Sur Electrica Holding (SUR) will buy the 78MW simple-cycle, gas-fired Alborada Power Station, while SUR subsidiary Renewable Energy Investments Guatemala will purchase the 120MW, coal-fired San José Power Station and related solid fuel handling and port facilities.

The power producer plans to utilize the net cash proceeds of nearly $223m to repay $25m of San José Power Station project debt.

TECO Energy chief executive John Ramil said with these agreements, the company completes its exit from the Guatemalan power sector.

"Over the life of the investments, our Guatemalan power stations have provided good returns and cash that we’ve used to help strengthen TECO Energy’s balance sheet and invest in our U.S. utilities," Ramil added.

"The completion of these sales will sharpen our focus on our regulated utilities, enable us to return a portion of the proceeds to our investors through share repurchases, and continue our pattern of debt reduction."