04 Dec Interview with Victor Hugo Ventura Ruiz, Minister of Energy and Mines, Guatemala
What key challenges is the Ministry of Energy and Mines addressing in the area of power generation?
Our three major challenges are social electrification; transportation and transformation; and energy generation. The first is a key priority for this government. We need to catch up with our significant and regrettable social debt, with around two million Guatemalans lacking access to electricity. We have had over 25 years with a new electric model intended to promote and bring electrification to the entire country. Reaching our goal will require a great deal of work from the ministry and the public institution called the National Electrification Institute. We have already begun the work, which started with getting our house in order. We are launching the first of several calls to bring individual solar solutions to families and citizens situated far from populated centers and current infrastructure for whom extending the grid would not be viable. Another set of families and citizens will connect through grid extensions.
Our second major challenge is related to transporting energy and transmission. We face a significant lack of transmission and transformation installations in the interior of the country. We are preparing an important tender to build many lines and substations across the country. We have given approval for the National Electrification Institute to carry out urgent works through express procedures. Upgrading the transportation of energy is closely linked to improving service quality in the interior of the country.
Our third major challenge is energy production. We are currently preparing another important international renewable energy tender to contract between 1.2 and 1.5 GW. There exists a great deal of untapped renewable energy in Guatemala. We are currently emphasizing the geothermal sector. While this is a difficult project, we will continue promoting the geothermal segment alongside solar, hydroelectric and wind energy. In the long term, hydrogen will play an important role in our energy mix.
What is the government doing to up production from its hydrocarbons and mining sectors?
In the oil sector, there is a need to organize the legal framework. Guatemala has been a small oil producer, and our production is declining, partly due to outdated legislation. Guatemala has areas with high-quality hydrocarbons, including natural gas and excellent American Petroleum Institute oil, which is not heavy crude oil. We have significant natural gas reserves. While Guatemala is not generally considered a natural gas exporter, we want to use natural gas to develop the northern part of the country. In mining, the main goal is to modernize the legal framework. We aim to develop a new mining law based on the three pillars of sustainable development — environment, society and economy — to ensure environmental damage is minimized, human life is protected and part of the industry’s benefits are directed toward the development of local communities.
What advantages does Guatemala have due to its proximity to North America and its other regional neighbors?
We must not forget Guatemala’s crucial role as the link between the North and the South. Guatemala is on the border of the most developed areas of the Americas, Mexico, Canada and the United States. This relationship is underutilized in the areas of energy integration. For example, low ecological footprint fuels like natural gas do not reach Guatemala even though we are close to the most competitive natural gas market. Countries like the Dominican Republic, Panama and Honduras have taken advantage of this, but Guatemala has not. Natural gas is critical as a transition fuel; it allows us to sustainably manage a larger mix of variable renewable energy such as wind and solar. It is also important to integrate with brother countries like Belize. We hope to establish a binational commission to study the best alternatives for creating an electric interconnection between the two nations.
What is the government doing to support the development of new hydroelectric projects?
We are working on a new water law, which is a first for the nation. Unfortunately, Guatemala lags behind other nations in some respects. For example, Guatemala has no competition law and no water legislation. Water legislation is important for our interests in the energy sector. We believe there is a strong connection between water, agriculture and food development, all of which need to be properly strengthened. We need to break the misconception that hydroelectric plants are bad for the environment. Well-planned hydroelectric plants strengthen the resilience of our communities and the environment. We see the importance of working on multipurpose reservoirs that allow us to better manage floods and store water for the population for irrigation and drinking water, and we aim to develop new hydroelectric plants with this approach.
What is Guatemala doing to cut down its carbon footprint?
Our energy transition corresponds to Guatemala’s current conditions; we are a developing country with medium human development. Despite being one of the lowest emitters in the world — especially if we measure emissions per capita — Guatemala is actively reducing its carbon footprint and supporting the growth of renewable energies. We are committed to achieving an energy mix of 80% renewables. We can comfortably demonstrate that around 65% of our energy currently comes from renewable sources, and we aim to increase that by 15%. It is a viable goal.
Our just energy transition will benefit everyone, not just certain sectors. To support this, universal electricity access is crucial. Once this is in place, we will focus on access to modern fuels and technologies for cooking food. It is critical communities use cooking fuels that have the least impact on public health and the environment. In Guatemala, especially in rural areas, biomass waste such as firewood is still used for cooking. It is also used for water and home heating. We want to implement advanced technologies that produce less pollution and have zero environmental impact on forest cover.
Guatemala has also begun supporting electromobility. However, a significant transformation of the transportation system requires national coordination. The current government is committed to launching the first metro in the country’s metropolitan region. This will provide an electric mass transit option to reduce private and inefficient transportation with internal combustion engines that run on diesel and gasoline. We are also looking to use biofuels produced by our agroindustry in transportation. We aim to introduce mandatory biofuel blends in January 2026.
What next steps are necessary to restore the Laguna del Tigre National Park following the end of Perenco’s oil and gas production contract?
Contract 285, signed in 1985 with the French company Perenco, legally ends on December 8, 2026. We cannot renew it, as it would be illegal. We need to enter a phase of closing this oil operation and restoring the Laguna del Tigre area. We must find a mechanism — such as a contract —to close all wells and restore the lagoon. The exact terms are still being discussed. In three years, we plan to close approximately 50 wells and implement a program to address the environmental damage caused by the oil operation. Works will include cleaning up areas affected by waste products from the extraction process, removing scrap materials and organizing the area. The area is home to many local communities, and we aim to create activities for local citizens to maintain the area.
We will also be recovering several assets managed by Perenco, such as the only functioning hospital in the region. The Ministry of Public Health and Social Assistance will take over and continue operating it. There are also several schools. We will collaborate with the Ministry of Education on this matter. Another important issue is the airport. The asset has one of the largest runways in the region, capable of handling both large and small planes. We need to determine a management mechanism, which will likely be the army taking over the runway’s administration. There are also several ferries used for river crossings, which are essential for the local population. These belong to the state, and we must ensure their continued operation. We have a small refinery and an oil pipeline that we need to assess for their potential continued use. There is much work ahead, and we are forming a technical committee with all the involved institutions to tackle this project. Our main goal is to develop a work program to recover all assets and restore the Laguna del Tigre reserve area while avoiding all negative impacts on local communities.
What kind of opportunities are we currently seeing that might interest US and other foreign investors?
In terms of investment, the largest focus is on electricity generation. We expect to secure investments ranging from $4 billion to $5 billion through the upcoming bidding process. These funds will be directed toward various projects, including wind energy, small and medium-sized hydroelectric plants, solar parks and potentially two or three thermoelectric plants to produce reliable, efficient and flexible energy. There are also many investment opportunities in transmission and transformation works. We estimate around $1 billion will be required for transmission lines, with voltages ranging from 138 kilovolts, 230 kilovolts, 400 kilovolts and 69,000 kilovolts. Many transformation substations will also be required. We expect investments of around $600 million towards our distribution networks. These are long-term investments, and many will extend beyond the current administration, with some spanning the next four to six years.
Why is Guatemala an attractive destination for foreign direct investment and cooperation?
Our country has set a global benchmark by maintaining a functioning democracy. Guatemala is proof it is possible to preserve a democratic system while making the necessary adjustments for sustainable growth in a country filled with opportunities. These opportunities stem from its strategic location and its greatest asset, its people. The people of Guatemala are hardworking, peaceful and eager to live in harmony. Significant opportunities exist to drive development and attract investment while addressing social conflicts that have previously been exacerbated and grown to undesirable levels. The current government has seen a positive response from communities seeking dialogue and recognizing that energy is essential for development, investment attraction, job creation and maintaining good relations with our neighbors. Guatemala has no conflicts with any country, whether near or far. We actively seek to build bridges and find new ways to communicate and cooperate. I believe this is one of the lasting legacies of this administration.