Analysts: US$140mn needed for transmission investment

Guatemala's transmission system needs investment of up to US$140mn to avoid power supply problems such as the June 7 countrywide blackout, local papers reported energy sector analysts as saying. State power company INDE has requested loans from the World Bank and the Central American Bank for Economic Integration (Cabei) for more than US$150mn, INDE spokesperson Freddy López told BNamericas. Guatemalan law would then require congress to approve the loans. INDE has not been able to generate surplus earnings that could be used for investment since it started selling power to distributors at less than market prices in 1999, López said. INDE currently sells power at a rate of US$0.84 a kWh for consumption up to 100kWh/month, while the price is US$1.69 a kWh for consumption between 101-300kWh/month. Monday's blackout, which showed that demand is growing faster than power infrastructure, was accentuated by Guatemala's international interconnections not starting up as they should in emergency situations because the cut was at a peak consumption time, energy regulator director Edgar Navarro was quoted as saying by local press.