Roundup: Geothermal deal, hydro project, tax break

Ecuador and Japan formalized a loan agreement for US$43mn to advance development of the 50MW Chachimbiro geothermal project in Imbabura province.

The first phase will cost around US$80mn and will be covered by the Japanese financing and state power corporation Celec’s own funds, the South America country’s government reported.

Read Ecuador issues geothermal project consultancy call

Hydro project

Operations at the 204MW Alluriquín plant, part of the 254MW Toachi Pilatón hydro complex, are expected to begin in December and reach full capacity in February.

Celec provided the update following a visit by President Daniel Noboa, highlighting the signing of an agreement this year with the contractor, Tyazhmash, to complete the work, which according to the government has been stalled since 2017 due to “non-compliance of contractors and legal problems.”

Toachi Pilatón’s other components, Sarpullo (49MW) and a plant at the foot of the dam (1.4MW) are in service.

Tax break

The government issued a decree that exempts the import and sale of power generators from the value added tax until year end as part of actions to address the country’s electricity shortfall brought on by drought and “years of abandonment.”

Authorities announced, however, that scheduled power cuts will be reduced due to favorable hydrological changes and efforts to increase dispatch, such as procuring emergency generation.