Faced with a worsening electricity crisis, Ecuador has turned to floating power plants to keep the grid operational. The government has secured three barges from the Turkish company Karpowership at a total cost of $250 million. These vessels, each capable of generating electricity offshore, will remain in operation in Ecuador for periods ranging from six to 18 months. While these floating power plants provide an immediate energy boost, the high costs, contract conditions, and selection process raise critical questions about their long-term impact and transparency.

Contracts Signed After Deployment

A key issue with Ecuador’s emergency energy solution is that the contracts for all three barges were signed after the vessels had already begun their journey to the country. Karpowership, citing the region’s energy crisis, took the initiative to move the barges at its own expense and risk, positioning them for rapid deployment. However, this unusual sequence of events raises concerns about the terms Ecuador ultimately agreed to, including a stipulation in all three contracts that international arbitration would take place in London should disputes arise. This legal provision could complicate Ecuador’s ability to renegotiate or challenge contract terms in the future.

The Three Barges: Generation Capacity and Costs

Together, the Emre Bey, Murat Bey, and Erin Sultan barges provide up to 300 megawatts (MW) of additional power to Ecuador’s grid. However, their contracts differ significantly in duration, pricing, and operational requirements:

• Emre Bey (100 MW): This 2001 Liberian-flagged vessel was the first to arrive and has a contract worth $114.39 million for a term of 18 months. It was initially meant to dock in the Las Esclusas sector, south of Guayaquil, but strong currents forced it to be relocated to the old docks of Ecuagran, where conditions were more suitable for its deep draft. The contract stipulates a fixed charge of $0.09 per kilowatt-hour (kWh), payable regardless of whether the barge is operational, plus an additional $0.01 per kWh when it generates power.
• Murat Bey (98 MW): Officially introduced by Karpowership two months ago, this barge was converted in mid-2024 to operate with Ecuador’s 60 MHz frequency. It arrived in Ecuador on December 17, 2024, and began generating electricity in early January 2025, gradually ramping up to 96 MW by February 7th. The contract for Murat Bey lasts six months, with a simple payment structure of $0.089 per kWh delivered. Competing bids from Saint Thermo and Energy Experts Now were rejected—Saint Thermo’s offer of $0.081 per kWh did not meet all contractual requirements, while Energy Experts Now’s mixed pricing structure was deemed incompatible with Ecuador’s payment terms.
• Erin Sultan (100 MW): The most recent addition, Erin Sultan, was already in Ecuadorian waters before its contract was signed on February 5, 2024. It reached Las Esclusas on January 23rd but was still undergoing energization tests as of early February, awaiting fuel before delivering power. The contract spans 555 days, with an energy cost of $0.085 per kWh plus a variable charge of $0.004 per kWh. Alternative offers from Energy Experts Now and Esclusas Global Consortium were dismissed due to insufficient experience, despite Esclusas offering a fixed rate of $0.082 per kWh.

A Costly Yet Temporary Solution

While the three barges will help mitigate the immediate electricity crisis, the financial and contractual terms highlight concerns about Ecuador’s energy strategy. With an overall cost of $250 million, these emergency measures reflect the government’s urgent need for power but also underscore a reliance on short-term solutions rather than sustainable infrastructure investment. The rapid approval and post-facto contract signing further raise transparency issues, leaving many to question whether Ecuador secured the best deal for its energy needs.

As the barges hum along the banks of the Guayas River, providing much-needed electricity, the long-term question remains: how will Ecuador address its energy crisis once these floating plants depart? The country now faces the challenge of balancing immediate relief with the need for permanent, cost-effective energy solutions that do not rely on emergency measures and high-cost international contracts.