Electricity prices reduce by 4.31% in El Salvador this quarter.

The contribution of renewable sources, which accounted for 67% of total production in the previous quarter, allowed for a decrease in electricity prices, as reported by Siget yesterday.

The average price of electricity will remain stable for this quarter, easing the burden on thousands of Salvadoran households, announced the Superintendence of Electricity and Telecommunications (Siget).

According to the adjustment that came into effect on April 15th, the price of electricity has reduced by 4.31%, making the price of a megawatt hour (MWh) $133.45, which will be in effect until July 14th this year. In the previous period, the price was $139.47.

“The factors that influenced this reduction in energy prices were the significant contribution of renewable generation sources, which accounted for 67% of total energy production in the previous quarter, and the contribution of natural gas generation,” said Siget in a statement.

According to statistics presented by the Superintendence, geothermal energy accounted for 20.15%, hydroelectric generation injected 17.78%, biomass (energy produced by sugarcane mills) 18.09%, while solar and wind power generation contributed 8.13% and 2.91%, respectively.

In the case of the liquefied natural gas plant located in Acajutla, Sonsonate, its generation accounted for 29.86% of the total energy matrix in the last quarter.

Siget affirmed that the average international price of Bunker C and Brent used to determine the price of long-term contracts backed by thermal generation during the first quarter of 2023 saw a significant decrease compared to the last quarter of 2022.

“This reflects that El Salvador is a country with a sustainable, clean, and environmentally friendly energy matrix,” said Siget.

Additionally, it highlighted that the government of President Nayib Bukele will continue to provide electricity subsidies to families consuming up to 105 kilowatt-hours (kWh) per month.

Recently, the Director General of Energy, Hydrocarbons, and Mines, Daniel Álvarez, announced that the price of electricity would remain stable in the country for the April to July quarter, so Salvadorans do not need to worry.

“There is no expected increase in electricity rates [for this quarter], thanks to everything that has been done with economic measures and the promotion of renewable energy. The rate will not increase,” explained Álvarez.

The reduction announced by Siget was also supported by energy distributors in the country, who reported a decrease in prices on their tariff schedule.

CAESS reported that for the first block of the tariff schedule, the price is $0.155505 per kWh; for the second block, it will be $0.155567 per kWh, and for the third block, it will be $0.154197 per kWh, reductions of between 6.7% and 6.9% compared to the previous quarter.

Meanwhile, the first block of DelSur has a value of $0.151700 per kWh, the second is $0.151063 per kWh, and for the third block, it is $0.150229 per kWh, decreasing by between 2.2% and 2.3% compared to the previous period.