Over the past few decades, Central American countries have seen a steady increase in their energy needs. Luckily, the region has abundant renewable energy resources and, as a result, has been busy constructing wind and photovoltaic power facilities. However, while these renewable sources are promising, they come with some risks—mainly, their variable power generation can pose a challenge to the interconnected regional system. This paper explores the current state of the Central American power system and the obstacles it faces as it strives to transition to a more environmentally-friendly energy system. To do so, the authors employed power flow analysis and transient stability studies, which were conducted using ETAP (Electrical Transient Analyzer Program) to model and simulate the power system. Their study revealed that the Central American power system is at risk of instability, and they suggest that integrating ancillary services and storage solutions could strengthen its resilience. Additionally, the authors advocate for the development of microgrids, energy management, and sustainable decarbonization plans. Lastly, the authors emphasize the importance of short-, medium-, and long-term power planning to make better decisions.