If you came to this page is because you are interested in knowing how the Guatemalan Electricity System works as a student or enthusiast of the sector and you have wondered who are the actors involved in the whole process? Here we have what you need. Since 1996, Guatemala’s electricity system underwent a significant transformation with the adoption of a free market for the generation and commercialization of energy. This opening has allowed a diversification of the actors involved, from public and private institutions to final consumers.
Thus, the sector is characterized by a well-defined structure, where transmission and distribution remain regulated activities, offering a scenario of balanced and sustainable competition. In this sense, we would like to show you how the country’s electricity sub-sector is organized and which are its main players.
The main players in Guatemala’s electricity system
Governance and Regulation
A simple way to represent the actors in the electricity system is to imagine an organizational chart. In this sense, in the first link we will find the Ministry of Energy and Mines (MEM), in charge of dictating the energy policy and supervising the generation and transmission expansion plans, i.e., it is the governing body of the country’s electricity industry. The National Electric Energy Commission (CNEE) regulates transmission and distribution activities, guaranteeing compliance with policies and the correct operation of the market.
It also highlights the role of the Wholesale Market Administrator (AMM), a private non-profit entity, which manages the operation of the electricity system and the settlement of transactions in the market.
Electricity Market: a vision of free competition
The Guatemalan electricity market is structured around free competition for the generation and commercialization of energy. In this sense, market agents are classified as follows:
Generators
These are entities or companies responsible for producing electricity. They use various energy sources, such as hydroelectric, solar, wind, among others, to generate electricity, which is then injected into the national electric system for distribution and commercialization.
Carriers
These are the companies in charge of the large-scale transmission of electric power through high-voltage lines from the generation points to the distribution or mass consumption centers. This process involves the operation of transmission networks that connect the generating plants with the demand areas.
Conecta is a perfect example within the energy transmission companies, with a crucial role in the transmission infrastructure. They are responsible for the development and operation of ethical, profitable and sustainable practices, based on the highest standards of quality, knowledge and technology.
Distributors
These are companies that operate local electric power distribution networks. Their function is to deliver electricity from transmission stations to final consumption points, such as homes, businesses and industries. Distributors are regulated to ensure that access to energy is universal, reliable and fairly priced.
Marketers
They act as intermediaries between generators and end consumers or between generators and the wholesale market. Traders buy electricity produced by generators and sell it to end users or on the wholesale market, managing supply contracts and offering different rates and conditions.
Conecta: an example of innovation and sustainability in the electricity system
In the network of actors that energize the electricity sector in Guatemala, Conecta stands out for its focus and commitment to innovation and sustainability. The company ensures efficiency in energy transmission and promotes responsible practices that benefit Guatemalan society as a whole.
Guatemala’s electricity system is an ecosystem driven by a plurality of actors ranging from government regulators to innovative companies such as Conecta. Thus, the future of the Guatemalan electricity sector, with its focus on sustainability and innovation, is presented as a model to follow in the region.
