POWER March 2021 - 36

POWER IN ECUADOR
Ecuador's Power Grid Gets a
Massive Makeover
Over the past two decades, Ecuador has added a lot of hydroelectric power to its
mix. Going forward, natural gas generation is expected to play more of a role in
maintaining reliability and adding flexibility. As more intermittent renewable
resources are incorporated, reactive power assets will also be important.
Frank Dougherty, PhD
S
tep into your DeLorean, set the
controls for the year 2002, fire it
up to 88 mph, and head to Ecuador.
The electric grid of that time would
be unrecognizable compared to that of
today. Back then, a meager 7.9 GW of capacity
could only provide power to a tiny
portion of the population. An investment
of nearly $5 billion over the decade that
followed brought total capacity to more
than 20 GW, and enabled an increase in
household and small business electrification
throughout the country. The bulk of
that came from eight new hydroelectric
projects that boosted its share of power
production from 30% to about 90%.
Despite such massive progress, the
job is n't done. A shift in government policy
in 2019 to allow foreign investment
into the energy sector means that another
5 GW will be added over the next few
years. This includes a 1-GW combined
cycle plant for the Guayaquil area and
two large hydroelectric plants, as well as
major transmission upgrades.
Renewables in Ecuador
Wind and solar are very much in their
infancy in Ecuador. The International Renewable
Energy Agency reports that Ecuador
has 26 MW of photovoltaic solar.
Most of this comes from a 20-MW project
commissioned in 2014. Wind capacity
trails with 18.9 MW, with 16.5 MW
of that from the Villonaco I wind farm
introduced in 2013. But wind and solar
penetration are about to grow considerably
as part of the latest governmental
plans. The 200-MW El Aromo photovoltaic
solar project, and the Villonaco II and
III wind projects (46 MW and 56 MW)
are under development. Each is being
granted attractive 25-year power purchase
agreement terms.
Still, hydroelectric power is destined
to dominate the renewable energy picture
for some time to come (Figure 1).
Most of Ecuador's existing hydro capac36
1.
The electric generation mix on Ecuador's grid is dominated by hydropower. Source: SSS
Clutch Co. Inc.
ity is located in Azuay province in the
south-central highlands.
The 1.5-GW
Coca Codo Sinclair is the nation's largest
hydro facility. It began operation in 2016.
Next is Paute-Molino at almost 1.1 GW.
Another 780 MW of hydro went online
over the last couple of years.
Much more hydropower is planned
over the next seven years. The Santiago
Hydroelectric Project will amount to
2,400 MW, while the Cardenillo Hydroelectric
Project will add 596 MW. Both
are in the final design stages and already
have environmental licenses. The Cardenillo
project is the final stage of the Paute
hydro complex, comprising the Mazar,
Molino, and Sopladora plants. Construction
will take 72 months and includes additional
transmission lines.
The big player in the country's power
sector is Corporación Eléctrica del Ecuador
(CELEC EP). In 2010, it operated 2.5
GW of power generation. This comprised
two-thirds hydro with most of the rest
coming from thermal generation (gas,
steam, or oil). It had no wind generation
in its portfolio at that time.
The company has increased its total
capacity each year for the past decade.
In that time, it almost tripled capacity to
6.36 GW. CELEC EP currently operates
14 hydro facilities (4.5 GW), 27 thermal
generation plants
(1.8 GW), and one
16.5-MW wind farm.
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Thermal Generation
Small-scale
fuel oil and diesel
generation
are widespread in Ecuador to
compensate for lack of available grid resources.
Out of more than 200 power
plants operating in in the country, less
than 100 provide power to the grid.
Most burn fuel oil, but the government
is implementing programs to gradually
phase them out. Since 2014, petroleum
derivative consumption for power has
shrunk from more than 500 million gallons
per year to about 150 million gallons.
This was accomplished during a
time frame when electricity consumption
in the country tripled.
At the same time, plans for the expansion
of natural gas-based generation are
taking shape. Ecuador has a relatively
small amount of available natural gas
reserves, and lacks the infrastructure
needed to capture and market its natural
gas broadly. The primary source is
offshore in the Gulf of Guayaquil. Gas
from there is sent to the Machala natural
gas combined cycle facility. This 130-MW
plant supplies electricity to Guayaquil
and its surroundings.
But the role of natural gas is set
to grow. The government is studying
the addition of a liquefied natural gas
(LNG) import terminal and supporting
infrastructure to turn LNG into power.
The goal is to add 50 million cubic feet/
POWER | March 2021
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POWER March 2021

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