WSHPDR_2013_Final_Report-updated_version

2.2.3 El Salvador
Jose Hermes Landaverde Jr., Ingendhesa, El Salvador
Key facts
Population 6,090,646 1
Area 21,041km 2
Climate Tropical on coast; temperate in
uplands 1
Topography Mostly mountains with narrow
coastal belt and central plateau
(highest point: Cerro El Pital 2,730
m). 1
Rain pattern Rainy season: May to October. Dry
season: November to April.
Electricity sector overview
The national electrification rate of El Salvador is 86.4
per cent. Hydropower is produced mostly by the
public utility Comision Ejecutiva Hidroelectrica del Rio
Lempa (CEL). The rest of the electricity generation is
generated by private operators.
Geothermal
Hydropower
Thermal (fossil)
25.09%
27.56%
47.35%
0% 10% 20% 30% 40% 50%
Figure 1 Electricity generation in El Salvador
Source: Comisión Económica para Latinoamérica y el
Caribe 2
The main authority on energy is the National Energy
Council (CNE). The Transmission Company of El
Salvador, SA de CV (ETESAL) is responsible for the
maintenance and expansion of the national
transmission system, including interconnection lines
with Guatemala and Honduras. 3
Small hydropower sector overview and potential
The small hydropower definition in El Salvador is 20
MW of maximum installed capacity. As of 2011, the
combined capacity of the 17 small hydropower plants
in operation was 36 MW, with individual installed
capacities ranging from 5 kW to 19.8 MW (figure 2). 4
Several hydropower (large and small) potential,
pre-feasibility, feasibility and rehabilitation studies
have been conducted between 1988 and 2011, by
different national entities. 4 5 6 7 These studies
identify86 potential sites for small hydropower
projects, with a potential (capacity less than 20 MW)
of 158 MW. It is expected that these projects will be
developed by private investments.
More recently, the potential to develop hydropower
projects has been identified by the Government with
technical assistance from Japan International
Cooperation Agency in a Master Plan (March 2012). As
a result, 209 sites were identified and evaluated in
terms of energy and financial indicators, with
individual capacity ranging from 3 kW to 17 MW, for a
total estimated capacity of 180.8 MW and a potential
energy annual generation of 756 GWh. 8
SHP installed capacity (up to 10 MW)
SHP potential (up to 10 MW)
SHP installed capacity (up to 20 MW)
SHP potential (up to 20 MW)
15.2 MW
36 MW
113.9 MW
180.8 MW
0 50 100 150 200 250
Figure 2 Small hydropower capacities in El Salvador
Source: Japan International Cooperation Agency and
Comisión Nacional de Energía 8
Renewable energy policy
The current renewable energy policy framework is
mainly dependent on tax incentives to promote
existing renewable energy generation (Legislative
Decree 462-2007, OJ 238, Volume 377, and Issue
2007). The Fiscal Incentives Act for the Development
of Renewable Energy grants an exemption for the first
10 years on the payment of import duties on
machinery and equipment necessary for the
development of these power generation projects, plus
an exemption on income tax for a period of 5 or 10
years depending on the size of the project, which
benefits units up to 20 MW. Further, a total exemption
from all income tax derived directly from the sale of
the certified emission reductions (CERs) under the
Clean Development Mechanism (CDM) or similar
carbon markets. 3
Legislation on small hydropower
If the length of the proposed canal water for
hydropower is considerable, the maintenance of the
river flow (ecological flow) must be considered.
Usually, a required minimum flow for the river ecology
is 10 per cent of the annual average over the year.
There is no regulation or law controlling or regulating
the condition of minimum flow The Ministerio de
Medio Ambiente y Recursos Naturales (MARN) is
currently working on this issue. 4
Barriers to small hydropower development
The barriers to the development of small hydropower
in El Salvador at present are as follows:
Lack of governmental subsidies or grants for the
study or development of small hydropower;
Lack of hydrological data (limited number of
hydrological stations (the observed periods are
short at some stations);
High cost of hydrological data from the National
Service of Territorial Studies;
Out-of-date nationwide hydropower potential
information, obtained from a survey conducted in
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