El Salvador Hydropower Output Falls 72.7% as Drought Drives Thermal Generation Higher

El Salvador’s hydropower generation fell to its lowest level since February 2024 in July, as drought conditions pushed the country to rely more heavily on electricity produced from petroleum derivatives.

Data from the Transactions Unit, which operates the wholesale electricity market, showed that hydropower plants supplied 55.10 gigawatt-hours to the grid in July 2026. That compared with 201.50 GWh in July 2025, a decline of 146.4 GWh, or 72.7%.

Thermal generation moved in the opposite direction, rising 82.4% year on year from 233.7 GWh to 426.2 GWh. Geothermal generation, mainly produced from volcanic steam, fell 17.4%, from 128.5 GWh to 106.1 GWh.

Water levels at reservoirs serving at least four hydropower plants fell by as much as 3.45% during 2026 compared with the same period in 2025. Government authorities have not confirmed whether the reservoir decline is directly linked to the drought affecting much of the country.

El Salvador’s Civil Protection Directorate declared a red alert on August 25 for drought associated with El Niño. It forecast recurring dry periods during August and part of September, with a 20% to 40% chance of at least one nationwide meteorological drought event. Agricultural producers have also warned that about 6.9 million quintals of maize, beans and sorghum, representing the entire August and September planting, could be at risk.

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During August and part of September 2026, recurring dry periods associated with El Niño and the extension of the canícula are expected, with a 20% to 40% probability of at least one nationwide meteorological drought event.