- EGPG will supply CED with 1.26 TWh of energy for 10 years
- Under the agreement, all of EGPG’s hydro plants will supply part of their energy output to CED, that will revert this output to its industrial customers
- The renewable energy supplied under this ten-year agreement is equivalent to planting 15 million trees or avoiding the emission of 865,000 tons of CO2 into the atmosphere per year
Guatemala City, July 31, 2020 – Enel Green Power Guatemala ("EGPG"), the renewable energy subsidiary of the Enel Group in the country, has signed a power purchase agreement (PPA) with Comercializadora de Energía para el Desarrollo (CED) for the supply of 1.26 TWh of sustainable energy over the next 10 years, the largest agreement of its kind in Guatemala.
CED, Currently the third largest marketer in Guatemala belongs to the agrifood and energy corporation Grupo Magdalena, which represents the third largest generator and the second largest exporter of energy. It was established in 2011 with the aim of satisfying the electricity demand of customers and industrial distributors in Central America.
Jorge Leal, General Manager of Ingenio Magdalena said: “We were looking for a strategic ally like Enel to launch this project and satisfy the needs of our clients, providing 100% renewable energy throughout the year. We are confident that these alliances will help us offer more profitable energy purchasing options to different sectors in the future.”
The renewable energy supplied under this ten-year agreement is equivalent to planting 15 million trees or avoiding the emission of 865,000 tons of CO2 into the atmosphere per year.
The generation technologies utilized by the two companies are complementary. On the one hand, the Magdalena group generators that provide energy to CED produce energy from biomass during the harvest season (end of November to mid-April of the following year) and Enel’s hydro plants generate more energy during the rainy season of the country, which goes from May to November.
"At Enel Green Power we have the experience and capability to meet the specific needs of companies and sectors with high electricity consumption. Through these agreements, companies can have a renewable energy supply that allows them to achieve their sustainability goals", said Bruno Riga, Head of Central America Region of Enel Green Power.
CED customers who will receive steady energy from all of Enel Green Power’s hydro plants throughout the year belong to the agro-industry, steel and textile sectors, among others.
Enel Green Power, within the Enel Group, is dedicated to the development and operation of renewables across the world, with a presence in Europe, the Americas, Asia, Africa and Oceania. Enel Green Power is a global leader in the green energy sector with an installed capacity of over 46 GW across a generation mix that includes wind, solar, geothermal and hydropower, and is at the forefront of integrating innovative technologies into renewable power plants.
Enel Green Power Guatemala has been operating for 16 years five hydro plants in Guatemala, with a combined installed capacity of 164 MW. The plants are located in the departments of Baja Verapaz (Matanzas - 12 MW, San Isidro - 4 MW), Quetzaltenango (El Canadá - 47 MW, Montecristo - 13 MW) and Quiché (Palo Viejo - 87 MW). EGPG operates under the Creating Shared Value (CSV) model, aimed at coupling commercial development with local community needs, by promoting various initiatives for the benefit of local stakeholders.
Comercializadora de Energía para el Desarrollo, S.A., is the third largest energy distributor in Guatemala’s Market, actively participating in this market since November 2012. CED's main objective is the commercialization of energy through agents from the wholesale electricity markets of Guatemala and the Central American region. CED is a subsidiary of the Grupo Magdalena Corporation, an innovative company and a leader in its field, with more than 30 years in the market.