Strengthening the Backbone of Regional Energy Systems
The European Investment Bank (EIB) has announced a €1 billion financing package to modernize transmission and distribution networks and expand renewable generation across Central America. The program will support Costa Rica, Panama, Honduras, Guatemala, El Salvador, and Belize through a series of coordinated subprojects designed to reinforce cross-border energy integration. It represents one of the largest single regional investments in electricity infrastructure in recent years and aims to improve reliability, expand clean-energy access, and enhance the efficiency of the Central American Electrical Interconnection System.
Driving Integration and Climate Resilience
The financing focuses on upgrading grid infrastructure to reduce transmission losses, increase renewable capacity, and improve connectivity within the regional electricity market. By strengthening transmission corridors and substations, the initiative seeks to stabilize power flows across national borders while creating the conditions for larger-scale renewable deployment. Approximately 85% of the investment will be dedicated to climate-action projects, including grid modernization, battery storage, and digital control systems that enhance resilience against climate shocks.
Catalyzing Growth and Private Investment
Beyond infrastructure improvements, the EIB program aims to attract complementary private-sector and multilateral financing, promoting a sustainable energy ecosystem across Central America. The initiative aligns with broader goals to reduce fossil-fuel dependency and create new opportunities for industrial development through reliable, low-cost electricity. For the region, this funding marks a pivotal step toward an integrated and resilient energy future—one that links environmental ambition with economic competitiveness and positions Central America as a model for collaborative infrastructure transformation.