Any person or company that has the necessary equipment can register as a self-producer of electricity with different generation resources, so as of December 2023 – latest data – there were already 9,554 private generators in the country, mainly of solar energy, for a growth of 38% compared to 2022.
This was reported by Ottoniel Alfaro, president of the Association of Self-Producers with Renewable Energy of Guatemala (AAERG), explaining that these represent almost 80 megawatts (MW) of power and are located in areas covered by the Electric Company of Guatemala, SA (EEGSA), Energuate (Deocsa and Deorsa) and the municipal electric companies of Quetzaltenango and Jalapa.
Given the growth of the sector and the concerns that arise with the implementation of regulations and fees, the sector sees the need to update regulations or rules, which the National Electric Energy Commission (CNEE) agrees with, although not in the same terms.
Proposed actions
The association listens to the problems faced and arranges approaches with the corresponding distribution company and works on projects of different kinds, but they need the power they generate to be recognized as self-production, in addition to enabling the retail market, explains the director.
This is so that the surplus energy that self-producers generate and inject into the system can be negotiated, because 40% of the energy generated by self-producers remains as surplus.
“That is to say, there is a pool of energy that must be settled between what is consumed and what is self-produced and contributed to the system, but there is no mechanism to do so since at present there is only one cumulative pool per client,” he adds.
Another measure being sought is that, just as the power charge is charged to self-producers with higher consumption, they are also recognized for the power they inject into the electricity system.
“In the Association we see that self-producers were the hidden heroes in this last drought because they supplied many megawatts and a greater effect of the crisis was avoided,” however, they are charged for the demand for power, both during normal consumption hours and at “peak” hours, but they are not recognized for the power they are injecting into the system with their generation, insists the president of the organization.
Alfaro explained that energy is the consumption over a period of time, or in the case of self-producers, it is the electricity produced over a period of time. For example, in the case of a blender, it requires 1 kilowatt (kW) to operate, and if it were to operate for one hour, the consumption is one kilowatt/hour (kWh).
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Power, on the other hand, is the maximum amount that an appliance or user (home or industry) demands at a given time. For example, when only the blender is used, the power required is lower, but if other appliances such as a refrigerator, microwave or washing machine are used at the same time, the power increases.
Alfaro explained that the wholesale market requires distributors to contract capacity to meet firm demand; but when they use the power that comes from self-producers, they no longer require the total contracted with the generators.
Increase maximum limit
Additionally, it was explained that for some time now, when the meters were changed to be self-produced, the power demand is recorded.
According to current regulations, a user can consume less than 11 kW without being charged for this on the bill, a limit set more than 20 years ago; but currently, this limit is lowered due to the modernization that exists since more devices or technology that require energy consumption have been incorporated, so one proposal would be to raise this maximum limit to 15 kW, it was indicated.
Currently, making this charge implies that if a consumer, as a self-producer, exceeds the demand of 11 kW, they are changed to a rate, but apart from this, the price of the charge has gone up: In EEGSA the charge went from Q41 to Q52 per month, while in Energuate there are power charges of up to Q70, adds Alfaro and comments that “the rates are quarterly and are calculated by the CNEE with the data from the distributor, but with the increases (to these charges) that have occurred, the impact is very large and this makes a project less attractive and has a longer recovery time”.
CNEE: technical analysis is required
Asked about these issues, the president of CNEE, Luis Ortiz, explained that regardless of what was mentioned by the self-producers’ organization, the indicated regulations are being analyzed and according to the Commission’s schedule they expect to have it in December 2024.
“The aim of this regulation is to ensure that people who have surplus energy can use it as they wish. Currently, what happens is that this energy is fed into the grid and then taken from that same grid, which has technical effects that appear later,” Ortiz explained.
He added that the regulations related to Renewable Distributed Generators (RDG) and self-producers are being reviewed because there are commercial aspects, but also technical factors to consider, so the correct way to do it is by analyzing the effects in a comprehensive manner.
According to the official, between the two figures, there are around 50 thousand consumers who self-produce energy. The established mechanisms are that the network becomes a large storage facility. “When the number was small there were no difficulties, but when it is a very large amount, there are even effects on the network.”
Regarding the proposal to create a retail market and recognize the power that self-producers bring to the system so that the demand limit can be expanded without charging them for power, Ortiz said he had no knowledge of the matter.
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As for raising the maximum power limit, which is currently at 11 kW, he explained that the networks are designed for that volume, so talking about raising it will require a much more in-depth analysis, apart from the fact that consumers who use more than 15 kW (of power) are a minority.
“Such a review must be included in the Value Added Distribution (VAD) studies of the distribution companies, which among other aspects defines the maximum amount for the distribution service that they can charge and this update is carried out every 5 years.
Questions about collections
Separately, another concern arose over a power charge that began to appear this year on the monthly bills of some self-producers.
Alfaro explained that this charge was already made previously, but before March 2024 it was not broken down in the bills, but appeared only as a unitary charge that included the cost of the energy consumed and the power. Now it appears divided into two different concepts or charges, which would serve to give people a breakdown of what they must pay.
“If you add up the amount that is placed in both concepts, the result is the unit amount that was already being paid, but in a hidden way. Now that self-producing users notice this variation, these doubts arise.”
What has been detected, according to the director, is that the amount has increased, since at EEGSA, the charge for power went from Q41 to Q52 per month, while at Energuate there are power charges of up to Q70.
According to Alfaro, the concept that is included in the bills is wrong, since the charge for energy is charged in units, represented as kWh, but in the case of the power charge that appears on the bill of users under 11 kilowatts, for example, it also appears as a reference in kWh, which is not the appropriate dimension because they are being charged as energy. Therefore, the association asks that these concepts and collection measures be clarified.
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When questioned, the president of the CNEE responded in the same terms, emphasizing that it is not a new charge because it has been in place since 2014, according to resolution 227; but now the companies decided to reflect it in the invoices in a more explicit way.
Electricity distributors were also asked and EEGSA responded that according to the tariff schedule authorized by the CNEE, the power charge is for all customers who register a demand greater than 11 kW, whether they are self-producers or not.
The company added that these charges are not new and are applied in each tariff schedule approved every 5 years by the CNEE and are adjusted quarterly. Regarding the amounts currently charged, the company said that these are variable depending on the user’s rate, which can be consulted on the CNEE website at this link: https://www.cnee.gob.gt/wordpress/?page_id=10710
Regarding the increases mentioned by the association of self-producers, EEGSA indicated that the variation was different depending on the rate and to know the details it is recommended to review the corresponding tariff schedule. “EEGSA only applies rates authorized by the regulatory body.”
Regarding the need stated by the AAEGR director to increase the maximum power limit that they can use from 11 to 15 kilowatts, EEGSA stated that it complies with the existing regulation and if at any time the CNEE modifies it, they would abide by the changes without any problem, and considers that it is not the distributor that should do this analysis, but the aforementioned entity.
Energuate did not respond to the request for information.
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