El Salvador has emerged as a prime destination for energy investments, attracting the attention of several US and European companies interested in investing in the national electricity sector. The arrival of five or six companies keen on making investments would enhance the capacity to supply Salvadoran households, according to Edwin Núñez, the president of Etesal.
President Núñez further revealed that he plans to meet with various international companies seeking to invest in the country and connect to Etesal’s power grid. However, any such connection would require approval from Etesal to link up with the substations across the country. The level of investment interest in the sector is significant and steadily increasing, prompting preparations to receive these potential investors.
The influx of new investment projects not only boosts the capacity for electricity generation but also benefits Salvadorans by ensuring stable energy prices. Núñez emphasized the importance of any participating company in the market, stating, “Every player in the market is a significant actor.”
He affirmed Etesal’s commitment to pursuing excellence in the national electricity market, aligning with President Nayib Bukele’s vision to benefit the people of El Salvador.
Furthermore, Núñez highlighted El Salvador’s substantial installed generation capacity, which allows the country not only to meet domestic demand but also to engage in energy exports. Recent energy transactions serve as confirmation of this capacity enhancement.
According to the official, the country’s energy consumption hovers around 1,000 megawatt-hours (MWh). However, thanks to the actions implemented by state-owned energy companies and private energy projects, the generation capacity has now increased to approximately 2,400 to 2,500 MWh.
Núñez also shared that efforts are underway to construct new energy substations, enabling greater transmission of energy and benefiting more Salvadorans.
“We are working on an aggressive plan to provide quality energy to businesses and the people of El Salvador. Currently, we are constructing substations in Morazán and Tamanique, La Libertad, to enhance the quality of service,” explained the official.
He added that while the coastal areas already have access to electricity, the purpose of these substations is to improve the service and unlock the potential for investment projects in different parts of the country. To date, the institution has established 26 substations nationwide.
Furthermore, Núñez outlined plans to expand the areas where energy is distributed, enabling companies to have electricity for their projects.
As part of their modernization strategy, the institution conducts annual maintenance plans for various electrical substations.
The surge of interest from US and European energy companies in investing in El Salvador’s energy sector presents an exciting opportunity for the country’s development. With increased capacity for energy generation, improved services, and a focus on providing stable electricity prices, El Salvador is positioning itself as an attractive destination for international energy investment.