39 million (US$ 51 million) will be invested in the plant, which is scheduled to go online in 2014. It is expected to comprise 57,000 crystalline photovoltaic modules; grid connection will be taken care of by a nearby hydroelectric power station, owned by Comisión Hidroeléctrica del Río Lempa (CEL).
On March 13, KfW representatives and Salvadorian state electricity supplier CEL signed a loan agreement in the capital city of San Salvador. Apart from the KfW state bank, other investors include Salvadorian development bank Bandesal, Central American Bank for Economic Integration (CABEI) and CEL.
CEL will operate the photovoltaic plant on state-owned land, situated around 90 kilometers east of San Salvador. An equivalent to 16,000 tons of CO2 will be saved per year, as a result of the generation of environmentally-friendly electricity, according to Oliver Polleti, KfW project manager.
El Salvadors electricity mix is composed of almost 40% hydroelectric power, 35% oil and diesel. The rest is geothermal energy. There are a few scattered off-grid installations across the country.