Novacero Plans $180M Investment in Two 50 MW Mini-Hydro Plants
Novacero plans to invest $180 million in two mini-hydroelectric plants as large industrial users respond to Ecuador's high-voltage self-generation mandate.
The mandate comes from Executive Decree 32, issued on June 15, 2025, which requires companies connected to the high-voltage system to implement their own electricity-generation systems by the end of 2026.
The rule applies to companies in Alto Voltaje 1 and Alto Voltaje 2. The AV2 group includes two mining companies and two steelmakers: Novacero and Adelca.
Novacero Energy Profile
| Metric | Figure |
|---|---|
| Company age in Ecuador | 53 years |
| Demand across three sites | About 50 MW |
| 2025 investment | $30 million |
| 2025 sustainability investment | $16 million |
| Planned hydro projects | 2 |
| Planned hydro capacity | 50 MW each |
| Planned hydro investment | $180 million |
Novacero's Guayaquil solar park opened in June 2025, ahead of the decree. The complex covers 34,000 square meters, includes 7,002 solar panels and has installed capacity of 4.23 MW.
That park currently generates about 90% of the Guayaquil plant's daily energy demand. Novacero plans to add 2,000 more panels over the next two months, adding 1.2 MW and targeting full self-sufficiency for the Guayaquil plant.
At its Quito plant, Novacero plans to install 4,000 solar panels over the next four months at the Turubamba industrial park, kilometer 15 south of the city. That would allow the Quito facility to become 90% self-sufficient.
Lasso Is the Constraint
The company's central challenge is its Lasso plant, where peak demand reaches 38 MW. General Manager Ramiro Garzon said that is more than the consumption of Latacunga.
Current self-supply covers only 30% of Lasso's needs. The electric furnace used to melt scrap into steel requires too much power to be covered by solar or thermal systems, which is why the company is pursuing hydro generation.
Garzon said Novacero is processing the environmental license and water adjudications needed for two hydroelectric projects. One would cover the company's needs, and the other would support the country in its energy deficit.
The plants would be located in the Austro and the northwest.
Timing Risk
The deadline is the core issue. The decree expires at the end of 2026, but Garzon said similar hydro permitting processes have taken two years.
He said Novacero hopes procedures take no more than six to eight months. Construction would then last between two and a half and three years.
What to watch
- Whether the government grants accelerated permitting for large industrial self-generation projects.
- Whether AV2 users receive flexibility if projects are licensed but not built by end-2026.
- Whether industrial self-generation reduces grid demand before the next dry-season stress period.
Source
Primicias — “Novacero construirá dos mini centrales hidroeléctricas para autogenerar energía y cumplir disposición del Gobierno”
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