Ecuador Orders Weekly Power Cuts for 150 Large Industries to Preserve Hydroelectric Reserves Ahead of El Niño

Environment and Energy Minister Juan Carlos Blum confirmed on September 18, 2026, that the government finalized coordination with business chambers representing over 90 percent of Alto Voltaje 1 (AV1) segment consumers for one-day weekly disconnections described as “almost voluntary.” The AV1 classification encompasses mining, steel, cement and other energy-intensive operations. Blum stated distributors including CNEL Guayaquil, CNEL Guayas-Los Ríos, CNEL Manabí and Empresa Eléctrica Quito were executing implementation protocols, with the specific cutoff day still under negotiation with industry groups to minimize operational impact.

The rationing responds to accelerated drawdown of the Mazar reservoir, Ecuador’s second-largest and the principal asset in the Paute Integral hydroelectric complex. Water levels dropped to 2,138.8 meters above sea level in September 2026, leaving 14.2 meters of margin below the 2,153-meter maximum operating level. Coastal demand surged due to high temperatures, depleting reserves faster than projected. Without industrial curtailment, Blum indicated water levels would reach critical thresholds by mid-to-late October, forcing the cuts to extend reservoir viability until December when seasonal rains typically begin. He warned that if El Niño persists through 2027, “we are talking about another scenario.”

The ministry is simultaneously negotiating work-schedule modifications allowing industries to operate Tuesday through Saturday or Sunday through Thursday, requiring Labor Ministry approval to avoid production cost escalation. This intervention arrives three months before the December 15, 2026, deadline established under Executive Decree 32, which mandates AV1 and AV2 consumers install independent generation systems. Ministry data shows only 20 percent of obligated companies had complied by mid-September.

To bridge the gap, Ecuador will reactivate contracts for two Turkish Karpowership barges, Emre Bey and Erin Sultan, providing 200 megawatts. Emre Bey ceased generation in July 2026 after contract renewal stalled, while Erin Sultan’s extension was suspended in August. A third gas-fired barge will be leased between November and December 2026. Industrial consumers will pay the full cost of barge-generated electricity, which Blum noted has ranged from 32 to 92 cents per kilowatt-hour in Colombian import offers.

Blum emphasized residential consumers face no scheduled outages under current planning, contrasting with the 2023-2024 crisis when nationwide rationing reached 14 hours daily in September 2024 due to drought-induced hydroelectric failures.