Guatemala is facing increasing electricity generation costs due to a combination of factors. A deficient rainy season this past winter has reduced hydroelectric power generation. Simultaneously, rising fuel prices are driving up the cost of alternative energy sources. These increased costs are further exacerbated by a growing demand and overall consumption of electricity. The situation has resulted in elevated energy prices for several months in 2026. Authorities are monitoring the situation and seeking solutions to mitigate the impact on consumers and businesses. This combination of challenges poses a significant economic concern for the country.