The power station will have capacity to generate 550 MW and require an investment of $970 million.
AES has also begun the search for manufacturers and construction companies to help build the plant.
Regarding the project's funding, the company's vice-president for Central America and the Caribbean, Jaime Tupper, commented that the multi-million dollar project already counts on the support of international banks.
In addition, AES is preparing to bid for a long term contract to provide 350 MW. This contract, to be awarded by El Salvador's Electricity and Telecommunications regulator (SIGET) and National Energy Council (CNE) will seek to diversify the country's sources of energy by requiring bidders to include plans to generate energy from renewable sources.
Source: laprensagrafica.com
More on this topic
September 2011
The AES Group has announced its interest in investing in the construction of a generating plant that would operate with natural gas in the province of La Union.
A press release from the Presidency of the Republic of El Salvador reads:
The business group AES, one of the world's largest electric power generators, announced in New York during a meeting with President of the Republic, Mauricio Funes, its interest in investing more than $970 million in the construction of a natural gas generator in the province of La Union.
August 2010
With an investment of $950 million, the company Cutuco Energy will initiate construction of the La Unión plant in the second half of 2011.
The construction works will generate around 1,000 jobs.
According to the Cutuco's shareholders, the plant will start producing energy from 2015.
January 2010
The construction of two power plants at the Port of La Unión, El Salvador, has been delayed again.
One of the plants would use coal and the other natural gas. Investment in both would sum $1.5 billion.
"These projects would add 775 MW to the country's energy production (525 MW by the gas plant and the rest by the coal one)", reported Elsalvador.com.
August 2011
The regulator has still not issued an opinion on the Environmental Impact Assessment (EIA) submitted by Grupo Tomza to build a gas plant in Punta de Manabique.
The new Environmental Impact Assessment (EIA) presented by the company includes moving the location of the plant by about 500 meters to ensure that the impact on flora and fauna will be temporary and can be mitigated through forestation plans.
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