The 120 MW of contracted leased capacity represents 23 percent of the 525 MW rental target. Procurement processes launched since April totaling 245 MW have resulted in only these four adjudicated contracts by September 8. The government’s strategy focuses on smaller regional agreements to supply decentralized generation centers. Parallel procurement efforts managed by state entities Celec and Elecaustro continue for additional thermal leasing.
Ecuador faces the dry season with a projected worst-case generation deficit of approximately 1,300 MW. Hydropower installations, which dominate the national grid, are entering the low-flow period with reduced reservoir levels and elevated electricity demand. Throughout 2026, the country added just 50 MW of new generation capacity, leaving a substantial gap between consumption growth and available supply. Part of the anticipated shortfall will be covered through an agreement with Colombia for cross-border electricity purchases.
The supply gap is already triggering precautionary measures. Industries and shopping centers in Quito have begun activating private generators at the start of the 2026 dry season, three months before self-generation becomes mandatory for large consumers. Companies received direct requests to switch on backup plants voluntarily, communicated outside formal regulatory channels. The advance activation reflects concern over grid reliability during the critical dry months.
The government aims to reach 245 MW in contracted thermal generation but has secured less than half that figure. The remaining procurement processes face delays, and the full 525 MW of planned leased capacity remains far from realization as the country navigates peak demand with constrained hydropower output.
This article was curated and published as part of our South American energy market coverage.
