Spanish energy and water company Cox has signed an agreement with the government of El Salvador to develop solar photovoltaic projects, battery energy storage systems, natural gas infrastructure and water management facilities under a $2.9 billion investment program.
The agreement was signed at the Presidential Palace by Salvadoran President Nayib Bukele and Cox CEO Enrique Riquelme.
The solar component includes two PV plants to be developed in collaboration with the Executive Hydroelectric Commission of the Lempa River (CEL). The projects will have an initial combined capacity of approximately 200 MW, potentially expanding to 400 MW. Cox has not disclosed the locations, technical specifications or expected commissioning dates of the plants.
The agreement also provides for the deployment of grid-connected battery energy storage systems with an initial capacity of between 440 MWh and 500 MWh, potentially expanding to 1 GWh. According to Cox, the systems will help stabilize the national electricity grid and support the integration of renewable energy.
Bukele said the investment program includes $200 million for solar PV projects and $300 million for battery storage, bringing the combined investment in the two technologies to $500 million.
The largest share of the investment, approximately $1.8 billion, will go toward natural gas infrastructure. Cox plans to develop a liquefied natural gas (LNG) regasification terminal and a combined-cycle power plant with a capacity of approximately 380 MW. The infrastructure is also expected to supply gas to industrial and commercial customers and could enable exports to neighboring countries, according to the Salvadoran government.
The remaining $600 million will be allocated to drinking water and sanitation projects, including upgrades to supply infrastructure, expanded service coverage and improvements in service quality.
Bukele said the new energy infrastructure would reduce El Salvador’s reliance on oil-fired power generation and help lower electricity tariffs. The government has not provided specific targets or a timetable for the expected reductions.
Under the agreement, the Salvadoran government will participate as a partner in the energy projects. Cox will structure the financing through project finance arrangements, potentially involving international financial institutions, multilateral lenders and export credit agencies.
Cox will also oversee the development, construction, operation and maintenance of the infrastructure. The company expects the investment program to be implemented over three years, subject to regulatory approvals and the signing of project-specific agreements, which it expects to advance in the coming weeks.
The announcement comes amid continued growth in El Salvador’s solar sector. According to the General Superintendency of Electricity and Telecommunications (SIGET), the country had 846.62 MW of installed PV capacity at the end of 2025, representing 26.4% of its total installed electricity generation capacity. Solar PV was the country’s largest generation technology by installed capacity.
The agreement follows several recent developments for Cox in Central America. In August, the company secured a power supply contract in Guatemala involving 76 MW of solar generation and storage capacity, including 27 MW awarded through a public tender. Cox also secured $36 million in financing for the 75.2 MW Chiquimulilla solar plant in Guatemala’s Santa Rosa department.
Approximately 95% of Cox’s operations are concentrated in Latin America, where the company has an investment program exceeding $7 billion across its energy and water businesses. Its recent transactions also include the $4 billion acquisition of Iberdrola’s Mexican operations, which the company completed in April 2026.
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