IEEJ: April 2010

El Salvador
Country Report
Training and Dialogue Program
Energy Policy
Japan International Cooperation Agency
National Council of Energy of El Salvador

David Eduardo Parada Velásquez
Tokyo, Japan.
April 2010

IEEJ: April 2010

General FactsArea
21042 km^2
Political division
14 departments
262 municipalities
CapitalSan Salvador
Population (census 2007)
5,744,113 inhabitants
Official language
SpanishIEEJ: April 2010

General Facts: Economic Statistics

Source: Ministry of Economy www.elsalvadorcompite.gob.sv

IEEJ: April 2010

General Facts: Economic Statistics

Source: Ministry of Economy www.elsalvadorcompite.gob.sv

IEEJ: April 2010

General Facts: Demographic Statistics
ITEM

Indicator (2008)

Population

6,122,410

Urban

3,969,960

RuralAccess to electricity(estimated)
Access to water (estimated)

2,152,450

Dwellings

1,529,480

90%
73%

Average cap/dwell

4.00

Inhabitants per square km.

291

Population in capacity to work

2,495,900

Population that actually work

2,349,050

Alphabetization rate

85.90%

Source: Ministry of Economy www.elsalvadorcompite.gob.sv

IEEJ: April 2010

General Facts: Natural Resources

LEMPA RIVER

GEOTHERMALFIELDSIEEJ: April 2010

General Facts: Energy Supply Chain
HYDRO
ELECTRICITY

POWER
PLANTSGEOREFINERY GASRESIDENTIALPROPANE

COMMERCIAL

IMP.
FUEL
REFINERYAND FOREIGN
TRADE

INDUSTRIAL
KERO/JET

EXP.
DIESEL

TRANSPORTATION

FUEL OILAGROWASTES

FIREWOODAGRICULTURAL WASTESGOVERNMENTPLANTSCONSUMPTIONIEEJ: April 2010

General Facts: Installed capacity forelectricity generation

Resource

Installed capacity (MW)Participation

Hydro

472

32 %

Geothermal

204

14 %

Bagasse

685%

Thermal oil based

727

49 %

1472

100 %

IEEJ: April 2010

Energy Sector: Background• El Salvador reformed the electricity sector in 1996 looking for a competitivemarket, attract the private investment and improve the sector.
• By then, the Executive Commission of the Lempa River known as CEL was incharge of transmission and distribution system, operation of hydro and geo
power plants, investments, exploration for new resources, research energy
statistics among others.
• Since El Salvador has no fossil resources, the operation of the fuel sector
was in charge of the Acajutla Refinery (by then property of the government)
and the regulation of the fuel sector was managed by the Ministry ofEconomy.
• After the reform to the General Electricity Law, CEL was dismembered, andmost of it´s activities were distributed to different entities, and other wereleft apart.

IEEJ: April 2010

Energy Sector: Background

Before 1996

After 1996

CEL
Hydro, geo
and oil power
plantsoperation

Researchandexploration

National
energybalance

Transmissio
n system

Planning

Administrator

CEL

Hydro and geo
power plants
operation

Researchandexploration

ETESAL

Trasactions
Unit?????

Transmissio
n system

Administrator

Planning
National
energybalanceIEEJ: April 2010

The Energy Policy 2010 ‐ 2024The development of the energy system in El Salvador tend towards a diversification ofsupply, minimizing costs, considering the rational and efficient use of energy,
improving the coverage of the basic requirements of the population in a way that
contributes economic growth, social equity, and the reduction of environmentalimpacts.
The strategic guidelines of the energy policy are the cornerstones of the same andemerge from the analysis of external factors, national conditions, the future supply
needs and the interrelationship between economy, environment, people and politics.
The consideration of these four aspects are the base for an energy policy focused onsustainable development.

IEEJ: April 2010

The Energy Policy 2010 – 2024
Some identified aspects to consider

IEEJ: April 2010

Guidelines of the Energy Policy
2010 ‐ 2024
Diversification of theenergy matrix andpromotion torenewable energy
sources

Guidelines of the Energy
Policy 2010 – 2024
As proposed by theNational Council ofEnergy of El Salvador

Strengthening ofinstitutionality of theenergy sector andprotection to users
Promotion of cultureof efficiency andenergy saving
Expanded coverageand preferentialrates
Research andtechnologicaldevelopment
Regional energy
integration

IEEJ: April 2010

Major Difficulties of the Energy Policy
The difficulties of implementing a new energy policy in El Salvador are most in a
economical, social and environmental level; since the proposed guidelines of thepolicy are looking for the diversification of the energy matrix, which means
introduction of new sources of energy and its related technologies for exploitation.

EconomySocialEnvironment

New hydroX

X

Coal andNatural Gas

XX
X

Biofuels

X

X

Energyefficiency

X

X

Contact:report@tky.ieej.or.jp