Does liquefied natural gas support power generation in El Salvador?

A project utilizing liquefied natural gas (LNG) is supporting power generation in El Salvador and playing a major role in the country’s energy transformation. An energy project in El Salvador has been called transformative for the Central American country, which has long relied on hydro and geothermal resources to support its power generation.

Why is the El Salvador power project important?

The power project, which began taking shape in 2013, is important for El Salvador because it offers cleaner energy production, replacing heavy fuel oil for power generation while offering flexibility the country needs to support the addition of more renewable energy resources to the national power grid.

Does El Salvador's power plant use LNG?

Invenergy officials said the use of LNG at the power plant has reduced emissions of carbon dioxide by 600,000 tons annually compared to burning fuel oil. The power plant also has reduced El Salvador’s dependency on energy imports from neighboring countries.

Why is El Salvador a big importer of electricity?

El Salvador currently imports about one-quarter of the country’s total electricity, making it the largest importer of electricity in Central America. Government officials have said the heavy reliance on imported power creates energy security risks, along with providing an economic challenge.

How much money is invested in El Salvador?

In total, the project represents an approximately $1 billion investment in El Salvador. At least $10 million will be invested in economic and social works during the term of the power purchase agreements, strengthening local communities with a more than $500,000 investment per year.

When did El Salvador's EDP power plant start operating?

Despite the enormous challenges, including supply-chain disruptions, travel restrictions, airport closures, global financial volatility, and Salvadoran COVID-19 mitigation measures and regulations, the power plant began commercial operation in October 2022. EDP is a transformative investment in El Salvador’s clean energy future.