Ecuador declares “emergency” in the electricity sector

Faced with a severe energy crisis, Ecuador's President announces radical measures, including the resignation of the Minister of Energy.

Share:

Equateur état d'urgence électricité

President Daniel Noboa declared a state of emergency in Ecuador’s electricity sector. The latter called for the resignation of Energy Minister Andrea Arrobo, while announcing the opening of an investigation into possible sabotage. This decision comes after the announcement of temporary electricity rationing, exacerbated by persistent drought, lack of infrastructure maintenance, and the presence of “minimum flows” in hydroelectric plants.

Rationing and economic impact

In response to the crisis, the Ministry of Energy announced temporary rationing, citing drought and lack of maintenance as the main reasons. This critical situation has been exacerbated by Colombia’s decision to halt electricity exports to Ecuador, also hit by a severe drought caused by the El Niño phenomenon.

Support measures and public response

President Noboa has also taken steps to ease the financial burden on Ecuadorian citizens by reducing electricity bills by 50% for the month of April. He blames the crisis on the “inefficiency and corruption” of some people, claiming that the people should not bear the consequences.

Political and electoral context

The decree comes a week before a crucial referendum on the fight against organized crime and drug trafficking. Voters will be asked to vote on measures to toughen penalties against crime, underlining the complexity of the security and political situation under President Noboa.

Under the previous mandate, the country had already experienced frequent power cuts. The current government has inherited unresolved challenges, notably in terms of hydroelectric resource management and corruption. President Noboa, who is seeking re-election in 2025, is counting on these reforms to win back public confidence and stabilize the energy sector.

Nearly USD92bn will be invested by major American and international groups in new data centres and energy infrastructure, responding to the surge in electricity demand linked to the rise of artificial intelligence.
Nouakchott has endured lengthy power interruptions for several weeks, highlighting the financial and technical limits of the Mauritanian Electricity Company as Mauritania aims to widen access and green its mix by 2030.
Between 2015 and 2024, four multilateral climate funds committed nearly eight bn USD to clean energy, attracting private capital through concessional terms while Africa and Asia absorbed more than half of the volume.
The Global Energy Policies Hub shows that strategic reserves, gas obligations, cybersecurity and critical-mineral policies are expanding rapidly, lifting oil coverage to 98 % of world imports.
According to a report by Ember, the Chinese government’s appliance trade-in campaign could double residential air-conditioner efficiency gains in 2025 and trim up to USD943mn from household electricity spending this year.
Washington is examining sectoral taxes on polysilicon and drones, two supply chains dominated by China, after triggering Section 232 to measure industrial dependency risks.
The 2025-2034 development plan presented by Terna includes strengthening Sicily’s grid, new interconnections, and major projects to support the region’s growing renewable energy capacity.
Terna and NPC Ukrenergo have concluded a three-year partnership in Rome aimed at strengthening the integration of the Ukrainian grid into the pan-European system, with an in-depth exchange of technological and regulatory expertise.
GE Vernova has secured a major contract to modernise the Kühmoos substation in Germany, enhancing grid reliability and integration capacity for power flows between Germany, France and Switzerland.
The National Energy System Operator forecasts electricity demand to rise to 785 TWh by 2050, underlining the need to modernise grids and integrate more clean energy to support the UK’s energy transition.
Terna has signed a guarantee agreement with SACE and the European Investment Bank to finance the Adriatic Link project, totalling approximately €1bn ($1.08bn) and validated as a major transaction under Italian regulations.
India unveils a series of reforms on oil and gas contracts, introducing a fiscal stability clause to enhance the sector’s attractiveness for foreign companies and boost its growth ambitions in upstream energy.
The European Commission is launching a special fund of EUR2.3bn ($2.5bn) to boost Ukraine’s reconstruction and attract private capital to the energy and infrastructure sectors.
Asia dominated global new renewable energy capacity in 2024 with 71% of installations, while Africa recorded limited growth of only 7.2%, according to the latest annual report from IRENA.
US President Donald Trump's One Big Beautiful Bill Act dramatically changes energy investment rules, imposing restrictions on renewables while favouring hydrocarbons, according to a recent report by consultancy firm Wood Mackenzie.
On July 8, 2025, the Senate validated the Gremillet bill, aimed at structuring France's energy transition with clear objectives for nuclear power, renewable energies, and energy renovation.
Brazil, Mexico, Argentina, Colombia, Chile, and Peru significantly increase renewable electricity production, reaching nearly 70% of the regional electricity mix, according to a recent Wood Mackenzie study on Latin America's energy sector.
The Canadian government announces an investment of more than $40mn to fund 13 energy projects led by Indigenous communities across the country, aiming to improve energy efficiency and increase local renewable energy use.
The German Ministry of Economy plans to significantly expand aid aimed at reducing industrial electricity costs, increasing eligible companies from 350 to 2,200, at an estimated cost of €4bn ($4.7bn).
A major electricity blackout paralyzed large parts of the Czech Republic, interrupting transport and essential networks, raising immediate economic concerns, and highlighting the vulnerability of energy infrastructures to unforeseen technical incidents.