Ecuador Facing Major Energy Crisis

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Researched by Industrial Info Resources (Sugar Land, Texas)--Because of one of the worst droughts in 45 years caused by the El Niño phenomenon, generating capacity of the 1,100-megawatt (MW) Paute Molino hydropower plant in Ecuador has been seriously affected, and the country is facing a major energy crisis. The situation has worsened with the decision of Colombia to suspend exports of electricity to Ecuador to prepare the country for the summer's demand peak.

Ecuador's energy mix is largely dependent on hydropower plants, which produce 47% of total domestic electricity. The Paute Molino hydropower plant, located on the Cuenca River, produces 35% of the country's domestic electricity. In November, the volume of flow of the Cuenca River dropped to less than 20 cubic meters per second, affecting the production of energy. On November 6, Ecuadorian President Rafael Correa Delgado signed an emergency decree declaring an energy emergency. The decree established a "contingency plan," consisting of measures to reduce consumption and improve energy production in the short term.

Such measures include two- to three-hour shutdowns scheduled in several cities, reductions in the use of public lighting, and fines for residential consumers who overuse electricity.

The decree also authorizes the government to purchase or hire power and equipment directly, without a bidding process. The government has made steps to purchase power from Peru. On November 16, 146 MW was added to the Ecuador's national grid when the 100-MW Victoria II Barge Power Station, owned by Compañía Intervisa Trade SA (Quito), and the Power Barge II Barge Power Station, owned by Ulysseas Incorporated (Quito), became operational after being mothballed because of a lack of maintenance. Both plants are located near Guayaquil. The government is also planning to acquire internal combustion engines from Cuba to generate an extra 150 MW. The engines should be in Ecuador by March 2010. Further similar releases for quotation are expected to be launched by the Electricity Ministry in the future.

This crisis is not only the result of El Niño, but also from a lack of investment in the country's electricity sector. The government launched a "Master Electrification Program" that includes several generation and transmission infrastructure projects that are currently in different stages of implementation. The program includes major hydropower projects, such as the 1,500-MW Coca Codo-Sinclair hydropower plant and the 1,200-MW Zamora hydro project. Also included are diesel- and oil-fired power plants to respond to demand peaks, including the 132-MW Shushufindi Power Plant or the 150-MW extension of the Termoesmeraldas Power Plant.

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