World Bank Approves $150 Million for Geothermal Energy Project in El Salvador. – El Salvador in English

The World Bank’s Board of Directors has approved a $150 million loan for the Geothermal Energy Project for Sustainable and Inclusive Development in El Salvador. This initiative, set to span six years, aims to enhance the country’s renewable energy generation capacity by focusing on geothermal energy, which is abundant in the region.

The funding will enable LAGEO, El Salvador’s state-owned geothermal energy company, to construct a new geothermal power plant with a capacity of up to 25 megawatts (MW) in the Chinameca geothermal field. This facility will be connected to the national electricity transmission grid. The project will also explore the expansion of geothermal energy capacity, with the potential to increase production by an additional 40 MW through further exploratory work in the area.

In addition to the energy infrastructure, the project will support social and environmental programs. Local communities will benefit from geothermal heat for direct applications, such as food drying and processing, which will support local agribusinesses and stimulate regional economic development.

Daniel Alejandro Alvarez, President of the Lempa River Hydroelectric Executive Commission (CEL), expressed the government’s commitment to ensuring that all Salvadorans have access to clean and affordable energy. «This World Bank-financed project is a significant step toward strengthening our energy system, promoting sustainable development, and creating green jobs for the communities surrounding the Chinameca geothermal field,» he stated.

Carine Clert, Country Manager for El Salvador and Costa Rica at the World Bank, emphasized the importance of this partnership. «This project is a testament to our longstanding collaboration with the Government of El Salvador,» she said. «It will help reduce emissions, create green jobs, and contribute to building a more resilient and prosperous future for the country.»

The geothermal plant’s construction and operation will not only generate employment in the surrounding communities but also improve the country’s energy stability, making clean energy more accessible while attracting investments that will foster El Salvador’s economic and technological growth. The project will also enhance CEL’s operational capacity, improving the management of energy demand and the resilience of the energy system.

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