The $90 million proposal promises more electricity and water security for Cuenca, but environmental opposition has not disappeared.

A hydroelectric project that once stalled amid strong community and environmental opposition is back on the government’s agenda.

The Noboa administration and Elecaustro have revived the Soldados–Yanuncay hydroelectric project, a multipurpose development planned for the upper Yanuncay River basin southwest of Cuenca. The project is designed to generate about 21.8 megawatts of electricity while also regulating water supplies for drinking water, irrigation and flood control.

The government presents the project as a long-term solution for both electricity generation and Cuenca’s water security.

Opponents see something very different: a large infrastructure project in a sensitive high-altitude ecosystem that has already generated years of conflict.

A dam, two power plants and a reservoir

The project centers on a planned 42-meter-high dam and reservoir known as Quingoyacu.

Water from the reservoir would be sent through buried pipelines to the Soldados hydroelectric plant, where it would generate approximately 7 megawatts.

From there, the water — combined with flows from the Ischcayrumi River — would continue to a second generating station at Yanuncay, producing about another 15 megawatts before being returned to the river system.

The combined output would be relatively modest compared with Ecuador’s giant hydroelectric complexes, but Elecaustro has estimated it could supply electricity equivalent to the consumption of about 65,000 households.

That additional generating capacity comes at an important moment.

Ecuador has entered another dry season with hydroelectric reservoirs falling and concerns about whether the national system has enough backup generation if river flows decline sharply.

The project is about more than electricity

The government argues that electricity is only one benefit.

Officials say regulating the Yanuncay River would improve the long-term supply of raw water feeding Cuenca’s Sústag treatment plant.

The Presidency says the project could guarantee drinking water supplies for Cuenca through 2050. Earlier technical descriptions of the project suggested regulated flows could extend the supply horizon even farther.

The reservoir would store water during wetter periods and release it during dry periods, providing a more consistent flow to the treatment plant.

That matters because the Sústag facility supplies a significant portion of Cuenca’s drinking water.

The government also says regulated flows would provide more dependable irrigation for agricultural areas in San Joaquín and Baños.

Flood control is another selling point

Officials argue that the reservoir would also reduce flooding risks along the Yanuncay.

During periods of heavy rain, the reservoir could hold back some water and release it more gradually.

The Presidency specifically identified neighborhoods and sectors including Minas, La Inmaculada, San Juan, San José, Barabón Grande, Barabón Chico, Misicata, Avenida Primero de Mayo, UDA and Monay as areas that could benefit from better control of the river’s flow.

That argument may become increasingly important if El Niño produces heavier rainfall along parts of Ecuador.

But the project has already faced opposition

Soldados–Yanuncay is not a new idea.

Construction of an initial stage began under former President Guillermo Lasso in 2021, including road improvements and earthworks.

The project soon ran into resistance from residents of the Soldados community and environmental organizations.

Opponents argued that construction was advancing without adequate prior consultation and warned that the project could damage the upper Yanuncay watershed.

Work eventually stalled.

The earlier version of the project was expected to take about four years and cost approximately $90 million.

The current government has not yet provided an updated construction cost or a firm timetable for completing the revived project.

Quimsacocha adds another layer of controversy

The location is especially sensitive because project infrastructure would affect the Quimsacocha National Recreation Area.

A government management plan for the protected area identifies Soldados–Yanuncay as a potential conflict because pipelines between the dam and generating facilities would pass through the northern portion of the protected zone.

The document says Elecaustro must coordinate with environmental authorities and Cuenca’s municipal water company, ETAPA, to minimize impacts and comply with environmental rules.

Quimsacocha has become one of the most politically sensitive environmental areas in Azuay.

Concerns over water protection there have already fueled long-running opposition to the separate Loma Larga mining project and have made protection of Cuenca’s páramo watersheds a major local political issue.

A new “Quinto Río” march for water is scheduled in Cuenca for September 16th, with environmental and social organizations again mobilizing over what they describe as threats to water sources and fragile ecosystems.

A complicated choice for Cuenca

Soldados–Yanuncay presents an unusually difficult policy argument because both sides can point to water protection as part of their case.

Supporters say the project would secure drinking water during droughts, provide irrigation, reduce flooding and generate renewable electricity.

Opponents argue that protecting Cuenca’s water means avoiding major construction inside sensitive high-altitude ecosystems in the first place.

The revived proposal therefore goes well beyond a debate over whether Cuenca needs another 21.8 megawatts of electricity.

It raises a more fundamental question that has surfaced repeatedly in Azuay: how much infrastructure should be allowed in the páramo when that same landscape is responsible for capturing and supplying much of the region’s water?

With the government formally recommitting to Soldados–Yanuncay, Cuenca is likely to be debating that question again.