Ecuador will require US$10bn in generation, transmission investments

Ecuador will need to invest US$7.5 billion in electric power generation and US$2.5bn in transmission over the next decade, for which private participation will be key, according to José Ramón Gómez, an IDB energy specialist based in Ecuador.

“Ecuador is a growing market that will require continuous strengthening of investor confidence. Without a strong private sector that participates and acts, it will be very difficult to achieve results,” Gómez said during the Power & Renewable Energies Summit in Quito.

He added that cooperation with the private transmission and generation sector and support from institutions will be necessary to execute electric power projects and respond to growing energy demand.

The IDB, according to Gómez, has invested around US$3bn in Ecuador in the last 10 years, mainly in transmission infrastructure, but also distribution and technical assistance.

He added that Ecuador's electricity sector has advanced, including with legislative issues, which has contributed to improving the investment environment, "but unfortunately it doesn't communicate about these advances."

Gómez said that Ecuador is about to issue a national energy plan with a focus on renewable energy.

Overall, Ecuador is on the right path as it faces challenges such as maintaining private sector participation in the electricity sector, particularly regarding renewable energy and diversification of the electrical matrix, Gómez said.

He underscored that the Ecuadoran market is growing and will offer investment opportunities.