Powerhouse Energy Corp., Vancouver, BC, said Tuesday it signed an agreement with Selmeca Ltda. Servicios Electromecanicos of Guatemala to build and operate a $31 million hydroelectric power plant.
The Turingia project is located about 50 miles west of Guatemala City and five miles from the main transmission line. Powerhouse will retain 75% ownership, while Selmeca will hold 25%. The plant will have an initial capacity of 31 Mw and is expected to generate 89.7 Gw-hr/year and revenues of $7 million.
Powerhouse says it selected Guatemala for the investment because of the advanced deregulation of the hydroelectric power industry in the country; high electricity prices compared to the US, and the shortage of power in the country due to a shut-off of exports from other parts of Central America.
A power purchase agreement for power generated by the plant has been finalized with the Guatemalan government, and all necessary permits are in place to expedite construction. Powerhouse is conducting due diligence, which will be completed July 1.