IDB Reaffirms Its Commitment to Central American Energy Integration and SIEPAC’s Future

WASHINGTON - The Inter-American Development Bank (IDB) today brought together at its Washington, D.C. headquarters energy ministers from the six Central American countries, along with authorities from the Regional Electricity Market (MER), representatives of 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 to advance the future of the Central American Electrical Interconnection System (SIEPAC), which is a key initiative of the IDB's América en el Centro regional program.

The meeting focused on promoting the Third SIEPAC Protocol, a key instrument for modernizing regional governance, strengthening legal security, attracting greater private investment, and preparing Central America's electricity system for the challenges of energy transition and Vision 2050.

Participants highlighted the results achieved in more than a decade of operation of the MER and the regional transmission system. In 2024 alone, the market negotiated more than 3,700 GWh of energy -equivalent to some US$350 million- with the participation of more than 300 private agents, consolidating the MER as a unique energy integration model in Latin America.

"SIEPAC has demonstrated that regional cooperation can transform strategic sectors. Thanks to this shared vision, Central America has reduced costs, increased energy security, and opened space for new investments," IDB Executive Vice President Jordan Schwartz said. "Now we must take the next step: complete the second circuit, update regulation, and open the door to even greater integration. Under the América en el Centro program, the IDB will remain a committed partner every step of the way."

The event also underscored the importance of fostering extra-regional integration with Mexico, Colombia, and Belize, as well as incorporating new technologies such as storage, smart grids, and digital tools to manage the growing penetration of renewable energy in the region.

Looking ahead to 2050, the meeting also served to reaffirm a shared vision of a Central America consolidated as a competitive and sustainable energy hub, capable of guaranteeing energy security, attracting investment, and exporting clean energy. "The IDB reaffirms its commitment to continue being a strategic partner for Central America and the region, supporting regulatory modernization, infrastructure financing, and technological innovation that will enable progress towards a more secure, efficient and sustainable electricity system," said Marcelino Madrigal, Head of the Energy Division of the IDB's Infrastructure and Energy Sector.