
The lack of adequate contracts could create uncertainty for developers and financiers regarding PEG-6. Municipal requirements, meanwhile, could affect the timelines and costs of projects awarded under PEG-5.
Coordination between the central government, local administrations, distributors and the CNEE will be key to preventing regulatory obstacles from delaying the planned expansion.
The next stage of Guatemala's electricity market will combine competition, firm energy, storage, transmission expansion, and clear access conditions . The 300 MW tender will address short-term needs, while PEG-6 and PET-4 will define a substantial portion of the system's future capacity.