In El Salvador, recent data as of November 2025 from the Unidad de Transacciones reveal that solar PV capacity reached 734 MW, accounting for 23.6% of the country’s total installed capacity, surpassing hydroelectric capacity at 638 MW. Solar generation provided 52.5 GWh in November alone, covering 8.54% of electricity demand in a month marked by the onset of the dry season, when hydropower contribution dropped substantially to 25.7% of demand from over 50% in wetter months. The remaining demand was met primarily by liquefied natural gas (32.8%) and geothermal (19.4%) sources, with wind and biomass adding smaller shares.
Regionally, Latin America generates 60% of its electricity from renewables, with solar and wind making up the largest share of new additions. This growth coincides with rising electrification demands and commitments to carbon neutrality targets. Storage capacity, although presently limited to approximately 3 GW, is projected to surge to 24 GW by 2030, driven by investments exceeding $24 billion to reinforce grid flexibility and renewable integration, particularly in Chile, Argentina, and Honduras.
Despite robust expansion, the region confronts challenges including financing gaps, regulatory hurdles, and infrastructure bottlenecks affecting transmission and storage. Public-private partnerships and policy reforms remain critical to sustaining the pace of deployment. The anticipated maturity of Latin America’s renewable framework by 2030 will hinge on resolving these structural issues while leveraging abundant solar resources to meet growing electricity demand sustainably.
This article was curated and published as part of our South American energy market coverage.
