El Salvador’s energy exports have soared by an impressive 391.8% from January to May 2023, reaching a total value of $33.5 million, according to a recent Foreign Trade report published by the Central Reserve Bank (BCR). This surge in exports reflects the country’s ability to leverage its surplus energy while satisfying the domestic demand in the first place.
Honduras and Nicaragua have emerged as the primary buyers of El Salvador’s energy, with Guatemala and Costa Rica also joining the list of recipients in recent months. Official statistics reveal that state-owned power generation companies, which operate hydroelectric and geothermal plants, contribute 56.7% to the national energy matrix. The remaining energy is generated by other renewable sources such as solar and gas, including a 7.9% contribution from bunker fuel.
The Director-General of Energy, Hydrocarbons, and Mines (DGEHM), Daniel Álvarez, emphasized the country’s improved energy infrastructure, including the presence of photovoltaic plants, wind farms, the natural gas plant by Energías del Pacifico, as well as increased hydroelectric and geothermal energy generation. With an abundance of energy supply and competitive prices, El Salvador possesses the capacity to meet its domestic needs while exporting surplus energy.
In May, the peak power demand reached 1,066 megawatts (MW), representing a 4.2% increase compared to the previous month, as reported by the Unit of Transactions (UT) in El Salvador. This indicates a growing need for energy resources, which the country aims to fulfill despite the challenges posed by the El Niño phenomenon affecting the Central American region’s energy generation.
The Salvadoran government, led by President Nayib Bukele, has committed to ensuring a stable energy supply for its citizens. In light of the energy crisis experienced by neighboring countries, the government vows to prevent any energy shortages or rationing in El Salvador. Daniel Álvarez affirmed that all relevant institutions are working diligently to keep the economy running smoothly and households adequately supplied with this vital resource.
Furthermore, the government remains steadfast in its commitment to bolstering renewable energy generation. Plans are already underway for the construction of two new geothermal plants and the implementation of the second government-owned solar power facility. By expanding renewable energy infrastructure, El Salvador aims to strengthen its energy independence and sustainability while contributing to a greener future.
As El Salvador’s energy exports continue to surge, the country stands as a beacon of resilience and progress in the face of regional challenges. With a steadfast focus on renewable energy, El Salvador sets an inspiring example for other nations seeking to maximize their energy potential and ensure a reliable power supply for their citizens.