- Full financing means the largest ever foreign direct investment in El Salvador.
- Energía del Pacífico plant will generate energy to supply 30% of the country's demand.
IDB Invest, a member of the Inter-American Development Bank (IDB) Group, granted a loan of $60 million for the construction and operation of Energía del Pacífico (EDP), a liquefied natural gas (LNG)-to-power infrastructure project in El Salvador. The plant, which will generate 378 MW and is in the port of Acajutla in the Department of Sonsonate, will be developed by Invenergy, a U.S.-based leading privately held global developer and operator of sustainable energy solutions, and local El Salvador partners including Quantum Energy.
It is the first plant of its kind built around the Northern Triangle of Central America and represents the largest private investment ever in the country. The project introduces natural gas into the energy matrix of El Salvador, reducing its dependence on fossil fuels and electricity imports. The plant is expected to increase the country's energy capacity by 30 percent and is scheduled to be operational by the end of 2021.
It will offer energy to the seven electricity distribution companies in El Salvador over the next 20 years and will help stabilize and reduce prices for consumers, thanks to lower cost variability as an energy source. The plant’s use of natural gas will reduce the amount of imported diesel and heavy fuel oil fired generation in El Salvador’s electricity mix, resulting in significant environmental benefits for the country and the region.
Currently, approximately 25 percent of electricity consumption in El Salvador is through imported energy, and it is the largest importer of electricity in Latin America and the Caribbean. The commissioning of this plant is expected to reduce this need and help the country export electricity in the future.
IDB Invest’s participation ensures that the project meets the required environmental, social sustainability and governance standards. In addition, the developers have committed to invest $570,000 per year in infrastructure and social programs for the municipality of Acajutla. The investments are aimed at paving urban roads and improving the power grid in disadvantaged areas of the city.
About IDB Invest
IDB Invest, a member of the Inter-American Development Bank Group (IDB), is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of $12.4 billion in asset management and 342 clients in 24 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
We are innovators building a sustainable world. Invenergy and its affiliated companies develop, own, and operate large-scale sustainable energy generation and storage facilities in the Americas, Europe and Asia. Invenergy's home office is in Chicago, and it has regional development offices in the United States, Canada, Mexico, Colombia, Japan, Poland and Scotland. Invenergy has successfully developed more than 24,000 megawatts of projects that are in operation, construction or contracted, including wind, solar, and natural gas power generation facilities as well as advanced energy storage projects.