El Salvador's agriculture
El Salvador's agriculture has deep historical roots and continues to play a significant role in the country's economy. Traditionally, it has been characterized by smallholder farms that primarily produce staples such as coffee, corn, and sugarcane. Agriculture in El Salvador faces challenges including climate change, land degradation, and economic pressures, which impact food security and farmers' livelihoods. The region is also known for its diverse ecosystems, which provide opportunities for specialty crops and sustainable agricultural practices.
In recent years, the government and various organizations have increasingly focused on promoting agricultural sustainability and resilience, encouraging practices that can mitigate the effects of environmental changes. The reliance on agriculture reflects not only economic aspects but also cultural traditions and community structures. As El Salvador navigates its agricultural future, the integration of modernization, renewable energy sources, such as geothermal and hydropower, with traditional farming practices may play a crucial role in enhancing productivity and sustainability. The country's agricultural landscape is a vital component of its identity and economic framework, making it essential for a broader understanding of El Salvador's development challenges and opportunities.
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El Salvador's agriculture
Official Name: Republic of El Salvador.
Summary: El Salvador lacks fossil fuel reserves; however, the country exports refined petroleum products. Of the nation's renewable energy sources, 41 percent was generated from hydropower and 35 percent came from geothermal sources in 2023.
Traditionally an agricultural country, El Salvador historically used biomass as its main energy source until the mid-twentieth century. The first hydropower plant in El Salvador was put into operation in 1908, and in 1912, the first diesel power plant began operation. Throughout the second decade of the twentieth century, several small power plants were put into operation mainly to supply power for processing of agricultural products. In the 1920s, expansion of street illumination and ice making prompted the creation of local utilities in some cities, first fueled by hydropower and later also by diesel. In 1936, the Salvadoran government created the Comisión Nacional de Electricidad in order to regulate electricity distribution, keep statistics on production, and initiate assessment of hydroelectric potential of the Lempa River. By the 1940s, however, electricity supply to households and businesses was still scarce or was provided under conditions of strict rationing.
The creation of the state-owned utility Comisión Ejecutiva del Río Lempa (CEL) in 1945 gave impetus to the development of the Salvadoran power sector. In 1954, CEL put in operation the largest hydropower plant of the country at the Lempa River, with an installed capacity of 82 megawatts. From the 1950s to the 1970s, CEL built two other hydropower facilities and a thermal power facility, and it expanded the transmission and distribution infrastructure of electricity nationwide. In 1972, CEL started the construction of the first Salvadoran geothermal facility for power generation at Ahuachapán; it entered into operation in 1976 and has an installed capacity of 95 megawatts. In 1981, the Ahuachapán facility provided 41 percent of national electricity consumption. After some feasibility studies between 1976 and 1981, CEL put into operation a second geothermal facility for power generation in 1992, at Berlín. During the following years, the installed capacity was built up to reach 28 megawatts in 1999.
During the 1980s, civil war and political instability caused deterioration of the power infrastructure in particular and of the energy sector in general. Thus, throughout the 1990s, the Salvadoran government introduced a series of reforms in the energy sector, which included the separation of generation, transmission, and distribution activities of electricity in the power sector. CEL was reorganized. It remains under government control but now runs only hydropower facilities; geothermal facilities were put under another state independent entity, LaGeo. Thermal power facilities and distribution of electricity were privatized, while transmission was transferred from CEL to the state-owned Empresa Transmisora de El Salvador. Both wholesale and retail markets for electricity were created.
In the twentieth century, El Salvador imported 100 percent of its fossil fuels from Mexico and Venezuela. In 1980, these two countries signed the San José Agreement with the governments of various Caribbean and Central American nations, El Salvador among them, to supply oil at discount prices. Moreover, in 2000, El Salvador joined in the Caracas Agreement for Energy Cooperation, which provided an additional 8,000 barrels per day of Venezuelan oil at discount prices; in 2006, several Salvadoran municipalities signed an agreement for oil supply with Venezuela and created an association, Energía Para El Savador (ENAPASA), in order to supply Venezuelan oil at discount prices. By 2022, El Salvador imported $540 million of liquified petroleum from the United States ($341 million), Guatemala ($86 million), Trinidad and Tobago ($82 million, and several other nations.
El Salvador, along with its Central American neighbors, Colombia, and Mexico, have begun to interconnect their respective electricity grids in order to create a united power market within the framework of the Proyecto Mesoamérica for the integration of the region’s energy infrastructure; geothermal energy and other renewable energy sources are to play a key role. In 2021, about 29 percent of electricity was generated from hydropower, geothermal power had a share of 25 percent, and biofuels about 14.2 percent; the rest was either imported or generated from fossil fuels. In 2021, electricity exports fell to 33 gigawatt hours and total electricity imports totaled 1,316 gigawatt hours.
Bibliography
"El Salvador." CIA World Factbook, 24 July 2024, www.cia.gov/the-world-factbook/countries/el-salvador/. Accessed 31 July 2024.
"El Salvador." International Energy Agency, 2024, www.iea.org/countries/el-salvador. Accessed 31 July 2024.
"El Salvador." US Energy Information Administration, 2023, www.eia.gov/international/overview/country/SLV. Accessed 31 July 2024.
"El Salvador—Country Commercial Guide." International Trade Administration, 26 Jan. 2024, www.trade.gov/country-commercial-guides/el-salvador-agricultural-sectors. Accessed 31 July 2024.