The new National Energy Policy 2020-2050 aims to diversify El Salvador''s energy mix and take advantage of the country''s significant renewable energy resource potential. At the same time, the policy highlights the need to reduce
The National Energy Policy to 2024 of El Salvador guides the national actions on energy, following main principles: ensure high quality level and continuous and affordable energy access, decrease fossil fuel dependency and mitigate environmental and socia.
This Renewables Readiness Assessment (RRA) highlights key actions for the short and medium-term that could create more conductive conditions for renewable energy development. It aims to help unlock El Salvador''s renewable energy potential, first of all in the power sector but also for transport, agri-food and industrial end uses.
The policy includes four key objectives: Guaranteed quality, continuous and affordable energy access; Improved role of the Government in the development of the energy sector by strengthening the institutional framework; Decreased fossil fuel dependency; Minimized environmental and social impacts on climate change by the energy projects.
El Salvador''s new National Energy Policy 2020-2050 and the ongoing efforts towards the Nationally Determined Contribution (NDC) revision are creating an opportunity for the Salvadorian energy sector to position renewable energy as key means to enhance the global climate agenda.
El Salvador has prioritised renewable energy projects to reduce its dependence on imported fossil fuels and improve energy security. The National Energy Policy 2010-2024 has become a key tool for the country to advance the use of indigenous renewables, including hydropower, biomass, solar photovoltaic (PV) and geothermal power.
The new National Energy Policy 2020-2050 aims to continue developing the country’s renewable energy potential, which can stimulate local commerce and industry, help reduce electricity tariffs and improve people’s welfare.
The Executive Hydroelectric Commission of the Lempa River (CEL – Comisión Ejecutiva Hidroeléctrica del Río Lempa), in co-ordination with the National Energy Council (CNE – Consejo Nacional de Energía), undertook the study in collaboration with the International Renewable Energy Agency (IRENA).
El Salvador provides a fantastic case study into the energy sector and how size is not necessary to promote transitions to renewable energy. Through various policies drafted and passed over the past three decades, El Salvador has set itself on a path towards clean energy – a necessity for a country that is severely at-risk of climate change and its effects.
In the following paper, I attempt to provide pertinent, contextual background information on El Salvador''s geography, economy, trade, and energy mix to show where they have succeeded, and where work can still be done.
I am not the first to conduct such an analysis, as the Salvadoran government and the International Renewable Energy Agency (IRENA) have worked to create a National Energy Policy 2010 – 2024 and a Renewable Readiness Report, respectively. In addition, this Renewable Readiness Report is now driving additions and changes to the National Energy Policy 2020 – 2050. I analyzed these sources and, once again, identified areas of strength, pain points, and opportunities for improvement.
El Salvador is sandwiched between the Pacific Ocean, Guatemala, and Honduras, it is the smallest country in Central America by land size with about 21,000 square kilometers of land, and is by no means a major tourist destination. And yet, El Salvador turns out to be a unique and interesting perspective and case study for the Energy sector.
El Salvador runs in a trade deficit – in 2019, their trade deficit was slightly above $6 billion. Their top importing partners were the United States, China, Guatemala, Mexico, and Honduras, while their top exporting partner was far and away the United States, followed by their regional neighbors in Guatemala, Honduras, Nicaragua, and Costa Rica.[5]
The final, and perhaps, most important piece of our Salvadoran case study, is the country''s inherent climate risk and pending catastrophe. According to the World Bank''s Climate Change Knowledge Portal, El Salvador is one of the most affected countries in the world by weather-related events and hazards, and the most at-risk in Central America. Due to these weather-related events and hazards, they incur annual losses equivalent to 2.5% of GDP. They also rank second highest in risk of exposure to two or more hazards, and are the highest in total population at a high risk of mortality.[7]
The United Nations Sustainable Development Goal Seven is to "Ensure access to affordable, reliable, sustainable and modern energy for all."[8] In this regard, El Salvador has done a fantastic job – officially reporting 100% access to electricity in 2020.[9] They have also done a great job providing access to clean cooking fuels, with continuous growth year over year, reporting 92% total access in 2020. However, there is a rural and urban split, as they reported 80.9% and 96.7%, respectively.[10]
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