El Salvador Secures $150 Million for Geothermal Energy Expansion
El Salvador has secured a $150 million loan from the World Bank to develop its geothermal energy resources, providing a significant boost to its renewable energy infrastructure. The funding will expand the country’s geothermal capacity and support its ambitious energy program.
Expanding a Decades-Long Geothermal Legacy
El Salvador has been a pioneer in geothermal energy for decades, launching its first plant, Ahuachapán, in 1975. The country currently boasts two major geothermal plants—Ahuachapán and BerlĂn—which together produce 204 MW of electricity, meeting around 26% of the nation’s energy requirements. This production level allows El Salvador to reduce its reliance on fossil fuels and cut greenhouse gas emissions.
The $150 million loan is dedicated to the GEOES Renew project, a major geothermal initiative in El Salvador. This project aims to increase the country’s geothermal power capacity by 36%, adding 74 MW to its current output. The GEOES I and GEOES II plants, each with a 37 MW capacity, will be built in the Chinameca and San Vicente regions, further cementing El Salvador’s leadership in the geothermal sector.
Powering Bitcoin Mining with Geothermal Energy
Beyond generating electricity for the national grid, El Salvador is using geothermal energy to power its Bitcoin mining operations. In 2021, the country launched a pilot program that harnesses surplus geothermal energy for this purpose.
This environmentally friendly initiative is managed by the state-owned company LaGeo, which oversees the country’s geothermal plants and is expected to manage the new GEOES I and GEOES II plants alongside its existing infrastructure.
Bitcoin mining is known for its high energy demands, which makes renewable sources like geothermal energy a more sustainable option. As a clean, renewable resource, geothermal power is ideal for such operations and aligns with the global push for greener energy solutions.
A Strategic Investment in a Sustainable Future
The $150 million loan from the World Bank is a pivotal investment in El Salvador’s geothermal resources, which are crucial for its energy security and economic growth. This funding supports a broader national strategy to diversify the energy mix and minimize the country’s carbon footprint.
As a front-runner in renewable energy in Central America, El Salvador’s focus on geothermal power underscores its commitment to sustainability. Backed by the World Bank, the GEOES Renew project is a cornerstone of this renewable energy strategy. It will not only enhance the country’s geothermal capacity but also contribute to its economic development by providing a reliable and sustainable energy source.
Securing this $150 million loan marks a major leap in El Salvador’s geothermal development. With initiatives like GEOES Renew, the country is poised to bolster its energy infrastructure, reduce its carbon footprint, and support economic growth. As El Salvador continues to lead in this sector, it sets a valuable example for other nations looking to harness renewable energy for a sustainable future.
