Second Thermal Procurement Failure in Two Weeks: Celec Pascuales 50 MW Contract Declared Desert

Celec EP declared the Pascuales thermal generation rental contract failed ("desierto") on May 4, 2026, marking the second procurement collapse for emergency power capacity in two weeks.

Contract Details

The Pascuales process sought 50 MW of diesel-powered generation under a rental arrangement:

Parameter	Detail
Capacity sought	50 MW diesel generation
Budget	USD 77 million
Target delivery	End of August 2026
Bids received	4
Bids qualified	0

All four bidders were disqualified:

Company	Reason
JV Helioslux & NVS Engineering LLC	Missed submission deadline
Consorcio Enrique García 1	Failed minimum technical requirements
Aggreko Energy Ecuador	Failed minimum technical requirements
Mejicali Turbine Energy	Failed minimum technical requirements

The disqualification of Aggreko — one of the world's largest temporary power providers — signals that the contract terms or technical specifications may have been the issue, not a lack of capable suppliers.

Pattern of Procurement Failures

This follows the Elecaustro El Descanso III thermoelectric project being declared desert on April 27, which would have provided 20 MW of additional capacity.

Date	Contract	MW Lost
April 27	El Descanso III (Elecaustro)	20 MW
May 4	Pascuales (Celec)	50 MW
Total		70 MW

Of five thermal generation rental contracts launched in April, two have failed. Four remain pending. A sixth process for 60 MW in Salitral was receiving price quotes through May 6 but has not been formally launched.

Diesel Generation Economics

The procurement failures are occurring against a backdrop of rapidly escalating thermal generation costs:

Metric	2025 Baseline	2026 (Jan-Apr)	Change
Avg. monthly thermal generation	562.83 MW	793.40 MW	+41%
April 2026 thermal generation	—	919 MW avg (1,300 MW peak)	—
Diesel 2 price/gallon	.11	.45	+64%
Premium diesel price/gallon	.18	.90	+79%
Overall fuel consumption	—	—	+23% YoY

85% of Ecuador's diesel is imported, making the thermal generation strategy directly exposed to international fuel markets and dollar-denominated logistics costs.

Peak electricity demand reached 5,374 MW on April 14, driven by coastal heat waves — the highest single-day figure reported in 2026.

Supply-Side Constraints

• Coca Codo Sinclair: Operating at approximately 40% capacity (vs. 1,500 MW nameplate) due to chronic sediment loading
• Paute Complex: Supplying 38% of national demand, but output declining under prolonged drought conditions
• Colombian imports: Suspended since January 22, reducing available supply by up to 450 MW. Average imports have fallen to just 46 MW in early 2026

Cenace has acknowledged that the Colombia suspension forced "dispatching more expensive thermal generation" that could have been avoided.

What to Watch

• Remaining four April contracts. Whether the pattern of procurement failures extends to additional thermal rentals will determine the backup generation available by September
• Salitral 60 MW process. This larger contract could partially compensate for the Pascuales loss if it proceeds successfully
• Diesel import logistics. With consumption up 23% and 85% import-dependent, any port congestion or shipping disruption would cascade into generation capacity
• August deadline. The Pascuales contract was targeted for end-of-August delivery — ahead of October's dry season. The failed procurement leaves a narrowing window to source replacement capacity
• Fiscal implications. At .45-3.90/gallon for imported diesel running at 41% higher volumes, the energy subsidy bill is growing rapidly. Monitor Ministry of Finance emergency budget allocations

Sources: Primicias