ABSTRACT
In Central America, growing population, expanding economies, and new markets will contribute to an increase in electricity demand at an annual growth rate of about 6% through the year 2020. This, together with the vulnerability to fluctuations in the world energy markets, will require the development of reliable, environmentally sound, domestic electrical systems to reduce the number of power blackouts and the need to ration electricity. It will be important to encourage the development of renewable domestic energy resources in order to mitigate vulnerability to world energy markets. Additionally, the integration of the electricity systems to develop a regional wholesale market is required. The large investments required for this purpose call for a partnership between the public and private sectors; at present private investments in the region’s electricity system vary from country to country, and in general have been on the increase.
