Cox has signed an investment agreement with the government of El Salvador to develop solar power, battery energy storage, natural gas and water infrastructure under a program valued at $2.9 billion. The agreement was signed at the presidential palace by El Salvador’s President Nayib Bukele and Cox executive chairman Enrique Riquelme.
The solar component includes two photovoltaic plants to be developed with the Executive Hydroelectric Commission of the Lempa River (CEL). The plants are initially expected to have a combined capacity of 200 MW, with the potential to expand to 400 MW. Cox has not disclosed their locations, technical specifications or expected commissioning dates.
The agreement also provides for battery energy storage systems (BESS) connected to the national electricity grid. Initial energy storage capacity is expected to range from 440 MWh to 500 MWh, with the potential to increase to 1,000 MWh. Cox said the installations would help improve grid stability and enable greater integration of renewable energy.
Bukele said the solar plants would receive $200 million in investment, while another $300 million would be allocated to battery storage. Together, the solar and storage components account for $500 million of the announced program.
The largest allocation, at $1.8 billion, is for natural gas infrastructure. Cox plans to build a liquefied natural gas regasification terminal and a combined-cycle power plant with an estimated capacity of 380 MW. The infrastructure is also intended to supply other companies and industrial customers. According to the Salvadoran government, it could enable natural gas sales to neighboring countries.
The remaining $600 million is earmarked for drinking water and sanitation projects, including improvements to water supply infrastructure, expanded service coverage and better service quality.
Bukele said the new energy infrastructure would reduce dependence on power plants using petroleum-derived fuels and lower electricity tariffs. The government has not specified the scale or timing of any potential tariff reductions.
The Salvadoran state will participate as a partner in the energy projects, according to Cox. The company plans to structure financing through project finance arrangements, with anticipated participation from international financial institutions, multilateral organizations and export credit agencies.
Cox will also be responsible for developing, building, operating and maintaining the infrastructure. The program has a three-year implementation horizon, but remains subject to the required approvals and the formalization of individual agreements. Cox expects to advance those procedures in the coming weeks.
The agreement comes as solar generation expands in El Salvador. The country ended 2025 with 846.62 MW of installed solar photovoltaic capacity, equivalent to 26.4% of its total installed power generation capacity, according to statistics from the General Superintendency of Electricity and Telecommunications (Siget). Solar consequently became the country’s largest generation technology by installed capacity.
The announcement adds to Cox’s recent activity elsewhere in Central America. In Guatemala, the company secured a supply contract for a 76 MW solar and storage project in August, including 27 MW awarded through a public tender. It also closed $36 million in financing for the 75.2 MWp Chiquimulilla solar plant in Guatemala’s Santa Rosa department.
Cox generates around 95% of its business in Latin America, where it has an investment program exceeding $7 billion in water and energy projects. In April, the company also completed its $4 billion acquisition of Iberdrola México.
From pv magazine LatAm
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