Central American Power Markets
December 12, 2018
The purpose of this paper is to analyze the power sector reforms that have taken place in Central American countries and to identify measures to increase the efficiency of their power markets. Given the size of their markets, their level of development, and the socioeconomic environment they face, lessons from the countries this paper focuses on can be applicable to a wide range of countries in sub-Saharan Africa, Asia, and the Middle East and North Africa.
Given Guatemala’s market performance, the paper gives particular emphasis to developments and lessons from Guatemala, particularly its use of competitive procurement for power generation and for transmission. Through substantial research and analysis, the paper identifies a series of measures that can be taken to improve the operations of power markets in Central America, while an additional set of recommendations are made that can help enhance power trade between Central American countries and its two closest neighbors in the region—Mexico and Colombia.
Silvia Alvarado de Córdoba is an independent consultant with over 30 years of experience. Juan A. B. Belt is a senior associate at CSIS (non-resident).This report is made possible by general support to CSIS. No direct sponsorship contributed to this report.