PVTIME – The Spanish energy and water utility company Cox Energy has signed a $2.9 billion infrastructure investment agreement with the government of El Salvador. The agreement covers the construction of up to 400MW of solar photovoltaic capacity and 1GWh of battery energy storage systems over the next three years.
Signed by Cox executive chairman Enrique Riquelme and El Salvador’s president, Nayib Bukele, the agreement also encompasses gas infrastructure and improvements to water and sanitation. The solar and storage components will be developed in partnership with CEL (the Lempa River Hydroelectric Executive Commission).
Initially, Cox will develop two solar plants with a combined capacity of 200MW, with the option to expand to 400MW. The associated battery storage systems will start at 440MWh and 500MWh, with the potential to scale up to 1,000MWh. President Bukele indicated that approximately US$200 million would be allocated to the solar projects and US$300 million to the storage systems.
Cox will be responsible for developing, constructing, operating and maintaining the facilities, and will arrange financing through international financial institutions, multilateral organisations and export credit agencies.
This deal is part of Cox’s wider expansion in Latin America. In April 2026, the company completed the acquisition of Iberdrola’s Mexican operations for US$4 billion, adding 2.6GW of operating capacity and around 12GW of pipeline projects to its portfolio.
According to IRENA, El Salvador’s renewable energy capacity stood at over 1.94GW at the end of 2025, including 738MW of solar power and 638MW of hydropower.
