In parallel, the state-owned Corporación Eléctrica del Ecuador (Celec) is undertaking a 340 MW combined-cycle thermoelectric project using gas and steam, with an investment of approximately $392 million. Completion is expected within 24 months, adding firm capacity to the system. The government also plans to triple natural gas supply to Termogas Machala, raising production from 80 MW to 230 MW by 2027. Additionally, the Minas de Huascachaca project will expand its capacity from 50 MW to 140 MW by integrating 50 MW solar, 30 MW wind, and 10 MW energy storage, supported by an $85 million investment.
Private development of renewable projects is advancing, with close to 970 MW in unconventional renewable energy proposed for integration over 2027–2028. Transmission infrastructure improvements are underway, including a $289 million Ecuador-Peru interconnection line facilitating a 600 MW cross-border capacity and modernization of key substations. The national operator highlights a current reliance on leased thermal generation and imports—up to 784 MW combined—to manage supply shortfalls amid growing demand, estimated at 315 MW annually, and project delays.
Despite challenges, officials maintain there is no imminent risk of blackouts, stressing continued reservoir management and diversification as critical to maintaining reliability. The evolving landscape underscores Ecuador’s strategic push to fortify its electric system through a balanced mix of renewables, gas, and infrastructure upgrades.
This article was curated and published as part of our South American energy market coverage.
