Ecuador: Solarpack invests $145 million in solar energy
The Ecuadorian government has signed an agreement with the Spanish company Solarpack to build and operate the country’s first large-scale solar energy project, with an estimated investment of nearly $145 million.
| Sectors | Solar Energy, Photovoltaic |
|---|---|
| Themes | Investments & Transactions, Project Development, Financing |
| Countries | Colombia, Ecuador, Peru |
A need for private capital to develop renewable energy
Although the South American country had the capacity to produce about 6,400 megawatts of energy by 2021, mainly from thermal and hydroelectric power, it is seeking private capital to develop renewable energy projects to meet domestic demand and to be able to export to Colombia and Peru. According to the government, approximately $2.2 billion in private funding will be required to develop renewable energy projects over the next decade.
The Solarpack project in the province of Manabi
The Solarpack project, which will be located in the El Aromo region of the coastal province of Manabi, will have a capacity of 200 megawatts. “With an investment of nearly $145 million, the El Aromo photovoltaic project will be a reality in 2025,” said President Guillermo Lasso at the signing of the agreement. “Investors trust that they are negotiating with a serious government, an honest government,” Lasso added.
Allegations of bribery taint presidency
Despite these positive steps for Ecuador, Lasso is facing calls for impeachment over allegations that people close to him took bribes in exchange for contracts and jobs in state-owned companies, charges that his government has called unreasonable. Solarpack will provide the investment and have the concession for 20 years, Lasso said, adding that the project will reduce CO2 emissions by 221,000 tons per year.
With this agreement, Ecuador continues to work on its energy transition to renewable energy sources to meet its climate and economic goals.
