El Salvador is advancing its renewable energy strategy through the planned construction of the San Matías Photovoltaic Solar Power Plant, a project supported by financing from the Kuwait Fund for Arab Economic Development and expected to generate approximately 20,000 megawatt-hours of electricity annually.

The initiative recently received support from the Finance Committee of the Legislative Assembly of El Salvador, which approved a favorable ruling to authorize a $9.6 million loan agreement for the project.

The solar facility will be located in San Matías and is designed to strengthen the country’s energy infrastructure while increasing the supply of clean and renewable electricity. Authorities say the project will help diversify energy generation, reduce dependence on hydroelectric resources during dry seasons, and support long-term energy sustainability goals.

According to officials from the Ministry of Finance, the plant is also expected to contribute to environmental protection efforts by reducing carbon emissions and promoting cleaner sources of power generation. In addition, the project is anticipated to create employment opportunities during both construction and operational phases.

The development will include photovoltaic solar panels, electrical substations, interconnection systems, access roads, and operational facilities necessary to integrate the plant into the national power grid. Construction is expected to begin with site preparation, road development, and infrastructure works before moving into the installation of energy-generation equipment.

As El Salvador continues investing in modern infrastructure and sustainable development, solar energy is emerging as a strategic component of the country’s long-term economic and environmental agenda. Officials view the project as another step toward increasing energy resilience, attracting investment, and expanding access to reliable renewable power for future growth.