With Ecuador’s historic drought continuing, power outages could last until April, said Jorge Luis Hidalgo, an energy consultant.
For decades, experts have urged authorities to increase Ecuador’s energy supply by expanding its solar and wind capabilities and enhancing its thermal plants.
But Hidalgo said electricity and fossil fuel subsidies have kept energy prices in Ecuador among the lowest in the region: residents and businesses pay only about $1,000. $0.10 per kilowatt hourAccording to government estimates.
This lack of income has in turn discouraged the private sector from investing in alternative energy, according to Hidalgo.
“As Ecuador continues to give up its energy, this situation will continue,” he said.
Hidalgo added that over the years, as the population has grown, energy demand has outstripped supply. It’s a problem that President Noboa himself has acknowledged.
In October, he posted a video on social media in which he explained that Ecuador currently has Energy deficit Which ranges from 1000 to 1400 megawatts.
This means that Ecuador’s need for electricity exceeds its production capacity by more than a tenth. As of 2022, the country was only able to produce 8,864 megawatts In total.
The shortage sparked a political crisis for Noboa, who faced street protests as a result of government-imposed power outages.
These demonstrations come at a sensitive time for Noboa. He faces re-election in 2025, as his current term is to complete the remainder of his predecessor’s term.
In November, demonstrators marched toward the presidential palace in Quito, chanting: “There is no light. There is no light.” There is no education. And you have the audacity to demand re-election?
By December, Noboa promised to end government blackouts. “We will return to our normal lives,” he pledged.
In November, Noboa announced that his administration had spent $700 million on maintenance of Ecuador’s outdated thermal power plants, designed to support Ecuador’s hydroelectric system during droughts.
Currently, hydroelectric dams are responsible for generating about 70 percent of Ecuador’s energy.
Noboa also reached an agreement with Colombia to continue purchasing energy from the neighboring country. Earlier this year, Colombia reduced its electricity exports to Ecuador due to its own problems with drought.
The Ecuadorian government also brought in a floating thermal power plant from TĂĽrkiye producing 100 MW and 23 power generators producing 80 MW in total.
In addition, Noboa eliminated energy subsidies to mining companies.
“Mining companies in Ecuador consume more energy than a hospital needs to operate. However, their energy rate is subsidized by the state.” books On social media in October. “Benefits should go to those who need them most.”
But the changes may come too late for the families most affected by the power outages, like the Samoisas.
Since being laid off from his job, his wife has become the breadwinner for the family, working as a cashier at a logistics company. Meanwhile, Samwiza is trying out driving for a ride-hailing app, which has so far earned him less than minimum wage.
With the family budget down, Samwiza said the holiday season will likely come and go without much fanfare.
But he’s optimistic that by the new year, the power outages will stop, and the economy will recover enough for him to be able to find a job.
However, he is frustrated with the government over his current predicament.
“There should be no power outages,” Samuiza said. “The government should be prepared for these types of situations, especially since we already went through the same thing in April and May. The fact that they have not done anything to adapt speaks poorly of the government.
