Guatemala’s PEG-5-2025 auction has delivered a landmark outcome that reshapes the country’s power system expansion. Of the 1,505 MW awarded across 57 projects, 1,102 MW correspond to renewable energy technologies, accounting for 73% of the total and signalling a decisive shift towards clean generation.
According to a summary prepared by MELECSA, this result reflects a structural transformation in the generation mix. Thermal technologies are relegated to a complementary role, including coal/biomass (175 MW), petroleum coke (135 MW) and gas/bunker (93 MW).
Within the renewable segment, solar PV combined with battery energy storage systems (BESS) clearly dominates, with 713 MW awarded. This represents nearly 47% of total contracted capacity and over 60% of the renewable segment.
This volume significantly exceeds other technologies such as hydropower (140 MW) and hybrid configurations like hydro plus solar (98 MW), highlighting a shift in system planning where managing intermittency becomes a central factor.
Other combinations, such as petroleum coke plus solar (135 MW), also fall behind in participation, consolidating solar-plus-storage as the most competitive solution in the procurement process.
The outcome emerged in a highly competitive context. The auction ran for 14 hours under a descending clock format and registered 57 financial bids, resulting in an average all-in price of USD 101.09/MWh, reflecting a balance between contracted capacity and energy.
Essential auction figures
- Total awarded capacity: 1,505 MW
- Renewables share: 1,102 MW (73%)
- Solar + storage: 713 MW
- Average price: USD 101.09/MWh
- Number of projects: 57
Key players and deployment outlook to 2030
The process also highlights strong participation from private sector companies, particularly in renewable and storage-backed projects. These firms are leading the development of new capacity and reinforcing Guatemala’s position as an attractive market for investment in power generation, especially hybrid technologies.
From a contractual standpoint, DCC agreements dominate with 666 MW across 35 contracts, followed by OC (753 MW in 13 contracts) and SE (85 MW in 9 contracts), providing diversification in procurement structures.
Commissioning timelines show a strong near-term concentration. A total of 1,058 MW is expected to come online by 2030, with the remainder scheduled for 2031 (197 MW), 2032 (140 MW) and 2033 (110 MW).
Overall, the PEG-5 results confirm a clear trend: Guatemala is moving towards a renewable-dominated energy mix, with solar PV plus storage emerging as the leading technology in awarded capacity and a cornerstone for future grid expansion.
