Ecuador Extends Power Rationing Until October 20 Amid Energy Crisis

Ecuador’s Ministry of Energy and Mines has announced an extension of power rationing until October 20. The government has detailed the outage schedules for nine distributors serving eight regions.

Energy Minister Inés Manzano explained that power cuts will not exceed 10 hours, similar to the previous week. The ongoing energy shortage has begun to take its toll on Ecuador’s economy.

Estimates suggest the crisis could cost up to $175 per capita, a figure that may increase and impact the country’s growth. This economic burden adds pressure to an already challenging situation.

Manzano provided an update on the current state of Ecuador’s power infrastructure. She stated, “Most hydroelectric plants are functioning optimally. The Mazar dam in the Paute complex has seen its water reserve increase by 60 centimeters since last Thursday.”

Despite some improvements, the minister emphasized the need to maintain power cuts. She cited the critical nature of the coming week and forecasts of limited rainfall in the southern region.

Manzano acknowledged the public’s efforts and the inconveniences caused by the drought-induced crisis. The government has committed to addressing the root causes of the energy crisis.

Manzano explained, “We are taking actions that should have been taken earlier to diversify our energy generation. This will reduce our dependence on rainfall in the near future.”

Ecuador Extends Power Rationing Until October 20 Amid Energy Crisis

Ecuador’s current energy crisis stems from poor planning that led to an overreliance on hydroelectric power. Since 2008, private sector participation has been restricted, with the state taking charge of generation, transmission, and distribution assets.

Some bankers estimates that Ecuador needs to invest about $3 billion in electricity infrastructure by 2026. This investment would meet current needs and reasonably anticipate growing demand.

Ecuador’s business leaders voiced strong opposition to a proposed electricity rationing plan on Monday. The plan, targeting the industrial sector, aims to address the country’s ongoing energy crisis.

Industry representatives warned of severe impacts on production, exports, and employment if implemented. At a press conference, business spokespersons expressed concerns about a measure proposed by the National Electricity Operator (Cenace) on social media.