Guatemala’s fifth Power Generation Expansion process (PEG-5) received bids totalling approximately 4,700 MW of capacity, compared to the 1,400 MW required under the tender, with 51 companies participating.
Although the final report is still being prepared, industry sources estimate that more than 2,000 MW of the total submitted correspond to solar PV projects, both with and without energy storage. This reflects the strong presence of renewable energy technologies in a procurement round that also allows thermal generation offers.
Total estimated investment across all technologies exceeds USD 3.5 billion. The high volume of capacity offered makes this the most competitive procurement process in Guatemala in recent decades, as the submitted capacity significantly surpassed previous contracting rounds in the country.
What comes next?
The economic evaluation of bids has been scheduled for 25 March 2026 through a reverse auction mechanism. Final awards are set for 16 April 2026, and contracts must be signed within a maximum period of three months thereafter.
The awarded power purchase agreements (PPAs) will have a 15-year term, with supply beginning between 2030 and 2033.
The auction design prioritised efficiency and competition, creating strong price pressure that could translate into improved conditions for regulated consumers and greater cost discipline in awarded generation projects.
PEG-5 Open Tender – Timeline
| Activity | Date |
|---|---|
| Call for tender | 23 April 2025 |
| Purchase of bidding documents | 23 April – 20 November 2025 |
| Clarification requests on bidding documents | Until 10 October 2025 |
| EEGFSA responses to clarification requests | Until 31 October 2025 |
| Submission of bids (Envelope “A” and “B”) and opening of Envelope “A” | 21 November 2025 |
| Technical evaluation (Envelope “A”) | Until 21 November 2025 |
| Initial economic evaluation of bids | 15 January 2026 |
| Deadline for responses to additional clarification requests and issuance of addenda | 30 January 2026 |
| Submission and opening of technical offers | 12 February 2026 |
| Final economic evaluation (reverse auction) | 25 March 2026 |
| Award date | 16 April 2026 |
| Deadline for signing supply contracts | Up to three months after the award |
During the development of the procedure, more than 1,000 technical queries were submitted by participants. This led to the issuance of four addenda to the bidding documents and five information sessions, including a simulation of the reverse auction mechanism.
According to the official communication, the tender “has been conducted under the highest standards of transparency, participation and technical rigour”, reinforcing perceptions of institutional predictability in Guatemala’s power sector.
This outcome takes place in a context of review of the national electricity infrastructure, following setbacks recorded in the PET-3 transmission tender. As a result, the country is preparing its relaunch along with new grid expansion calls in 2026.
Coordination between generation expansion and transmission reinforcement will be decisive in integrating the projected new capacity and avoiding medium-term operational constraints. Aligning renewable energy growth, firm capacity, and grid investment will be essential to ensure system reliability and support continued investment in solar PV, energy storage and other clean energy technologies.
Participating Companies
| Nº | Company |
|---|---|
| 1 | Agen, S.A. |
| 2 | Alternativa de Energía Renovable, S.A. |
| 3 | U.S. Geothermal Guatemala, S.A. |
| 4 | Aurora Energía, S.A. |
| 5 | Santo Espíritu, S.A. |
| 6 | Hidroeléctrica El Cobano |
| 7 | Helios Power Guatemala, S.A. |
| 8 | Instituto Nacional de Electrificación (INDE) |
| 9 | Sol Central, S.A. |
| 10 | Mecanismos de Energía Renovable, S.A. |
| 11 | Ecosol, S.A. |
| 12 | Valores Mercantiles, S.A. |
| 13 | Transmisión de Electricidad, S.A. |
| 14 | Hidro Xacbal, S.A. |
| 15 | Energía Limpia, S.A. |
| 16 | Bioska, S.A. |
| 17 | Cox Energy Guatemala, S.A. |
| 18 | Generadora de Occidente, S.A. |
| 19 | Energía del Caribe |
| 20 | Oxec II, S.A. |
| 21 | Dirección Empresarial Moderna, S.A. |
| 22 | Anacapri, S.A. |
| 23 | Hidroeléctrica Río Las Vacas, S.A. |
| 24 | CH4 Systems LLC |
| 25 | Ecoener Sol de Escuintla, S.A. |
| 26 | Ecoener, S.A. |
| 27 | City Peten, S. de R.L. |
| 28 | Energías San José, S.A. |
| 29 | San Diego, S.A. |
| 30 | Renace, S.A. |
| 31 | Ingenio Palo Gordo, S.A. |
| 32 | Biomass Energy, S.A. |
| 33 | Ingenio La Unión, S.A. |
| 34 | Solkin, S.A. |
| 35 | Energías del Atlántico, S.A. |
| 36 | Arkanis, S.A. |
| 37 | Grupo Generadora de Oriente, S.A. |
| 38 | GRSW Generadora, S.A. |
| 39 | Dirección Empresarial Moderna, S.A. |
| 40 | Supra Energy, S.A. |
| 41 | Generadora Eléctrica del Norte Limitada |
| 42 | Regional Energética, S.A. |
| 43 | Genepal, S.A. |
| 44 | Cardinal Energy |
| 45 | Samdro Group, Corp |
| 46 | Campo Terraverde, S.A. |
| 47 | Compra de Materiales Primas, S.A. |
| 48 | Jaguar Energy Guatemala, LLC |
| 49 | Xolhuitz Providencia, S.A. |
| 50 | Tuncaj, S.A. |
| 51 | Foton, S.A. |
