High Electricity Consumption Drives AI Use in Guatemalan Industry for Greater Efficiency

Guatemala's industrial sector is a significant consumer of electricity, accounting for 30% to 40% of the country's total energy usage, according to Jorge Carlos Escobar, president of the Guatemalan Energy Efficiency Association (GEE).

Escobar emphasized that energy efficiency has become a critical factor for the industry's competitiveness, productivity, and sustainable development. Stephanie Melville, vice president of the Chamber of Industry of Guatemala, echoed this sentiment, stating that efficiency directly impacts a company's ability to generate employment and attract investment.

Globally, approximately 76% of energy is utilized effectively, with 24% being wasted. Escobar sees a substantial opportunity for Guatemala to reduce this waste by implementing more efficient practices and technologies, including artificial intelligence (AI). He believes that even a modest improvement of 5% to 10% in energy efficiency could free up significant amounts of energy for other uses.

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Energy efficiency has become a determining factor for the competitiveness, productivity, and sustainable development of industry in the country.

The primary energy consumers within the industry are electric motors (around 60%) and lighting (about 15%). Escobar recommends adopting high-efficiency technologies like high-performance motors and replacing outdated equipment. While these investments require capital, they offer a return through reduced electricity bills.

Some industries, such as sugar mills, cement, and textile factories, have already implemented self-generation systems, some dating back 20-25 years. More recently, medium-sized industries have adopted solar panels for self-generation, further enhancing energy efficiency. Escobar stressed the need for a national strategy, developed collaboratively by the government, academia, and industry, to establish clear guidelines for energy use, self-generation, and the implementation of efficient technologies. This, he argues, is essential for improving the country's competitiveness and reducing production costs.

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If we as a country wanted to improve our competitiveness, reduce production prices and be able to take our products more competitively, there should be a country strategy between government, academia, industry and various sectors, to reach agreements, to be able to start implementing clear rules regarding the use of energy, self-generation and the implementation of efficient technologies.