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Latin America

Ecuador

With a power score of 1.71, Ecuador ranks number 74 among Emerging Markets and number 15 in the Latin America region

Power score

1.71/5

12345

Score over time

2021 - 2024

71
2021
70
2022
66
2023
74
2024

Overview

Ecuador has a power score of 1.71, which puts it at rank 74 in the Emerging Markets power ranking. In comparison to 2023, Ecuador has dropped in the power rankings by 8 places, from rank 66, to rank 74.

At 1.71, the power score of Ecuador is worse than than the regional average of 1.93 in the Latin America region and puts it at rank 15 in the region.

Regional comparison chart

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Ecuador

Power

Power policy

Ecuador implements policies in 7/9 power policy categories tracked by Climatescope, including Renewable energy target, Renewable energy auction, Net metering, Import tax incentives, VAT incentives, Priority grid access, and Renewable Energy Certificates.

Power policies

Renewable energy target
Renewable energy auction
Feed-in tariff
Net metering
Import tax incentives
VAT incentives
Priority grid access
Renewables mandate
Renewable Energy Certificates

Power prices and costs

The average electricity price in Ecuador has dropped from 95.57 USD/MWh in 2022 to 95.37 USD/MWh in 2023. Since 2017, the average electricity price in Ecuador has fluctuated between 95.07 USD/MWh (2021) and 100.13 USD/MWh (2017).

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Power market

The top amount of capacity installed in Ecuador in 2023 was in Large Hydro at 50.89%, down from 51.63% in 2022. The technology with the biggest increase in capacity installed in 2023 was Onshore wind at 0.78%, up from 0.24% in 2022.

Installed capacity (in MW)

2000200520102015202002K4K6K8K MW

Electricity generation (in GWh)

20002005201020152020010K20K30K40K GWh

The top amount of electricity generated in Ecuador in 2023 was in Large Hydro at 63.22%, down from 64.42% in 2022. The technology with the biggest increase in electricity generated in 2023 was Natural Gas at 3.74%, up from 3.09% in 2022.

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Investment in clean energy in Ecuador was around $ million in 2023, a decrease of 100% from 2022 ($2.00 million). Between 2018 and 2023, the highest investment in clean energy was in 2019 at $106.00 million, while the lowest was in 2022 with $2.00 million.

Utility privatisation

Which segments of the power sector are open to private participation?

generation: Yes
transmission: No
retail: Yes

Doing business and barriers

Type

Question

Availability

Currency of PPAs

Are other PPAs (eg. corporate PPAs) signed in or indexed to U.S. Dollars or Euro?

Yes

Type

Question

Availability

Bilateral power contracts

Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?

Yes

Type

Question

Availability

Fossil fuel price distortions - Subsidies

Does the government keep the wholesale price of electricity from fossil fuels artificially low through subsidies?

No

Type

Question

Availability

Fossil fuel price distortions - Taxes and carbon prices

Does the government significantly increase the wholesale price of electricity from fossil fuel through targeted taxes and/or carbon prices?

No

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