The Energy Transition in Guatemala

Guatemala’s energy transition is driven by its significant renewable energy potential and its strategic aim to reduce reliance on fossil fuels while improving energy security and affordability. The country’s electricity generation mix is already diversified, with over 60% coming from renewables, including hydropower, geothermal, wind, biomass, and solar PV. The General Electricity Law (Ley General de Electricidad) and the Energy Policy 2013–2027 provide the regulatory framework supporting renewable investment, energy diversification, and regional power integration through the Central American Electrical Interconnection System (SIEPAC). Guatemala is also the leading electricity exporter in Central America, enhancing its role in regional energy dynamics. The country has notable mineral resources, including nickel, gold, and silver; however, it does not produce lithium, cobalt, or rare earth elements, remaining dependent on imports for these critical materials needed for battery storage and green technologies. Challenges include social tensions around large-scale hydropower and mining projects, vulnerability to climate-related disasters, and rural electrification gaps. Yet, Guatemala’s robust renewable base, geothermal potential, and regional connectivity offer strong opportunities to deepen its energy transition, enhance resilience, and attract clean energy investment.