The Deputy Minister (e) of Electricity, Juan José Espinosa, explains how the measures to reduce energy production and stop blackouts are progressing. For the sale of private energy, the focus was on providing incentive titles to industries such as sugar and oil, which could contribute and even invest in this model; although the possibility of saving energy through emergency systems remains on the negotiation table. The shutdowns would end only when the contracting of 465 MW by the distributor is completed. That energy would reach a price between 8 and 15 cents.

How is the process progressing for distributors who will contract for 465 MW?

The goal is to include additional emerging energy of 465 MW. Therefore, we invite the international community or local companies that can immediately offer mobile maritime or land solutions. These are container generators with a power of one to five megawatts, and are normally used in the oil industry, when cities are built. There are also maritime solutions through ships that anchor in ports and connect directly. We have done market research, we are responsible, and the offer started last week. We are looking for solutions for heating oil 6 because we have that type of fuel, and therefore the price of energy is not more expensive. For this purpose, nine distributors signed a contract and issued budget certificates in the amount of 163 million dollars, which would cover production for 4 or 5 months and could be extended for another two months. The idea is to make the award between November 17 and 18, and then in 20 to 30 days, the contract will be signed.

The manager of Eléctrica Quito said that good offers were received. Among them could be barges from a Turkish company known in advance to be able to provide this service?

Due to the market research we did, we had energy offers from 8 cents to 10 or 15 cents kWh. These are lower prices compared to other prices like those in Colombia. The economic offers will be known by this Monday, the 13th. As for the Turkish company, there is a legal device today and it’s not like you can go to the corner store and buy directly. Although there is an urgent ministerial agreement, the tender must be carried out and all those who believe they can provide solutions can participate in it.

Another announced measure is the import of gas, how is it progressing?

The gas import tender allows us to provide more power and achieve production of an additional 100 MW through Termogás Machala. It currently generates a maximum of 120. This tender is conducted by Petroecuador.

And, on the other hand, how will the purchase of energy from domestic private companies, from industry, work?

Solidarity is sought from those who have a surplus, such as industry that has separate generation and could stop taking megawatts from the grid. It was rumored that they might capture that generation. The problem is that this generation is not continuous. It can take four hours, and the logistics of breaking and joining are complex. It has been determined that they could reach 100 MW, but businessmen are looking for subsidized diesel and that requires an executive order. On the other hand, we have analyzed the possibility of providing stimulating titles. There are other types of private generators that can generate and deliver energy, both thermal and non-thermal, but they require qualifications.

Who could deliver the energy thanks to the stimulating headlines?

An example of this generation of private companies are sugar factories that produce from bagasse. I have one that produces 8MW but can generate 16MW. I have two or three such and one oil. The latter tells me that I can inject 1 MW and in a few weeks another 6 MW more. There are companies that are ready to invest and have the capacity to produce a total of 150 to 170 MW. This generation would be done progressively. We have already given permits to sugar mills, there are some who are investing.

This week we started getting energy from Peru, at what price, given that we had to pay up to 57 cents with Colombia?

These are prices that range between 25 and 28 cents kWh, similar to those in Colombia. With Colombia we pay 53 cents, but we have to look at the average. In September, it was 25 cents per kWh, and in October it reached 29 cents. With Colombia, we buy on the market place, Well, they have a bag of energy.

What is the idea with Colombia that you can exchange energy?

We already have the technical tables, but there is a supranational regulation that we are analyzing so that Ecuador and Colombia can enter into contracts with marketing companies, in the medium and long term, and that this allows the price to be lowered. The idea was also the exchange, which is still on the negotiating table. However, private entities in Colombia are not interested in obtaining energy for energy. This option is not ruled out, but it could take longer to reach that agreement.

With all that is being done, when will the blackouts stop?

When we follow it day by day. We can give weekly projections, and what we want is to get out as soon as possible. When will it end? We would be talking about the moment when the 465 MW distributor is contracted and operational. If they are employed in mid-November, they must come from that date and the topic will last up to 20 days. It also depends on hydrology.

Has it been considered that all the costs of the new generation are compensated by a price revision?

The tariff matter is complex, it is always being analyzed, but we do not have an official statement yet.