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INDE has 75% of Guatemala’s capacity, EEGSA 17%, and municipalitiesandprivatecompanies,13%. Oftheprivate companies’ 128 MWe, Enron has 110 MWe or 86% of the total supplied by its diesel “floating generation barges.” As in the rest of Central America, Guatemala’s electric sectorispresentlyoccupiedwithtwoevents: the completion on schedule by 2005 of the “Sistema de interconexión eléctrica para América Central” (SIEPAC)4 whichwouldcreatearegionalelectricitymarketinCentral America; and the possibility of Guatemala obtaining natural gas from México in ten years or more. México and Guatemala have signed an accord on closer energy cooperation which, in addition to allowing Pemex to set up gas stations in Guatemala, also deals with building a naturalgaspipelinebetweenMéxicoandGuatemala. Government / Legislation Instituto Nacional De Electrificación (INDE) The regulatory framework for the development of Guatemala’s geothermal resources is the responsibility of INDE. INDEalsochannelsstatefundstosupportingrural electrification, supplying electricity to 19 of the country’s 22 provinces. INDE will be divided into two separate entities and sold. Bidders must be recognized power company operators with bidding expected to begin in November 1998. General Law of Electricity (Decree No. 93-96) The General Law of Electricity (Decree No. 93-96), adopted in November 1996, ended INDE’s monopoly by privatizing electricity generation and distribution in Guatemala. AsaresultoftheLaw,INDEcreatedthree distinct state companies for generation, transmission, and distribution. The Law also created the Comisión Nacional de Energía Eléctrica (CNEE) and established the conditions for the formation of a free market-based wholesale market, the 4 SIEPAC would create a regional electricity market in Central America by building a 230 kV transmission line connecting Guatemala, Honduras, and Panamá. (Lines currently exist between several of the countries.) The target date for completion is 2003. TheIDBisproviding$186.6m,overhalfthe $346m estimated cost of the project. IDB estimates that integrating the six electricity systems , taking into account factors like private sector involvement in building the grid, use of bigger plants, sharing plants and reserves, and optimizing water use, may save the countries as much as $10m-$20m a year. Geothermal Resources in Latin America & the Caribbean 30PDF Image | Geothermal Resources in the Caribbean and Latin America
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