Caribbean & Central America - September 2013 (ISSN 1741-4458)

Renewed energy demands: Last month some 20,000 protesters took to the streets across Guatemala calling for the government of President Otto Pérez Molina to reduce energy costs and re-nationalise the sector (which was privatised in 1997). The protests, which also included more longstanding demands such as an end to mining concessions and the ratification of a rural development law, took place on 21 August in half of Guatemala’s 22 departments. In October last year a deadly military crackdown on protesters making the same demands caused an international outcry [RC-12-11]. High energy costs remain as a major public complaint, despite the fact that renewable energy now accounts for 65.1% of energy generation, up from 50.6% in 2007- with bunker, the most expensive fuel, now accounting for 24.31%, down from 36% in 2007- on figures from the 2013-2027 energy policy, released by the energy & mining ministry (MEM) in February. One energy expert, Roberto Barrera, cited in national daily, Prensa Libre, on 27 August said that the five-year plan approved by the Comisión Nacional de Energia Eléctrica (CNEE), the national electricity regulator, for distribution company, Empresa Eléctrica de Guatemala (EEGSA), fixed the price of energy for industry at Q$1.41 (US$0.17) per kilowatt hour, up 44% on the tariff established in the previous five-year plan. EEGSA is the biggest of Guatemala’s main distributors (along with Energuate, formerly Distribuidora de Electricidad de Occidente [DEOCSA], and Distribuidora de Electricidad de Oriente, S.A.[DEORSA]), serving the capital and surrounding areas in the departments of Guatemala, Sacatepéquez and Escuintla. As well as hopes that energy costs will be brought down once the Central American interconnection system (the planned link-up of the six Central American nations’ power grids as well as Mexico’s and Colombia’s) becomes fully operational, the Pérez Molina government is also seeking to increase energy generation from renewable sources to 80% by 2027. The other main task facing the government vis-à-vis energy is the need to increase coverage. According to the 2013-2027 MEM plan, national coverage currently stands at 85.7%, barely shifting from the 85.1% registered in 2006. This varies widely from 97% in the mostly urban department of Guatemala to 35.4% in Alta Verapaz in the north. The government is aiming to increase national coverage to 95%, although failed to specify a time frame.

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