The first information meeting of Guatemala's Open Tender 1-2026 confirmed a key change for potential bidders: the supply for the 2026-2027 seasonal year will begin on November 1, 2026 , and not in August, as initially contemplated in the Terms and Conditions.
The modification reduces the first effective period from nine to six months , which will conclude on April 30, 2027. Participants must recalculate their projections of revenue, availability, operating costs and guarantees before submitting their proposals.
Despite the initial adjustment, the process will allow bidders to compete for commercial commitments extending through the 2031-2032 seasonal year. The call for bids aims to cover the remaining 300 MW of the PEG-5 plan and address new needs related to demand growth.
“The Terms and Conditions of Open Tender 1-2026, approved by Resolution CNEE-216-2026, structure this call for bids on a supply period that was to begin in August 2026 and extend until April 2027,” said Edgar Rigoberto Grotewold de León , lawyer and notary specializing in Energy Law.
The new schedule “ reduces the effectively available period from nine to six months ,” warned Grotewold de León. This change must be reflected in the technical, contractual, and financial structuring of each proposal.
The process will allow Empresa Eléctrica de Guatemala, Distribuidora de Electricidad de Occidente and Distribuidora de Electricidad de Oriente to contract power and electricity for the remaining months of the 2026-2027 seasonal year and the five subsequent periods.
The call for bids, authorized by the National Electricity Commission, aims to fill the remaining volume not awarded in the PEG-5 tender and to meet additional requirements of the distributors. The timeframe includes the 2027-2028, 2028-2029, 2029-2030, 2030-2031, and 2031-2032 cycles.
The meeting generated significant participation from companies and advisors connected to the electricity market. An industry source present at the event summarized that "there was a lot of interest."
In a dialogue with Energía Estratégica , Ligia López de Luna , a consultant specializing in Electrical Regulatory Law, lawyer and notary, anticipated that generation companies will concentrate a good part of the competition: "There will be all kinds and sizes, since everyone is interested in ensuring the sale of energy at good prices."
The horizon up to 2032 may offer greater commercial predictability and less exposure to the short-term market . However, the shorter initial phase will require a careful assessment of the returns for the first six months.
Bidders must review the availability of their power plants, scheduled maintenance, fuel contracts, firm capacity commitments, and obligations previously assumed within the Wholesale Market.
They will also need to analyze how to distribute fixed costs over a shorter period than originally planned. A proposal calculated over nine months will have to be adapted to a timeframe between November 2026 and April 2027.
From May 1, 2027 , the scheme will progress through full seasonal years. This design will link the first reduced tranche with five successive contracting periods.
The first information meeting also provided clarification on the Bid Security Guarantee , a mandatory instrument to support the proposals submitted in the tender.
“The Board, through Dimas Carranza, also indicated that the Bid Guarantee may be replaced with a different instrument during its validity, from a bank deposit to a stand-by letter of credit, for example,” explained Grotewold de León.
The possibility of changing the mechanism during its validity could provide greater flexibility to participants. However, this option was communicated during the meeting and "is not expressly stated in section 4.5 of the Terms and Conditions." In other words, it does not explicitly detail the possibility of migrating from one instrument to another while the guarantee remains in effect.
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According to the documentation submitted, the guarantee may be constituted by means of a bank deposit, surety, stand-by letter of credit or cashier's check , in accordance with the requirements defined by the Bidding Board.
Its validity will be four months from the date of submission of the offer . For the successful bidder, it must remain active for two months after the validation of the Contract Form by the Wholesale Market Administrator.
The clarification will be relevant for legal and financial teams because the choice between a deposit, a bond, or a letter of credit can modify the cost of participation and the use of bank lines.
“Those who are structuring their offer under these conditions can count, on our part, on an interpretation that combines the contractual analysis with the regulatory analysis of the process,” said Grotewold de León.
What's next on the schedule?
The schedule allows interested parties to submit inquiries about the Terms and Conditions until July 31, 2026. Responses will be published no later than August 14.
The submission of proposals was scheduled for August 28, 2026 , between 9:00 and 11:00 a.m., at the headquarters of Empresa Eléctrica de Guatemala, located in Guatemala City.
The opening of the technical and financial bids will take place that same day. Following this, the evaluation of the documentation, commercial terms, and supporting documentation submitted by each participant will begin.
Those interested must purchase the Terms and Conditions for USD 5000 and complete the defined administrative procedure to formally access the call for applications.
The payment will be in addition to the legal, technical, banking, and financial expenses necessary to prepare a proposal. The total cost will depend on the selected guarantee instrument and the operational structure of each company.
The three participating distributors will use this procedure to cover the power and energy requirements corresponding to the end of the 2026-2027 seasonal year and the five subsequent cycles.
The market will have to combine two distinct variables: a contractual start limited to six months and a business horizon that extends until 2032. This configuration may favor differentiated strategies depending on the availability and risk profile of each generator.
For companies, preparing bids will require coordinating regulatory, contractual, financial, and operational aspects. Clarifications regarding dates and guarantees will directly impact the price and proposed terms.
Open Tender 1-2026 is thus entering a defining stage. The interest detected during the meeting anticipates a competition among companies of varying sizes, attracted by the possibility of securing power and energy sales over several periods.
The outcome will depend on the bidders' ability to adapt to the new supply schedule, uphold their commitments, and structure competitive prices. With 300 MW still pending and contracts extending to 2032 , this bidding process becomes a new and significant step in planning for the Guatemalan electricity market.