El Salvador is moving forward on many fronts and its increasing use of renewable energy is a shining example. Currently, 23 percent of the country's energy comes from geothermal power, making it world leader per capita in the sector. A key player, with ambitious plans across the region, is renewables firm Geotérmica Salvadoreña—Gesal.
"We're fast becoming the leader in renewable energy in Central America," says José Antonio Rodríguez, general manager of Gesal. "Electricity demand is increasing at an annual clip of 5.1 percent in El Salvador and 5.3 percent regionally. So we expect to enjoy solid growth."
Geothermal energy converts heat below the earth into power and is especially valued in developing nations that cannot afford fossil fuels. Gesal currently runs two geothermal plants, located within a 60-mile radius of the capital in Ahuchapan and Berlin. Plans now call for a new plant in Cuyanausul, close to Ahuachapan, and for expansion of the Berlin facility. "Our new partner, Enel Green power of Italy which recently purchased 8.5 percent of Gesal, is now carrying out explorations in those areas," says Mr. Rodríguez. "If both projects are feasible, Enel will invest around $75 million in another 30 or 35 percent of Gesal's shares."
Gesal sells its electrical energy to distributors as well as directly to industrial customers. The company's annual revenue amounts to around $51 million.
There are also rich opportunities in neighboring countries. "The region's best geothermal resources are in Nicaragua," says Mr. Rodríguez, adding that "business problems and insecurity" have limited opportunities there so far.
