El Salvador has witnessed a remarkable surge in its energy exports, with a staggering growth rate of 197.6% recorded through July of this year. According to data from the Directorate General of Energy, Hydrocarbons, and Mines (DGEHM), the country exported approximately 404.1 gigawatt-hours (GWh) of energy, amounting to a total of $52.4 million in revenue during the first seven months of the year.
The robust performance of El Salvador’s energy sector has solidified its position as one of the region’s leading energy exporters in Central America, as recently declared by the DGEHM. A report on Foreign Trade published by the Central Reserve Bank (BCR) further underlines this growth, with energy exports showing a significant 197.6% increase.
In this period, El Salvador’s energy found eager buyers in neighboring countries, with Guatemala, Costa Rica, Honduras, and Nicaragua leading the way. However, it’s important to note that energy exports are carried out after satisfying the domestic demand from Salvadoran households and industrial sectors.
The DGEHM also reported that import levels remained minimal and insignificant in the energy trade balance.
Furthermore, it was emphasized that the Salvadoran government, through its energy-generating enterprises, has become the driving force behind the sector’s success. In July 2023 alone, these entities contributed 250.99 gigawatt-hours (GWh) to the national market, benefiting two million users across the country. The primary sources of this energy were hydroelectric and geothermal power plants.
The favorable performance of El Salvador’s energy sector in the Regional Electricity Market (MER) can be attributed to the initiatives spearheaded by President Nayib Bukele, which have laid the foundation for sustainable and efficient development.
Additionally, Edwin Núñez, the president of Etesal, confirmed the country’s status as a prominent energy exporter in Central America. He highlighted that Etesal plays a strategic role in the wholesale market through the Central American Electrical Interconnection System (SIEPAC).
El Salvador’s remarkable growth in energy exports not only underscores its commitment to the sector’s development but also strengthens its position as a key player in the regional energy landscape. With President Bukele’s initiatives and strategic efforts from government-owned entities, the future of the Salvadoran energy sector looks promising.