Ecuador bill to promote private investment in renewables advancing

Ecuador’s national assembly approved in a first debate a bill to further promote private investment in renewable energy.

The proposal was introduced by the executive branch, which labeled the initiative urgent, as part of actions to address the country’s power supply crisis.

“Private investment in Ecuador's electricity sector is crucial, especially in the context of the drought... which causes suspension of electrical service and greater dependence on alternative sources, such as gas and oil,” according to the bill.

The bill would add articles to the public electricity service law related to incentives for non-conventional renewable energy projects and public selection processes, and authorize power distributors to sign power purchase agreements with private generators.

The bill, available in the Documents box in the top-right corner of the screen, has returned to the economic development committee for review prior to a second debate.

As part of sector efforts, the government in recent days granted private company Hidroriente an enabling title for a 100MW hydro project in the provinces of Zamora Chinchipe and Morona Santiago.

The 1,166-page environmental impact study and environmental management plan, available here, states that construction will take an estimated 36 months.

In addition, the environment ministry issued environmental licenses for private hydro projects El Rosario and Santa Rosa, each of 49.9MW, and solar projects Ambi (60MW), Imbabura (120MW), Intiyana (60MW) and Urcuquí (60MW). Combined investment is US$438mn.

The six projects were awarded in the government’s 500MW NCRE call and the concession contracts were signed last year.

For his part, lawmaker Henry Kronfle introduced a bill to the national assembly to also reform the public electricity service law.

The legislator contends that the framework law “does not consider the current challenges that our country requires for a good supply of electrical energy, such as the transition towards cleaner and renewable energy sources, the modernization of electrical infrastructure, or changes in the business model of the energy sector.”

His initiative, which proposes streamlining permitting processes, among other changes, is also available in the Documents box.