Ecuador presents to the private sector electricity generation and transmission projects for USD 1,861 million

This Ministry of Energy and Non-Renewable Natural Resources release was published using machine translation.

This Monday, September 20, the Government of the Meeting, through the Ministry of Energy and Non-Renewable Natural Resources, announced the start of three Public Selection Processes for the concession to the private sector of the construction, operation and maintenance of several projects of electric power generation and a transmission system, which require a private investment of USD 1861 million.

"We believe that the only way to move forward is together, therefore, in the Government of the Meeting, we facilitate the way and ratify the opening to responsible investments that allow us to achieve the slogan of more Ecuador in the world and more world in Ecuador", said the Minister of Energy and Non-Renewable Natural Resources, Juan Carlos Bermeo Calderón, during his speech at the ceremony held in Quito.

According to the guidelines of the Government of the Meeting, led by the President of the Republic, Guillermo Lasso Mendoza, transparency is essential in all processes, for which Public Selection Processes have been implemented that seek the participation of private actors for the development of energy projects, mainly non-conventional renewable.

It is a first Block of Non-Conventional Renewable Energies (ERNC) , with a power of 500 megawatts, which requires an estimated investment of USD 875 million. These projects will take advantage of solar radiation (photovoltaic), wind power (wind power), river power (hydroelectric up to 50 megawatts) and energy from biomass (rice husk, African palm, sugar cane, waste municipal not dangerous, etc). The projects will be proposed by the private initiative and may be located in different provinces of the country, depending on the primary resource available and the connection facilities with the National Interconnected System (SNI).

The Natural Gas Combined Cycle Block will have a nominal power of 400 MW . It will be thermal generation with the use of natural gas, whether of national or imported production. Its construction requires a private investment of the order of USD 600 million. The project developers will define the most appropriate site for the construction of the project, in order to supply energy to the SNI in the area of the city of Guayaquil, for which they will be able to consider the maritime ports of Posorja (Guayas) and Monteverde (Santa Elena ) for the importation of natural gas.

The third project to be awarded is the new Northeastern Transmission System, which will supply the oil activity, which currently consumes fossil fuels, with clean and renewable energy from the SNI. It will be located in the provinces of Sucumbíos and Orellana, in the Northeast of Ecuador. Through this new system, 300 megawatts will be delivered to the Oil Interconnected System. A private investment of USD 386 million is required for the construction of 290 km of transmission lines (230, 138 and 69 kV). This work includes the construction of three transmission subsystems:

1. Shushufindi - Tarapoa, at 138kV; Tarapoa - Cuyabeno, at 69kV; Shushufindi (CELEC) Shushufindi (PAM), 138kV.
2. Shushufindi - Edén Yuturi (EPF) - Tiputini (CPT) at 230kV
3. Loreto - Bear at 69kV

Concessionaire companies will have legal security for the development of their investments and will be able to access incentives established in the Organic Law for Productive Development, Investment Attraction, Employment Generation, and Fiscal Stability and Balance.

The implementation of infrastructure projects requires strong investments, in an articulated coordination between the private and public sectors. These actions allow the dynamization of the economy due to their multiplier effect on it, thus becoming an engine in times of crisis.