The project called the Law on Energy Competitiveness leaves loose ends. The text repeatedly calls for the exceptional nature of the concession of electricity services to the private sector, but in practice it keeps the state monopoly almost intact. If it does not break paradigms, it will not serve to solve the problem of the gigantic investment deficit that the energy sector accumulates every year.

Its approach is aimed at promoting non-conventional renewable energies (ERCN) -solar, wind, geothermal and biomass-, despite their complementary nature to the basic energy that comes from hydropower plants and thermal parks, called fossil fuels, which currently represent 99% of the total (90 % of the world average). From a public policy perspective, it is right to promote clean energies, but without undermining those with the greatest potential.

Shy proposals

The most disturbing aspect of the reform of the 20 articles of the Organic Law on Public Electricity Services, LOSPEE, approved in 2015, is the opening of the participation of private companies not only in production, as is currently the case, but also in other phases of transmission, distribution, marketing and public lighting. This is important because the development of the mentioned sector must be conceived as a complete system, even more so if the growing demand is not adequately met in all of them.

It aims to reformulate private concessions through the figure, which already exists in LOSPEE, of public selection processes, PPS, although this aim is not clear. The impression is that, even in the spirit of promoting them, they will be hindered by the excessive interference of public institutions and companies as counterparts. Finding more imaginative and expeditious public-private forms of association remains unresolved.

Clarity and decision

It was determined that for projects not provided for in the Master Electrification Plan, the construction of private power plants of up to 10 MW of power will be allowed with only approval, when LOSPEE allows them to be up to 100 MW (mainly hydroelectric plants), with the condition that it becomes corporate generation for related companies. Why wasn’t this modality, which enables the revitalization of the energy buying and selling market between private entities, which is not subject to so many bureaucratic obstacles, to be explored more deeply? There seems to be a lack of interest in promoting this model that guarantees greater competitiveness and lower costs.

To date, LOSPEE has attracted the interest of world-class operators to develop ERCN projects, highlighting two of the 310 MW from Solarpack in Manta and Villonaco in Loja, more than the 500 MW package awarded under the previous government. However, the lack of clarity in the guarantee of energy payments by the state keeps this series of projects on hold. The Gordian knot that the Law ignores. It also omits the use of natural gas as a means of transforming the energy matrix, as well as incentives for the construction of infrastructure for energy storage.

It is hoped that some of these guidelines can be gathered and favorably processed in view of the second and final debate on the Bill, which will take place in a few hours. (OR)