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El Salvador

With a power score of 1.88, El Salvador ranks number 40 among emerging markets and number 67 in the global power ranking.

  • Emerging markets
  • Latin America

1.88 / 5

Power score


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Global power rank change


2021
2022
2023
71
67
67

Overview

El Salvador has a power score of 1.88, which puts it at rank 67 in the global power ranking, and rank 40 in the emerging markets power ranking. In comparison to 2021, El Salvador has improved in the power rankings by 4 places, from rank 71, to rank 67.

At 1.88, the power score of El Salvador is better than the regional average of 1.81 in the Latin America region.

Regional power score comparison

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El Salvador

Power

Power policy

El Salvador implements policies in 2/6 power policy categories tracked by Climatescope, including Renewable energy target, Renewable energy auction, Feed-in Tariff, Net Metering, Import tax incentives, VAT incentives.

Power policies

Renewable energy target
Renewable energy auction
Feed-in Tariff
Net Metering
Import tax incentives
VAT incentives

Power prices and costs

The average electricity price in El Salvador has increased from 136.4 USD/MWh in 2021 to 160.9 USD/MWh in 2022. Since 2017, the average electricity price in El Salvador has fluctuated between 136.4 USD/MWh (2021) and 188.1 USD/MWh (2019).

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Power market

The top amount of capacity installed in El Salvador in 2022 was in Oil & Diesel at 24.77%, down from 28.85% in 2021. The technology with the biggest increase in capacity installed in 2022 was Natural Gas at 16.54%, up from 3.44 in 2021.

Installed capacity (in MW)

2014201620182020202205001K1.5K2K2.5K MW

Electricity generation (in GWh)

2014201620182020202202K4K6K GWh

The largest electricity generating technology in El Salvador in 2022 was Large Hydro, generating some 27.3% of electricity, down from 30.47% in 2021. The technology with the biggest increase in eletricity generation in 2022 was Natural Gas at 7.12%, up from 0% in 2021.

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Investment in clean energy in El Salvador was around $26.8 million in 2022, an increase of 105.26% from 2021 ($13.05 million). Between 2017 and 2022, the highest investment in clean energy was in 2017 at $244 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

Type

Question

Availability

Wholesale power market

Does the country have a wholesale power market?

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

Transport

Transport policy

El Salvador implements policies in 2/9 transport policy categories tracked by Climatescope, including Clean transport target, National ICE phase-out, EV purchase grant/loan incentive, EV VAT reduction/exemption, EV import tax reduction/exemption, EV income tax reduction/exemption, EV recurring tax reduction/exemption, EV charging infrastructure target, E-bus target.

Transport policies

Clean transport target
National ICE phase-out
EV purchase grant/loan incentive
EV VAT reduction/exemption
EV import tax reduction/exemption
EV income tax reduction/exemption
EV recurring tax reduction/exemption
EV charging infrastructure target
E-bus target

Type

Question

Availability

Fuel economy standards

Does the country have a fuel economy standard in place?

No
Climatescope 2023 print report cover

Power Transition Factbook

This marks the 12th anniversary of Climatescope, BNEF’s annual assessment of energy transition opportunities. In recent years, the project has been expanded to include activity not just in clean power, but also in the decarbonization of transportation and buildings.

Download report

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