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Government moves forward with $259 million energy contract to face dry season challenges

Published on July 14, 2025

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The government pushes for a fast-track solution to secure additional power for the upcoming dry season.

The government of Daniel Noboa is advancing a critical energy leasing project as Ecuador prepares for the dry season beginning in September 2025. The state-owned Corporación Eléctrica de Ecuador (CELEC) has launched a tender worth $259 million to lease 260 megawatts of energy. The turbines—powered by either diesel or natural gas—are expected to be stationed in Pascuales II and Enrique García, both located in Guayas province. This move comes in response to the anticipated increase in electricity demand and the historical challenges of maintaining reliable energy supply during periods of drought.

The contract stipulates that the successful bidder will have until January 2026 to have the turbines operational. While the dry season will begin in September 2025, the tight timeline is intended to ensure that the turbines are in place to meet the higher energy demand expected from a 4% increase in electricity consumption.

Energy Demand and Planning

According to CELEC’s report, the urgency of this project stems from the need to secure 430 megawatts of “firm energy” to cover the dry season from September 2025 to March 2026. The report highlights the critical nature of the contract, noting that the country has faced electricity interruptions during similar periods in the past. Specifically, the country dealt with blackouts between April and May 2024 and again from September to December of that same year.

In this context, the government’s decision to lease turbines is aimed at preventing such interruptions and ensuring that there is no shortfall in electricity availability. The turbines will be operational just in time for the peak of the dry season.

Timeline and Challenges Ahead

Despite the critical nature of this project, the timeline for its completion is tight. The tender process, which began on July 9, 2025, is expected to conclude by July 30, 2025. Once the contract is awarded, the chosen company will have six months, or until January 2026, to mobilize, assemble, and commission the turbines. This leaves the government with a narrow window to ensure the turbines are installed and functional in time for the critical period.

  • Stage 1 (Mobilization, Assembly, and Commissioning): Up to 180 days (six months)
  • Stage 2 (Commercial Operation and Maintenance): 540 days (18 months)
  • Stage 3 (Demobilization and Final Reception): 90 days (three months)

Setbacks and Delays

This contract marks the latest attempt to address the country’s growing energy needs for the dry season, but it has not been without its challenges. Efforts to award the lease contract date back to October 2024, but these have faced multiple setbacks. One such issue was the cancellation of a previous bidding process after the winning bidder failed to provide the required guarantees. Despite these obstacles, the government is moving forward with the plan, hoping to avoid any further delays in securing the additional energy needed to ensure stable power supply during the upcoming dry season.

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