El Salvador’s power sector saw a strong rebound in foreign sales during the first eight months of the year, with total electricity exports rising 63.4% to $18.50 million, according to data from the Central Reserve Bank (BCR). The $7.17 million increase compared to the same period last year underscores shifting trade dynamics across Central America. However, despite this rapid expansion, revenues remain well below the record $56.77 million recorded during the same period in 2023.

The export surge coincides with severe climate pressures caused by El Niño, which drastically reduced rainfall and lowered reservoir levels across the region. With cheaper hydroelectric power severely limited—accounting for just 8.64%of El Salvador’s energy generation in August—the country leaned heavily on thermal power plants fueled by bunker fuel and liquefied natural gas (LNG) to cover 59% of local demand and sustain export capacity.

Regional neighbors drove the overwhelming majority of energy purchases, led by Guatemala, which imported $15.73 million—a 60.7% year-over-year increase representing 84.9% of El Salvador’s total energy exports. Demand also spiked dramatically in Nicaragua, which purchased $1.2 million in power compared to just $8,217 the previous year, alongside minor shipments to Costa Rica, Panama, and other unlisted markets.

This extreme reliance on fossil-fuel backup highlights broader structural vulnerabilities cited by regional observers, including ECLAC, which noted that Latin America’s power systems are particularly fragile due to a 70% dependence on hydroelectricity and aging infrastructure exposed to severe drought.