El Salvador recorded its lowest average electricity generation price in more than four years this October, driven by a strong rise in hydropower output and greater use of liquefied natural gas (LNG), according to the latest market report from the country’s Unidad de Transacciones (UT).

The average megawatt-hour (MWh) in the Mercado Regulador del Sistema fell to $66.27 in October, the lowest level since January 2021, when it stood at $68.08. Prices dropped sharply from September, falling by $22.16, or 25.05 percent. UT analysts highlighted that “seasonal shifts play a crucial role, as the rainy months allow hydropower plants to displace more expensive thermal generation.”

In contrast, earlier this year prices surged, peaking at $125.63 per MWh in May before declining steadily with the onset of the rainy season. Despite these market movements, electricity tariffs for consumers have remained unchanged. Siget previously announced that rates would stay fixed through July 2025, a decision supported by a 2024 legislative decree granting the DGEHM the authority to set tariffs. That mandate remains valid until December 2026.

Hydropower was the dominant energy source in October, supplying 357.63 GWh — a 52.8 percent share of national demand. CEL’s power plants, including Guajoyo, Cerrón Grande, 15 de Septiembre, 5 de Noviembre, and 3 de Febrero, significantly expanded their contribution since June, rising from 33.47 percent during the early rainy season to 56.6 percent in September.

LNG followed as the second-largest contributor, providing 120.92 GWh, or 17.88 percent of demand. This output came exclusively from Energía del Pacífico’s large-scale plant in Acajutla, which increases production when hydropower declines in the dry season. Geothermal generation covered another 17.14 percent, while solar accounted for 7.23 percent. Wind energy supplied 1.51 percent, and bunker-fired thermal plants made up just 2.28 percent of total injections.

Overall, the October report underscores how El Salvador’s diverse energy matrix — with hydropower, LNG, and geothermal at its core — continues to strengthen price stability and reduce dependence on costlier fossil fuels.