IEEJ : July 2011

Country Report
El Salvador
Carlos Roberto Guzmán

ElSalvador
IEEJ : July 2011

 Extension: 21,000 km2
 Population: 6 MM inhab.
 GDP:41,000 MM$
 GDP per capita: 6,600 $ Currency: US$ dollars

IEEJ : July 2011

Power System Background Until

1996, a state owned company
responsible for energy supply as amonopoly.
 Creation a new competitive electricity
wholesale market (1996-1999):◦ Liberalization of electrical systems◦ Vertical disintegration & privatization◦ Generation and retail are developed in competition◦ Transmission and distribution are natural
monopolies◦ Creation of a regulation institution (SIGET)◦ No institution responsible for energy policy

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Energy Consumption by source(2005)

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Electricity supply and demand Electricity demand increases around 3-4% annually.
 Annual demand: 5,736 GWh (2010)
 Peak demand: 960 MW

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Electricity supply and demand

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Energy Policy
 Consejo Nacional de Energía (CNE) wasestablished in 2007, as the institution
responsible for energy policy.
 Current energy policy statement is focus
on electricity (2010).
 Main goals, energy policy:◦ Guarantee energy supply, quality andreasonable prices.
◦ Protagonist state role, defining energy policy,strengthening institutional and legal framework .
◦ Reduce oil dependency, environmental andsocial impact.

IEEJ : July 2011

Energy Policy Energy policy includes 6 strategy

guidelines:
1.Energy matrix diversification
2.Strengthening institutional and legal
energy framework
3.Energy efficiency promotion
4.Expansion of preferential social tariffs
5.Technological development andinnovation
6.Central America energy integration

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Energy matrix diversification
 Incorporation of new fuel resources(LNG, carbon)
 Promotion of renewable energy
resources
 Promotion of embedded generation

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EnergyResources

5-6 KWh/m2/day

Hydro potential

Volcanic area

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Strengthening institutional andlegal energy framework
 Protagonist

state role defining energy

policy Strengthening of CNE
 Overcoming weaknesses of consumer’s
legal protection
 State own companies align to energy
policies

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Energy efficiency promotion
 Promote energy savings by:◦ Energy efficiency program in publicbuildings (illumination, air conditioning, etc.)◦ Create specific programs for industries.
◦ New regulation and incentives to promoteenergy efficiency in transportation system.
◦ Provide a money found to support different
programs.

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Expansion of preferential socialtariffs

 Energy

access for everybody, emphasis inrural and less human development areas:◦ Expansion of distribution grid
◦ Promote embedded energy, mainly renewable andisolated systems.

 Subsidies focalization in LNG and electricity

RuralTotal

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Technological development andinnovation
 Promote research and development ofenergy
technologies,
focus
onrenewables.
 Participation of universities, researchcenters,privatecompaniesandinternational organizations.
 Approach international cooperation

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Central America Energy
Integration

 Promote integration of Central America

electricity markets.
 Regional transmission grid and large
scale projects.

IEEJ : July 2011

Thank you

Contact : report@tky.ieej.or.jp