Roberto Luque, former Energy Minister and current Minister of Transport and Public Works announced that the barge the government will rent to address the electricity crisis is already in route to Ecuador, despite the contract not yet being signed.

On Monday, July 8th, Luque reported on TC Television that the barge was awarded over the weekend and is expected to arrive in the next few days. The Turkish company Karpowership will provide the barge leasing service for a year and a half. This initiative comes as a critical response to the electricity shortage that has been impacting Ecuador, highlighting the urgency of the situation and the need for immediate solutions.

Luque did not provide further details of the award but had previously mentioned in an interview on July 5th that the barge would arrive in approximately 10 to 15 days. When asked why the barge was on its way if the contract was not yet finalized, Luque explained that the company took a risk and denied that Karpowership had been preselected for the tender. He emphasized that the decision-making process was transparent and competitive, with Karpowership emerging as the best option due to their comprehensive proposal and capability to meet the urgent needs of Ecuador’s energy sector.

Karpower bid stood out

He noted that when he took over the Ministry of Energy, there were about 17 offers, but Karpowership was the only one left standing due to their strong proposal. “There are very few people who can make you an offer and be the owner. Karpower came in because they had a very good offer,” Luque stated. This indicates that Karpowership’s proposal not only met but exceeded the expectations set forth by the Ecuadorian government in terms of reliability, efficiency, and cost-effectiveness.

In June 2024, amidst the electricity crisis, the state-owned Corporación Eléctrica de Ecuador (CELEC) launched five tenders to contract 438 megawatts of new electricity generation, with a reference budget of $498 million, to be installed between September 2024 and February 2025. This strategic move aims to bolster the country’s electricity generation capacity, ensuring that future energy demands are met without the recurrence of such crises.

What is a Powership?

Powerships are ship or barge-mounted, fully integrated floating power plants with capacities ranging from 30 MW to 470 MW. They can be customized to meet the host country’s requirements and commissioned in less than 30 days. These plants operate on natural gas, LNG, or low-sulfur liquid fuels, ensuring low-cost, efficient power delivery with no capital outlay. Powerships are designed for fast deployment and flexibility, suitable for grid-connected or off-grid locations. They require minimal onshore infrastructure, such as a transmission interconnection point and a small site office.

Advantages of Powerships

Powerships are particularly advantageous due to their ability to be quickly deployed and operational. This rapid deployment is crucial for addressing urgent power shortages and ensuring a stable supply of electricity. Furthermore, Powerships are equipped with the latest multi-fuel engine technology, operating in combined cycle mode to maximize efficiency. This means they can switch between different fuel types, such as natural gas, LNG, or low-sulfur liquid fuels, depending on availability and cost, which contributes to the overall affordability and reliability of the power supply.

Powerships also offer significant environmental benefits. By replacing old and inefficient power plants, they can help reduce greenhouse gas emissions and improve the overall environmental baseline of the host country. This supports the integration of renewable energy sources, providing a flexible and reliable backup that can respond quickly to fluctuations in renewable energy generation.

Economically, Powerships create value by reducing the cost of electricity generation and supporting the transition to cleaner energy sources. This makes them an attractive solution for governments, utilities, and private sector entities looking to enhance their energy infrastructure without incurring substantial capital expenditures.

Contract Types and Deployment

Powerships are available under various contract types, including Electricity Generation Services Contracts, Power Rental Contracts, Energy Conversion Works Contracts, or Power Purchase Agreements. These contracts cater to the urgent demands of electricity and are designed to deliver a turn-key project, including mobilization, site preparation, operation and maintenance, and contract management.

These ships are delivered in less than 30 days, provided all necessary permissions and licenses are completed. Karpowership undertakes all aspects of the project, from mobilization and site preparation to operation, maintenance, and contract management. If requested, they can also supply fuel, ensuring a seamless and efficient deployment process.

Host locations require minimal onshore infrastructure to commence operations once Karpowership receives the go-ahead to deliver the Powerships. Construction works include a transmission interconnection point, a small site office, and stores adjacent to the Powership. The Powerships come complete with all spares and consumables, a built-in workshop for required repairs, a high-voltage substation (no new substation onshore is required), and built-in fuel storage to convert the fuel into energy.

These ships can be installed at a coastal site where there is an available substation for electrical connection and suitable marine conditions for berthing or mooring. Mooring will be followed by the interconnection of Powership to the main grid. Finally, fuel connection occurs either from onshore facilities via pipeline, bunkering, or FSRU.

Powerships can create an immediate impact on any country, company, or community by securing a reliable supply of electricity, reducing the cost of generation, improving the environmental baseline by replacing old and inefficient power plants, and supporting renewable energy integration with flexible generation technology. This innovative solution addresses urgent energy needs while contributing to long-term sustainability and economic growth.