Ecuador: USD 500 million for Electricity Distribution works in 2023

This is an automated translation of the original release published in Spanish.

Ministry of Energy and Mines Statement  

The Ministry of Energy and Mines, through its 10 distribution companies nationwide, will invest USD 514 million in electricity distribution works in 2023, thus benefiting 2 million Ecuadorans, through plans and programs focused on improving the quality of service, expansion of the electrical system and the modernization of infrastructure that contribute to the reliability, continuity and increase of the installed capacity of the electrical system of the country.

At the national level, the execution of 152 projects is expected, distributed in 19 provinces, with an investment of USD 54.59 million, which consider the construction and repowering of substations and sub-transmission lines, with which the installed capacity will be increased. in power transformers and the interconnection between substations, thus allowing to efficiently meet the growth of Ecuador's energy demand.

It should be noted that throughout the Ecuadoran territory, this State Portfolio, through the Electric Companies, plans this year to carry out 1,221 projects involving the construction and repowering of feeders, change of transformation centers and the implementation of new network extensions, with the objective of improving the quality of electrical services and the expansion of the distribution system, with an investment that amounts to USD 236.83 million.

The public lighting system provides citizens with several benefits that help promote safety, increasing quality of life, boosting the economy, among other advantages. For this reason, it is a priority for this Entity to work in this field. For this reason, the Electric Distribution Companies of Ecuador plan the execution of 1,081 projects for the installation of around 50,000 LED luminaires, with an estimated value of USD 62.02 million for the year 2023. The distributors will direct their work to the placement of lighting on main roads, areas or neighborhoods of high insecurity, in the change of obsolete infrastructure or with problems in the quality of the service; thus optimizing the expansion and quality of the public lighting system throughout the country.

The resources allocated for the sub-transmission, distribution and public lighting plans are guaranteed through the inflow of cash to the distributors for the payment of the users of the electric power public service.

On the other hand, within the most relevant programs carried out by the Ministry of Energy and Mines in coordination with the Inter-American Development Bank (IDB), is Support for the Advancement of the Change of the Energy Matrix (IDB V), which consists of strengthening efforts to expand, reinforce and improve the operational efficiency of the electrical system, in accordance with the provisions of the Electricity Master Plan (PME) and the National Energy Efficiency Plan (PLANEE). The investment planned for this program is USD 111.26 million and is aimed at benefiting the agro-industrial sector and increasing the level of electricity coverage in rural and marginal urban areas.

Likewise, with the support of the Multilateral Organization, this State Portfolio develops the Program for the Modernization and Renewal of the Ecuadorian Electric System (IDB VI) with the purpose of contributing to the modernization and improvement of reliability, as well as the capacity of the system. Ecuadorian electricity, through the automation, renewal and repowering of equipment in the National Distribution System (SND). The tasks included in this program, which will cover 160 projects throughout the nation, are aimed at invigorating aspects related to planning, managing the system and facilitating expansion, as well as the quality and reliability of the service. Within the framework of the aforementioned program, a value of USD 49.42 million will be invested in: 24 Sub-transmission infrastructure projects, 131 Distribution works, 3 SND modernization projects and 5 Management projects.

It is important to highlight that international agreements, such as BID V and BID VI, have guaranteed assigned resources for the execution of the works included within the aforementioned programs, as determined by the Constitution of the Republic of Ecuador in its Art. 425, in which it is indicated: “The hierarchical order of application of the norms will be the following: The Constitution; international treaties and conventions; organic laws; ordinary laws; regional standards and district ordinances; decrees and regulations; the ordinances; agreements and resolutions; and the other acts and decisions of the public authorities”.

The National Government, through the Ministry of Energy and Mines, will continue to work transparently and efficiently, in the execution of electrical works that guarantee an effective, continuous, safe and quality electrical service for all Ecuadorans.