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Blog Climate and Environment, Energy

The Impact of LNG on El Salvador’s Energy Transition and Economic Development

El Salvador LNG plant

Castalia recently finalized a report to analyze the development impact of Energía del Pacífico (EdP), the 380MW liquid natural gas (LNG) regasification facility and gas-fired power plant, in El Salvador. The project has delivered significant value to El Salvador’s energy sector by by displacing generation from dirtier and more expensive thermal plants. Also, introducing LNG in El Salvador’s energy matrix has resulted in reduced generation costs, increased energy security, and flexibility  and reliability of the system.

Overall, using LNG has strengthened the sector’s ability to bear the impacts of the changing climate, building much needed resilience into a previously vulnerable sector. EdP currently meets 30 percent of total demand.  EdP has enabled El Salvador to keep the lights on despite the reduction in rainfalls caused by “El Niño”, which started in June 2023 and has reduced water levels at hydropower facilities by 26 percent compared to the previous year.

Introducing LNG has reduced greenhouse gas emissions (GHGs). On average, EdP emits about half of the GHG emissions per MWh compared to power plants running on HFO. By displacing domestic oil generation, EdP reduces GHG emissions by nearly 400,000tCO2e annually for the next 20 years, significantly contributing to the Government’s pledge to reduce its annual energy sector emissions by 640,000tCO2e by 2030 as part of its National Determined Contributions (NDCs).

Access the report here: Development Impact Study for Energía del Pacífico EdP

 

Sources: 
D. Marcelo, S. House, C. Mandri-Perrott, J. Schwartz. 2017. “Do Countries Learn from Experience in Infrastructure PPP?” Washington, D.C., World Bank. https://ppi.worldbank.org/content/dam/PPI/resources/ppi_publication/web_publication/WPS8054.pdf 
El Salvador. UNDP Climate Promise. (n.d.). https://climatepromise.undp.org/what-we-do/where-we-work/el-salvador
October 13, 2023
Tags: Energy sector insights
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https://castalia-advisors.com/wp-content/uploads/2023/10/download.png 461 659 admin https://castalia-advisors.com/wp-content/uploads/2019/03/castalia-logo-white_transp.png admin2023-10-13 17:52:192025-01-31 21:41:26The Impact of LNG on El Salvador’s Energy Transition and Economic Development

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+1 (202) 466-6790
1747 Pennsylvania Avenue NW, Suite 1200
United States of America

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+61 (2) 8075 4654
Suite 3652, Level 36, Gateway
1 Macquarie Place
Sydney NSW 2000
Australia

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New Zealand

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New Zealand

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