November 5, 2021
Electricity consumption in Central America experienced a significant increase in the first half of 2021 (1H21), while economic activity continues to recover, according to the special report “Power Generation in Central America – 1H21” by Fitch Ratings.
Aggregate electricity demand in the region grew 5.9% in first-half 2021 (1H21) compared with 1H20, led by industrial and commercial consumption in Guatemala and Honduras, whose demands represented 65.8% of the observed increase, both exceeding consumption levels observed prior to the pandemic.
In Costa Rica, Honduras and Panama, 1H21 hydrology levels were higher than the historical averages. Unlike other regions such as China and South America, affected by low hydrology, in Central America, hydroelectric generation in 1H21 grew 29.7% compared with the same period in 2020, and represented 50.5% of the total electricity generated in the region.
Renewable generation supply had a compound annual growth rate of 8.7% between 2015-2020, more than any other technology. In terms of installed capacity, more than 1.5 megawatts (MW) from renewable sources were added to the regional electricity matrix during the same period. In 1H21, regional renewable production represented 20.2% of the total and 159 MW of new installed capacity were added to the grid.