Energy crisis: Ecuador says it is losing $72 million a day

Ecuador is facing daily losses of $72 million due to a hydroelectric deficit caused by severe drought, announces Energy Minister Roberto Luque.

Share:

Crise énergétique Equateur

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25£/month*

*billed annually at 99£/year for the first year then 149,00£/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2£/month*
then 14.90£ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Roberto Luque, Ecuador’s Minister of Energy, revealed at a press conference that power cuts cost around $12 million an hour, totaling $72 million a day. This situation has a considerable financial impact on Ecuador, exacerbated by historically low water levels in reservoirs since March. The recent reduction in outages to six hours a day due to precipitation seems to provide a slight respite.

Government responses and emergency measures

In response to the crisis, President Daniel Noboa ordered two days off to save electricity. Power was restored to normal for a crucial referendum. The government recognizes that energy deficits are the result of unfavorable environmental conditions and malpractice in the electricity sector.

Critical conditions for reservoirs and power plants

The Mazar and Paute reservoirs, as well as the Coca Codo Sinclair hydroelectric plant, are in critical condition. The latter, which supplies 30% of the country’s electricity, is operating at 40% of its normal capacity due to a 60% deficit in its normal flow.

Regional and international complications

The situation has been exacerbated by Colombia’s decision to halt energy exports to Ecuador, which has also been hit by severe drought. This underlines Ecuador’s vulnerability to regional energy problems and highlights the challenges posed by the El Niño climate phenomenon.

The huge losses due to the hydroelectric deficit in Ecuador underline the urgent need for sustainable solutions. Efforts to stabilize the power grid are crucial to the country’s economic and environmental resilience.

Talks on the Net-Zero Framework, which seeks to regulate greenhouse gas pricing on marine fuels, have been postponed until 2026 following a majority vote initiated by Saudi Arabia.
Liberty Energy warns about the impact of import duties on drilling and power equipment, pointing to a potential obstacle to federal goals related to artificial intelligence and energy independence.
Enedis will progressively reorganise off-peak hour time slots from 1 November, impacting 14.5 million customers by 2027, under new rules set by the Energy Regulatory Commission.
A report highlights the financial burden of fossil imports during the energy crisis and points to electrification as key to European energy security.
Prime Minister Sébastien Lecornu announced a review of public funding for renewable energy, without changing national targets, to avoid rent-seeking effects and better regulate the use of public funds.
The 2025 edition of the Renewable Electricity System Observatory warns of the widening gap between French energy ambitions and industrial reality, requiring immediate acceleration of investments in solar, wind and associated infrastructure.
Kogi State Electricity Distribution Limited reported a ₦1.3bn ($882,011) loss due to power fraud, threatening its operational viability in Kogi State.
More than 40 developers will gather in Livingstone from 26 to 28 November to turn Southern Africa’s energy commitments into bankable and interconnected projects.
Citepa projections confirm a marked slowdown in France's climate trajectory, with emissions reductions well below targets set in the national low-carbon strategy.
The United States has threatened economic sanctions against International Maritime Organization members who approve a global carbon tax on international shipping emissions.
Global progress on electricity access slowed in 2024, with only 11 million new connections, despite targeted efforts in parts of Africa and Asia.
A parliamentary report questions the 2026 electricity pricing reform, warning of increased market exposure for households and a redistribution mechanism lacking clarity.
The US Senate has confirmed two new commissioners to the Federal Energy Regulatory Commission, creating a Republican majority that could reshape the regulatory approach to national energy infrastructure.
The federal government launches a CAD3mn call for proposals to fund Indigenous participation in energy and infrastructure projects related to critical minerals.
Opportunities are emerging for African countries to move from extraction to industrial manufacturing in energy technology value chains, as the 2025 G20 discussions highlight these issues.
According to the International Energy Agency (IEA), global renewable power capacity could more than double by 2030, driven by the rise of solar photovoltaics despite supply chain pressures and evolving policy frameworks.
Algeria plans to allocate $60 billion to energy projects by 2029, primarily targeting upstream oil and gas, while developing petrochemicals, renewables and unconventional resources.
China set a record for clean technology exports in August, driven by surging sales of electric vehicles and batteries, with more than half of the growth coming from non-OECD markets.
A night-time attack on Belgorod’s power grid left thousands without electricity, according to Russian local authorities, despite partial service restoration the following morning.
The French Academy of Sciences calls for a global ban on solar radiation modification, citing major risks to climate stability and the world economy.

All the latest energy news, all the time

Annual subscription

8.25£/month*

*billed annually at 99£/year for the first year then 149,00£/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2£/month*
then 14.90£ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.