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Fact Sheet No. 08 November 2026

Energy

Energy in El Salvador

In 2025 natural gas produced 29.15% of the electricity injected into the grid, hydropower 27.47% and geothermal 19.15%, and renewables passed 64%. A study by Peru’s regulator Osinergmin put the price for an industrial user at $0.1906 per kWh in the third quarter of 2026.

Share of renewable sources in generation, 2025
64%+1
Share of renewable sources in generation, 2025
Energía del Pacífico LNG plant at Acajutla
380 MW2
Energía del Pacífico LNG plant at Acajutla
Per kWh for an industrial user, third quarter of 2026
$0.19063
Per kWh for an industrial user, third quarter of 2026
Per kWh for a commercial user, third quarter of 2026
$0.24083
Per kWh for a commercial user, third quarter of 2026

The 2025 power mix

The 2025 power mix
Source Share
Natural gas 29.15%
Hydropower 27.47%
Geothermal 19.15%
Solar 8.04%
Biomass 6.93%
Wind 2.27%

Source: Infobae: El Salvador changed its electricity mix in 20251

Plants and projects

  • LNG at Acajutla: Energía del Pacífico has run a 380 MW gas plant since 2022, with 355 MW contracted by distributors.
  • Cox programme: agreed in October 2026 for battery storage, two 200 MW solar plants with CEL and an LNG terminal with a combined-cycle plant; the projects still need their approvals.

Source: El Diario de Hoy: how the Acajutla natural gas plant works, 24 January 2025; Enerdata: Cox invests USD 3bn for storage, solar, LNG and water projects in El Salvador, 15 October 20262,4

Prices and regulation

  • The cost of generation rose about 125% in the first half of 2026.
  • Since 17 July 2026 electricity powers have passed from SIGET to the Directorate General of Energy, Hydrocarbons and Mines (DGEHM).

Source: Diario El Mundo: power generation cost up 125% in the first half of 2026; SIGET: notice on the transfer of electricity powers5,6

Renewable energy incentives

  • Power plants: no import duties for 10 years on plant equipment, and no income tax for 5 years above 10 MW or 10 years at 10 MW or less.
  • Systems for end users (Decree 436 of 2025): qualified suppliers get income tax, IVA and import duty exemptions, and buyers pay no IVA on the systems.

Source: Reform of the Renewable Energy Tax Incentives Law, articles 1 and 3 (Legislative Assembly, PDF, in Spanish); Decree No. 436 of 21 October 2025, Law for the Promotion of the Use of Renewable Energy (Judicial Documentation Centre, PDF, in Spanish)7,8

Sources

  1. Infobae: El Salvador changed its electricity mix in 2025 (in Spanish)
  2. El Diario de Hoy: how the Acajutla natural gas plant works, 24 January 2025 (in Spanish)
  3. pv magazine Latin America: Osinergmin study of electricity tariffs in Latin America, third quarter of 2026 (in Spanish)
  4. Enerdata: Cox invests USD 3bn for storage, solar, LNG and water projects in El Salvador, 15 October 2026
  5. Diario El Mundo: power generation cost up 125% in the first half of 2026 (in Spanish)
  6. SIGET: notice on the transfer of electricity powers (in Spanish)
  7. Reform of the Renewable Energy Tax Incentives Law, articles 1 and 3 (Legislative Assembly, PDF, in Spanish)
  8. Decree No. 436 of 21 October 2025, Law for the Promotion of the Use of Renewable Energy (Judicial Documentation Centre, PDF, in Spanish)

Figures checked 9 November 2026. Prepared by InvestSalvador.com for general information. It is not investment, tax or legal advice; please confirm details with a qualified adviser before acting.

investsalvador.com Companies, sectors, regions and guides for doing business in El Salvador since 2026.

Fact Sheet No. 08 · November 2026 © Invest Bulgaria Group EOOD

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