Ecuador Implements Energy Measures Amid El Niño Threat and Long-Term Sustainability Goals

Ecuador's Ministry of Environment and Energy, led by Juan Carlos Blum, is advancing a plan to safeguard reservoirs and ensure energy supply to citizens, in coordination with the nation's industries. This initiative, announced on September 18, 2026, is a response to the El Niño phenomenon.

Approximately 150 high-voltage (AV) consumers, specifically from the AV1 segment, have been requested to voluntarily disconnect from the grid one day per week. The AV1 segment comprises about 190 industries in total. This voluntary disconnection is anticipated to commence next week, with distribution companies actively contacting industries. The Ministry projects this measure could provide a system relief of 600 to 1,000 megawatts, contingent on industry participation.

To further address industrial demand, the government plans to contract additional electricity generation barcazas. Currently, one barcaza supplies energy, and two more contracts are in the process of being secured through Sercop for an initial six-month period. Industries not prepared with their own generation systems by December 15, as mandated by Executive Decree No. 32, will have the option to remain connected to the national system but will be charged real prices for electricity. The deadline for industries to implement their own generation systems is December 15, 2026, following a decree issued by President Daniel Noboa in June 2025, which provided an 18-month timeframe.

The Ministry is verifying the progress of self-generation efforts and is engaging with production chambers and guilds, particularly in Guayaquil and Durán, where 90% of high-voltage consumers are concentrated. Infrastructure reinforcements are also underway, including work on the Aeropuerto and Ciudad Colón distribution substations in Guayaquil. The inauguration of the Las Orquídeas transmission substation in Guayaquil is scheduled for October 2026.

President Daniel Noboa confirmed on September 18, 2026, that the government is in discussions with China to enhance Ecuador's electricity transmission network and develop solar energy projects with a potential capacity of up to 3,000 megawatts. These initiatives, discussed during Noboa's visit to China in August 2026, aim for Ecuador to achieve energy sustainability by 2035. Noboa emphasized that the primary challenge lies in electricity transmission rather than generation capacity, following a severe energy crisis in 2023-2024 that resulted in extensive power cuts.

What to watch

Monitor the voluntary disconnection rates among AV1 industries and the actual impact on system relief. Observe the progress of the barcaza contracts and their integration into the national grid. The December 15 deadline for industries to implement self-generation systems will be a key point for assessing compliance and potential shifts in energy costs for non-compliant companies. The ongoing discussions with China regarding transmission network strengthening and solar energy projects represent a long-term strategic development for Ecuador's energy sector.

Sources: eluniverso.com; vistazo.com; vistazo.com.