The Inter-American Development Bank (IDB) convened energy ministers from six Central American countries, alongside representatives from the Regional Electricity Market (MER), the MER Steering Council (CDMER), the Regional Electricity Interconnection Commission (CRIE), the Regional Operating Entity (EOR), the Grid Owning Company (EPR), multilateral partners, and strategic investors at its Washington, D.C. headquarters to discuss the future of the Central American Electrical Interconnection System (SIEPAC). This initiative forms a core part of the IDB’s América en el Centro regional program, which aims to strengthen energy integration across Central America.
The discussions centered on promoting the Third SIEPAC Protocol, which seeks to modernize regional governance, enhance legal certainty, attract private investment, and prepare the electricity system for energy transition challenges and the Vision 2050 agenda. Participants reviewed over a decade of operational achievements of the MER and the regional transmission system, noting that in 2024, more than 3,700 GWh of energy—valued at approximately US$350 million—was traded with participation from over 300 private agents, highlighting the MER as a leading model of regional energy integration in Latin America.
IDB Executive Vice President Jordan Schwartz emphasized that SIEPAC exemplifies how regional cooperation can transform strategic sectors, reduce costs, increase energy security, and foster investment. He highlighted the need to complete the second circuit, update regulations, and pursue deeper integration, with the IDB remaining a committed partner through the América en el Centro program. The meeting also addressed the importance of extra-regional integration with Mexico, Colombia, and Belize, alongside the adoption of new technologies, including energy storage, smart grids, and digital tools, to manage increasing renewable energy penetration.
Looking forward to 2050, the meeting reaffirmed a shared vision of Central America as a competitive, sustainable energy hub capable of ensuring energy security, attracting investment, and exporting clean energy. Marcelino Madrigal, Head of the Energy Division at the IDB’s Infrastructure and Energy Sector, stated that the IDB will continue supporting regulatory modernization, infrastructure financing, and technological innovation to advance a secure, efficient, and sustainable electricity system in the region.
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