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Government Pushing for New Thermal Generation Amidst Ecuador’s Energy Crisis

Published on October 14, 2024

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Ecuador seeks to add 160 MW of thermal power to national grid as blackouts deepen.

 Ecuador has launched two procurement processes to inject an additional 160 megawatts (MW) of thermal energy into its National Interconnected System (NIS). This initiative comes at a critical time, as nationwide power cuts—lasting up to ten hours a day—disrupt homes and businesses across the Andean nation.

The state-owned public utility, Estrategica Corporación Eléctrica de Ecuador (CELEC), announced the details in a statement on Saturday. The first project involves acquiring, installing, and commissioning 120 MW of land-based generator sets in the coastal province of Guayas. These units will be deployed at kilometer 14 of the Durán-Boliche highway, near the town of Durán.

This new thermal power plant will use HF04 fuel, and its electricity will be fed into the national grid through the Durán Substation. CELEC stated that the procurement process for this project was published on the public contracting portal last Wednesday, with Sunday, October 13th, as the deadline for proposals.

Once submissions close, a Technical Commission will analyze key factors—such as project timelines, costs, and compliance with technical standards—before selecting the most suitable proposal.

Power expansion in Machala as well

In addition to the Durán project, another 40 MW of thermal capacity will be leased to bolster the Machala II power plant. The lease will consist of two dual-fuel units—each generating 20 MW—that can run on either diesel or natural gas.

The procurement for the Machala units was posted on the public contracting portal on Friday, October 6th, with a proposal deadline of October 16th. These efforts are part of the second “emergency generation block”, an initiative aimed at adding up to 800 MW of new energy capacity to the NIS.

Blackouts and Limited Hydropower

The urgency behind these new projects reflects the gravity of Ecuador’s current energy crisis, which worsened this week as the government extended power cuts from four hours to ten hours daily. The rolling blackouts have been implemented by time slots, further straining daily life and economic activity.

The crisis has exposed the vulnerability of Ecuador’s electricity matrix, which relies heavily on hydropower. More than 70% of the country’s electricity comes from hydroelectric plants, including the Coca Codo Sinclair dam, the nation’s largest, with a capacity of 1,500 MW. A severe drought—said to be the worst in 60 years—has reduced water levels and hindered power generation at key hydro facilities.

In addition to the Coca Codo Sinclair plant, the Paute River hydropower complex, with over 1,700 MW of combined capacity, has also suffered from lower water inflows.

Floating Power Plants and Private Sector Support

The government has pinned hopes on both short-term and long-term solutions to address the deepening crisis. Among these measures is the contracting of a 100 MW floating power plant from the Turkish energy company Karpowership, which is now operational.

Furthermore, the Ministry of Energy has urged private industries to run their own fuel-powered generators during the day to reduce strain on the national grid. Officials have also cited years of mismanagement and corruption in the energy sector as contributing factors to the current crisis.

These emergency interventions signal Ecuador’s intent to stabilize its energy system, but they also highlight the nation’s over-reliance on hydropower and the need for more resilient energy sources. As the government navigates these challenges, the successful implementation of the Durán and Machala projects will be crucial to alleviating the immediate energy shortfall.

With deadlines fast approaching, all eyes are now on CELEC to deliver results that can help Ecuador weather this unprecedented energy crisis.

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3 Comments

  1. While every megawatt counts, we need some solid gigawatt solutions if we are going to address short term cuts and long term demands.

    Reply
  2. Why not build a nuclear plant and export power as well as have an abundance in Ecuador?

    Reply
  3. I would like to point out that generating power with a diesel generator is more energy efficient than operating a gasoline car, about 40% versus 20%.
    Therefore, if an electric car is put in service, the amount of fuel saved as compared to a gasoline car, is more than the fuel used by the generator. So transition to electric transportation should not be delayed because of the shortage of electric energy.

    Reply

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