El Salvador has taken a significant step in its energy transition by signing a cooperation agreement with the International Renewable Energy Agency (IRENA). The agreement, backed by President Nayib Bukele’s administration, aims to consolidate the country’s leadership in renewable energy and advance its transition toward a low-carbon economy.

#TransiciónEnergética | La alianza estratégica entre @IRENA y El Salvador contempla el desarrollo de la energía geotérmica, enfocada en la atracción de inversión en la generación de energía y los usos directos del calor.

Además, crea la hoja de ruta para impulsar políticas y… pic.twitter.com/qkhePnYym4

— Secretaría de Prensa de la Presidencia (@SecPrensaSV) April 29, 2025

This strategic alliance outlines a roadmap for developing geothermal energy, attracting investments for power generation, and promoting the direct use of geothermal heat. It also sets the foundation for policies and regulations to produce and use green hydrogen, incorporating best practices for sustainable implementation.

Through the agreement, El Salvador will gain access to technical and financial cooperation that will help expand renewable energy projects, ultimately lowering electricity costs. The collaboration also includes decarbonization strategies across transportation, industry, and buildings through electrification, renewable heating, and distributed generation.

“This is a top priority for President Nayib Bukele’s government, as we aim to create more environmentally friendly energy projects that improve quality of life for everyone,” stated Daniel Álvarez, Director General of El Salvador’s General Directorate of Energy, Hydrocarbons and Mines. He also emphasized the role of international institutions such as the World Bank, which supports geothermal energy expansion in the country.

“Thanks to President Bukele’s support, we will add 10 megawatts of geothermal energy generation this year,” added Álvarez.

Francesco La Camera, Director General of IRENA, highlighted the importance of the agreement: “With this declaration, we express our shared commitment to accelerating El Salvador’s energy transition in pursuit of future resilience and energy sustainability.” As part of his tour of Latin America, La Camera will meet with Salvadoran energy authorities to review the country’s electric market and its progress in diversifying the energy matrix to stabilize energy prices.

“This agreement will allow Salvadorans to gain more training, knowledge, and experience for new renewable energy projects. Geothermal energy plays a crucial role in our partnership with IRENA, as we seek to reach our full potential,” concluded Álvarez.