At a Glance: Ecuador’s short-term energy goals

Ecuador’s government has rolled out its 2024-25 development plan, which seeks to guarantee sustainability in the supply of electric power and optimize the use of natural resources, among other policies.

The national planning department prepared the roadmap following engagement with public and private stakeholders.

“Citizens have spoken out regarding the circular economy, the use of recycled materials and sustainable technologies in infrastructure projects that allow promoting clean energy,” according to the plan.

“With respect to the hydrocarbon sector, the citizen contribution highlights the need for oil companies in eastern Ecuador to continue joining efforts, generating commitment, and responsible and sustained work in the processes of extraction and transportation of crude oil.”

The plan highlights that one challenge is the high unavailability of power generation plants, as some have reached the end of their useful life, and the lack of maintenance and unit replacement at others, coupled with delays of transmission and distribution works and projects.

This dispatch hurdle exacerbated the country’s power sector crisis which led to rationing.

Read National Assembly of Ecuador approved energy competitiveness law and Losses from Ecuador energy crisis forecast to top US$600mn

Regarding hydrocarbons, which underpins Ecuador’s economy, the roadmap calls on the need to promote tenders to increase natural gas production and make use of associated gas, and points to an increasing security risk of transport system infrastructure and the closure of block 43 ITT in Yasuní.

Read 37 companies presented letters of interest for the associated gas project in Cuyabeno-Sansahuari and Ecuador lowers crude output guidance on Yasuní decision

GOALS

The roadmap sets out targets that include increasing the installed capacity of new power generation to 8,584MW. 

Authorities also envision that power distribution losses will reach 13.2%, and the installed capacity of distribution substations will hit 7,98MVA by the end of next year from 6,958MVA at end-2023.

Meanwhile, hydrocarbon production is seen at 550,034boe/d in 2025 from 478,825boe/d last year.

And the optimization of power generation and energy efficiency is expected to save 41.5Mboe (million of barrels of oil equivalent) of fuel by 2025 from 32.6Mboe in 2023.

Regarding overall investment, the government aims to attract and maintain private and foreign direct investment in 2025 at US$2.42bn and US$846mn, respectively, from US$2.32bn and US$845mn in 2022.

The 2024-25 national development plan is available in the Documents box in the top right corner.

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