Every year, energy demand in Guatemala increases due to population growth, industrial expansion, and greater use of technology. According to the Ministry of Energy and Mines (MEM) [for its acronym in Spanish], the country needs to expand its electricity grid in the coming decades. Expansion plans estimate that by 2050, more than 7,000 additional megawatts (MW) of electricity generation will be required—nearly double the current installed capacity.

The topic was addressed during the forum organized by Guatevisión for “Guatemala Moving Forward”: Energy demand is growing—how can we accelerate infrastructure development to meet it? Participants in the discussion included Víctor Hugo Ventura, Minister of the MEM; Elmer Palencia, Vice President of Congress; Luis Ortíz, President of the National Electric Energy Commission; David Cabrera, President of the Guatemalan Association of Electricity Transmitters; and Javier Novales, a lawyer specializing in generation, transmission, and hydrocarbon projects.

However, the challenge lies not only in producing more energy, but also in expanding the infrastructure that transports it. In total, the necessary investments would exceed US$8.7 billion—about Q66 billion—most of which would go toward new power generation projects, with the remainder allocated to strengthening the transmission grid.

According to Cabrera, the growth in demand means that the transportation network will also need to expand significantly in the coming years. “Currently, there are approximately 5,700 kilometers of transmission lines and 215 substations in the system. That means we will need at least 200 new substations and between 5,500 and 6,000 additional kilometers of grid over the next 15 to 20 years,” he said.

For Cabrera, this growth would entail building between 300 and 500 kilometers of grid each year, as well as between 10 and 15 substations annually. However, he cautioned that achieving that goal will require reducing the time it currently takes to develop these projects. “We need to work urgently to ensure that transmission projects—which currently take between seven and eight years, of which two or three are for construction and the rest for permitting—can be expedited to meet the goal,” he said.

According to Palencia, Guatemala is facing a lag in its electricity transmission infrastructure. “The infrastructure is already reaching its limits. Power generation has been growing, but not at the same pace as the transmission infrastructure. This will ultimately have long-term consequences and is practically a death sentence, a slow-motion crisis in the energy sector,” he said.

Cabrera explained that achieving these goals will depend on coordination among the various institutions and stakeholders involved. “I believe this issue will be resolved as long as all stakeholders involved in transportation work together. If municipalities, the central government, and the private sector collaborate to achieve this objective—even though the deadline is quite tight—we will be able to meet it,” he said.

However, he warned that if current conditions persist, the gap could widen in the coming years. “Today, supply is growing at a rate of about 1.5% to 1.7% annually, while demand is increasing by 5% to 7%. If we continue at this pace, that gap will gradually widen,” he explained.

Along the same lines, attorney Novales agreed that expanding the electrical grid requires coordinated action by various government agencies. “It must be a collective effort by the government as a whole. It is not just a matter for the Ministry or the National Electric Energy Commission, but also for environmental and forestry authorities when projects pass through protected areas, and for the municipalities where they are built,” he said.

Novales warned that, without effective coordination among institutions, projects could be delayed and jeopardize the expansion of the system. “Unless a comprehensive effort is made, we will definitely not meet the deadline. There must be coordination among institutions so that projects are planned and executed within the required timeframes, thereby ensuring the transmission infrastructure needed for this tender,” he said.

Opposition and Permits

One of the main obstacles to expanding the electricity transmission infrastructure is obtaining licenses and permits and, in some cases, opposition from local communities and governments.

Minister Ventura acknowledged that there are still projects facing difficulties in obtaining permits. “There are some permits where consensus has not been reached, particularly with municipalities. But in other cases, the issues have been resolved and agreements have been reached,” Ventura said.

The official added that the long timeframes some projects have taken reflect the challenges the country faces in developing energy infrastructure. “The fact that some projects have taken up to 16 years to complete highlights the concerns surrounding strategic infrastructure such as transmission. We believe that projects should not exceed maximum timeframes of five to seven years,” he said.

For Ortiz, part of the problem lies in the conflict arising in various regions of the country, which in some cases stems from legitimate community concerns, but in others is provoked. “When you look at the interior of the country, there is a great deal of conflict. Some of it is legitimate, because they feel that certain rights have been violated, but other conflict is entirely manufactured. The legitimate conflict can be resolved through working groups, but the manufactured conflict becomes a major problem,” he said.

He added that in some cases, economic pressure is even exerted to facilitate the progress of projects. “Let’s be frank: in some cases, this amounts to extortion in the development of projects—not just transmission projects, but generation projects as well,” Ortiz noted.

From the transportation sector’s perspective, Cabrera explained that a significant portion of the delays stems from the process of obtaining municipal licenses. “Some municipalities are more proactive than others, but it takes at least eight to ten months to obtain a municipal license. In some cases, the process takes years, such as in Antigua or in the western part of the country, in Huehuetenango,” he said.

According to Cabrera, in some municipalities, license fees can become an obstacle to the implementation of projects. “In many cases, the fees charged for licenses are two, three, or even five times the cost of the project. That’s simply unaffordable,” he added.

According to Novales, the underlying problem stems from institutional weaknesses and a lack of clear rules in the authorization process. “It’s not just about granting the license. The situation is often exacerbated because, once granted, the license can be revoked or suspended. This reflects a lack of institutional framework and legal certainty in the procedures,” he explained.

The lawyer added that each municipality sets its own criteria and timelines for approving projects, which complicates investment planning. “There are no clear rules regarding how long a process can take. Each municipality sets different fees and procedures, and that completely complicates implementation. In many cases, companies are forced to challenge 

Who should take responsibility?

According to Palencia, the responsibility should be shared between the government and the companies carrying out the projects. “The government and the developer—whether it’s a transmission or generation company—must work together to raise public awareness of the projects and explain why they are necessary,” he said.

The congressman added that it is important for communities to understand the impact that energy infrastructure has on local development. “Where the road goes, development follows, and where the electrical infrastructure goes, opportunities for communities follow as well,” he said.

From the government’s perspective, Ventura agreed that responsibility must be shared, but he noted that one of the main problems has been a lack of communication with communities from the outset of the projects. “Communication has not been adequate. It must begin as soon as the project is conceived, explaining to the communities where it will pass through, what its benefits are, and what role energy plays not only for the region but also for other parts of the country,” he said.

For his part, Cabrera believed that the initial engagement with the communities should be led by the government, given that electricity is a strategic service for the country. “Electricity is a priority for the government, and it is the government’s responsibility to create the conditions necessary for these projects to move forward. With that support in place, we can work alongside investors to find solutions tailored to each community,” he explained.

For Ortiz, the solution also requires greater coordination with local governments, which in some cases have stalled projects or even prevented substations from being energized. “There are substations in the interior of the country that have been abandoned for nearly 10 years because they could not be energized due to decisions by local authorities. Until the scale of the problem is understood, making progress will be an uphill battle,” he warned.

Novales pointed out that, in addition to improving public outreach for these projects, it is necessary to strengthen legal certainty and coordination among municipalities. “The problem is that each municipality sets different rules for permits. This lack of uniformity complicates project implementation and causes delays in the development of electrical infrastructure,” he concluded.

Bill 6665

Congress is holding a second debate on Bill 6665, the Urgent Energy Transmission Infrastructure Act, which aims to provide the government and entities in the electricity sector with a special legal framework to enable the construction, operation, maintenance, expansion, modernization, and preservation of high-, medium-, and low-voltage energy transmission infrastructure. Among its objectives are:

1.  Provide legal certainty for the establishment and formalization of legal easements for public use on public or private property, ensuring fair and prior compensation.
2.  Simplify and standardize administrative procedures, eliminating duplicate paperwork among the relevant entities.
3. Establish strict deadlines and a presumption of approval in the absence of a response, in order to prevent unjustified delays.
4. Ensure the least possible impact on private property, while allowing for compatible uses and access to alternative dispute resolution mechanisms, such as arbitration.
5. Strengthen the technical role of the National Electric Energy Commission (CNEE), empowering it as a regulatory body with functional, technical, and economic independence, responsible for identifying priority projects and issuing the necessary regulations for their implementation.

Article 16 of the initiative also provides for a one-time tax on the installation of electrical infrastructure, payable at the time of installation, to benefit the municipalities where such work is carried out. These would be the taxes:

• Fee for the installation of power lines: Q50.00 per linear meter
• Fee for the installation of power line towers: Q2,500 per unit
• Fee for the installation of power line poles: Q500 per unit
• Fee for the installation of stations, substations, and other infrastructure: Q500 per square meter

For Palencia, the proposal aims to resolve bureaucratic hurdles and the lack of institutional coordination that, as he noted, have slowed progress on several strategic projects. “It seeks to help resolve bureaucratic hurdles, bottlenecks, and the lack of institutional support from the government. In some cases, even agencies within the executive branch have prevented projects from moving forward,” he said.

For his part, Ventura defended the work that, as he noted, the MEM has done to unblock projects and coordinate with other government agencies. “There is no doubt that Congress can contribute a great deal in this area, but we have carried out intensive work that had not been done before. We have worked with environmental authorities and various departments to ensure that the need for transmission projects is understood, thereby enabling us to obtain the necessary licenses,” he said.

However, Palencia considers that a clear initiative from the executive branch is still needed to strengthen the institutional framework and speed up the processes. “Efforts have been mentioned, but I haven’t seen a single initiative from the executive branch that would institutionally strengthen the system and declare these projects a national priority. Many of the procedures that are delaying the projects depend precisely on the executive branch,” he said.

In that regard, Palencia called on the executive branch to support the bill currently moving through Congress. “We invite the minister to work with us and the ruling party to support Bill 6665 and strengthen it. This would help streamline many of the bureaucratic processes that currently pose the main obstacles,” he said.

Ventura stated that the Executive Branch is already in talks with lawmakers to review the proposal and suggest possible improvements. “We are already in discussions with the ruling party caucus to discuss this initiative and make the suggestions deemed appropriate, with the aim of making it more effective,” he said.

The official added that the government is concerned about ensuring that transmission projects are completed within the required timeframes. “There is full awareness of the importance of completing transmission projects on time. We hope that a critical situation does not arise, especially given the progress that has been made by the ministry in coordination with other institutions,” he emphasized.

Discover more from “Guatemala Moving Forward” on our Prensa Libre and Guatevisión video channels, a collaborative series focused on solutions journalism.