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4.41. Metal mining was banned in El Salvador for environmental reasons by the Law prohibiting metal mining. (...)It also prohibits the use of toxic chemicals, such as cyanide and mercury. (...)

4.42. The Directorate of Hydrocarbons and Mining at the Ministry of Economic Affairs (MINEC) regulates the exploration, exploitation, processing and marketing of non-renewable natural resources (metallic and non-metallic minerals). The Directorate is also responsible for supervising the environmental aspects of authorized projects. In addition, it (...) promotes rational use of the resource and the progressive restoration or rehabilitation of already exploited areas, and ensures that the exploitation of resources is not carried out illegally.

4.43. Mining activity is regulated by the Mining Law and amendments thereto. The purpose of the Law is to regulate aspects related to the exploration, exploitation, processing and marketing of non-renewable natural resources found in the soil and subsoil of the territory of El Salvador, except for hydrocarbons in liquid or gaseous state, (...) the extraction of stone material from rivers, beaches and lakes, which is regulated in accordance with existing environmental regulations (...)

4.46. Petroleum products dominate El Salvador's energy resource matrix (primary and secondary), accounting for approximately 67% of total energy supply in 2021, with bagasse accounting for 10%, renewables (wind, solar and geothermal) for 7%, other biomass for 7%, hydroelectric sources for 5%, and fuel wood for 4%. During the review period, renewable electricity generation has been boosted, with a marked increase in the installed capacity of solar photovoltaic power, and the introduction of the first wind power plant. (...)

4.48. During the review period, El Salvador developed a new strategy, the National Energy Policy 2020-50, which sets out a long-term vision and establishes guidelines towards achieving an efficient and competitive energy system that protects the environment. The document includes five strategic pillars: (...)(iii) sustainable energy supply, (iv) energy security and integration, and (v) efficient energy consumption. The 2020-50 policy contains key energy transition measures, such as: decarbonizing the electricity matrix and carbon sequestration; fulfilling international commitments; updating the sector's regulations; energy efficiency and universal access; exploring future energy alternatives and clean technologies; waste-to-energy; promoting high/low-temperature geothermal energy; using renewable energy; migrating from liquefied petroleum gas (LPG) to natural gas in industry; and developing the green hydrogen value chain.

4.50. (...) In 2016-22, renewable sources grew significantly in electricity-generating capacity, mainly due to the introduction of long-term contract tenders to develop non-conventional renewable power generation projects, together with the fiscal incentives that have been granted (Table 4.5).

Table 4.5 Installed capacity by source, 2016 and 2022
(...)
Market/source: Wholesale market: 2016: 1,629.0(MW), 97.5(%); 2022: 2,453.7(MW), 87.1(%)
Biomass: 2016: 195.4(MW), 11.7(%); 2022: 293.6(MW), 10.4(%)
Market/source: Wholesale market: 2016: 1,629.0(MW), 97.5(%); 2022: 2,453.7(MW), 87.1(%)
Geothermal: 2016: 204.4(MW), 12.2(%); 2022: 204.4(MW), 7.3(%)
Market/source: Wholesale market: 2016: 1,629.0(MW), 97.5(%); 2022: 2,453.7(MW), 87.1(%)
Photovoltaic: 2016: 0.0 (MW), 0.0 (%); 2022: 213.9(MW), 7.6(%)
Market/source: Wholesale market: 2016: 1,629.0(MW), 97.5(%); 2022: 2,453.7(MW), 87.1(%)
Wind: 2016: 0.0 (MW), 0.0 (%); 2022: 54.0(MW), 1.9(%)
(...)
Market/source: Retail market: 2016: 41.3(MW), 2.5(%); 2022: 362.8(MW), 12.9(%)
Biogas: 2016: 6.8(MW), 0.4(%); 2022: 6.9(MW), 0.2(%)
Market/source: Retail market: 2016: 41.3(MW), 2.5(%); 2022: 362.8(MW), 12.9(%)
Biomass: 2016: 0.0(MW), 0.0(%); 2022: 11.0(MW), 0.4(%)
Market/source: Retail market: 2016: 41.3(MW), 2.5(%); 2022: 362.8(MW), 12.9(%)
Photovoltaic: 2016: 12.0(MW), 0.7(%); 2022: 309.9(MW), 11.0(%)
(...)

4.54. (...) CEL[the Río Lempa Hydroelectric Executive Commission], a state-owned company, is responsible for the development, conservation, management and use of domestic energy resources and energy sources. During the review period, CEL operated four hydroelectric power plants supplying power to the wholesale electricity market. CEL's subsidiaries also undertake generation activities using thermal, geothermal and hydroelectric sources, and carry out marketing activities.

4.55. The subsector is mainly governed by (...) the Law on tax incentives for the promotion of renewable energies in electricity generation, (...)

4.57. (...) A concession is required only in order to generate electricity from hydraulic or geothermal sources.(...) (...)