In the urban area around Guatemala City, households spend on average 10–15% of monthly income on energy expenses (including electricity, kerosene, propane, coal, batteries, firewood, and candles). Only in a select few municipalities near Guatemala City center is the Energy Poverty Indicator below 10%.
Electricity expenditure is greatest in the eastern and northern parts of the country, because electricity prices, even with subsidies, are more expensive there (CNEE, 2020). As such, the rural eastern and northern regions are more vulnerable to electricity price increases than the urban areas of Guatemala City and Quetzaltenango.
Traditional biomass – the burning of charcoal, crop waste, and other organic matter – is not included. This can be an important source in lower-income settings. Guatemala: How much of the country’s electricity comes from nuclear power? Nuclear power – alongside renewables – is a low-carbon source of electricity.
We estimate future electricity demand based on Guatemala's residential electricity demand in year 2018 and its historical growth in total electricity demand. Specifically, residential electricity consumption was an estimated 3.7 TWh per year in 2018 (IEA, 2021), or roughly one-third of the country's total electricity demand.
Meanwhile, the western part of Guatemala has both the lowest electricity usage (Fig. 7 A) and the lowest electricity expenditure as a fraction of total monthly expenditure (Fig. 7 B), suggesting that households in this part of the country tend to rely on other sources of energy such as firewood, kerosene, propane, coal, and candles.
Only in a select few municipalities near Guatemala City center is the Energy Poverty Indicator below 10%. The eastern, northern, and coastal regions tend to spend 15–20% of monthly income on average, and the western part 20–50%. 5.2. Impacts of renewable energy development on household expenses and energy poverty
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