El Salvador is rich in renewable energy sources but there are still unexplored terrains of power generation and storage that are yet to be harnessed. As per the provisions of the new law, the focus is on introducing new sources of energy generation and storage that currently do not exist within the national energy matrix. This opens up a world of opportunities for businesses who are keen on innovating and diversifying the energy sector, and consequently, contributing to El Salvador's sustainable development.
Given the country's strategic location, favorable climate, and a business-friendly legal framework that provides attractive tax incentives, El Salvador is becoming an appealing destination for foreign direct investments, especially in the energy sector. By 2026, the nation is targeting to have 70% of its energy mix to come from renewable sources. This ambitious plan signifies the country's commitment to the energy transition and underlines the vast potential for investments in this sector.
Advanced energy storage solutions, like next-generation batteries (solid-state, graphene-based, etc.), could be considered new and innovative. These technologies would be crucial for the efficient use of renewable energy and could qualify for incentives under the new law.
Although El Salvador has a significant coastline on the Pacific Ocean, it currently doesn't make use of the substantial potential of tidal and wave energy. Innovations in these areas could be eligible for incentives.
Hydrogen can be a significant source of clean energy. Hydrogen fuel cells can convert the potential energy of hydrogen into electricity without combustion or pollution. This technology isn't widely used yet in El Salvador.
While El Salvador already uses solar energy, CSP is a less widely-used technology that involves using mirrors or lenses to concentrate a large area of sunlight onto a small area. The concentrated light is then converted to heat, which drives a heat engine connected to an electrical power generator.
El Salvador has a robust agricultural sector, so there may be untapped potential in the use of agricultural waste for the production of bioenergy or advanced biofuels.
We assist investors in integrating sustainable practices into their operations, aligning their investments with El Salvador's commitment to sustainable development. This covers renewable energy options, waste management, and energy-efficient practices.
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