Guatemala’s Ministry of Energy and Mines (MEM) is preparing a new round of electric-transmission tenders after the failure of the PET-3 procurement process. The objective is to reinforce the country’s transmission infrastructure and ensure the long-term reliability of the national power grid.
During the PET-3 process, the only bid submitted failed to pass the technical evaluation due to documentation issues. With no qualified competitors, the tender was declared void — creating an opportunity to rethink bidding conditions and attract broader participation from international developers and transmission operators.
David Eduardo Cabrera Palomo, president of the Guatemalan Association of Electricity Transporters (AGTE), explained in an interview with Energía Estratégica that “the projects could not be awarded, and the Ministry must now identify the appropriate mechanisms to execute these works in the short term”.
He added that Guatemala has a solid legal framework enabling the expansion of the transmission system under multiple investment models, making it essential to explore alternatives that stimulate private participation and long-term investment.
According to industry sources, MEM is already working on relaunching PET-3 with improved conditions to attract private investment and accelerate grid expansion. AGTE believes this process must move quickly and be accompanied by at least three additional tenders to reorganize transmission planning, recover unawarded projects, and meet the needs of the upcoming PEG-5 generation plan, expected in the first quarter of 2026.
Guatemala’s energy planning faces increasing pressure. Official projections show that the country will need to double its transmission network over the next 20 years to keep pace with demand growth of 5–6% annually, with some urban areas already posting double-digit increases. Industrialization, urbanization and the country’s Rural Electrification Program will continue to drive higher consumption.
In the short term, the awarding of PEG-5 will require new grid-reinforcement works. This has occurred in previous planning cycles, but timelines are now tighter. In fact, one of the lots included in PET-3 was originally designed to meet infrastructure needs generated by PEG-4, awarded two years ago. The misalignment between processes highlights the urgency of accelerating Guatemala’s procurement schedule.
To attract more private developers and Independent Power Producers (IPPs), AGTE recommends redesigning the risk-allocation structure. Under PET-3, a disproportionate share of risk fell on a single actor, reducing the appeal of the tender.
The solution, Cabrera Palomo emphasized, does not imply shifting these risks to the State, but rather creating “more balanced and predictable conditions for bidders. As risk becomes more equitably distributed, tenders will be more attractive, fostering competition and ultimately driving down the prices passed to end-users”.
AGTE also suggested dividing projects into smaller lots to enable participation from a wider range of qualified companies, increasing competition and the likelihood of successful awards.
In parallel, the Ministry must approve in January the new Transmission Expansion Plan, which will define priority projects for a two-year urgent horizon and a minimum five-year planning horizon. Once projects are classified as part of the main transmission system, the State can formally tender them.
AGTE has already submitted a proposal identifying critical nodes where future bottlenecks may arise, based on real-time network monitoring. While this list does not replace formal studies, it aims to support the Ministry and the National Electric Energy Commission in ensuring that sector needs are properly reflected in the official planning document.
“We hope our recommendations will be considered in the final document due in January”, Cabrera Palomo noted.
However, improved planning alone will not be enough. Transmission projects in Guatemala continue to face delays due to permitting challenges, rights-of-way issues and municipal licensing processes, which extend execution timelines across multiple fronts. Unless these structural bottlenecks are resolved, annual transmission-system growth will remain around 1.5%, far below what is required to support the country’s long-term electricity-sector expansion.
