Discover how LaGeo is transforming El Salvador’s energy landscape through geothermal innovation
El Salvador’s energy sector is highly focused on renewable resources, and indeed the country stands as the largest producer of geothermal energy in Central America. Hydroelectric generation is almost entirely owned and operated by CEL (Comisión Hidroeléctrica del Río Lempa), which started geothermal exploration in 1958. Meanwhile, the remaining generation capacity is held by private entities, such as LaGeo, an electrical power generation company that began operations in 1999. With over 25 years of experience, LaGeo specializes in leveraging geothermal resources to produce electricity. Marlene Jamilet Elias de Quan, General Manager, talks us through the company’s operations.
“In total, we have an installed capacity of 216.6 megawatts (MW) across several power plants. The largest facility is in Berlín, with an installed capacity of 116.6 MW, followed by the Ahuachapán plant with a capacity of 95 MW, and the San Vicente plant, which has a capacity of five MW. These locations all feature technology from very well recognized and experienced suppliers, including Mitsubishi, Fuji, Nuovo Pignone, ENEX, Turboden and Alstom,” she opens.
Despite being the smallest of LaGeo’s power plants, San Vicente plays a crucial role in the company’s operations. While still in its relatively early days of operations, plans are already under consideration to further expand the plant, as Marlene explains. “We have taken the important first step in developing the San Vicente geothermal field with the installation of an Alstom five MW back pressure unit, which has been in operation since 2023. This initial setup empowers us to confirm the field’s production potential, gather operating data, and demonstrate that San Vicente can reliably contribute to the country’s renewable baseload generation. As we work to ensure the long-term growth of the San Vicente field, our motivation for expanding the plant is to unlock its full geothermal capacity. We are currently evaluating new technologies and development strategies that could increase efficiency and maximize the field’s output. One potential solution involves upgrading the back pressure unit with a five MW binary power plant to utilize the steam discharged into the atmosphere effectively.”
Ultimately, through its numerous facilities, LaGeo aspires to fulfill its core mission: to help decarbonize El Salvador’s power grid and reduce its reliance on fossil fuels. Marlene gives us an overview of the initiatives in place to achieve this ambitious goal. “As a baseload electricity producer, we play a central role in decarbonizing El Salvador’s power grid by providing stable, continuous geothermal generation. This reliable clean energy supply reduces the need for fossil fuel-based plants to meet baseline demand. Today, we contribute roughly 20 percent of El Salvador’s total electricity consumption, resulting in a reduction of carbon emissions by 842,726.09 tons per year. To further support the transition away from fossil fuels, we are expanding our installed geothermal capacity while optimizing production from existing fields, which will yield an additional 50 MW over the next five years,” she enlightens.
Interdisciplinary integration
Alongside its core energy generation operations, LaGeo is committed to exploring new territories through a highly structured and multidisciplinary approach. The company boasts a strong internal team of experts, including geophysicists, geologists, geochemists, physicists, and reservoir engineers, who collaborate with one another to evaluate each potential geothermal area from different scientific perspectives. This interdisciplinary integration enables LaGeo to develop a complete understanding of the subsurface before advancing into deeper exploration stages. The exploration process typically begins with the study of surface manifestations, such as hot springs, fumaroles, and altered ground, which serve as the first indicators of geothermal potential.
Once these initial signs are documented and analyzed, the organization proceeds to detailed geological exploration, mapping rock formations, structures, and fault systems to understand how heat and fluids move underground. This is followed by geophysical exploration, where advanced techniques like resistivity surveys, magnetotellurics, and gravity studies are used to image the subsurface and identify zones with the highest likelihood of hosting productive reservoirs. Through this systematic and data-driven approach, LaGeo ensures that every new prospect is thoroughly evaluated, thereby increasing the potential for successful geothermal development.
The future of geothermal
One significant new venture involving LaGeo is the Chinameca Geothermal Project, a major endeavor that will bring El Salvador another step closer to decarbonization and energy stability. “The Chinameca Geothermal Project represents one of our most important upcoming projects as we strive to expand El Salvador’s clean baseload generation. It will have eight wells in total, and to date, we have drilled three production wells and two reinjection wells, which establish a foundation for understanding the reservoir’s behavior. Furthermore, we are in the process of installing a five MW back pressure unit. As part of this project, funding for the eight wells and the construction of a 20 MW power plant comes from a significant loan provided by the World Bank,” Marlene continues.
The loan also covers the adoption of social and environmental programs and the creation of a Geothermal Center of Excellence, which, as Marlene explains, is dedicated to help train future generations of skilled labor and will serve as a hub for education, training, and community development. Currently under construction, LaGeo’s Center of Excellence will unfold over the next five years before operations can commence. With the support of GRÓ GTP, the Center’s primary goal is to strengthen geothermal knowledge and technical skills in Latin America, offering a space where students, technicians, and future professionals can learn directly from experts in the field.
This initiative reflects LaGeo’s wider commitment to supporting and empowering the communities surrounding its areas of operation. By bringing in highly specialized professionals and cutting-edge expertise, the Center of Excellence will expose local residents and youth to advanced geothermal concepts and practical skill sets that can shape their future careers.
With the Center of Excellence underway, further expansion expected at San Vicente and more wells to come at Chinameca, LaGeo has significant projects on its agenda. Nevertheless, growth is a continuous strategy, and as Marlene notes, in the next five years, she expects LaGEO to significantly increase installed capacity. “I also would like us to have 25 percent of the market share of electrical energy in El Salvador and to have a portfolio of new projects for Obrajuelo and the east part of Ahuachapán,” she states.
To support this ambitious expansion and ensure grid stability, LaGeo is also working on the incorporation of a battery energy storage system (BESS). By expanding domestic renewable generation and adding storage, LaGeo is working to strengthen El Salvador’s energy independence while creating long-term economic value from the country’s geothermal resources.