Tuesday, 25 April 2023 21:44

El Salvador's energy exports grew 1,860%: Forbes

Written by Evelyn Alas

According to the international communication magazine Forbes, only in the year 2022 energy exports had a growth of 1,860%, according to data from the Banco Central de Reserva  (BCR), to nearby countries such as Guatemala and Costa Rica.

El Salvador's energy exports have Honduras and Nicaragua as main destinations, which have made important purchases according to BCR data.

Energía | Comisión Económica para América Latina y el Caribe

Likewise, the media explained that operations reflect that transactions in the Mercado Eléctrico Regional (MER)  maintain a constant dynamism, and in which Honduras and Nicaragua are emerging as the major buyers, followed by Costa Rica and Guatemala, while El Salvador and Panama reflect a behavior of importer and exporter.

recursos naturas y fuentes de energía

The director of the Dirección General de Energía, Hidrocarburos y Minas (DGEHM), Daniel Álvarez, indicated that the dynamism in exports is due to the fact that El Salvador has managed to have the most competitive prices in the region, and that the investment made by the Central Government in recent years has allowed an increase in the generation of renewables.

This price competitiveness has also allowed El Salvador to be more efficient in the Mercado Eléctrico Regional .

QUE ESTUDIA LA ENERGIA | Web Oficial EUROINNOVA

The official also explained that exports are made based on energy surpluses, meeting local demand in the first instance. Regarding imports, he affirmed that when the country imports energy, it does not mean that El Salvador does not have the capacity to generate, but that plants are shut down and the surplus is brought from elsewhere.

Alvarez commented that the boom in public and private investment in the construction of plants and power plants for renewable sources has allowed an increase in production.

 

Translated by: A.M