This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 8/2/2016

Overview

Ecuador is undergoing massive change in the energy sector. The country is moving from a heavy reliance on fossil fuels to nearly complete self-sufficiency through renewable energies – particularly hydroelectric power. The country is also improving its energy transference infrastructure to allow massive loads to be carried more efficiently at high-voltage.

In 2014 Ecuador’s effective installed electric power generation capacity reached 5,299 MW, with a hydro-based capacity share of 42 percent, internal combustion engines share of 27 percent, gas turbines share of 18 percent and the remainder through steam turbines, biomass, photovoltaic and wind power generation. By 2018, the government forecasts the installed capacity to reach 7,780 MW, with an increased reliance on large-scale hydro. 

In 2013 Ecuador began execution of a plan to increase capacity by more than 3,000MW. These projects include: Coca Codo Sinclair (50% completed and currently generating 750MW), Paute-Sopladora (one turbine is operating and three more are expected to go live by 2016, total generation will be 487MW), Minas San Francisco (under construction and expected to be fully operational by 2016, total generation will be 276MW), Toachi-Pilatón (under construction and expected to be completed by 2016, total generation will be 253MW), Delsi Tanisagua (under construction and expected to be ready by 2017, total generation will be 116MW), Manduriacu (went live in 2015 and is generating 65MW), Termogas Machala, a power plant that is fueled by natural gas coming from the Amistad block in the Gulf of Guayaquil (expected to have a capacity of 327MW by the end of 2016 and to incorporate a new 110MW combine cycle gas turbine (CCGT) by the end of 2017), and other thermal generation and non-conventional renewable energy projects (including privately run solar generation of 20MW in Imbabura, Manabí, and El Oro that went live in 2014). Other hydro projects expected to operate in 2017 and 2018 include La Merced de Jondachi and Paute-Cardenillo (596MW). Additionally, to reduce costs at times when hydro generation will be insufficient, the plan is to generate power with natural gas or locally produced fossil fuels. 

The construction of the extra high voltage system of 500KV was built to connect Coca Codo Sinclair’s generation with the Inga (Pichincha province), Tisaleo (Tungurahua province) and Chorrillos (Guayas province) substations. The connection of Coca Codo Sinclair to the Inga substation was finalized in 2016 and the connection of the Inga substation to the Tisaleo substation and then to the Chorrillos substation is planned to be ready by 2017. 

Future projects under consideration include hydro, geothermal, wind, and biomass. Studies are currently being performed to assess the most effective future options.

Imports of electric power generation equipment benefit from relative proximity of Ecuador to the U.S.

Sub-Sector Best Prospects

  • Power, distribution, and specialty transformers,
  • Motors,
  • Industrial controls,
  • Combine cycle gas turbines, steam, gas, and hydraulic turbines,
  • Turbine generator sets,
  • Sediment cleanup equipment,
  • Steam boilers and mixed boilers,
  • Spare parts,
  • Water wheels and regulators,
  • Turbo-jets and turbo-propellers.

Opportunities

Ecuador provides business opportunities because the government is developing or planning to develop new power generation projects, mostly hydro, to accommodate a growing demand through 2022. Additionally, the country plans to reach self-sufficiency through clean production and potentially export energy to neighboring countries.

Some important business prospects exist as a result of a push to reduce the use of fossil fuels and increase generation through renewable energies, including hydroelectric plants, natural gas and combine cycle gas plants, and geothermal, biomass and wind power projects. Furthermore, there is a tendency to use smart-technologies to reduce losses.

The Government has announced plans to sell the Paute-Cardenillo (596MW) hydro plant to private investors.

Web Resources

Please contact Sofía Zárate, Commercial Specialist at the U.S. Embassy Quito, Ecuador at zaratesc@state.gov or 011-593-2-398-5512.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.