El Salvador has reached a significant milestone in its energy sector: a remarkable 10% increase in geothermal energy production. This boost, attributed to the innovative recycling of water vapor through a binary cycle system, underscores the nation’s commitment to clean, continuous energy.
President Nayib Bukele proudly shared this advancement, emphasizing the considerable benefits for the country’s sustainable development.
A Presidential Commitment to Economic Growth
On June 1, 2024, President Bukele began his second term in office with a pledge to improve the country’s economy, following significant achievements in public security.
The enhanced geothermal output is a crucial component of Bukele’s strategy to stimulate economic growth. This boost in renewable energy production complements previous measures such as freezing electricity tariffs for 93% of the population consuming up to 300 kWh.
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Expanding Geothermal Infrastructure
El Salvador’s geothermal capacity is supported by two main plants: the Ahuachapán plant with an installed 95 MW capacity, and the Berlin plant in Usulután with a 110 MW capacity.
This recent 10% increase is part of a broader strategy to expand renewable energy resources across the nation. According to the Comisión Ejecutiva Hidroeléctrica del Río Lempa (CEL), 80% of El Salvador’s energy production comes from renewable sources, with geothermal and hydroelectric power contributing 50% to this renewable mix.
In a bid to diversify its renewable energy portfolio, the government is also focusing on advancing solar and wind energy projects. An agreement recently finalized with the Saudi Fund for Development (SFD) will see the establishment of a biogas plant.
This $98.4 million investment, which includes $15.2 million from CEL, will process wastewater from the Acelhuate River to generate electricity and benefit 1.2 million Salvadorans.
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Future Renewable Energy Projects
CEL President Daniel Álvarez has announced additional renewable energy projects, including feasibility studies for tidal power generation and the potential development of an offshore wind farm along El Salvador’s coastline.
These initiatives aim to further solidify the country’s renewable energy infrastructure and reduce dependency on fossil fuels.
Geothermal-Powered Bitcoin Mining
El Salvador’s surge in geothermal energy production also aligns with its pioneering cryptocurrency initiatives. Following the adoption of Bitcoin as legal tender in 2021, President Bukele mandated the use of geothermal energy for Bitcoin mining.
As of last month, the Tecapa volcanic complex and Berlin plant have mined 474 Bitcoins, valued at $29 million, using 1.5 MW of energy through 300 mining processors.
