Ecuador strengthens national electricity system after two years of government initiatives

Ines Manzano
Ines Manzano
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After two years of management, Ecuador has achieved a steady recovery in its national electricity system, according to an official statement. The country has moved past the energy crisis that affected it in recent years.

In 2023, the growth in power generation was limited to projects already planned, such as Sarapullo (47.3 MW), Minas de Huascachaca (56 MW), and Ulba (1 MW). These additions did not significantly change the structure of the National Interconnected System. At the same time, reservoirs were at about 30% capacity and thermal plants suffered from high levels of unavailability due to lack of maintenance and damaged infrastructure.

Faced with this critical situation and what was described as the worst drought in history, the government launched emergency measures that added 182.4 MW of new capacity, mainly from thermal sources. This helped stabilize system operations during a period of contingency. Efforts also began to restore damaged units and expand available capacity at key power plants.

As a result of these decisions, 2025 is described as a turning point for Ecuador’s electricity sector. New capacity added during 2024 became operational, along with further projects that increased generation by about 440 MW from hydroelectric plants, thermal sources, and leasing solutions. In total, over two years, more than 860 MW have been added or restored to the national grid—including bringing back into service 239.6 MW from previously damaged or limited thermal units. Notable achievements include restoring Trinitaria and major maintenance on Sopladora U2, which will return 162.3 MW to system availability.

These steps have allowed reservoir levels to recover significantly; while reserves stood at around 30% in 2023, by 2025 the Paute–Mazar chain reached nearly 98% capacity with favorable conditions also reported at Pisayambo, Daniel Palacios, and Marcel Laniado reservoirs. This storage is seen as a strategic reserve for meeting demand during dry seasons or unexpected events affecting generation.

The National Transmission System has also made progress on structural works: more than USD 116 million was invested up to September 2025 for expansions, new lines, and modernization of substations. An additional USD 63.29 million went toward replacing and expanding priority infrastructure; USD 140.19 million was allocated for strengthening electric supply in the aquaculture sector through CAF financing; and USD 69.55 million supported reliability projects funded via tariffs—all aimed at improving service continuity and stability.

According to officials: “The results achieved over these two years show a structural change compared to the reality of 2023.” They continued: “The country now has greater firm generation capacity, a recovered thermal park, reservoirs at historic levels, sustained investments in transmission infrastructure and an operational plan that reduces dependence on hydropower resources.” The statement concluded: “Ecuador now has a stronger, safer and more resilient electrical system—prepared for dry periods—and ready to support ongoing economic growth.”



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