ELECTRICITY SECTOR IN ECUADOR: AN OVERVIEW OF THE 2007-2017 DECADE

This article shows how the Ecuadorian electricity sector has undergone several changes during the last decade.

The objective of this document is twofold: a) to show how the Ecuadorian electricity sector has evolved from 2007 to 2017, and b) to discuss the relationship between energy policies and their impact on electricity supply, management, tariffs and the economy of the country.

Although oil remains the main source of energy and the main driver of economic income, several hydroelectric projects have been built or are being built with the intention of reducing in part the country's dependence on oil.

The installed capacity of hydroelectric power in the country in 2017 is approximately 81% higher than in 2007 and it is expected that, by 2018, approximately 93% of electricity will be produced from hydroelectric power.

Currently, biomass and biogas contribute 1.8% of total electricity generation, but only 0.6% of electricity is produced in wind and solar farms.

The adoption of smart grid technologies is key to transforming the Ecuadorian electricity grid and to positively impact the quality of the electricity supply.

The future of the Ecuadorian electricity sector is based on the successful implementation of the new Organic Law of the Public Electricity Service and on external financing for new energy projects.

1. Introduction

2. Evolution of the structure of the Ecuadorian electricity sector

3. The Ecuadorian electricity matrix

4. The status of the use of renewable energies in Ecuador

5. Subsidies to fossil fuels

6. Smart Grids in Ecuador

7. Conclusions