Wedoany.com Report-Apr 1, The World Bank has recently approved a $15 million, six-year investment program to support El Salvador in expanding its geothermal energy capabilities. The funds will be used to develop the Chinameca geothermal power plant, with a focus on drilling wells and constructing the facility. This project is part of the "Geothermal Energy for Sustainable and Inclusive Development" initiative, which aims to enhance energy access and promote green economic opportunities.
The Ahuachapán Geothermal Power Plant, El Salvador
The loan is co-financed by the International Bank for Reconstruction and Development (IBRD) and carries a 30-year maturity, including a six-year grace period. The project is managed by LAGEO, a state-owned company responsible for geothermal electricity generation in El Salvador. President Daniel Alvarez of LAG Electro has emphasized the government's commitment to ensuring clean, affordable energy for all Salvadorans, while also highlighting the importance of this project in strengthening the country's energy system.
Key components of the project include exploring geothermal resources, investing in power generation capacity, implementing social and environmental programs, and providing technical assistance to LAGEO. The drilling campaign will confirm El Salvador's geothermal potential, and the construction phase will involve building a 25-MW power plant, with plans to expand up to 40 MW of additional capacity.
The project will also create jobs in the surrounding communities, located 115 km east of San Salvador, and enable local use of geothermal heat for food drying and processing, benefiting local agriculture. Clarine Clert, the World Bank Country Manager for El Salvador and Costa Rica, noted the project's significance in supporting El Salvador's geothermal sector, which currently operates with 204 MWe of installed capacity. New projects, such as a 7-MW binary geothermal plant in the Berlin field, are also under development.
This initiative aligns with El Salvador's goals of reducing emissions and creating green jobs, showcasing the country's progress in sustainable energy development.
