A review on the Central America electrical energy scenario

Abstract

Abstract Since the mid 1990s, after the pacification of Central America, the region has experienced a sustained economic growth. Additionally, the Central American governments have been able to increase the population׳s access to electricity, e.g. the percentage of Central American population with access to electricity in 1995 and 2010 was 59% and 86%, respectively. The aforementioned reasons and the need to reduce electricity costs in order to remain competitive in a global economy have produced a transformation of the power scenario in Central America. The present paper presents a review about the power generation scenario of Central America within the framework of the new Regional Interconnected Electric System. It also briefly analyzes the trends of the power generation profile with a special emphasis on the renewable energy sources. As it can be inferred from the analysis presented in this paper, the Central American power scenario will mainly be shaped by the participation of the private sector and the development of the recently created regional electricity market. Additionally, it is clear the willingness of all the Central American countries to move away from oil-fired power generation. The lack of up-front capital needed to develop large renewable energy projects (mainly hydropower) can favor the development of gas-fired and/or coal-fired power stations. Nevertheless, the regional electricity market may favor the viability of large power generation projects.