El Salvador Secures USD 9.6 Million Kuwait Loan to Develop San Matías Solar Power Plant, Strengthening Renewable Energy Capacity

The government of El Salvador is moving forward with plans to develop the San Matías Photovoltaic Solar Power Plant after securing financing from the Kuwait Fund for Arab Economic Development. The country’s Legislative Assembly Finance Committee has approved a favorable ruling for a loan agreement valued at approximately USD 9.6 million to support the project.

The solar facility, to be located in San Matías, is expected to generate around 20,000 MWh of electricity annually. The project will include the installation of photovoltaic panels, substations, grid interconnection infrastructure, access roads, and other facilities required for operation and integration into the national power network.

According to government officials, the project aims to diversify El Salvador’s energy matrix, strengthen energy security, and reduce dependence on conventional power sources. The initiative is also expected to create employment opportunities during construction and operation while contributing to the country’s renewable energy and emissions reduction goals.