El Salvador Seeks Financing for Geothermal Energy

Through the company LaGeo the government has announced that $250 million is needed to start exploration in new areas and to change a geothermal turbine plant in Berlin.

Wednesday, September 7, 2016

Authorities at the HEPP Executive Commission of the Lempa River (CEL Group) explained that they have made closer ties with institutions such as the World Bank and the CABEI in order to negotiate possible financing. 

David López Villafuerte, president of CEL, told Elmundo.sv that "...Investments, he insisted, will focus on the rest of the year in new fields, and next year they hope to make changes to a turbine in the electricity station in Berlin, which was installed by the former partner of LaGeo, Italy 's Ente Nazionale per l'Energy Elettrica (ENEL).  Unit 3 in Berlin, CEL's president said, is an inefficient piece of machinery that uses more steam than required to produce the same amount of power as other turbines."

According to Lopez, "... they have 'various projects' planned, which could add up to about $800 million in investment. Of these, they expect to get $250 million in the coming months, through loans from international financial institutions, to continue the expansion of LaGeo."

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More on this topic

Energy: Investment Projects in El Salvador

August 2019

The state-owned company LaGeo plans to invest in its geothermal fields in Chinameca and San Vicente to increase its generation capacity to an additional 80 megawatts.

In order to finance the works, the public company LaGeo, a subsidiary of the Lempa River Hydroelectric Executive Commission (CEL Group), is negotiating a $232 million loan with the World Bank.

El Salvador: Preparations for Tender for Geothermal Plant

July 2015

The aim is to have ready by the end of the year designs and technical specifications for the power plant, in order to tender construction of the plant which will use the CHI-3 geothermal well.

At the official opening of the CHI-3 well in the town of Chinameca, it was highlighted that there is "...

New Geothermal Well in El Salvador

May 2013

LaGeo could exploit geothermal energy in a new well located in San Vicente, generating 30 to 40 megawatts.

The company LaGeo invested about $24 million in the exploration which led to the discovery of the new geothermal source.

As outlined in an article in Eleconomista.net, the Executive Hydroelectric Commission of the Lempa River (CEL), a partner in the LA GEO which belongs to the Italian company Enel, states that "a possible plant could generate more than $37 million in annual revenues for the company."

El Salvador: LaGeo Case Affecting Country's Image

August 2011

The dispute between the Italian company Enel and the CEL and INE commissions has sent a negative message to foreign investors.

In the opinion of experts, the fact that by the Ente Nazionale per l'Energia elettrica (Enel) and the Lempa River Hydroelectric Executive (CEL) are going through an arbitration process in order to decide who gets majority control of the geothermal plant, could be affecting the country’s attractiveness in terms of foreign investment.

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