Ecuador's Energy Crisis
Ecuador's Energy Crisis. Image made with Canva.
Ecuador Energy Crisis

Ecuador’s Energy Crisis

Soledad Quartucci

Ecuador’s Energy Crisis

On Thursday, October 26, Minister of Energy and Mines, Fernando Santos, revealed that Ecuador will initiate an electricity rationing plan beginning on Friday, October 27, as reported by El Universo.

Officials in the electricity sector acknowledge that Ecuador is currently experiencing its most severe drought in the past 50 years, leading to historically low water supplies for power generation.

Insufficient water flow and low tributary levels are falling below the necessary requirements for electricity production. Local reports suggest that the energy crisis is not solely attributed to the drought. In an effort to address this situation, President Lasso is traveling to Colombia to seek assistance.

Ongoing Drought

Ecuador’s hydroelectric power generation is suffering from the effects of an ongoing drought. The decreased rainfall in the country is significantly impacting the river flows that are essential for powering the hydroelectric plants. As a result, the water levels in the reservoirs are steadily declining.

Decreased Rainfall

Ecuavisa reports on the case of the Coca Codo Sinclair plant which currently has a flow rate of 145 cubic meters per second, notably lower than the 164 cubic meters per second recorded just 20 days ago.

Ecuavisa accessed data from 10 different hydroelectric plants, all of which show a significant decrease in water availability.

Why Did Blackouts Return to Ecuador After 13 Years?

Primicias reports that the electricity crisis is caused by more than drought, including technical problems, malfunctions, constant repairs, and delays in contracting new electric generation, among other factors.

Ecuador recently experienced a return of blackouts, with power outages lasting three to four hours, marking the first occurrence in 13 years. While the government attributes these blackouts to a severe drought affecting the southern Paute region, which houses three significant hydroelectric plants – Paute, Mazar, and Sopladora, there are other underlying factors contributing to the crisis.

The drought, more severe than anticipated, has led to dwindling water levels in the Mazar reservoir, which is vital for maintaining water reserves during dry periods for downstream use at the Paute hydroelectric plant.

Unfortunately, the reservoir’s infrastructure has proven inadequate to cope with these extreme conditions, with water levels dropping to critical levels.

However, the drought is not the sole cause of the energy crisis. Ecuador has 1,754 megawatts of thermoelectric capacity installed, but only 853 megawatts are currently operational, unable to effectively address the situation.

Furthermore, delays in contracting new electricity generation have exacerbated the problem, despite prior warnings by the state energy operator, Cenace, about the impending dry season in the last quarter of the year.

Ecuador made substantial investments between 2007 and 2017, resulting in the construction of 14 hydroelectric plants.

Unfortunately, eight of these are located in regions currently suffering from drought and cannot operate at full capacity, further limiting the country’s power generation.

In addition to drought-related issues, technical problems have also hampered power generation. The Coca Codo Sinclair generation units are undergoing constant repairs due to factory defects, while issues like poor quality nuts led to the malfunction of a Blower unit in September.

The construction of new electricity generation plants has faced significant delays. Although ten plants were slated to begin operations between 2020 and 2023, only two have been inaugurated, and various projects have experienced contract signing delays, such as wind projects Villonaco III and the Aromo photovoltaic plant. The contract for a 500-megawatt Non-Conventional Energy Block remains unsigned, and recent legal decisions have complicated the investment landscape.

Primicias reports that Colombia, typically a source of electricity imports to Ecuador during shortages, has also been grappling with its own drought-related electricity supply issues.

Initially, Colombia covered 10% of Ecuador’s electricity demand, but it later restricted sales due to its own drought problems, leaving Ecuador with limited support.

Moreover, an unusual surge in electricity demand in Ecuador further exacerbates the situation, with a 13% increase compared to the previous year, as reported by energy operator Cenace. These factors, combined with delayed projects, drought, and technical issues, have culminated in the return of blackouts to Ecuador after over a decade of uninterrupted power supply.

Guillermo Lasso Announces Trip to Colombia to Address Power Outages

President Guillermo Lasso has announced his plans to travel to Bogotá on the morning of October 28 to hold discussions with his Colombian counterpart, Gustavo Petro. The primary goal of this visit is to seek support from Colombia in resolving Ecuador’s ongoing energy crisis.

 

 

While expressing his regret over the blackouts, President Guillermo Lasso affirmed that the government has already initiated actions to overcome this issue. He made this statement through his social media channels on the evening of October 27.

Lasso stated, “At different times, our country has supplied electricity to Colombia to assist in meeting their internal demand, and we anticipate reciprocal support from Colombia this time. I am confident that I will return with positive news.”

In an earlier tweet, the president outlined one of the medium-term measures the government is planning to implement to address the problem.

This includes negotiating energy import contracts with both Colombia and Peru, with the aim of improving import prices and ensuring a reliable energy supply. The expectation is to secure 200 MW of electricity between November and December.

 

 

The nationwide energy rationing has different durations depending on the region. In the Coast region, power cuts will last three hours, while in the Sierra and Oriente regions, the cuts will extend to four hours.

Power Outages

The outages commenced on Friday and will persist for four hours in mountainous regions and the Amazon, while coastal areas will experience three-hour blackouts.

Ecuavisa Noticieros describes that power outages will be implemented in sectors following rotating schedules determined by the 19 energy distribution companies. To minimize security concerns, the cuts will not occur during the nighttime or early morning hours.

The plan is to avoid affecting essential services like health and education, and in the case of Quito, the city’s metro system, which is set to commence operations on December 1.

While rationing is underway, efforts are being made to address the 465 MW energy deficit through the recruitment of new generation capacity.

 

 

Authorities are considering eight proposals from foreign companies, including the installation of generating barges and land-based electrical production systems, which would cost around $160 million.

There are 125 private electricity projects, with 70 using thermal energy, 27 hydraulic, 24 solar energy, three biomass, and one biogas.

The provinces of Orellana, Sucumbíos, and Napo have the highest investment in these initiatives, with more than 50% contributing to the National Interconnected System, providing approximately 655.2 MW of energy.

Ecuavisa Noticieros reports the government’s objective is to promote renewable energy sources. They have an updated Electricity master plan extending until 2031 to incentivize the execution of such projects. According to authorities, there are contracts ready to be put into action next year, generating 800 MW of energy.

To facilitate private sector involvement, authorities acknowledge that reforms to the electricity law are necessary. This is their vision for addressing this issue in the medium term. With the announcement of scheduled daytime blackouts, concerns have arisen among households regarding potential damage to their appliances due to voltage fluctuations.

Teleamazonas describes that Guayaquil is the city that consumes the most electrical energy. The urban area of Guayaquil consumes 21% of all energy on a national scale. The demand in that city exceeds 1,100 megawatts per hour, even more than what some provinces require.

Pichincha, on the other hand, consumes 16%, according to data from the National Electricity Corporation. This is due to several factors such as the industries that are located in that city, as well as the high temperatures.

If other cantons such as Samborondón, Daule or Durán are included, the energy demand would exceed 35% of the entire country.

Soledad Quartucci | CEO/Founder, Latina Republic

Latina Republic is dedicated to promoting regional understanding through compelling narratives, articles, interviews, and reports that emanate from the heart of the Americas. Our foremost goal is to facilitate constructive dialogue by illuminating local viewpoints frequently overshadowed by mainstream media. Our mission is to equip all stakeholders with essential insights for addressing regional issues, thus empowering them in their efforts. We are committed to portraying the victories and hardships of everyday life in Latin America, while also chronicling the progression of social movements and amplifying the voices of those at the forefront of change.

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