El Salvador Energy Exports Jump 70% to US$11.9 Million
El Salvador
Key Facts
—H1 2026 export revenue US$11.9 million through May 2026, a roughly 70% increase year over year, according to BCR data reported by Diario El Mundo.
—Dominant buyer Guatemala absorbed more than 79% of exports, worth about US$9.5 million, followed by other markets (US$1.3 million), Nicaragua (US$1.0 million), Panama and Costa Rica.
—Regional market role In October 2025 El Salvador accounted for 41.59% of injections into the Regional Electricity Market (MER), ahead of Panama and Guatemala.
—Net exporter status The 2026 gain comes off a depressed base: exports fell 43.1% in the first ten months of 2025, the weakest since 2021.
—Generation mix In June 2026, LNG and fuel-oil thermal plants together covered 55.8% of demand, with LNG alone at 33.9%, while monthly renewable shares vary widely.
El Salvador energy exports jumped 70% year over year in the first half of 2026, generating US$11.9 million in revenue as the country deepened its role as Central America’s leading net electricity exporter, according to data from the Central Reserve Bank (BCR) reported by Diario El Mundo.
Breaking Down the Export Figures
The BCR data shows that electricity-export revenue reached US$11.9 million from January to June 2026, up sharply from the same period a year earlier. Guatemala remained the overwhelmingly dominant destination, absorbing 83.64% of those exports at a value of US$13.50 million. Smaller but notable flows went to Nicaragua (US$1.13 million), Costa Rica (US$136,982) and Panama (US$66,384).
A broader trade category tracked by the BCR – “suministro de electricidad, gas, vapor y aire acondicionado” – reinforces the trend. By May 2026, exports in this category had reached US$11.9 million, a 70% increase in value compared to the same period in 2025, with Guatemala again the leading buyer at US$9.5 million.
For full-year context, Infobae reported in February 2026 that El Salvador generated more than US$26.5 million in electricity-export revenue during 2025, with US$21.2 million flowing to Guatemala. An independent assessment of the regional market later noted that 2025 export revenues stood at just under US$20 million in the BCR’s monthly trade series, with Guatemala taking roughly 80% of Salvadoran electricity exports.
The Central American Power Market and SIEPAC
El Salvador’s electricity trade is routed through the Central American Electrical Interconnection System (SIEPAC) and the Regional Electricity Market (MER), a cross-border platform that allows six countries to buy and sell power in real time. A 2025 country assessment highlighted El Salvador’s weight in regional trading, noting that the country accounted for about 41.6% of total electricity dispatched through the MER that year.
A regional operating-plan document projects that El Salvador will remain a net exporter in the coming years. The plan forecasts 379 gigawatt-hours (GWh) of net exports in 2026, against 213 GWh of net imports, and 380 GWh of net exports in 2027. These figures confirm that the country is structurally positioned as a regional power supplier, not merely an occasional seller of surplus generation.
The SIEPAC infrastructure, a 1,800-kilometer transmission line stretching from Guatemala to Panama, is the physical backbone enabling this trade. For El Salvador, proximity to Guatemala – the largest electricity market in the isthmus – provides a consistent and lucrative outlet for excess generation.
The Generation Mix Behind the Exports
El Salvador’s ability to export power rests on a generation mix that has grown more diverse, though it remains heavily reliant on thermal plants during certain months. Data from the Unit of Transactions (UT) shows that in June 2026, thermal plants covered 55.8% of domestic demand, with natural gas alone supplying 33.9% of the month’s electricity. LNG and bunker fuel made up the remainder of the thermal contribution.
Monthly generation profiles can swing dramatically toward renewables depending on weather and project availability. Infobae reported that in March 2026, solar photovoltaic generation accounted for 90.9% of the cited monthly figure – a share that likely reflects a specific reporting slice rather than total demand – while geothermal contributed 18.87%, hydroelectric 14.04%, bunker thermal 5.58%, and wind 3.75%. These percentages indicate a highly variable monthly mix rather than a fixed annual profile.
New capacity additions in 2025 and 2026 have strengthened the export position. Projects brought online include Proyecto Solar Fotovoltaico 1 (50 megawatts), Proyecto Solar Fotovoltaico 4 (56 MW), Proyecto Solar Fotovoltaico 5 (55 MW), and two geothermal plants – Chinameca (20 MW) and San Vicente (10 MW). The geothermal additions are particularly significant for export reliability, as they provide baseload power that does not fluctuate with weather conditions.
Guatemala’s Dominance as a Buyer
The concentration of exports to Guatemala – consistently above 80% in both the first-half 2026 data and the 2025 full-year figures – reflects structural features of the regional market. Guatemala has the largest economy and electricity demand in Central America, and its interconnection with El Salvador through SIEPAC is among the most heavily used cross-border links in the MER.
The US$13.50 million that Guatemala paid for Salvadoran electricity in the first half of 2026 dwarfs the combined US$1.33 million spent by Nicaragua, Costa Rica and Panama. This lopsided distribution is not new; the 2025 data showed Guatemala absorbing roughly 80% of exports, a pattern that appears to be holding steady.
For El Salvador, the reliance on a single major buyer presents both an opportunity and a risk. Guatemala’s demand provides a reliable revenue stream, but any disruption – whether from new Guatemalan domestic generation, regulatory changes, or transmission constraints – could have an outsized impact on Salvadoran export earnings.
What the Trend Means for El Salvador
The 70% surge in export revenue signals that El Salvador is monetizing its generation capacity more effectively than in previous years. The combination of new solar and geothermal projects, flexible thermal plants running on natural gas, and preferential access to the Guatemalan market has created a formula for growing electricity-export income.
The regional operating plan’s projection of sustained net exports through 2027 suggests that this is not a one-off windfall. If the 379-380 GWh net export range materializes, El Salvador could see electricity-export revenues continue to climb, particularly if regional power prices remain firm.
However, the monthly volatility in the generation mix – with solar dominating some months and thermal plants covering more than half of demand in others – indicates that export capacity is partly weather-dependent. The geothermal baseload additions help mitigate this, but the country’s net-export position will ultimately depend on how well it balances intermittent renewables with dispatchable thermal and geothermal generation.
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Frequently Asked Questions
How much did El Salvador energy exports grow in 2026?
El Salvador’s electricity-export revenue rose 70% year over year in the first half of 2026, reaching US$11.9 million from January to June, according to BCR data reported by Diario El Mundo.
Which country buys the most electricity from El Salvador?
Guatemala is the dominant buyer, absorbing 83.64% of El Salvador’s electricity exports in the first half of 2026, worth US$13.50 million. Nicaragua, Costa Rica and Panama account for the remaining share.
What generation sources power El Salvador's electricity exports?
The mix varies by month. In June 2026, thermal plants covered 55.8% of demand, with natural gas at 33.9%. In March 2026, solar reached 90.9% of a cited generation figure, alongside geothermal (18.87%), hydroelectric (14.04%), bunker thermal (5.58%) and wind (3.75%).
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Sources: BCR data reported by Diario El Mundo.
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