El Salvador's government secures $97 million loan to expand solar photovoltaic capacity at Planta Solar San Matías
Type: Financing · Technology: Solar · Country: El Salvador · Announced: 2026-06-12
El Salvador's Ministry of Finance secured a $97 million loan to expand the Planta Solar Fotovoltaica de San Matías, a solar photovoltaic project located in La Libertad, as part of a broader effort to increase renewable energy capacity in the national grid. The financing, approved by the Budget and Special Finance Commission, includes a 25-year term with a 3-year grace period and an annual interest rate of 2.5% on the outstanding balance, plus a 0.5% annual administrative fee on disbursed and outstanding amounts. The project aims to address seasonal vulnerabilities tied to hydroelectric generation dependency while strengthening the share of renewables in El Salvador's electricity matrix. Technical details such as installed capacity, surface area, module count, interconnection point, construction schedule, and expected operational date remain undisclosed. The initiative builds on prior hybrid solar-hydroelectric projects in San Matías and San Luis, inaugurated in May 2024 by CECSA, a subsidiary of the state-owned Ente Nacional de Transmisión Eléctrica (ENTE), which combined 5.1 MW of hydroelectric and solar generation.