The Energy Transition in the El Salvador

El Salvador’s energy transition is anchored in its ambition to diversify its energy mix, strengthen energy security, and reduce greenhouse gas emissions through the expansion of renewable energy. The country has made significant progress in integrating renewables, with hydropower, geothermal, and solar PV playing key roles alongside imported fossil fuels. The National Energy Policy 2020–2050 sets clear goals for sustainable energy development, including the promotion of distributed generation, energy efficiency, and greater private sector participation. Geothermal energy, led by LaGeo, remains a major asset, positioning El Salvador as one of the top geothermal producers in Central America. There is no domestic production of critical minerals, and the country is fully reliant on imports for materials such as lithium, cobalt, nickel, and rare earth elements essential for renewable technologies and energy storage systems. Challenges include vulnerability to natural disasters, ageing infrastructure, and financing gaps for large-scale projects, but opportunities exist through climate finance mechanisms, regional power integration via the Central American Electrical Interconnection System (SIEPAC), and the country’s geothermal leadership. El Salvador’s steady progress and supportive policy environment provide a strong foundation for advancing its energy transition and enhancing long-term energy resilience.