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.
- 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
| 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
- Infobae: El Salvador changed its electricity mix in 2025 (in Spanish)
- El Diario de Hoy: how the Acajutla natural gas plant works, 24 January 2025 (in Spanish)
- pv magazine Latin America: Osinergmin study of electricity tariffs in Latin America, third quarter of 2026 (in Spanish)
- Enerdata: Cox invests USD 3bn for storage, solar, LNG and water projects in El Salvador, 15 October 2026
- Diario El Mundo: power generation cost up 125% in the first half of 2026 (in Spanish)
- SIGET: notice on the transfer of electricity powers (in Spanish)
- 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)
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.