Is Guatemala a good place to invest in solar energy?

Guatemala is the second largest Central American power market, with a goal to increase renewable energy use. Relatively high levels of solar irradiance and large areas of cleared land give the country a strong potential for increased solar energy development.

How does energy poverty affect households in Guatemala?

In terms of percent change in the Energy Poverty Indicator, average households in more than 80% of municipalities (including the population dense municipalities around Guatemala City and Quetzaltenango) would experience more than one-third increase in monthly energy expenditures as a fraction of monthly income (Fig. 7 F).

How much do people spend on energy in Guatemala?

In the urban area around Guatemala City, households spend on average 10–15% of monthly income on energy expenses (including electricity, kerosene, propane, coal, batteries, firewood, and candles). Only in a select few municipalities near Guatemala City center is the Energy Poverty Indicator below 10%.

Which part of Guatemala has the lowest electricity usage?

Meanwhile, the western part of Guatemala has both the lowest electricity usage (Fig. 7 A) and the lowest electricity expenditure as a fraction of total monthly expenditure (Fig. 7 B), suggesting that households in this part of the country tend to rely on other sources of energy such as firewood, kerosene, propane, coal, and candles.

What causes low electricity usage in Guatemala?

Low electricity usage can typically be attributed to underdeveloped infrastructure, high electricity prices, and/or high levels of poverty. Incyt (2018) shows that the western municipalities of Guatemala have high rates of electrification (90–100%), so high electricity prices and overall poverty are likely the limiting factors.

Where is electricity most expensive in Guatemala?

Electricity expenditure is greatest in the eastern and northern parts of the country, because electricity prices, even with subsidies, are more expensive there (CNEE, 2020). As such, the rural eastern and northern regions are more vulnerable to electricity price increases than the urban areas of Guatemala City and Quetzaltenango.