This would also reduce the dependence on traditional thermal sources and, with that, the vulnerability to high oil prices that the country started to face in 2005.

Although high, this number does not capture the vulnerability of the generation system to particular unit outages, especially those related to hydroelectric capacity and availability.

Planning simulations indicate that the risk of power rationing is unlikely to occur until 2010 even if there is a delay in the commissioning of the SIEPAC interconnection.

This coverage is higher than that in Guatemala (83.1%), Honduras (71.2%) and Nicaragua (55%) but lower than the one for Costa Rica (98.3%) and Panamá (87.1%) [1] and also below the 94.6 average for LAC.

[5] In 2006, distribution losses in El Salvador were 12.4%, only higher than those of Costa Rica (9.4%) and below the regional Central American average of 16.2%.

[3] The regulatory entities for the electricity sector in El Salvador are: In 2006, the President created the National Energy Council (CNE), which has the role of analyzing El Salvador's energy situation as well as the Government proposals, recommending the inclusion of new actions and strategies.

The only public company with a stake in generation is CEL (Comisión Hidroeléctrica del Río Lempa), which owns 97% of the hydroelectric capacity.

The number and type of plants operated by each company is as follows:[1] Source: CEPAL 2007 In El Salvador, one government-owned company, Etesal (Empresa Transmisora de El Salvador), which was constituted in 1999 after the restructuring of CEL (Comisión Ejecutiva Hidroeléctrica del Río Lempa),[7] is responsible for the maintenance and expansion of the transmission system.

The public company CEL (Comisión Hidroeléctrica del Río Lempa) owns and operates 97% of the capacity.

[2] El Salvador's wind potential is currently being studied by Comisión Hidroeléctrica del Río Lempa (CEL) and the Finnish Meteorological Institute (FMI).

[2] Until the mid-1990s, the power sector in Salvador operated through the government owned Comisión Hidroeléctrica del Río Lempa (CEL), which provided generation, transmission and distribution services.

[4] The General Superintendence for Electricity and Telecommunications (SIGET) was created as part of the reform and assigned the responsibility of applying the sector laws and monitoring compliance with them.

The CNE will propose, manage and contribute to the agencies in charge of approving energy strategies that participate in the country's socio-economic development in harmony with the environment.

[12][13] This move has been propitiated because of a new large-scale natural gas project being developed by Cutuco Energy Central America.

In 1996, the six countries (Panama, Honduras, Guatemala, Costa Rica, Nicaragua and El Salvador) signed the Framework Treaty for the Electricity Market in Central America.

As for the infrastructure, EPR (Empresa Propietaria de la Red S.A.) is in charge of the design, engineering, and construction of about 1,800 km of 230kV transmission lines.

[4] For residential users with consumption levels below 100 kWh, 86% of the difference between the full tariff and the maximum prices established in November 1999 is subsidized.

They do not take into account financing required for the 300 MW of firm generation capacity assumed to be available from regional sources through the SIEPAC line.

[4] The budgeted investment in rural electrification during 2004-2009 amounts to around US$100 million, financed as summarized in the following table:[4] Source: World Bank 2006 Rural electrification projects are executed mainly through the Social Investment Fund for Local Development (FISDL), in operation since 1990.

The FISDL has executed a large number of projects totaling over US$400 million, although it has faced obstacles to achieve its goals, mainly due to a lack of secure financing.

According to the FINET Creating Law, resources for the construction and improvement of electrical infrastructure will be granted through the auctioning of subsidies.

[15] Until the mid-1990s, the power sector in Salvador operated through the government owned Comisión Hidroeléctrica del Río Lempa (CEL), which provided generation, transmission and distribution services.

[16] Currently (November 2007), there are three registered CDM projects in the electricity sector in El Salvador, with overall estimated emission reductions of 385,553 tCO2e per year.

[17] The Inter-American Development Bank (IDB) is currently providing technical assistance to El Salvador in several electricity-related initiatives: