Renewables
El Salvador agrees to $2.9 billion energy and water pact
Spanish firm Cox has partnered with El Salvador to develop solar, battery storage, natural gas, and water infrastructure under a multi-billion dollar investment program.
Key points
- Cox and the Salvadoran government signed a $2.9 billion infrastructure agreement at the Presidential Palace.
- The program includes up to 400 MW of solar capacity and 1 GWh of battery storage.
- Natural gas infrastructure, including an LNG terminal and a 380 MW power plant, takes the largest share at $1.8 billion.
What happened
Spanish utility firm Cox has entered into a major development accord with the government of El Salvador, according to pv magazine. Announced by President Nayib Bukele and Cox chief executive Enrique Riquelme, the $2.9 billion initiative spans solar generation, battery storage, gas networks, and water facilities.
Solar installations will initially deliver roughly 200 MW of capacity in partnership with the Executive Hydroelectric Commission of the Lempa River, with potential scaling to 400 MW. Meanwhile, grid storage batteries are planned to start between 440 MWh and 500 MWh before expanding up to 1 GWh. Bukele noted that solar and storage will receive $200 million and $300 million respectively.
Infrastructure scope
The largest financial allocation within the pact targets natural gas operations. Approximately $1.8 billion will fund a liquefied natural gas regasification terminal alongside a 380 MW combined-cycle facility. The Salvadoran administration indicated the gas supply will cater to industrial clients and create export channels to nearby nations. An additional $600 million is earmarked for drinking water and sanitation upgrades.
What comes next
President Bukele stated the infrastructure buildout aims to decrease reliance on oil-generated electricity and reduce tariffs. Project financing will be structured by Cox via international lenders and export credit agencies, with implementation anticipated over a three-year window pending regulatory sign-offs. Data from the General Superintendency of Electricity and Telecommunications shows El Salvador held 846.62 MW of solar photovoltaic capacity at the close of 2025.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Renewables are the fastest-growing part of the world’s energy system. The COP28 goal is to triple capacity by 2030, and solar mini-grids are the fastest route to power for millions of people without electricity.
95.6% of electricity in El Salvador was renewable in 2021Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
