Energy Sector in El Salvador Grows by 16.8% in Q2 2023.

The energy sector in El Salvador is on an upward trajectory, with a remarkable 16.8% growth recorded in the second quarter of this year compared to the same period last year, according to data from the Central Reserve Bank (BCR).

“We have witnessed an impressive 16.8% growth in electricity production in El Salvador up to the second quarter of this year. We’ve transformed our energy matrix, reducing our dependence on fossil fuels and shifting towards green energy generation,” affirmed BCR President, Douglas Rodríguez.

Rodríguez attributes this substantial growth to the increased generation of energy from various sources, including wind, solar, natural gas, geothermal, hydroelectric, and more. Both private and government-initiated projects have played a significant role in this transformation, supported by President Nayib Bukele’s administration.

“The growth is a direct response to heightened national demand. Offices and industries are consuming more energy due to increased production and activity,” explained Rodríguez.

Furthermore, this surge in energy production has enabled El Salvador to not only meet its domestic needs but also to export surplus energy to neighboring countries.

“We’ve successfully exported 10.5% of our total energy generation, equivalent to $56.77 million in sales to various countries, up to August this year,” Rodríguez confirmed.

According to the BCR, this increase in energy exports represents a remarkable 127.3% growth compared to previous years. The Directorate General of Energy, Hydrocarbons, and Mines (DGEHM) reported that El Salvador’s energy exports reach all Central American nations, with Guatemala, Costa Rica, Honduras, and Nicaragua as the primary buyers.

The DGEHM also highlighted that, within the first eight months of this year, El Salvador had exported a substantial 419 gigavatios hours (GWh). This positive performance in the Regional Electricity Market (MER) can be attributed to President Bukele’s initiatives, which have laid the foundation for sustainable and efficient development in the energy sector.

In a recent development, Edwin Núñez, President of Etesal, confirmed El Salvador’s role as a significant energy exporter in Central America, emphasizing the strategic importance of the company in the wholesale market.

El Salvador’s energy sector continues to thrive, serving as a shining example of sustainable growth and expanding influence in the regional energy market. With ongoing investment and innovative approaches, it is poised for a promising future in the energy landscape of Central America.