In intensive care, this is how the Minister of Energy and Mining, Andrea Arrobo, described the current state of the power sector this Wednesday, November 29, in a radio interview. He also revealed that they found an “(electrical) system completely abandoned without investment, planning or foresight.”

Arrobo stated that there were failures in the work on the power system in the dry season of 2023, and there was also no entry of new generation. “For two years there was practically zero investment in new generation, we find that distribution companies did not strengthen and did not close many openings to be able to generate more diversification in their generation also without the support of national public policy,” he said. the new minister.

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In this context, the Secretary of State confirmed that “the current rationing remains in force… we are working to end it as soon as possible.” However, the minister admitted that they do not have an end date for the shutdown. “We don’t have a date, in principle, if the production and the proposals of the previous administration are fulfilled according to what we have been informed, such as the entry of Energyquil into production, which was one of the last contracts that were signed … and a few stream offers … so that from mid-December we have the prospect of a total offer for the holidays that increase demand, along with the connections we work with the private sector”, explained Arrobo.

“Companies could give more than 500 million dollars for investments in the production of renewable energy”

However, Arrobo indicated that they are working on strengthening distribution and transmission and strengthening the thermal park, while also working to prevent the effects of the dry season in 2024. In this regard, he indicated that they are working on what is needed to supply the energy demand in 2024 and revealed that there are private investments that are interested in coming to Ecuador to install renewable energy parks and to strengthen ties with the companies that have participated in the 500 MV parks.

As for the time required to install and operate these projects, Arrobo noted that it could take between 8 and 10 months, depending on the capacity being installed. “This is something that we started designing right at the moment of transition, right when we realized that there was no planning…” he stated.

Regarding investment in these projects, Arrobo indicated that private investment is essential to diversify the use of government resources. “We said that companies could contribute more than 500 million dollars to invest in production, especially in production from renewable sources, but the state must strongly invest close to 600 million dollars for thermal production.”

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He added that “despite this, work is being done on the diversification of heat production so that private investments in this area can also be counted on…”, Minister Arrobo said. He added that the creation of a fund for energy efficiency is also being considered, which, according to the minister, will encourage the replacement of any existing technology for the use of cleaner and more efficient production processes, which can contribute to reducing the demand for energy. .

As for the price of energy, the minister assured that no impact on the end consumer is expected. “Our goal is to humanize the transmission of energy, energy and electrical issues have always been viewed from the perspective of engineers and those in the know, but in fact the use of electricity is for citizens who constantly turn on and off the light. day and who is affected by the cuts and when they pay the bill for electricity and who is affected by decision-making due to the lack of planning by people who are experts in the field,” said Arrobo. However, he pointed out that it is necessary to analyze who the subsidies are aimed at.