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With 57 votes, the Legislative Assembly ratified a US$9.69 million loan from the Kuwait Fund for Arab Economic Development (KFAED); these funds are earmarked for the execution of the San Matías Photovoltaic Solar Plant Project, located in the municipality of La Libertad Norte, in the department of La Libertad.
The financing amounts to three million Kuwaiti dinars, equivalent to US$9,689,609.51. The loan had previously been authorized by the Legislative Assembly on June 10; with this ratification, the funds can now be allocated to the works required for the plant’s construction and commissioning.
The project aims to strengthen El Salvador’s energy security by further diversifying the sources used for electricity generation. Specifically, the plant will enable the integration of solar energy into the national grid and help meet electricity demand, while simultaneously reducing reliance on hydroelectric generation during the dry season.
Project estimates indicate that the plant will generate approximately 20,000 megawatt-hours (MWh) of electricity annually. Furthermore, its operation is expected to reduce carbon dioxide emissions by up to 13,000 tons by incorporating a renewable source for electricity generation.
The project entails various components to ensure the plant’s functionality. These include site access and preparation, the installation of ground-mounted photovoltaic modules (panels), and the construction of stations for inverters and the transformation of the generated electricity.
Additionally, the project includes the construction of an electrical substation equipped with two transformers, as well as the infrastructure needed to interconnect the plant’s output with the national grid. Plans also include the construction of buildings to house the facilities’ control and operational systems. Carrying out these works will also impact economic activity in areas near the project by creating jobs linked to its construction and operation. Thus, the investment aims not only to expand electricity generation capacity but also to foster employment opportunities in the surrounding areas.
The loan will have a term of up to 25 years, including a three-year grace period and a fixed annual interest rate of 2.5%. With this financing, the San Matías Photovoltaic Solar Plant Project will move forward with infrastructure designed to expand the use of renewable energy, strengthen the electricity supply, and reduce the environmental impact of electricity generation.
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