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El Salvador Announces Significant Investment in Solar Energy and Battery Storage
El Salvador has announced a substantial $2.9 billion investment program with the Spanish company Cox. This initiative includes the development of solar energy projects up to 400 MW and battery energy storage systems with a capacity of up to 1 GWh. The battery systems aim to stabilize the national electricity grid and support renewable energy integration.
El Salvador has launched an ambitious $2.9 billion investment program in collaboration with the Spanish energy and water company Cox. This program focuses on the development of solar energy projects and large-scale battery storage systems, alongside natural gas infrastructure and water management facilities.
A significant portion of the investment, specifically $500 million, is allocated to sustainable energy solutions. Of this, $200 million is designated for solar photovoltaic projects and $300 million for battery storage. The solar component includes the construction of two PV plants, with an initial combined capacity of approximately 200 MW, potentially expanding to 400 MW. These projects will be developed in partnership with the Executive Hydroelectric Commission of the Lempa River (CEL).
The agreement also provides for the deployment of grid-connected battery energy storage systems. These systems will commence with a capacity between 440 MWh and 500 MWh, with the potential to expand to an impressive 1 GWh. According to Cox, these systems are expected to play a crucial role in stabilizing the national electricity grid and facilitating the integration of renewable energy sources.
President Nayib Bukele of El Salvador indicated that the new energy infrastructure will reduce reliance on oil-fired power generation and could contribute to lower electricity tariffs. The investment program is anticipated to be implemented over three years, subject to regulatory approvals and project-specific agreements.
This development aligns with the growth of El Salvador's solar energy sector. By the end of 2025, the country's installed PV capacity reached 846.62 MW, accounting for 26.4% of its total electricity generation capacity. Solar PV was the largest generation technology in the country. Cox, with approximately 95% of its operations concentrated in Latin America, has an investment program exceeding $7 billion across its energy and water businesses in the region.
This article is based on information from pv magazine.
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