El Salvador provides an excellent opportunity for investment in the energy sector, with clear rules and transparent processes which allow stability in rates, which positions us as one of the most competitive markets in Central America with thriving participation in the regional electricity market (MER), born within the framework of the Electrical Interconnection System of the Countries of Central America (SIEPAC). We have a national energy market with a dynamism driven by international and local companies in the generation, distribution, and commercialization of electricity, a public-owned transmission company, and an energy policy with a vision for the future and the adequate institutional infrastructure for the development of the sector.
Key facts
Advantages of investing in El Salvador
- Constant energy demand growth
- Strong commitment of the country to diversify the energy matrix
- Developing generation potential of wind, geothermal, small hydroelectric power plants, biomass, biogas and solar photovoltaic sources
- Renewable Energy Incentives Law that offers attractive tax incentives to projects that generate electricity with renewable resources, up to 10 years.
- The country’s legal framework allows companies to generate their own energy and sell their surplus in the electricity market
Investment Opportunities
- Power supply generation for the spot market where the nontraditional renewable energy sources (solar and wind) have supply priority
- Bilateral contracts directly agreed between generator and distributor
- Distributed generation projects for industrial use
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