El Salvador Projects 3.7% Annual Energy Demand Growth, Eyes Renewables.

 El Salvador’s electricity demand is expected to grow at an annual rate of 3.7% over the next 15 years, according to the General Directorate of Energy, Hydrocarbons, and Mines (DGEHM). During a symposium organized by the Regional Operator Entity (EOR), DGEHM Director Daniel Álvarez said economic growth and infrastructure investments are the main drivers behind the forecast. He added that new tourism projects could potentially double the projected growth, citing initiatives like Surf City. In 2024, the country generated 7,348 gigawatt-hours of electricity, with 65% coming from renewable sources.

By the end of the year, El Salvador’s installed capacity reached 3,014 megawatts (MW), with a mix of thermal, hydroelectric, natural gas, biomass, solar, and geothermal energy.

Álvarez highlighted the need for better solar energy regulation, given the country’s limited space for new plants, and emphasized the focus on renewable energy expansion to strengthen resilience against climate phenomena like El Niño. Despite rising demand, El Salvador remains self-sufficient, with installed capacity nearly three times its daily demand of around 1,000 MW. Regionally, El Salvador represented 15.6% of Central America’s 19,325 MW installed capacity in 2024.