Is Ecuador facing a looming energy crisis?

Local media report on Ecuador’s looming energy crisis. The country’s largest power source, Coca Codo Sinclair hydroelectric plant, faces potential collapse. This $3 billion facility provides nearly a third of Ecuador’s electricity. However, its location in a disaster-prone valley threatens its survival.

How can Ecuador deal with a power crisis?

Ecuador faces limited options to address the crisis. The country currently rents a floating fuel-oil plant to mitigate power outages. It also imports electricity from Colombia, but supply interruptions persist. Developing alternative energy sources would take years. The situation highlights the risks of overreliance on hydropower.

Does Ecuador need hydropower?

The country currently rents a floating fuel-oil plant to mitigate power outages. It also imports electricity from Colombia, but supply interruptions persist. Developing alternative energy sources would take years. The situation highlights the risks of overreliance on hydropower. Ecuador depends on it for 80% of its electricity needs.

How much electricity does Ecuador need?

Ecuador had a peak demand of 5,110 MW in May 2025, and according to CENACE, electricity demand grows by 360 MW every year. Ecuador’s energy shortage could result in a recurrence of power outages, particularly in the dry season of September through December. Ecuador has added minimal generation in recent years.

How did Ecuador's power outages affect economic activity in 2024?

During a prolonged dry season in 2024, Ecuador’s over-reliance on hydropower (78 percent of total generation) resulted in daily blackouts of up to 14 hours, hurting economic activity. According to Ecuador’s Central Bank, power outages caused economic losses of about $2 billion in 2024.

Where does Ecuador's electricity come from?

Ecuador’s state-owned electricity company, CELEC EP, imports electricity from neighboring Colombia. CELEC is also increasing diesel purchases from Petroecuador to power its thermal electric power plants. Ecuador had a peak demand of 5,110 MW in May 2025, and according to CENACE, electricity demand grows by 360 MW every year.