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In 2015, the share of the electricity and water supply subsector in Guatemala's GDP was 2.4%, while mining and quarrying accounted for 1.8%. The energy sector has been expanding in recent years, with appreciable inflows of FDI mainly into electricity generation. This can be attributed to the country's natural resource endowments, the incentives for the development of renewable energies and the favourable outlook for the regional market. Several power generation plants are being built to use different types of technology and will add some 1,000 MW to the market in the coming years, helping to lower generation costs and boost exports to the region.

The Ministry of Energy and Mining (MEM) is responsible for the sector's policy. In 2012 the Ministry unveiled the Energy Policy 2013 2027, the main planks of which include diversifying the energy matrix by making greater use of renewable energy sources, securing the supply of fuels at competitive prices, exploring and working oil reserves and the economical and efficient use of energy. (...)

Guatemala's electricity system, the National Interconnected System (SNI), produced 10,301.96 GWh in 2015, of which about two thirds from renewable resources. The electricity came from the following sources: hydroelectricity (37.55%), coal (19.08%), the biomass (24.56%), bunker fuel (13.86%), geothermal (2.44%), solar (1.33%), wind (1.04%) and diesel fuel (0.10%). Energy consumption was 9,466.48 GWh in 2015, up 5.7% on the previous year. In 2016 the SNI's total installed capacity was 1,704.45 MW.

The SNI (National Interconnected System) is responsible for 98% of the country's electricity generation, while the remaining 2% comes from stand alone systems (communal electricity networks or private properties, photovoltaic panels and wind energy). Electricity coverage is almost 92% of the population, though some rural areas are still without access to electricity.

The regulatory framework for the electricity subsector comprises mainly the General Electricity Law (LGE) ; the Regulations implementing the LGE ; the Regulations governing the Wholesale Market Administrator ; the Law on incentives for the development of renewable energy projects and its implementing Regulations. (...)

The Law on incentives for the development of renewable energy projects and its implementing Regulations grant fiscal, economic and administrative incentives in order to promote such projects and lessen dependence on imported fuels. The fiscal incentives include: (a) exemption from customs duty, VAT, consular fees and charges on imports of machinery and equipment used exclusively for renewable energy generation in the area where projects are located during the pre investment phase and construction phase, which may not exceed ten years; (b) a ten year income tax waiver as of the launch of commercial operations; this waiver is granted only to natural and legal persons directly implementing projects and only for the part that corresponds to a given project; and (c) a ten year waiver of the tax on commercial and agricultural enterprises (IEMA) as of the launch of commercial operations.

The incentives granted under the Law may have favourably impacted the composition of Guatemala's energy matrix. In 2015, 66.9% of the energy generated by the SNI came from renewable sources, mainly hydroelectric plants, compared with less than 50% in 2003 when the Law was enacted. Besides, consequent on the expiry of several electricity generation contracts in 2014, public tenders were held and new projects introduced into the market to generate electricity from renewable sources such as wind, solar and geothermal energy, and these will mean further changes to the energy matrix. These projects include at least four major works that are either in construction or were recently completed, which together will add 200 MW. With the successive implementation of various plans for the expansion of electricity generation and transmission systems , it is hoped to add a further 574 km of electricity transmission lines, distributed into five rings that will cover the national territory, with priority being given to sectors that lack this service.

Pursuant to the 2008 Law on the National Economic Development Fund (FONPETROL) (FONPETROL) and its implementing Regulations (2009), the funds accruing to the State from royalties and its share in hydrocarbons contracts go into the FONPETROL fund, which is supervised by the Ministry of Finance. The funds must go towards the development of the interior of the country and the study and development of new and renewable energy sources. (...)

Guatemala does not have a law that deals specifically with maritime transport and ports. The subsector is governed by Article 131 of the Constitution and by Book III of the Commercial Code (Government Decree No. 2946 of 1942), which regulates maritime trade, as well as by other laws such as the Law on the protection and improvement of the environment, the Law on fishing and aquaculture and the Law on protected areas. (...)

In March 2015, the National Maritime Administration Commission (CONAMAR) was set up under the direct authority of the President of the Republic. CONAMAR has the task of coordinating the activities of the various institutions involved in maritime administration and is composed of the Vice Minister for Navy Affairs (Ministry of Defence), the Vice Minister for Plant and Animal Health and Regulations (Ministry of Agriculture, Livestock and Food), the Vice Minister for the Environment (Ministry of the Environment and Natural Resources), the Vice Minister for Communications, Infrastructure and Housing (MCIV), the Vice Minister for Integration and Foreign Trade (Ministry of the Economy), the Vice Minister for Energy and Mining, the Vice Minister for Foreign Affairs and the Executive Secretary of the National Council for Protected Areas. CONAMAR has a 25 year term. It is responsible for recommending maritime policies, together with plans, programmes and strategies for promoting national maritime development. The measures it has taken since being set up include drawing up a Maritime Safety Policy, starting work on developing a national maritime policy and revising Book III of the Commercial Code.