Electricity sector in El Salvador

"Source": World Bank 2006

Public/private partnerships constitute the major source of financing for generation. Theyinclude investments in geothermal facilities through La Geo and its strategic investor, which are likely to go ahead; other investments in this category include the Chaparral power plant ($143 million). It is also important to note that these estimates are just for investments required within El Salvador. They do not take into account financing required for the 300 MW of firm generation capacity assumed to be available from regional sources through the SIEPAC line. World Bank 2006]

Rural electrification

The budgeted investment in rural electrification during 2004-2009 amounts to around US$100 million, financed as summarized in the following table: World Bank 2006]

"Source": World Bank 2006

Rural electrification projects are executed mainly through the Social Investment Fund for Local Development (FISDL), in operation since 1990. The FISDL has executed a largenumber of projects totaling over US$400 million, although it has faced obstacles to achieve its goals, mainly due to a lack of secure financing. World Bank 2006]

One of the most ambitious projects for rural electrification will be carried out during the next 5 years in the North of the country through a co-investment project of the Government with the Millennium Challenge Account (MCA) in 94 municipalities. The goal of the project is to increase service coverage from the current 78% to 97% in 2012. Total investment required has been estimated at US$40 million. Gobierno de El Salvador 2007] This project will be implemented through the Electricity and Telephone NationalInvestment Fund (FINET). According to the FINET Creating Law, resources for theconstruction and improvement of electrical infrastructure will be granted through the auctioning of subsidies. For the allocation of funds to implement this rural electrification sub-activity, electricity distribution companies, authorized by the Electricity and Telecommunications Superintendence (SIGET) will be able to participate. [ [http://www.mca.gob.sv/administrador/noticias/0/documento652.pdf?PHPSESSID=f399980b6fdc143547b5b5ddaa06ff75 FOMILENIO] ]

Summary of private participation in the electricity sector

Until the mid 1990s, the power sector in Salvador operated through the government owned Comisión Hidroeléctrica del Río Lempa (CEL), which provided generation, transmission and distribution services. The electricity sector restructuring that led to the unbundling of electricity generation, transmission and distribution and the horizontal division of generation and distribution into several companies was carried out in the period 1996-2000.

In 2006, there were 11 generation companies in El Salvador, with 18 out of 22 generation plants in private hands and 97% of hydroelectric capacity owned by the public company CEL (Comisión Hidroeléctrica del Río Lempa. As for transmission, it is in the hands of one government-owned company, Etesal (Empresa Transmisora de El Salvador), while distribution is controlled by five privately-owned companies.

Electricity and the environment

Responsibility for the environment

The Ministry of Environment and Natural Resources (MARNA) is the institution in charge of the conservation, protection and sustainable use of the natural resources and the environment.

Greenhouse gas emissions

[http://www.olade.org OLADE] (Latin American Energy Association) estimated that CO2 emissions from electricity production in 2003 were 1.57 million tons of CO2, which corresponds to 25% of total emissions from the energy sector [ [http://www.olade.org/informe.html OLADE] ] .

CDM projects in electricity

Currently (November 2007), there are three registered CDM projects in the electricity sector in El Salvador, with overall estimated emission reductions of 385,553 tCO2e per year. One of the projects is a [http://cdm.unfccc.int/Projects/DB/DNV-CUK1134486361.05/view landfill gas project] , another one a [http://cdm.unfccc.int/Projects/DB/DNV-CUK1175258901.02/view bagasse cogeneration project] and the third one a [http://cdm.unfccc.int/Projects/DB/DNV-CUK1141464500.33/view geothermal plant project] . [http://cdm.unfccc.int/Projects/projsearch.html UNFCCC] ]

External assistance

Inter-American Development Bank

The Inter-American Development Bank (IDB) is currently providing technical assistance to El Salvador in several electricity-related initiatives:

* [http://www.iadb.org/projects/Project.cfm?project=ES-T1069&Language=English Support for the Implementation of the Country Energy Policy] : US$149,000
* [http://www.iadb.org/projects/Project.cfm?project=ES-T1061&Language=English Power Sector Generation Indicative Planning] : US$145,000
* [http://www.iadb.org/projects/Project.cfm?project=ES-T1030&Language=English Studies on Dam Safety for Hydroelectric Power Plants] : US$200,000

Sources

* CEPAL, 2007. [http://www.eclac.org/publicaciones/xml/1/30101/L809.pdf "Istmo Centroamericano: Estadísticas del Subsector Eléctrico"]

* Gobierno de El Salvador, 2007. [http://www.minec.gob.sv/media%5Cdownloads%5CEstudios%5Cpolitica_energetica%5Cbrochure%20politica%20energetica.pdf "Política Energética"]

* SIGET, 2007. [http://www.siget.gob.sv/documentos/electricidad/estadisticas/boletin20060.pdf "Boletín de Estadísticas Eléctricas 2006"]

* World Bank, 2006. [http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2007/01/10/000112742_20070110172006/Rendered/PDF/376891SV0Revised.pdf El Salvador - Recent Economic Developments in Infrastructure (REDI)]

Notes

See also

* El Salvador
* Economy of El Salvador
* Water supply and sanitation in El Salvador
* History of El Salvador
* Politics of El Salvador

External links

* [http://www.minec.gob.sv/ Ministry of Economy (MINEC)]
* [http://www.siget.gob.sv/e_info.htm General Superintendence of Electricity and Telecommunications (SIGET)]
* [http://216.184.107.60/utweb/historia.htm Transactions Unit (UT)]
* [http://www.cel.gob.sv/ "Comisión Hidroeléctrica del Río Lempa" (CEL)]
* [http://www.marn.gob.sv/ Ministry of Environment and Natural Resources (MARN)]
* [http://www.marn.gob.sv/?src=cambio+climatico Climate change documents]
* [http://www.minec.gob.sv/default.asp?id=93&mnu=66 Map of the electricity network]
* [http://www.minec.gob.sv/default.asp?id=96&mnu=66 Generation and transmission map]
* [http://www.minec.gob.sv/default.asp?id=99&mnu=66 Central America transmission system]
* [http://www.minec.gob.sv/default.asp?id=94&mnu=66 Wind potential map]
* [http://www.minec.gob.sv/default.asp?id=95&mnu=66 Hydroelectric potential map]
* [http://www.minec.gob.sv/default.asp?id=97&mnu=66 Generation plants map]
* [http://www.minec.gob.sv/default.asp?id=92&mnu=66 Average solar radiation]
* [http://www.iadb.org/projects/index.cfm?language=English IDB projects in El Salvador]

Generation companies

* [http://www.gesal.com.sv Gesal]
* [http://www.duke-energy.com Duke Energy]
* [http://www.Aeselsalvador.com AES]
* [http://www.cecalng.com Cutuco Energy Central America]

Transmission company

* [http://www.etesal.com.sv/ "Empresa Transmisora de El Salvador" (Etesal)]

Distribution companies

* [http://www.caess.com.sv CAESS]
* [http://www.delsur.com.sv Delsur]
* [http://www.deusem.com.sv Deusem]
* [http://www.eeo.com.sv EEO]
* [http://www.clesa.com.sv Clesa]