In the context of the health crisis and home quarantine, the average daily consumption in the country is about 18 GWh, which is 25% less than that reported prior to the outbreak of the virus.
Data from the Transaction Unit (TU) indicate that between the levels reported in February and the demand registered from March 23 to April 3, consumption has fallen from 19.6 GWh to 15 GWh on average.
According to entrepreneurs dedicated to the distribution of electricity in El Salvador, the rigid legal regulations prevent progress being made on issues such as the development of distribution networks and improvements to the quality of service.
Representatives from the Association of Distributors of Salvadoran Electric Power (Asdees), believe that due to the gap between technological advances and the backlog of the regulatory framework for the sector, the country is losing competitiveness.
Companies in the sector will discuss the state of the regional electricity market, and power and energy management, from August 19 to 21 in San Salvador.
From a statement issued by the Salvadoran Association of Industrialists (ASI):
ASI to hold second regional congress on energy
Under the theme: "Energy: Essential for Sustainable Development and Regional Competition", the Salvadoran Association of Industrialists, ASI, is preparing the second Regional Congress on Energy, on 19, 20 and August 21 to be held in the Sheraton Hotel in San Salvador.
The regional electricity market, renewable energy and energy efficiency will be the topics addressed at the event to be held on 27, 28 and 29 August in San Salvador.
From a press release issued by the Salvadoran Association of Industrialists:
The Salvadoran Association of Industrialists, ASI, will be holding the 1st Regional Congress of Energy on 27th, 28th and 29th of August.
The subsidy for residential rates and the pricing scheme used by the government generates high electricity costs for the industrial sector.
The price of energy in El Salvador remains one of the highest in the region, especially for the industrial and commercial sector. The subsidy for the residential rate and the pricing scheme used by the Government cause the cost of electricity to be high, taking away competitivity from both sectors.
The Banco de Desarrollo de El Salvador (Bandesal) has announced the availability of $10 to $15 million as part of a special credit line for small-scale renewable projects.
From a press release by the Banco de Desarrollo de El Salvador (Bandesal):
On Tuesday, October 22, in facilities of the Salvadoran Association of Industrialists (ASI) and in order to meet the financing needs for the development of projects for small-scale Renewable Energy generation, the Development Bank of El Salvador Bandesal in coordination with the National Energy Council (CNE) and ASI through the Unity Energy Facilitator with Renewable Resources (UFERR) presented to project developers the requirements and guarantees needed for financing projects which have sales contracts for long-term power.
The current tender for 350 MW of renewable energy or energy generated with natural resources that have so far not been used such as coal or natural gas, is an example of the projected change.
Three tenders are currently being made to contract out new generation, with the aim of ensuring the supply of electricity for the country at competitive prices.
The Salvadoran industrial sector believes the dam would enlarge the energy matrix, satisfying domestic demand and reducing costs.
According to Javier Siman, president of the Salvadoran Association of Industrialists (ASI), one of the leading production costs which has risen in the last five years is energy. According to the official, this determines investment margins and upgrading of enterprises, therefore it is calling on the Executive to expedite the conclusion of this work to avoid a case similar to that of the port of La Union.
The cluster of synthetic fibers manufacturers, the industrial core of El Salvador, sees its competitiveness as being threatened by the high cost of electricity.
According to the Salvadoran Association of Industrialists (ASI), the electricity tariff of El Salvador is one of the highest compared to other Central American countries.
Doris de Rivera, manager of Industrial Intelligence at the ASI, said that within the cost structure of the sector, energy "is the most critical."
The Salvadoran Industrial Association urges the Government to implement energy saving measures and the efficient use of energy.
According to ASI, the energy issue is of vital importance for the industrial sector in view that electricity is one of the highest costs of any industry.
We cannot be competitive in a country where electricity is expensive for industries which compete with other sectors where countries subsidize their energy and therefore production costs are lower.
Industrial companies complain that the high cost of energy is taking its toll on the competitiveness of the country’s industries.
This was stated by Javier Ernesto Simán, president of ASI, the Salvadoran Industrial Association. He remarked the country needs to increase its generation of renewable energy.
He supports the construction of El Chaparral hydro power plant, but complains it comes ‘too late’.
Industrialists and entrepreneurs have criticized the abrupt elimination of the electricity subsidy by the government.
The Government of El Salvador had committed to a reduction of the subsidy in parts, the last reduction to be made made in October 2009. This benefit applied to consumption of more than 99 Kw/h. However, it was announced yesterday that it would not be able to continue with it, and that the regular rate would be charged beginning this month.
Business will soon pay 38 percent more for electricity in El Salvador. The private sector is negotiating with the government over the stages in which the increase will be applied as the subsidy is gradually eliminated.
El Salvador President Antonio Saca says the difference between the real cost of energy and the amount the privat sector ccurrently pays has widened due to rising energy costs.