El Salvador witnessed an outstanding 86.8% growth in its energy exports during 2023, according to the latest Foreign Trade report released by the Central Reserve Bank (BCR). The total value of energy exports soared to $74.6 million, with a significant portion being traded within the Central American region.
The upswing in El Salvador’s energy exports can be attributed to the concerted efforts of the government under President Nayib Bukele, who spearheaded various electric generation projects, both in collaboration with the private sector and independently.
According to the recently published Foreign Trade report by BCR, from January to December of the previous year, energy exports from El Salvador reached $74.6 million, marking an impressive 86.8% increase. The primary destination for these exports, accounting for around $74 million, was Central America, while the remainder found its way to nations beyond the region.
These figures align with data presented by the Directorate General of Energy, Hydrocarbons, and Mines (DGEHM), which highlighted Honduras and Nicaragua as prominent destinations for El Salvador’s energy exports, complemented by growing markets in Guatemala and Costa Rica.
March, June, September, and November emerged as peak months for energy commerce, showcasing robust trade in electricity generated by both public and private power plants.
The statistics from the state financial institution confirm that 2023’s data surpasses the figures recorded in 2022, when El Salvador’s energy exports amounted to $39.6 million.
Furthermore, the report indicates that energy sales hold the 21st position in the hierarchy of export structures, underscoring the sector’s pivotal role in the Salvadoran economy.
The surge in energy generation throughout the year also led to a decrease in energy imports. President of BCR, Douglas Rodríguez, recently stated, “El Salvador has become one of the primary energy suppliers in the Central American region, driven by the diversification of the energy matrix through renewable projects.”
In line with this sentiment, Daniel Álvarez, head of DGEHM, credited President Bukele for prioritizing renewables and supporting the construction of new generation plants, stating, “We have exported surplus energy to other regional countries and remain committed to further diversifying the energy matrix.”
In December alone, state-owned power generation companies produced 209.03 gigawatt-hours (GWh), with geothermal energy leading the way, closely followed by hydroelectric power.
DGEHM’s statistics reveal that LAGEO’s geothermal plants generated 106.87 GWh, while the hydroelectric plants under the Executive Hydroelectric Commission of the Lempa River (CEL) contributed 96.66 GWh to El Salvador’s robust energy production.