Renewable Energy Resources

Renewable Energy Resources The National Energy Policy of 2007 supports the diversification and increased energy sources, primarily through renewable energy such as hydro, geothermal, solar, wind and biofuels (such as coal and natural gas). Apart from hydropower and geothermal energy, the government forecasts an increase of 50 MW additional generation from renewable resources in the next 10 years from wind, solar and mini-hydropower plants. In November 2007, El Salvador adopted the Law on Tax Incentives for Renewable Energy Development.This new legal framework includes incentives such as tax exemption of 10 years for projects under 10 MW of generation capacity. A New System for Renewable Energy Development (SIFER) provides for the establishment of a Development Revolving Fund Renewable Energy (FOFER) that give loans, guarantees and assistance to finance feasibility studies for new projects.