El Salvador’s energy sector saw a significant growth of 14.4% in 2022, according to the Central Reserve Bank (BCR). The country now ranks seventh in the World Ranking of Renewable Electricity Generation. Additionally, the BCR reported that energy exports from El Salvador grew by 1,860% in 2022, satisfying both domestic and foreign demand.
President Nayib Bukele also highlighted the impressive growth on his social media accounts, emphasizing the «1,860% increase.»
Douglas Rodriguez, President of the BCR, recently stated that «El Salvador changed its energy matrix, and now 76% of the energy produced in the country comes from renewable sources, which lowers production costs and benefits consumers.»
The surge in exports can be attributed to the country’s increased production of renewable energy. Statistics from the General Directorate of Energy, Hydrocarbons and Mines (DGEHM) show that renewable energy accounted for 58.82% of total energy production in El Salvador as of March 2023. The Executive Hydroelectric Commission of the Lempa River (CEL) and LAGEO contributed 34.98% of that total.
Hydroelectric power accounts for 17.57% of El Salvador’s energy mix, geothermal power 17.41%, biomass 15.44%, solar 6.91%, and wind 1.49%.
According to the DGEHM, the main destinations for El Salvador’s energy exports are Honduras and Nicaragua, although Guatemala and Costa Rica have also made significant purchases in recent months.
The Regional Electricity Market (MER) transactions reflect constant dynamism, with Honduras and Nicaragua leading the way as major buyers, followed by Costa Rica and Guatemala. El Salvador and Panama show a trend of both importing and exporting.
Director of the DGEHM, Daniel Álvarez, credits El Salvador’s competitive pricing for the region’s success. He notes that the investments made by President Nayib Bukele’s government in recent years have resulted in increased renewable energy generation. This increased competitiveness has allowed El Salvador to be more efficient in the MER.