The federal government of El Salvador is planning to invest $51m to build 14MW photovoltaic plant.
The solar PV plant, which will feature 57,000 crystalline photovoltaic modules, is expected to begin operations in 2014 on state-owned land, located about 90km east of San Salvador.
Salvadorian state electricity supplier Comisión Hidroeléctrica del Río Lempa (CEL) will operate the plant, reported PV Magazine.
Meanwhile, CEL and German state bank KfW have entered into a loan agreement to finance the development of the plant.
In addition, Salvadorian development banks Bandesal, Central American Bank for Economic Integration (CABEI) and CEL have also extended financial aid for the project.
The plant, when operational, will reduce 16,000 tons of carbon dioxide emission per annum.