We find that, if new generation costs increase electricity tariffs and no subsidies are in place, households across Guatemala could experience up to 80% increase in total monthly energy expenditures and 30–40% increase in energy-related expenses as a portion of monthly income.
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The Energy Policy 2013-2027 updates the Energy Policy of Guatemala (2008). Its main aim is to 'strengthen the country's competitiveness, and guarantee efficient and sustainable supply and use of energy resources'.
These are costs that could further burden electricity consumers if not managed efficiently. The government of Guatemala – as well as other governments of transitioning economies – can use frameworks like the one introduced here to better understand how electric sector development goals could impact energy poverty in their countries. 6.1.
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%.
Guatemala’s electricity market has been operating as a free market since 1996, when the activities of the electricity industry were separated, opening the generation and commercialization of energy to free competition.
More importantly, we find that the distribution of impacts will not be equal everywhere: households in the western, rural part of Guatemala that are already energy stressed will likely experience the greatest cost burdens because natural resource availability is low while overall poverty is already high.
[español] • [português] This page is part of Global Energy Monitor 's Latin America Energy Portal. In 2018, Guatemala derived 57.43% of its total energy supply from biofuels and waste, followed by oil (29.54%), coal (7.68%), hydro (3.22%), and other renewables such as wind and solar (2.12%).
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