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Latin America

El Salvador

With a power score of 1.8, El Salvador ranks number 67 among Emerging Markets and number 14 in the Latin America region

Power score

1.8/5

135135135

Score over time

2021 - 2024

31
2021
45
2022
41
2023
67
2024

Overview

El Salvador has a power score of 1.80, which puts it at rank 67 in the Emerging Markets power ranking. In comparison to 2023, El Salvador has dropped in the power rankings by 26 places, from rank 41, to rank 67.

At 1.80, the power score of El Salvador is worse than than the regional average of 1.93 in the Latin America region and puts it at rank 14 in the region.

Regional comparison chart

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El Salvador

Power

Power policy

El Salvador implements policies in 4/9 power policy categories tracked by Climatescope, including Renewable energy target, Net metering, Priority grid access, and Renewable Energy Certificates.

Power policies

Renewable energy target
Renewable energy auction
Feed-in tariff
Net metering
Import tax incentives
VAT incentives
Priority grid access
Renewables mandate
Renewable Energy Certificates

Power prices and costs

The average electricity price in El Salvador has dropped from 160.90 USD/MWh in 2022 to 142.77 USD/MWh in 2023. Since 2017, the average electricity price in El Salvador has fluctuated between 136.40 USD/MWh (2021) and 188.10 USD/MWh (2019).

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Power market

The top amount of capacity installed in El Salvador in 2023 was in Oil & Diesel at 25.18%, down from 27.06% in 2022. The technology with the biggest increase in capacity installed in 2023 was Utility-scale PV at 12.21%, up from 8.03% in 2022.

Installed capacity (in MW)

2000200520102015202001K2K3K MW

Electricity generation (in GWh)

2000200520102015202002K4K6K8K GWh

The top amount of electricity generated in El Salvador in 2023 was in Large Hydro at 27.57%, up from 26.11% in 2022. The technology with the biggest increase in electricity generated in 2023 was Oil & Diesel at 11.4%, up from 7.66% in 2022.

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Investment in clean energy in El Salvador was around $28.48 million in 2023, a decrease of 19.55% from 2022 ($35.40 million). Between 2018 and 2023, the highest investment in clean energy was in 2018 at $159.00 million, while the lowest was in 2021 with $13.05 million.

Utility privatisation

Which segments of the power sector are open to private participation?

generation: Yes
transmission: No
retail: Yes

Doing business and barriers

Type

Question

Availability

Currency of PPAs

Are other PPAs (eg. corporate PPAs) signed in or indexed to U.S. Dollars or Euro?

Yes

Type

Question

Availability

Bilateral power contracts

Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?

Yes

Type

Question

Availability

Fossil fuel price distortions - Subsidies

Does the government keep the wholesale price of electricity from fossil fuels artificially low through subsidies?

No

Type

Question

Availability

Fossil fuel price distortions - Taxes and carbon prices

Does the government significantly�increase the wholesale price of electricity from fossil fuel through targeted taxes and/or carbon prices?

No

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