Energy crisis in Ecuador: power cuts and major economic challenges

Ecuador is experiencing a major energy crisis, with rotating power cuts due to a historic drought. This situation raises major economic and social issues, prompting us to rethink our dependence on hydroelectricity and explore sustainable solutions.

Share:

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

Ecuador is facing an unprecedented energy crisis, marked by the introduction of rotating nationwide blackouts.
This decision, announced by the authorities, is a direct response to a severe drought that is affecting the operation of hydroelectric power plants, essential to the country’s electricity production.
The government has stated that this drought is the most severe seen in 61 years, which has led to the need to responsibly manage the national power system.
Starting on Monday, power cuts will be applied four nights a week, with durations varying from two to four hours depending on the sector and distribution company.
Energy Minister Antonio Goncalves has specified that some regions, where 70% of electricity demand depends on hydroelectric production, will not be subject to these restrictions.
This approach is aimed at minimizing the impact on economic activities and adapting citizens’ working hours.
The government has also imposed teleworking for the public sector on Thursdays and Fridays for the next two weeks.

Economic and social impact of power cuts

Power cuts have significant economic consequences.
According to the Chamber of Commerce of the Port of Guayaquil, Ecuador loses around 12 million dollars per hour of blackout.
This situation is all the more worrying in a context where the country has already experienced prolonged water cuts, reaching up to 13 hours a day in April.
Hospitals and emergency services are exempt from these cuts, but the situation remains critical for many businesses that depend on a stable electricity supply.
The government has also introduced curfews in six provinces and in the mining town of Camilo Ponce Enriquez, due to violence linked to drug gangs.
This measure, combined with the energy crisis, further complicates the situation for citizens and businesses.
At the same time, the armed forces have been deployed to ensure the security of critical infrastructures, such as the Mazar dam, which supplies water to several hydroelectric plants.

Government responses and future prospects

Faced with this crisis, the Ecuadorian government has declared a state of emergency in the electricity sector.
Due to low river flows, the country is facing an energy deficit of around 1,000 megawatts.
To alleviate this situation, the government has acquired a thermal generation barge, which should offset part of this deficit.
However, this temporary solution raises questions about sustainability and increased dependence on non-renewable energy sources.
Antonio Goncalves emphasized the importance of these measures, saying,

“We need to act quickly to guarantee the continuity of electrical service while preserving the safety of our infrastructures.”

This statement highlights the need for a balanced approach between the management of energy resources and public safety.

Long-term consequences and challenges of decarbonization

The current situation raises crucial issues for Ecuador’s energy future.
Dependence on hydroelectricity, although renewable, exposes the country to risks linked to climatic variations.
The need to diversify the energy mix is becoming ever more pressing, in particular by integrating alternative renewable energy sources.
Decarbonizing the energy sector is a long-term goal, but the immediate challenges of drought and security must be addressed as a priority.
The power cuts and emergency measures put in place by the Ecuadorian government illustrate the tensions between natural resource management and economic needs.
As the country navigates through this crisis, it is essential to consider sustainable solutions that guarantee not only energy security, but also resilience in the face of future environmental challenges.

Several scenarios are under review to regain control of CEZ, a key electricity provider in Czechia, through a transaction estimated at over CZK200bn ($9.6bn), according to the Minister of Industry.
The government has postponed the release of the new Multiannual Energy Programme to early 2026, delayed by political tensions over the balance between nuclear and renewables.
Indonesia plans $31bn in investments by 2030 to decarbonise captive power, but remains constrained by coal dependence and uncertainty over international financing.
A drone attack on the Al-Muqrin station paralysed part of Sudan's electricity network, affecting several states and killing two rescuers during a second strike on the burning site.
The Bolivian government eliminates subsidies on petrol and diesel, ending a system in place for twenty years amid budgetary pressure and dwindling foreign currency reserves.
Poland’s financial watchdog has launched legal proceedings over suspicious transactions involving Energa shares, carried out just before Orlen revealed plans to acquire full ownership.
The Paris Council awards a €15bn, 25-year contract to Dalkia, a subsidiary of EDF, to operate the capital’s heating network, replacing long-time operator Engie amid political tensions ahead of municipal elections.
Norway’s energy regulator plans a rule change mandating grid operators to prepare for simultaneous sabotage scenarios, with an annual cost increase estimated between NOK100 and NOK300 per household.
The State of São Paulo has requested the termination of Enel Distribuição São Paulo’s concession, escalating tensions between local authorities and the federal regulator amid major political and energy concerns three years before the contractual expiry.
Mauritania secures Saudi financing to build a key section of the “Hope Line” as part of its national plan to expand electricity transmission infrastructure inland.
RESourceEU introduces direct European Union intervention on critical raw materials via stockpiling, joint purchasing and export restrictions to reduce external dependency and secure strategic industrial chains.
The third National Low-Carbon Strategy enters its final consultation phase before its 2026 adoption, defining France’s emissions reduction trajectory through 2050 with sector-specific and industrial targets.
Germany will allow a minimum 1.4% increase in grid operator revenues from 2029, while tightening efficiency requirements in a compromise designed to unlock investment without significantly increasing consumer tariffs.
Facing a structural electricity surplus, the government commits to releasing a new Multiannual Energy Programme by Christmas, as aligning supply, demand and investments becomes a key industrial and budgetary issue.
A key scientific report by the United Nations Environment Programme failed to gain state approval due to deep divisions over fossil fuels and other sensitive issues.
RTE warns of France’s delay in electrifying energy uses, a key step to limiting fossil fuel imports and supporting its reindustrialisation strategy.
India’s central authority has cancelled 6.3 GW of grid connections for renewable projects since 2022, marking a tightening of regulations and a shift in responsibility back to developers.
The Brazilian government has been instructed to define within two months a plan for the gradual reduction of fossil fuels, supported by a national energy transition fund financed by oil revenues.
The German government may miss the January 2026 deadline to transpose the RED III directive, creating uncertainty over biofuel mandates and disrupting markets.
Italy allocated 82% of the proposed solar and wind capacities in the Fer-X auction, totalling 8.6GW, with competitive purchase prices and a strong concentration of projects in the southern part of the country.

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.