El Salvador Wins Kuwait Loan for Solar Farm
Jun 12, 2026 09:36 AM ET
- El Salvador secures up to $9.7M from the Kuwait Fund to build a solar farm in La Libertad—boosting clean power, energy security, and renewable growth through international cooperation.
El Salvador’s parliament approved a plan to borrow up to KWD 3 million (about $9.7 million) from the Kuwait Fund for Arab Economic Development to finance a solar farm in the La Libertad department. The House said the financing would support project development and construction for the new solar installation.
The government framed the initiative as part of broader efforts to diversify its energy mix and expand renewable generation. Officials said the project should increase clean electricity on the national grid while supporting energy security, economic development and long-term sustainability. The deal also underscores growing international cooperation between development lenders and renewable energy markets in Central America.
What does El Salvador’s Kuwait-backed loan finance for its La Libertad solar farm?
- It would provide development and project-financing funds—covering activities needed before power generation begins (such as project preparation) and the costs of building the La Libertad solar facility.
- It is intended to help expand El Salvador’s clean electricity supply by adding new solar generation capacity that can feed into the national grid.
- The project support is positioned as a step toward diversifying the country’s energy mix, reducing reliance on more volatile or imported energy sources.
- By increasing domestic renewable output, the financing aims to strengthen energy security and resilience against fuel-price and supply shocks.
- It is designed to support medium-to-long-term sustainability by enabling additional low-carbon generation that can deliver electricity over the life of the solar assets.
- The arrangement also reflects the Kuwait Fund’s role in backing development projects abroad, channeling concessional-style international finance into renewable energy in Central America.