The Guatemalan Electric Company, DEOCSA and DEORSA have officially called the Open Tender PEG-5-2025 to guarantee the supply of power and electrical energy for end users through which contracts will be awarded with supply starting in May 2030. This initiative seeks to contract up to 1,400 MW of Guaranteed Power as an Efficient Firm Offer and up to 150 MW of Installed Power, with contracts of up to 15 yearsThe tender is estimated to attract US$4 billion in investment.
The process is supported by the General Electricity Law and national technical regulations, and aims to ensure a continuous, efficient and competitive energy supplyNew or existing plants, domestic or foreign, may participate. New plants may begin operations in May 2030, 2031, 2032, or 2033. For plants in operation, only those that carry out additional investments or changes in energy sources will be eligible for PPAs of up to 15 years. The rest will only qualify for PPAs of up to 5 years.
The types of contracts that can be bid on, depending on the type of project and technology, will be Contract for Differences with Load Curve, Power Purchase Option Contract y Generated Energy Contract, in accordance with Commercial Coordination Standard No. 13. The award will be made based on the lower total cost for users, ensuring transparency and efficiency.
The PEG-5-2025 bidding rules contain new features compared to previous editions of PEG tenders, such as the absence of restrictions regarding the average awarded price being lower than the prices obtained in previous tenders, setting limits for the contracting of existing plants (with or without new investments) and the contracting of a base block of up to 700 MW, which represents an opportunity for the incorporation of gas plants into our energy matrix.
Timeline and phases of the PEG-5-2025 process.
The PEG-5-2025 tender is structured in six key stages, with an established schedule to ensure equitable participation and regulatory compliance:
- Consultation stage:
- Start: publication of the call.
- Deadline for clarifications: 10 2025 October.
- Q&A phase, briefings, answers and addenda to the guidelines until: 31 2025 October.
- Submission of Technical Offers:
- Date: November 21th 2025.
- Only those who have purchased the bases (US$20,000.00 non-refundable) will be able to participate.
- Technical Evaluation:
- Offers are classified as “Technically Solvent” or “Not Solvent”.
- It is validated whether the plant is new or in operation with investments, and the technical capacity is reviewed.
- Economic Evaluation:
- A mechanism will be applied reverse auction by successive rounds.
- Date: January 15, 2026.
- The result of the auction process, i.e. the PPAs awarded to the selected participating bidders, is sent to the CNEE, who confirms the validity for tariff purposes.
- Award:
- Notification: January 30, 2026.
- Each bidder will be notified whether their proposal was awarded or not.
- Subscription of Contracts (PPAs):
- Up to three months after the award.
- Begin commercial management of the contract.
This schedule seeks to ensure the transparency of the process, the preparation of bidders, and a proper technical and economic evaluation.
Who can participate in PEG-5-2025?
Requirements and guarantees.
Those interested in participating in the PEG-5-2025 tender must meet rigorous technical, legal, and financial requirements. The process allows Legal persons, state entities y consortia, both national and foreign.
Key requirements to participate:
- Having acquired the bidding bases.
- Designate a Authorized Representative in the Guatemala city.
- Introduce the Technical and Economic Offer, respectively each in its time, with all the required documentation.
- Include guarantees such as Guarantee of Sustained Supply, the Affidavit of Commitment and demonstrate economic capacity (audited financial statements for the last two years).
- In the case of new plants, detail the development and schedule of the project.
- For plants in operation, they must specify the additional investments to qualify for a 15-year contract.
- Bank letter of intent for project financing (new requirement compared to previous tenders)
Each consortium must have a single legal representative with the power to represent the entire group. Submitting a bid implies the full acceptance of the bases and waives any future claims by the offeror.
Final evaluation and execution of the PPA.
Once the offers have been evaluated and awarded, the most critical stage begins: the execution of the contractSuccessful bidders must comply with the following:
Commercial management of the contract:
- Guarantee supply according to the plant offered, complying with the agreed conditions.
- Deliver energy according to the chosen contract (Differences with Load Curve, Purchase Option, Generated Energy).
- Declare the plant commercially before the Wholesale Market Administrator (AMM) and validate the contract forms before the AMM.
- Comply with technical and legal requirements, including interconnection issues, certain permits, system security, and operational sustainability.
The Tender Board and the CNEE will supervise compliance of each contract. In the event of non-compliance declared by the distributor, penalties will be imposed, including contractual guarantees.
Important: All communication with the Board must be conducted through official channels, and the documentation submitted will become the property of the distributors.
This tender seeks to modernize the national energy matrix, attract investment, and ensure a stable, competitive, and clean supply for the next 15 years.
