The European Union (EU) is prepared to mobilize up to €1 billion (approximately $1.044 billion) to fund energy generation, transmission, and distribution projects across Central America. This commitment aims to strengthen the region’s electricity infrastructure under the Central American Regional Electricity Market (MER) initiative.

EU Ambassador to El Salvador, Francois Roudié, announced the financial pledge during the MER 360 Regional Symposium held Tuesday in San Salvador, organized by the Regional Operator Entity (EOR). “The European Union is ready to mobilize over €1 billion through the European Investment Bank and other European partners to support critical infrastructure projects, including the construction of the second SIEPAC circuit and complementary national works,” Roudié stated.

The System of Electrical Interconnection for Central American Countries (SIEPAC) project, crucial for improving energy integration and reliability in the region, stands to benefit significantly from this funding. Ambassador Roudié emphasized that the EU’s support extends beyond financing, offering technical assistance and fostering dialogue among regional stakeholders.

“This symposium is a unique opportunity to drive MER into a new stage,” Roudié remarked. He urged regional authorities and private companies to continue discussions to address the energy challenges outlined during the event. “Keep working, keep advancing. When other countries look to build their markets, they will measure you as well,” he added.

Daniel Álvarez, head of El Salvador’s General Directorate of Energy, Hydrocarbons, and Mines (DGEHM), noted that national electricity demand is projected to grow at an annual rate of 3.7% over the next 15 years, driven primarily by economic development.

Reaffirming the EU’s longstanding partnership with Central America, Roudié said, “We are committed to joining forces with the region, a commitment that has been present for many years.” The proposed funding aims to enhance energy reliability, promote regional integration, and support sustainable growth across Central America.