El Salvador is accelerating its strategy to position itself as a key hub for foreign capital by making unprecedented investments in its national power grid. Through a historic $1 billion National Expansion Plan set to execute over the next decade, the state transmission company ETESAL aims to modernize infrastructure, integrate renewable energy sources, and prevent the power shortages currently affecting other nations in the region.
According to ETESAL President Edwin Núñez, the country has added more than 750 megawatts of new energy generation under President Nayib Bukele’s administration, driven by growing private investments and supportive government policies. To support this expanding capacity, the nation has already built six new substations and added hundreds of kilometers of transmission lines, laying a solid foundation to attract high-demand sectors such as tech and data companies.
The ten-year strategy encompasses building new substations in strategic industrial and commercial corridors including San Miguel, Santa Ana, Acajutla, and the San Salvador Metropolitan Area, alongside a National Storage Plan. As part of this regional push, ETESAL will break ground on September 28 for a new substation in Morazán—a key project designed to power economic growth and support the influx of returning Salvadorans in the historically underserved northern region.
By diversifying its energy matrix with solar, wind, geothermal, hydroelectric, and natural gas resources, El Salvador is building a resilient, sustainable power grid capable of handling large-scale industrial projects. “The new investment plan represents a unique moment in El Salvador’s history for energy transmission, aiming to position the country and ensure it is fully prepared for the major new investments being developed,” stated Núñez.