El Salvador announces 400 MW solar, 1 GWh battery storage push
El Salvador’s government and Cox signed a $2.9 billion deal to build solar plants, battery storage, natural gas infrastructure, and water projects, aiming to cut oil dependence and lower electricity costs.
El Salvador’s President Nayib Bukele and Cox CEO Enrique Riquelme signed a $2.9 billion investment agreement at the Presidential Palace, covering solar PV, battery storage, natural gas infrastructure, and water management. The solar component includes two photovoltaic plants developed with the Executive Hydroelectric Commission of the Lempa River (CEL), with an initial capacity of about 200 MW that could expand to 400 MW. Cox did not disclose locations, technical details, or commissioning timelines for the solar projects. The agreement also includes grid-connected battery storage systems with an initial capacity of 440 MWh to 500 MWh, potentially scaling to 1 GWh.
The investment program allocates $200 million to solar PV projects and $300 million to battery storage, totaling $500 million for renewable energy. Approximately $1.8 billion will fund natural gas infrastructure, including an LNG regasification terminal and a 380 MW combined-cycle power plant, with potential exports to neighboring countries. The remaining $600 million targets drinking water and sanitation upgrades, expanding service coverage and improving quality. Bukele stated the new energy projects aim to reduce reliance on oil-fired generation and lower electricity tariffs.
Under the agreement, the Salvadoran government will participate as a partner in the energy projects, while Cox will handle financing through project finance arrangements involving international institutions and multilateral lenders. Cox will oversee development, construction, operation, and maintenance, with implementation expected over three years pending regulatory approvals. Project-specific agreements are anticipated in the coming weeks, though no specific timetable for reductions in electricity tariffs was provided.
The announcement follows El Salvador’s growing solar sector, which had 846.62 MW of installed PV capacity at the end of 2025, accounting for 26.4% of total generation capacity and making solar the largest technology by installed capacity. Cox, which operates primarily in Latin America, has an investment program exceeding $7 billion across energy and water businesses, including recent transactions such as a $4 billion acquisition of Iberdrola’s Mexican operations in April 2026.