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.

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