Throughout 2025, Energía Estratégica gained access to exclusive details on the main generation tenders currently open in Central America and the Caribbean.
For this reason, the specialised news outlet summarises the active processes in four key markets — Dominican Republic, Guatemala, Honduras and Panama — all of them characterised by large volumes of contracted capacity, the integration of battery energy storage systems (BESS), US dollar-denominated contractual frameworks and support from multilateral institutions.
Although each tender follows a different approach, the four cases share a common pattern: the drive to modernise electricity procurement through technical criteria, legal certainty and clear energy transition objectives.
Dominican Republic
Progress has been made on a call for up to 600 MW of new renewable capacity, to be integrated into the system with mandatory energy storage and the provision of critical ancillary services such as primary and secondary frequency regulation, ramp control, synthetic inertia and black-start capability, as established under Resolution SIE-092-2025-LCE.
The process is being led by the Unified Electricity Companies Council (CUED) and will include US dollar-denominated power purchase agreements (PPAs) backed by the electricity tariff, strengthening the overall bankability of the scheme.
Despite the expectations generated, as of the closing date of this report the tender specifications have not yet been officially published, and no formal progress has been identified in the administrative stages.
The decision to make BESS a mandatory component seeks to ensure flexibility and reliability for the power system, in a context where the country expects to reach 2.6 GW of renewable capacity by 2028, including between 500 and 600 MW of battery storage over the next three years.
From the Dominican Renewable Energy Association (ASOFER), its president Alfonso Rodríguez stated that the measure represents “a before and after in the way we conceived the national electricity system: more resilient, cleaner and more competitive”.
Guatemala
The PEG-5 process contemplates the award of 1.4 GW of renewable and natural gas-based capacity through 15-year contracts. To date, 22 bid documents have been sold and the process is currently in the observation and consultation phase. The award is scheduled for 30 January 2026.
Unlike previous tenders, this call does not restrict technology combinations, opening the door to solar PV, wind, hydro or hybrid proposals, with the option to integrate energy storage.
The recent declaration of the PET-3 transmission tender as unsuccessful shifted market expectations towards PEG-5, which has gained prominence within national energy planning. The publication of the new PET-4 tender is expected in January 2026.
In addition, the country received a USD 155 million loan from the Inter-American Development Bank (IDB) for rural electrification, reinforcing the social and territorial focus of its energy policy.
“The PET-3 is not directly linked to PEG-5, but grid reinforcement will be sized once the projects are defined,” explained Deputy Energy Minister Juan Fernando Castro Martínez, when contextualising the ongoing planning process.
Honduras
A tender for 1.5 GW plus a 10% reserve is under way under a Build, Operate and Transfer (BOT) scheme, with award scheduled for February 2026. The design includes reverse auctions and requires a minimum of 20% BESS per project, in line with the new technical framework of the national regulator.
Financial backing has been structured together with the Central American Bank for Economic Integration (CABEI/BCIE) for USD 300 million, with progress being made to include IDB Invest as a guarantee provider. This is complemented by strong private sector interest, with 13 companies acquiring bid documents at USD 10,000 each.
However, the political situation represents a risk factor. More than 20 days have passed without the official confirmation of the newly elected president, raising questions about institutional continuity for the tender.
From the regulatory authority, commissioner Wilfredo C. Flores described the process as “a success” and underlined: “It is important to attract storage systems and investments that provide firm capacity, considering the effects of climate change in the region”.
Panama
The country is moving forward with the first call under its new official 2025–2029 procurement schedule, designed to structure and anticipate the incorporation of new technologies into the national power system.
The currently active ETESA LPI 01-25 tender seeks to contract 135 MW (energy equivalent) and 35 MW of firm capacity, exclusively from new hydroelectric and wind power plants, with commercial operation expected in 2029.
The award is scheduled for 5 January 2026, with 20-year contracts. This is the first in a series of tenders with defined dates under the official schedule, including a specific renewables-plus-storage (BESS) tender planned for 2028.
The next process on the calendar is ETESA LPI 02-25, expected to be launched in 2026, with a focus on solar photovoltaic generation.
Although the announcement was well received by the market, it is worth noting that a change in leadership at the National Energy Secretariat took place shortly afterwards, introducing some uncertainty regarding implementation.
“The schedule establishes a clear path for incorporating new renewable capacities — wind, hydro, solar and firm backup — in an orderly, technical and complementary manner,” said former Energy Secretary Juan Manuel Urriola, who promoted the scheme.
A new energy architecture for Central America and the Caribbean
The four processes analysed share common elements: high technical requirements, the incorporation of BESS as a standard, US dollar-denominated contracts with 15- to 20-year tenors, and a renewed role for multilateral banks such as the IDB, IDB Invest and CABEI.
This is accompanied by growing political willingness to update regulatory frameworks, organise multi-year procurement schedules and improve project bankability. Ongoing reforms seek to provide legal certainty and strengthen regional integration, in line with climate objectives.
With this overview, Energía Estratégica highlights the value of the exclusive information gathered throughout the year, showing how Central America and the Caribbean are shaping a new generation of energy tenders, where storage, planning and system resilience are no longer the exception, but the new norm.
