Energy: Investment Projects in El Salvador

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.

Friday, August 23, 2019

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.

Mynor Gil, president of LaGeo, explained to Elmundo.sv that "... The goal is to have financing by the end of 2019 to invest in the geothermal spaces of Chinameca and San Vicente. There are drillings that have been made, failed,' so 'we are looking for the resource, reinvest and see the numerical models that we have to be able to guarantee what capacity we can take out in each of the fields.

You may be interested in "Energy: $410 Million in New Projects

Gil added that "... Geothermal energy is the most profitable available. It produces seven days a week, no matter what the weather conditions, no dependence on oil imports, that's what makes energy beautiful and interesting."

LaGeo, which has an installed capacity of 204 MW through its two plants in Ahuachapán and Usulután, is the only company in the country that generates geothermal energy.

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More on this topic

Another Geothermal Field in El Salvador

August 2013

After an initial phase of exploration in Chinameca, San Miguel, LaGeo is to start feasibility studies for a 50 MW plant.

"The whole project takes four years from drilling up until it is exploited, depending on the soil type you have. We believe that it will be functioning by 2016 or 2017," said the president of the geothermal power generation company (LaGeo), Julio Valdivieso.

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."

LaGeo Could Lose Concession in El Salvador

October 2011

The mixed ownership company for geothermal power generation has failed to deliver the power levels cited in the concession contract for the past 3 years.

LaGeo is jointly owned by Italy's Enel and the Salvadoran state through the Executive Hydroelectric Commission of the Lempa River (CEL), and is the subject of litigation between the parties with respect to the Italian’s shareholding.

ENEL has $127 million to Invest in El Salvador

July 2011

Since litigation began in 2008 regarding the funding of LaGeo, investment plans in El Salvador have ben stalled, but are now coming back into effect.

An article in Laprensagrafica reports that the company Enel will invest $127 million in El Salvador next year as part of the original plan which was based on an agreement with shareholders that the Italian company would provide more capital, in exchange for just over 50% of the shares of the geothermal company LaGeo. This investment plan has been frozen since 2008 after ENEL began arbitration proceedings against ENEL Investment Energy (INE) and the Lempa River Hydroelectric Executive (CEL) because they wouldnt allow the funding.

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