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FAQS

At Renace, we are committed to the environment and the sustainable development of local communities. We are open to addressing any questions about our projects and the benefits we provide as a hydroelectric company.

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Our Most Frequently Asked Questions

Renace develops electricity generation projects using renewable sources to benefit the country through competitive rates and to promote social development and sustainability in the electricity market.

Below, you can find answers to the most common questions about our operations and the electricity market.

WHAT IS A HYDROELECTRIC PLANT?

A hydroelectric plant is a system that generates electricity by harnessing the potential energy of a natural watercourse.

To generate electricity, hydroelectric plants use the water’s fall or flow, which passes through a hydraulic turbine and transfers energy to a generator.

HOW DOES A HYDROELECTRIC PLANT OPERATE AND WHAT BENEFITS DOES IT PROVIDE TO COMMUNITIES?

The operation of a plant depends on the country where it is installed. Renace is a Guatemalan hydroelectric project owned by the Energy Unit of CMI, a Multilatina company with Guatemalan owners.

The Renace Hydroelectric Complex is committed to the development of San Pedro Carchá, the promotion of Human Rights, and the protection of the region’s natural resources.

To achieve this, it implements seven long-term social development programs aimed at integral human development, supporting different stages of personal growth and promoting conditions to activate the local economy.

WHERE ARE RENACE’S HYDROELECTRIC PLANTS LOCATED?

Hydroelectric plants take advantage of water currents, which is why they are located strategically to harness river flows.

In the case of Renace hydroelectric plants, they are located along the Cahabón River, spanning a 21-kilometer section in the municipality of San Pedro Carchá, Alta Verapaz. The Renace Hydroelectric Complex only occupies this section and has no expansion plans for other areas in Alta Verapaz.

WHAT REQUIREMENTS MUST A HYDROELECTRIC PLANT MEET TO OPERATE IN GUATEMALA?

Hydroelectric plants must comply with multiple permits and protocols, including:

o Pre-feasibility studies
o Environmental impact studies
o Geological and geotechnical studies
o Topography studies
o Hydrological studies
o Mediation and consensus with nearby communities
o Approval resolution from the Ministry of Environment and Natural Resources
o Approval resolution from the National Electric Energy Commission
o Approval resolution from the Ministry of Energy and Mines
o Construction permit
o Financing
o Delivery of produced energy to the National Energy System

WHAT PERMITS AND LICENSES DOES RENACE HOLD TO OPERATE IN GUATEMALA?

For Renace hydroelectric plants, all studies were submitted individually to the Ministry for evaluation, as required by law for independent projects.

The authorization to use the Cahabón River (Authorization for Use of Public Domain) was granted by the Guatemalan State through the Ministry of Energy and Mines in 1991 (Renace I, II, III, and V) and 1994 (Renace IV).

Since these authorizations predate Guatemala’s ratification of ILO Convention 169 in 1997, a prior informed consultation is not applicable to Renace. However, Renace has carried out community engagement processes from the start, ensuring communities are informed of project impacts and have agreements on benefits received.

WHY DOESN’T RENACE SELL ENERGY INDIVIDUALLY AND WHO RECEIVES IT?

In Guatemala, the law protects the final energy consumer by separating the roles of generator, transporter, and distributor. All generators deliver the energy they produce to the national electricity system. Even if a generator wanted to supply energy in the area surrounding its plant, the law prohibits this.

By law, an electricity generator cannot directly distribute to the end user to prevent overcharging. That is why Renace delivers all generated energy to Guatemala’s Interconnected System and cannot manage distribution to the final consumer.

HOW HAS RENACE IMPACTED ELECTRICITY TARIFF COSTS?

Renace actively participated in public bidding processes PEG28 and PEG39 led by distributors EEGSA and ENERGUATE and supervised by the National Electric Energy Commission (CNEE), offering the lowest tariffs compared to competitors.

Through this generation method, electricity costs in Guatemala have dramatically decreased; in the last four years, they have fallen over 46% for regulated users.

WHAT IS THE ROLE OF AN ENERGY GENERATOR?

The role of a generator is to develop energy generation projects, manage these plants to produce electricity, and then deliver it to the National Energy System.

In Guatemala, the law protects the end consumer by separating the roles of generator, transporter, and distributor.

DO HYDROELECTRIC PLANTS POLLUTE WATERCOURSES?

No. Hydroelectric plants often remove debris from rivers because it cannot pass through turbines during energy generation. Therefore, they do not consume water and also clean it, leaving the water cleaner than when it arrived.

This is also one of the lowest-cost generation methods. Initial investments and works affecting the surrounding area are mitigated through reforestation, water care, and environmental education programs.

The Cahabón River (like many rivers in Guatemala) receives municipal waste. Renace projects aid natural purification, extracting large amounts of solid waste that would otherwise reach Lake Izabal, protecting biodiversity. In 2015 alone, 10 tons of solid waste were removed.

DO HYDROELECTRIC PLANTS CONSUME OR ALTER WATER?

Hydroelectric plants do not consume water sources; they only use its movement and fall. They return 100% of the water they use.

The water passing through the powerhouse carries no energy, as hydroelectric plants only use water’s force to move turbines. After joining the ecological flow, the water returns cleaner and more oxygenated.

ARE HYDROELECTRIC PLANTS HARMFUL TO THE ENVIRONMENT?

Hydroelectric plants are not harmful; hydraulic energy is one of the most environmentally friendly forms of electricity generation, along with wind and solar power.

The Ministry of Environment has visited each phase of Renace to audit operations. The final reports showed “zero findings,” demonstrating excellent operational management and meticulous environmental oversight, including programs that ensure long-term environmental sustainability in the area.

WHAT IS RENEWABLE ENERGY?

Renewable energy comes from generation systems that are environmentally friendly. They generate energy from natural, inexhaustible, or self-regenerating sources, maintaining the natural cycle.

Examples of renewable energy include:
o Hydroelectric
o Wind
o Solar / Thermal
o Biomass
o Biogas
o Marine / Tidal
o Geothermal

WHAT IS A HYDROELECTRIC PLANT?

A hydroelectric plant is a system for generating electricity using the potential energy of a natural watercourse.
To produce electricity, hydroelectric plants take advantage of the water’s fall or movement, which passes through a hydraulic turbine, transmitting energy to a generator.

WHAT DO WE DO AS A HYDROELECTRIC PLANT WITH THE ENERGY WE GENERATE?

All energy generators in Guatemala deliver the energy they produce to the national electricity system. By law, an electricity generator cannot directly distribute to the end user to prevent overcharging.

WHY IS ENERGY NOT SOLD INDIVIDUALLY?

Even if a generator wanted to supply energy in the area surrounding its plant, the law prohibits this. Therefore, it cannot be responsible for distributing electricity to the final user.
In Guatemala, the law protects the end consumer by separating the roles of generator, transporter, and distributor.

WHAT IS THE ROLE OF AN ENERGY GENERATOR?

The role of a generator is to develop energy generation projects, manage these plants to produce electricity, and then deliver it to the National Energy System. In Guatemala, the law protects the final energy consumer by separating the roles of generator, transporter, and distributor.

DO HYDROELECTRIC PLANTS POLLUTE WATERCOURSES?

No. In fact, it is common for hydroelectric plants to remove debris from rivers, as it cannot pass through turbines during electricity generation. Therefore, besides not consuming water, they remove waste so that the water continues its course cleaner than when it arrived at the plant.

It is also one of the lowest-cost generation methods. Initial investments and works affecting the surrounding area are fully mitigated through reforestation programs, water care, and environmental education.

DO HYDROELECTRIC PLANTS CONSUME WATER?

Hydroelectric plants do not consume water sources; they only use the movement and fall of the water. They return 100% of the water they use from the watercourse.

ARE HYDROELECTRIC PLANTS HARMFUL TO THE ENVIRONMENT?

Hydroelectric plants are not harmful to the environment; hydraulic energy is one of the most environmentally friendly forms of electricity generation, along with wind and solar energy.

WHAT MUST A HYDROELECTRIC PLANT COMPLY WITH TO OPERATE IN GUATEMALA? AND HOW ARE PERMITS OBTAINED?

Hydroelectric plants must comply with several permits and protocols to operate, including:

o Pre-feasibility studies
o Environmental impact studies
o Geological-geotechnical studies
o Topography studies
o Hydrological studies
o Mediation and consensus with nearby communities
o Approval resolution from the Ministry of Environment and Natural Resources
o Approval resolution from the National Electric Energy Commission
o Approval resolution from the Ministry of Energy and Mines
o Construction permit
o Financing
o Delivery of produced energy to the National Energy System

WHAT IS RENEWABLE ENERGY?

Renewable energy comes from generation systems that are environmentally friendly. They produce energy from natural sources that are inexhaustible or self-regenerating. These sources maintain the natural cycle.

Examples of renewable energy include:
o Hydroelectric
o Wind
o Solar / Thermal
o Biomass
o Biogas
o Marine / Tidal
o Geothermal