RFI__USAID-ES-18-01__Attachment_4.pdf

December 2017

This report was prepared for review by the United States Agency for International Development under Contract No. AID-596-C-12-00001. It was preapred by Regional Clean Energy Initiative (Tetra Tech ES, prime contractor).

LIGHTING THE WAY

TO BETTER LIVES

USAID REGIONAL

CLEAN ENERGY

INITIATIVE

LIGHTING THE WAY

TO BETTER LIVES

USAID REGIONAL

CLEAN ENERGY

INITIATIVE

July 2012 – December 2017

Contract Number AID-596-C-12-00001

DISCLAIMER

This document was made possible by the support of the American people through the United States Agency for International Development (USAID).

Its contents are the sole responsibility of Tetra Tech and do not necessarily reflect the views of USAID or the United States Government.

Cover photo: Pedro de Alvarado border control in Guatemala with the new energy efficient lighting system installed by USAID to improve security conditions and trade.

v

TABLE OF CONTENTS

Acronyms and Abbreviations vii

Executive Summary ix

Introduction 1

Lighting the Way to Better Lives 7

Citizen Security and Social Development 13

Inclusive Economic Prosperity 25

Legacy for the Future 39

Challenges and Solutions 41

Lessons Learned 47

Recommendations for the Future 51

Martínez family enjoying electric light in their home for the first time at Perico Island in El Salvador.

vii

ACRONYMS AND ABBREVIATIONS

AMM Wholesale Market Administrator (“Administrador del Mercado Mayorista” in Spanish), Guatemala

ANAM Guatemala National Association of Municipalities (“Asociación Nacional de Municipalidades” in Spanish), Guatemala

B billion

BFA Agricultural Development Bank (“Banco de Fomento Agropecuario” in Spanish)

CDMER Directive Council of the Regional Electricity Market (“Consejo Director del Mercado Eléctrico Regional” in Spanish)

CNE National Energy Council in El Salvador (“Consejo Nacional de Energía de El Salvador” in Spanish)

CNEE Electricity National Commission (“Comisión Nacional Energía Eléctrica” in Spanish), Guatemala

CRIE Regional Commission for Electricity Interconnection (“Comisión Regional de Interconexión Eléctrica” in Spanish)

DGNTI/MICI General Directorate for Standards and Industrial Technology of the Ministry of Commerce and Industry (“Dirección General de Normas y Tecnología Industrial del Ministerio de Comercio e Industrias” in Spanish), Panama

DSE/MINAE Energy Sector Directorate of the Ministry of Environment and Energy (“Dirección Sectorial de Energía del Ministerio de Medio Ambiente y Energía” in Spanish), Costa Rica

ECLAC Economic Commission for Latin America and the Caribbean

EOR Regional System and Market Operator (“Ente Operador Regional” in Spanish)

GDP gross domestic product

GW gigawatt

IDB Inter-American Development Bank km kilometer kWp kilowatt peak

LED light-emitting diode

M million

M&E monitoring and evaluation

MAREA USAID Management of Aquatic Resources and Economic Alternatives

MER Regional Energy Market (“Mercado Eléctrico Regional” in Spanish)

MINSAL Ministry of Health (“Ministerio de Salud” in Spanish), El Salvador

MW megawatt

MWh megawatt hour

OSARTEC Technical Standards Entity in El Salvador (“Organismo Salvadoreño de Reglamentación Técnica” in Spanish)

RDCS Regional Development Cooperation Strategy

REES Regional Energy Efficiency Standards

SICA Central American Integration System (“Sistema de la Integración Centroamericana” in Spanish)

SIEPAC Electricity Interconnection System for Central American Countries (“Sistema de Interconexión Eléctrica para los países América Central” in Spanish)

SIGET General Electricity and Telecommunications Superintendence (“Superintendencia General de Electricidad y Telecomunicaciones” in Spanish), El Salvador

TEC total estimated cost

U.S. United States

U.S.-CCA Task Force Task Force for Caribbean and Central American Energy Security

US$ U.S. dollar

USAID United States Agency for International Development

WTO World Trade Organisation

Providencia Solar Plant, located in La Paz, El Salvador, is the largest of its kind in all of Central America. USAID supported the Salvadoran government in the development of renewable energy bidding processes during the years 2013-2017, enabling more renewable energy investment and lower electricity tariff in the country.

ix

EXECUTIVE SUMMARY

In recent years, Central America has been experiencing a growing social crisis with the three countries known as the Northern Triangle—El Salvador, Guatemala, and Honduras—being the most severely affected. It is estimated that 100,000 people flee from Central America to the United States alone every year.1 The two main motivations for migrating are a lack of economic opportunities and violence.2

The United States Agency for International Development (USAID) has responded to this crisis by aligning its goals for the region’s development with the U.S. Strategy for Engagement in Central America (“CEN Strategy”) as well as the will and development goals of national and regional authorities.3 To be more precise, USAID is specifically supporting the Plan of the Alliance for the Prosperity of the Northern Triangle (“Alliance for Prosperity”) produced in partnership by the national governments of El Salvador, Guatemala and Honduras.4

Starting in 2012, USAID implemented the Regional Clean Energy Initiative in Central America, (“USAID Initiative”). The USAID Initiative was a technical assistance project that lasted for five years and six months, funded by USAID and implemented by Tetra Tech ES, Inc., between July 2012 and December 2017 in the six Central American countries of Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, and Panama, a recent special attention was given to the Northern Triangle countries.

The USAID Initiative’s two initial overarching objectives were to: improve the enabling environment for the development of renewable energy in Central America and strengthen the capacity of national and regional government institutions, thus consolidating the development of the MER (Objective 1), and reduce energy consumption by promoting rational use of energy at the national and regional levels (Objective 2). For the last eighteen months, USAID focused its efforts on the Northern Triangle countries, as a result, it was able to contribute further to the CEN Strategy and the Alliance for Prosperity by providing direct support to people in at-risk conditions.

Through this Initiative, USAID recently worked to improve quality of life in Central America, fostering secure and prosperous societies by strengthening regional integration and employing the combination of renewable energy and energy efficiency as a multi-use tool to overcome the key development challenges the region is confronting at this time and also with the focus on citizen security and inclusive economic prosperity.

1 Government of El Salvador, Government of Guatemala and Government of Honduras, Plan of the Alliance for Prosperity in the Northern Triangle: A Road Map, September 2014.

2 World Bank, Crime and Violence in Central America: A Development Challenge, 2011: https://siteresources.worldbank.org/INTLAC/Resources/ FINAL_VOLUME_I_ENGLISH_CrimeAndViolence.pdf

3 USAID, Central America and Mexico, Central America and Mexico (CAM) Regional Development Cooperation Strategy 2015-2019, 2015:

https://www.usaid.gov/sites/default/files/documents/1862/FINAL-CAM-RDCS_public_0.pdf

4 Idem.

Municipality of Zacatecoluca with the new energy efficient street lighting system.

x xi

With this sharpened vision, the USAID Initiative modernized and improved security conditions at four customs and border controls in the Northern Triangle by illuminating 6.8 miles (11 km) of access roads with efficient street lighting systems, brought renewable energy solutions to 200 families in nine rural communities living off the grid in the Northern Triangle, provided solar thermal solutions in public hospitals of El Salvador to improve public health service, allowed for new recreational activities at nighttime thanks to the installation of efficient exterior lighting systems in public school exteriors in Guatemala and El Salvador, introduced energy efficient equipment in agro-industries to improve their competitiveness, and finally strengthened higher education institutions by new photovoltaic system for academic purposes; thus, further contributing to greater citizen security and increased economic opportunities to improve quality of life conditions.

The sustainability of these direct interventions is supported by the reinforced foundation provided by a more enabling environment for renewable energy and energy efficiency and through the initial USAID Initiative activities as well, served as a focal point to attract direct private investment which would lead to job creation at the local level. The USAID Initiative supported the expansion of renewable energy with the aim to create a more diversified energy matrix and thus allow Central America to reduce its reliance on costly fossil fuel imports, which leave the region vulnerable to cost fluctuations in the global market. As a result, all these interventions have already contributed to Central America reaching US$7 billion in clean energy investments, of which USAID Initiative directly supported the government of Guatemala and El Salvador renewable energy bidding processes, resulting US$1.1 billion in private investment. Also, the regional installed capacity for renewable energy was increased by 57%.

Complementarily, the USAID Initiative promoted energy efficiency standards aimed at reducing electrical costs from the demand side by making a better use of the available energy resources, in which USAID Initiative developed and presented to the General Secretariat of the Central American Integration System (SICA), eight Regional Energy Efficiency Standards (REES) to ensure consumers that the equipment (residential refrigerators, industrial motors, air conditioners and lighting equipment) available in the Central American market complies with quality and energy efficient minimum levels. Through these REES, Central Americans will benefit by being able to purchase electrical equipment and appliances with competitive prices and that comply with minimum EES, reducing their energy bills and helping reduce the need for fossil fuel electricity generation associated with the reduction of greenhouse gases.

The USAID Initiative assisted the regional entities governing the Regional Electricity Market (MER) in order to improve institutional capacity and thus facilitate the expansion of clean energy in Central America. A stronger MER has led to a more reliable continuity in the provision of electricity and more competitive prices.

The MER makes it possible to mitigate and overcome the impacts of electricity rationing, for example in 2013, Panama had an extremely dry winter which caused its hydroelectric plans to be unable to generate the energy needed to supply its users, but MER provided the electricity needed to keep social stability, citizen’s safety and well-being of end-users.

Customs and border control at La Hachadura in El Salvador with brand new energy efficient lighting system.

Source: CEPAL, 2017

Installed capacity for electrical production, both renewable and non-renewable, in Central America, 2010-

20172016201520142013201220112010

20172016201520142013201220112010

Baseline USAID Initiative starts implementation

USAID Initiative ends implementation

Data available for matrix expansion ends in 2015

Installed Capacity (Non-Renewable)

MW

Volume of MER Transactions GWh

Installed Capacity (Renewable)

MW

308344336

1446 1368

5,408.8 5,226.7

5,279.7 5,327.6

5,376.8 5,753.6

7,4697,2216,631.8 5,909.7

8,126.6 9,543.5 xii xiii

In consequence of the support aforementioned, the harmonized regulations and trade policies, electricity transactions in Central America’s Regional Electricity Market has increased by 480% in 2016 compared to the 2010 baseline (illustrated below).5

The USAID Initiative's resulting lessons learned were:

• Stakeholder and USAID Programs coordination are key to project success

• It is important that the implementer knows how to promptly respond to USAID requests

• Promoting the MER requires a strategic agenda and coordination among regional entities

• Economic growth is the main driver for renewable energy investment in Central America

• Auctions are a cost-effective tool to attract investment in medium and large scale of renewable energy

Throughout five and half years, the USAID Initiative supported the expansion of renewable energy and distributed generation, as well the introduction of energy efficient equipment within the national and regional markets. The USAID Initiative has learned and recommends that future assistance must provide technical support to national and regional governments in order to promote the legal framework and regulations necessary for smart grid development, which would allow for an increased bi-directional exchange of energy and information and, consequently, 5 MER transactions: 2010- 336GWh, 2016-1,947GWh. Estimations for 2017-2,800GWh, representing a 700% growth from 2010.

enable the incorporation of more renewable energy at the small and medium scale.

In this way, the end user benefits from new business models and society at large benefits from a grid that is more reliable, less reliant on fossil fuels (which are not available in the region), and offers more stable energy tariffs.

In addition, the support delivered to the borders and customs control has been successful in furthering crucial improvements in security conditions and easy trade.

For this reason, the USAID Initiative recommends continuing support the main remaining customs and border control posts of the Northern Triangle countries, such as in El Salvador: Las Chinamas, San Cristóbal, Aguiatú, El Poy and Perquín.

Finally, the USAID Initiative recommends that future assistance should:

• Support electric mobility

• Promote energy efficiency and renewable energy in high impact areas

• Ensure that electrical networks at the regional level are adequately designed to support non-conventional renewable energy

• Improve regulation for the development of distributed energy resources

• Continue support of Regional Market Roadmap

This document presents the USAID Initiative’s most remarkable achievements on the road toward improving quality of life conditions in Central America through clean energy solutions and by fostering an enabling environment for renewable energy investment, promoting the rational use of electricity by increasing the capacity of governments to support and implement national energy efficiency programs and finally, strengthening the capacity of regional authorities to further develop the MER and gain greater benefits from it.

20172016201520142013201220112010

20172016201520142013201220112010

Baseline USAID Initiative starts implementation

USAID Initiative ends implementation

Data available for matrix expansion ends here

Installed Capacity (Non-Renewable)

MW

Total Energy Transactions within MER GWh

Installed Capacity (Renewable)

MW

308344336

1446 1368

8,525.2 7,915.8

7,785.2 7,823.6

8,480.4 8,665.6

8,248.68,000.17,269.3 6,495.7

8,910.1 10,327.0

Source: EOR

Total energy transactions carried out within the Regional Electricity Market

Transmission electricity tower located in Honduras.

Solar panels installed at Perico Island in El Salvador to improve quality of life conditions

INTRODUCTION

2 3

TO BETTER LIVES

Introduction

Central America has been experiencing a growing social crisis in recent years with the three countries known as the Northern Triangle—El Salvador, Guatemala, and Honduras—being the most severely hit. It is estimated that 100,000 people flee from Central America to the United States alone every year.6 The two main motivations behind this migration are a lack of economic opportunities and violence.7 Though Central America has seen some economic growth since the 2000s, it has been markedly insufficient and thus limiting to the economic activity and job creation. As a result, in the Northern Triangle in particular, more than half of the population falls below the poverty line.8 With regard to the issue of violence, Northern Triangle countries have sustained exceptionally high homicide rates compared to the Latin America and Caribbean region.9 Not only is this migration costly in terms of human capital for these countries but also, since many travel without the necessary documentation, migrants find themselves at risk of becoming victims of human rights violations in the process.10 The United States Agency for International Development (USAID) has responded to this crisis by aligning the goals for its Regional Development Cooperation Strategy (RDCS) in the region with the U.S. Strategy for Engagement in Central America (“CEN Strategy”) and the strategic objectives and development goals of national and regional authorities.11 To be more precise, USAID is specifically supporting the Plan of the Alliance for the Prosperity of the Northern Triangle (“Alliance for Prosperity”) produced in partnership by the national governments of El Salvador, Guatemala and Honduras in 2014 to address the three countries’ concerns regarding the significant loss of human capital suffered as a consequence of the ongoing emigration. In consequence, the RDCS,12 CEN Strategy13 and Alliance for Prosperity14 all have focused their development

6 Government of El Salvador, Government of Guatemala and Government of Honduras, Plan of the Alliance for Prosperity in the Northern Triangle: A Road Map, September 2014.

7 Idem.

8 Idem.

9 World Bank, Crime and Violence in Central America: A Development Challenge, 2011: https://siteresources.worldbank.org/INTLAC/Resources/

FINAL_VOLUME_I_ENGLISH_CrimeAndViolence.pdf 10 Idem.

11 USAID, Central America and Mexico, Central America and Mexico (CAM) Regional Development Cooperation Strategy 2015-2019, 2015:

https://www.usaid.gov/sites/default/files/documents/1862/FINAL-CAM-RDCS_public_0.pdf 12 Idem.

13 Congressional Research Service, U.S. Strategy for Engagement in Central America: Policy Issues for Congress, June 2017: https://fas.org/ sgp/crs/row/R44812.pdf 14 Government of El Salvador, Government of Guatemala and Government of Honduras, Plan of the Alliance for Prosperity in the Northern

Triangle: A Road Map, September 2014.

“No problem can be broached in an isolated manner. We cannot improve the economy without greater security and of course economic opportunities are fundamental to reducing crime.”

Larry Sacks Director, USAID/El Salvador

Source: http://www.elsalvador.com/opinion/ editoriales/366831/avancemos-en-el-otro-el-salvador/

Inhabitants of the San Vicente community in Huehuetenango Guatemala, receive instructions on the maintenance of their new solar kit that will allow them to access electricity for the first time.

USAID Regional Clean Energy Initiative technical staff measuring electricity levels at La Hachadura Customs and Border Control in El Salvador.

4 5

TO BETTER LIVES

Introduction

At the time when Central American national governments renewed their commitment to improving citizen quality of life by means of the Alliance for Prosperity produced in 2014, USAID had already been contributing since 2012 to increasing greater citizen security and economic prosperity to the region through a fundamental resource: electricity. Through its Regional Clean Energy Initiative, USAID worked to improve quality of life in Central America, fostering safe and prosperous societies by strengthening regional integration and employing the combination of renewable energy and energy efficiency as a multi-use tool to overcome the key development challenges the region is confronting at this time.

The expansion of clean energy supports the Alliance for Prosperity in every aspect:

citizen security, economic prosperity, and institutional strengthening.

This document represents a reflection on the direct impact to society of USAID’s Regional Clean Energy Initiative, highlighting results by its implementer Tetra Tech ES Inc.

efforts under the following three pillars: citizen security, economic prosperity, and institutional strengthening. The Alliance for Prosperity raises the issue of reducing energy costs and achieving energy security as a priority area underpinning current regional development challenges; especially as it relates to economic growth.15 Similarly, USAID’s RDCS for Central America emphasizes the potential of clean energy to achieve greater energy security while maximizing social benefits.16

Energy security is a priority in Central America owing to the lack of reliable access to electricity observed in some areas. In Central America, 10% of the population has no access to electricity.17 This lack of energy security is not limited to private households—it also affects economic activity and the provision of public services such as health and education. Reliable access to electricity grants people greater freedom to participate in social, economic and personal development activities into the evening hours in their communities. There is also the issue of high costs, which hinders businesses from carrying out their activities profitably and public service providers from offering improved services to the population. Energy insecurity and rising energy prices have been a crucial hindrance to economic productivity for all of Central America.18

Central American authorities have identified the expansion of clean energy and increase of energy security as two areas that will contribute to a more prosperous regional economy.19 Attempts to achieve these goals in the region have been carried out primarily at the national level; however, Central America has much to gain from concerting their efforts as a regional unit.20 In order to provide energy for their populations, Central American countries have been primarily reliant on fossil fuel, which signifies a costly import as it is not available in the area.21

It is important to note that, since the early 2000s, Central America’s system capacity to distribute energy from renewable sources has been growing steadily and at a higher rate than that produced from non-renewable sources.22 In 2010, the USAID Initiative’s baseline year, the installed capacity to generate renewable energy within the region was 5,184 MW and represented 46% of the total available.23 At the time, however, the renewable energy system capacity was barely diversified:

87% was hydroelectric, 10% was geothermal, and 3% was non-conventional (i.e.

wind and solar).24

15 Idem.

16 USAID Central America and Mexico, Central America and Mexico (CAM) Regional Development Cooperation Strategy 2015-2019, 2015.

17 ECLAC, Estadísticas del subsector eléctrico de los países del Sistema de la Integración Centroamericana (SICA), 2015 [Statistics for the electrical subsector in the countries of the Central American Integration System (SICA), 2015], 2017: http://repositorio.cepal.org/ bitstream/handle/11362/40910/1/S1700038_es.pdf

18 ECLAC, Economic Survey of Latin America and the Caribbean: Dynamics of the current economic cycle and policy changes for boosting investment and growth, 2017.

19 U.S.-CCA Task Force, Report from the Task Force on U.S.-Caribbean and Central American Energy Security, May 2016.

20 Idem.

21 Government of El Salvador, Government of Guatemala and Government of Honduras, Plan of the Alliance for Prosperity in the Northern

Triangle: A Road Map, September 2014.

22 ECLAC.

23 ECLAC.

24 Data provided directly by EOR on a monthly basis.

Installation of an efficient motor in the El Guaya'b coffee mill, in Guatemala. The use of energy efficiency will allow savings of 25% in their electricity bill.

A solar panel installed in a remote community of Guatemala allows two worlds to meet: the modern technology that has changed the life to rural inhabitants in the North Triangle of Central America allowing them to accede to the electricity amid the most modest conditions of traditional rural living.

TO BETTER LIVES

8 9

TO BETTER LIVES

USAID Regional Clean Energy Initiative

The Regional Clean Energy Initiative (“USAID Initiative”) was a technical assistance project that lasted for five years and six months, funded by USAID and implemented by Tetra Tech ES, Inc., from July

2012 to December 2017 in the six Central American countries of Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, and Panama.

The purpose of the USAID Initiative was to improve the investment climate in Central America, supporting the generation of renewable clean energy and promoting energy efficiency to boost the development of the Regional Electricity Market (MER). The activities carried out by the USAID Initiative included a combination of project development support, technical assistance, and sector reforms. The USAID Initiative helped strengthen Central America’s Regional Electricity Market, supported the implementation of renewable energy projects and its economic and environmental benefits, and encouraged energy efficiency practices by establishing energy efficiency standards that Central American countries will use to promote the rational use of the electricity in the region and improved public safety with efficient street and public lighting projects. The activities were planned based on the following two contractual objectives:

Objective 1. Improve the enabling environment for the development of renewable energy in Central America and strengthen the capacity of national and regional government institutions, thus consolidating the development of the MER.

Objective 2. Reduce energy consumption by promoting rational use of energy at the national and regional levels.

The present chapter presents the direct impact to society accomplished by the USAID Initiative in the form of improvements to citizen security together with broader social development, as well as higher level achievements to increase energy security as a means to greater and more inclusive economic prosperity. Collaboration with regional, national and local authorities was essential for success and, hence, the USAID Initiative was careful to build capacity among counterparts throughout implementation in order to allow for achievements to be sustainable last long after activities have been completed.

Industrias Palmera, winner of the USAID sponsored "National Energy Efficiency Award" received an energy assessment and the donation of a photovoltaic system for self-consumption in an amount of US$26,000. With this award, Industrias Palmeras is expected to see a decrease of 30% savings on their monthly electricity bill.

REGIONAL

CLEAN ENERGY INTIATIVE

MAIN ACCOMPLISHMENTS

GUATEMALA

NORTHERN TRIANGLE

EL SALVADOR HONDURAS COSTA RICANICARAGUA PANAMA

invested to improve customs and border control posts

US$2.6

MILLION

US$500,000

in bank loans to small and micro enterprises for clean energy projects since 2016 in energy within the Regional Electricity Market x8

TRANSACTIONS

FAMILIES

in rural communities have electricity via renewable energy sources of energy efficient street lighting installed

11.8

MILES

57% increase in installed capacity for renewable energy for energy efficient electrical equipment adopted

TECHNICAL

REGULATIONS

in new private investments in renewable energy projects

US$1.1

BILLION

now have access to improved rehabilitation treatment

2,000

PATIENTS

1,300

STUDENTS

now have access to state-of-the-art technology

TO BETTER LIVES

Citizen Security and Social Development

Citizen Security and Social Development

Improving Citizen Safety and Modernization of Customs and Border Controls

In order to provide security of customs personnel and users, modernize and facilitate the flow of goods and means of transportation in the Northern Triangle’s customs and border controls El Salvador (La Hachadura and El Amatillo), Guatemala (Pedro de Alvarado) and Honduras (El Amatillo), the USAID Initiative installed new energy efficient lighting systems on access roads and exterior areas of the border control facilities, which also has facilitated the improvement of equipment operational processes and the protection of users and customs personnel.

Limited lighting at the customs and border control posts and the surrounding areas creates unsafe conditions at night and produces undesirable working conditions for the officers, which result in persistent bottle necks on the road. Enhanced visibility provides better working conditions for customs personnel to carry out their duties without having to resort to alternative lighting sources such as flashlights.

The USAID Initiative facilitated and developed the installation of 6.8 miles (11 km) energy efficient street lighting in the access roads to the four customs and border control posts supported. A total of 501 light fixtures were installed.

Besides improving visibility and safety at night, the equipment now complies with the local illumination standards set at the national level.

A reliable energy supply is essential for the operation of energy efficient equipment and the optimal performance of the control posts. Given that remoteness impedes access to a reliable energy source to maintain all electrical equipment running adequately. Furthermore, the installation of photovoltaic systems was a crucial component to provide more continuous power during the daytime. In the case of El Amatillo border control in Honduras, a backup system was also installed precisely for this purpose. Now, with a reliable energy supply, computer equipment, lighting and air-conditioning can run without interruptions allowing for improved service at the control posts. Additionally, the USAID Initiative installed new energy efficient air conditioners to improve working conditions for the personnel.

“We feel safer and we have better conditions to be able to carry our daily work for the country.”

Mario Hernández Administrator, La Hachadura

Customs and Border Control (El Salvador)

Children's education conditions and quality of life were improved thanks to the new solar lighting system in San Vicente community in Guatemala.

TO BETTER LIVES

Citizen Security and Social Development

Thanks to the USAID Initiative, a total of 614 personnel of the four border controls were benefited, 52,000 commercial users, and 2,400 tourists crossing per month in these borders benefited in the Northern Triangle countries.

The Goascorán bridge with the new energy efficient streetlighting at the border cross between El Salvador and Honduras.

IMPACT CORNER:

SAFER BORDERS FOR EVERYONE

"As a working woman here at El Amatillo border control, I have learned to live and work with the few resources that we have available, we have only diplomacy, courtesy and kindness in dealing with people to prevent crime and not being attacked”. With these heartbreaking words, Milgian Socorro Andino, Head Administrator of the El Amatillo customs office in Honduras, expresses the insecurity with which they worked daily at the border crossing point. Her functions include checking cargo transport in search of contraband products and illegal traffic of merchandise or people.

Edis Griselda Herrera, assistant manager of the border point, also works with her. She is a young professional who is in charge of the 10 thousand transporters who use this border every month to pay taxes properly when crossing the border. For both Milgian and Edis, their work schedule begins at 8:00 AM and should end at 6:00 PM. However, time at their workplace is commonly extended into the dark hours until 8:00 PM.

"We must work in these temporary facilities, which should have lasted only two years and have already lasted twice as long, and many of the services have deteriorated, including external lights and air conditioners”, says Milgian. She adds that it is "very difficult for us to work in these conditions of insecurity, darkness and heat because of the lack of air conditioners."

As managers of the border post and as women, they are vulnerable to physical attacks by criminals. Additionally, both must finance their own transportation from the nearest city, San Lorenzo Valle, a town 20 minutes away from the border by car.

"When night falls we are afraid to leave the office, but it is something we have to do because we have to check the vehicles.

However, in the dark we cannot distinguish between a merchant in transit or a criminal waiting to attack us,” explains Milgian.

In order to ensure the physical safety of 614 customs personnel like Milgian and Edis, 2,500 monthly users, and modernize and facilitate the flow of goods and 52 thousand transports every month in the NorthernTriangle’s customs and border controls El Salvador (La Hachadura and El Amatillo), Guatemala (Pedro de Alvarado) and Honduras (El Amatillo), the USAID Initiative installed 500 new energy efficient lighting fixtures on 11 km of access roads and exterior areas of the border control facilities, which allows for the improved protection of both users and customs personnel, as well as the installation of 49 new air conditioners for the personnel's comfort and a backup system installed at El Amatillo border control in Honduras. Solar-powered photovoltaic systems were the USAID Initiative’s technology of choice to modernize customs and border control posts as they are a clean energy option that is autonomous from the grid.

"The lighting of our work area, the air conditioners and the photovoltaic equipment have come to improve our working conditions, now we can work in a better way, offer a better service to our users and be safer thanks to the lighting these new equipment provides", highlights Milgian.

Customs personnel now have more favorable conditions to prevent the trafficking and work in a more efficient way;

transporters enjoy a road with adequate lighting, improving their safety and waiting times at the border, facilitating trade between countries in the North Central American triangle. •

Customs and border control at La Hachadura in El Salvador with brand new energy efficient lighting system.

TO BETTER LIVES

Citizen Security and Social Development

Renewable Energy in Rural Communities

In order to improve quality of life for vulnerable populations, the USAID Initiative introduced renewable energy and energy efficient solutions to nine communities in El Salvador (Isla Perico in La Unión), Guatemala (Los Planes, Pajales II, San Vicente, and La Cumbre in Chimaltenango), and Honduras (El Lonal, Los Lirios, El Matambre in Francisco Morazán and El Guayabo in El Paraíso).

One way in which the USAID Initiative contributed to energy security and citizen safety in these communities was by delivering solar-powered photovoltaic systems to people’s homes, which would allow people to enjoy light after sundown without depending on the slow and costly infrastructure development that entails expanding the existing power grid. The photovoltaic systems delivered included:

one solar panel, a battery, LED lights and mobile phone charger. The USAID Initiative donated kits directly to 200 families for them to enjoy electricity in their households, which expedited the delivery of positive change at the beneficiary level.

Complementary outcomes of these donations include economic stability in the households that received the kits by reducing expenses related to biomass burned for fuel, which also reduces the possibility for health problems—particularly those associated with vision and smoke inhalation from burning kerosene, candles and firewood. It is estimated that the supported families will reduce their energy costs by 20%, an average of US$10-US$12 monthly, which can be used to buy food, improve health and education conditions. Furthermore, the improved lighting conditions provide an adequate environment to study and live at night.

At a broader community level, the USAID Initiative implemented new outdoor lighting equipment in areas such as public schools in El Salvador and Guatemala with the purpose of generating opportunities for recreational activities at night and improve economic growth and public safety. The USAID Initiative provided and installed photovoltaic lighting systems for public areas such as sports fields and playgrounds at public schools in Guatemala (Quirina Tassi de Agostini and Félix Hernández Andrino/República de Canadá) and El Salvador (Complejo Educativo El Zonte and Centro Escolar Walter Bennekke). With the new public lighting the communities have been able to unite around the schools and develop recreational activities for its own benefit.

IMPACT CORNER:

BRINGING RURAL COMMUNITIES

INTO THE 21ST CENTURY

Imagine waking up one day without the alarm from your cellphone going off, making the meal using wood and fire, no TV, and at night having to light up candles to see in the dark. For families living in Perico Island, El Salvador, this is their 21st century reality.

Perico Island is located on the far eastern side of El Salvador, in the Gulf of Fonseca. With a population of around 140, the economy relies mainly on fishing. “Life here is just fishing, when we do not fish, we turn to grow corn, sometimes watermelons, pipianes, beans, and the times we do not go out fishing we work on mending our nets”, says Marvin Arturo Martinez, a local fisherman and father of a daughter and son. For him, life without electricity is something you get used to. “You get used to not having light. Around 6 o'clock in the afternoon we start looking for candles or oil lamps to light-up.

USAID through its Regional Clean Energy Initiative, in support of the Northern Triangle Alliance Prosperity Plan, provided lighting solutions to rural communities in El Salvador, Honduras and Guatemala, by installing solar lighting equipment to provide better life conditions and an adequate environment to study and live at night. It also improved household economic sustainability by reducing the costs for lighting using renewable energy sources.

For Marvin, it has been life changing: “for 13 years I have lived without electricity. Coming home and turning on the lights has allowed us to enjoy more time together as a family. My daughters have more time to finish their homework, I can mend the nets inside the house. We can have a TV! Even when I’m late out at sea, I can see the lights of the island from afar and come back safely.

We have dreamt with this for so long. I am very thankful with USAID”, he says.

Like Marvin’s family, 200 families in the northern triangle region were provided with the installation of solar panels in their houses, to improve their living conditions by reducing health issues associated with smoke inhalation from kerosene and candle burning. Through this support, families will have an economic savings around 10% to 20% per month, which will be intended in food, health and education.

Little by little, the use of renewable energy resources will bring rural communities into the 21st century and provide better lives conditions. •

For 13 years, Marvin Martínez and his family have lived without electricity but now, with support from USAID, they no longer have to live in the dark.

TO BETTER LIVES

Citizen Security and Social Development

Renewable Energy and Energy Efficiency in Public Hospitals

El Salvador has 917 health centers, of which 30 are public hospitals.25 The USAID Initiative identified that many of these hospitals were not providing regular rehabilitation services due to the high cost involved in heating the necessary pool water, which is done with electricity. The USAID Initiative conducted an energy study at eight public hospitals in which it was identified the energy savings potential of public hospitals that offer rehabilitation and hydrotherapy services. The study determined the opportunities to implement renewable energy technology for heating the water used in rehabilitation procedures, as well as the estimated investment required, economic savings, reduction of greenhouses gases, and the impacts on beneficiaries. The study was developed in collaboration with the following public hospitals: Suchitoto National Hospital of Cuscatlán, Dr. Francisco Menéndez National Hospital of Ahuachapán, Dr. Jorge Mazzini Villacorta National Hospital of Sonsonate, Cojutepeque National Hospital of Cuscatlán, Dr. Luis Edmundo Vásquez National Hospital of Chalatenango, Dr. Arturo Morales National Hospital of Metapán, and Benjamín Bloom National Specialized Hospital of San Salvador.

Based on the study’s results, recommendations from National Energy Council (CNE) and governmental data on the municipalities with the highest rates of delinquency, the USAID Initiative installed solar thermal systems in Suchitoto National Hospital in Cuscatlán and Dr. Francisco Menéndez National Hospital in Ahuachapán. With the resulting improvements to the hydrotherapy services provided, these hospitals are expected to benefit more than 2,000 patients annually.

This project has improved the public health services due to patients can now receive their hydrotherapies with the right water temperature and continue in a better way with their recovery process.

Additionally, these two hospitals will serve as pilots for the Ministry of Health of El Salvador to replicate in other hospitals and learn about the benefits from the renewable energy technology and would include this type of investment in their budget plans for implementation in other public hospitals.

25 Per MINSAL's Basic Integrated Health System.

IMPACT CORNER:

SOLAR ENERGY IMPROVES HEALTH

SERVICES IN EL SALVADOR

Irene Valle, 52 years, resident of Ahuachapán in El Salvador.

Every week she attends to the National Hospital of Francisco Menéndez in Ahuachapán to receive her hydrotherapies due to an injury in her right hand, "I could not receive my treatment with hot water, which meant that my recovery process took longer," Valle said.

When Valle explained this situation, this was all about to change, USAID through its Regional Clean Energy Initiative, supported the hospital with the supply and installation of a solar thermal system in order to increase the number of patients that require hydrotherapy treatment, providing a quality service from renewable energy sources, "now I can receive my therapies with the appropriate water temperature for my rehabilitation, thanks to the support of USAID we can receive a better-quality treatment” Irene Valle mentioned.

Through this system, the hospital will assist more than 1,300 patients each year, who will now be able to receive their hydrotherapies at a suitable water temperature for their treatments and continue in a better way with their recovery process.

This work represents an investment of $42,820 by USAID and served as a pilot project for the Ministry of Health of El Salvador to replicate renewable energy technology in other hospitals.

In addition, USAID through its Regional Clean Energy Initiative developed energy studies and designs of water heating systems based on solar energy, so that the Ministry of Health develops these projects in other hospitals offering rehabilitation and hydrotherapy in El Salvador.

All these efforts are part of the support that USAID is providing to the "Alliance Plan for the Prosperity of the Northern Triangle", which seeks to reinforce citizen security, improve the health and education conditions of the populations of El Salvador, Guatemala and Honduras. •

Irene Valle receives hidroterapy at Francisco Menéndez National Hospital in Ahuachapán, El Salvador using the new solar thermal system that allows water heating.

Solar thermal system installed in Francisco Menéndez National Hospital at Ahuachapán, El Salvador.

TO BETTER LIVES

Citizen Security and Social Development

Renewable Energy and Energy Efficiency in Agro-Industries

The USAID Initiative provided renewable energy and energy efficiency solutions at two cooperative fisheries in El Salvador (ASPESCU in San Miguel and ACOOPACIFICO in La Unión) by installing energy efficient air conditioners and compressors to freeze their products. Solar photovoltaic systems for self-consumption and 41 energy efficient lighting units between both fisheries were also installed to provide better conditions to their daily work and obtain energy savings due to the renewable energy and energy efficiency projects implemented.

The fisheries identified in collaboration with another USAID project, Management of Aquatic Resources and Economic Alternatives (MAREA), and were chosen because they carry out social projects in their communities—primarily oriented to economic growth and, through the energy cost savings, they are expected to be able to reinvest the gain in further community-oriented projects. It is estimated that the fisheries will reduce approximately 30% of their electricity consumption per pound of processed fish. This project benefited 80 local fishermen in El Salvador.

As a result, the fisheries have gained competitiveness owing to a reduction in the electricity costs involved in cooling their facilities, which constituted 30% or more of the total costs incurred.

Applying the same idea to a different productive sector, the USAID Initiative implemented energy efficiency technology in two coffee mills (La Esperansita in San Marcos and El Guaya’b in Huehuetenango) in Guatemala through the installation of 23 energy efficient motors, which has benefited 680 cooperative members and coffee farmers. As a result, these coffee mills have an estimated savings of 25% in their electricity costs per month. The savings realized will be reinvested in social projects in the surrounding communities. The USAID Initiative also identified an opportunity to implement energy efficient measures in the Asociación Nacional de Café (ANACAFE) headquarters and hence donated LED panels to reduce electricity costs and improve lighting.

These projects serve as demonstration pilots that may be replicated at a greater scale across the agro-industry sector.

IMPACT CORNER:

A COMMUNITY COMES TOGETHER

AROUND A BRIGHT SPOT

El Zonte Public School was founded in 1965 through U.S.

cooperation and the Alliance for Progress program. Here, school Director Ysrael Urbina strives to educate 310 students from kindergarten to ninth grade. The school is located along the coastal El Litoral route in El Salvador, in an area where surfing is opening development opportunities through tourism.

However, despite the increasing boom of the Salvadoran waves, the area is still a remote community in which its inhabitants face precarious conditions in the absence of basic services and an increasing risk of crime ranging from petty theft to the illegal demand for financial contributions to small businesses in exchange for protection. There have been barely any community activities due to the limited availability of shared spaces and the lack of public lighting to make them accessible past work and school hours. “We feel the importance of having a bright and safe space to be able to unite the community around a common place where we can develop activities for the benefit of all,” explains Urbina.

USAID, through its Regional Clean Energy Initiative and in support of the Northern Triangle Alliance Prosperity Plan, provided lighting solutions to rural communities by installing solar lighting equipment at public school fields to provide better life conditions and an adequate environment for recreational activities at night and create common areas to share within the community. El Zonte is one of four public schools that received new lighting equipment.

El Zonte is now able to provide extracurricular activities for its students and their families, such as a nighttime soccer tournament. With the new lighting, the school hosted a dinner show in which students participated with artistic presentations and their mothers and teachers cooked dinner. “USAID changed the history of our school, thanks to the lighting of the field we also developed a dinner show,” said Urbina. The funds collected through the dinner, which was attended by 250 people, will allow the school to buy instruments to create a marching band. “Lighting has been a very beautiful experience because from that moment we have organized activities at night and the community has supported us, has come to participate in the activities that have been programmed”, said Urbina.

Future plans include a continuous football tournament, following up, they could also hold meetings to religious groups that facilitate the practice of values. •

Public area illuminated thanks to the implementation of solar lighting solution at Complejo Educativo El Monte in El Salvador.

“We developed a night soccer tournament in which teams from the entire community participated.

We held games until 8:30 at night, something unthinkable before”

Ysrael Urbina Director, El Zonte Public School

(El Salvador)

TO BETTER LIVES

Citizen Security and Social Development

Renewable Energy for Higher Education

The generation of electricity through renewable energy sources is growing in Central America region. Nevertheless, qualified trained work force is scarce.

Universities offering technical careers in the electrical and environmental fields do not have practical equipment which the students can evaluate the performance of different types of technologies (e.g. a photovoltaic system employing different panel technologies). Capacity building by supporting the education of future specialists is fundamental to ensuring the sustainability and expansion of clean energy in the region. Hence, the USAID Initiative provided multi-technology photovoltaic systems for academic purposes at two higher education institutions Don Bosco University in El Salvador and Zamorano University in Honduras with the aim of improving learning practices for students as they will implement this knowledge in their future professional life, enabling the investment environment for renewable energy technology, resulting in diversification of the energy matrix, leading to better prices and a direct benefit for the population. In addition to their theoretical courses, students can now evaluate the data provided by the monitoring system

These systems will allow students to carry out evaluations of efficiency, performance and profitability, through the information obtained from the production of electricity under different solar panel technologies, meteorological…