Market Trends of Ecuador Power EPC Industry
Increasing Investments to Drive the Market
- An increase in investment and rising consumption in the country are expected to provide growth in the market. Although the country heavily relies on the hydroelectric sector, many new renewable power projects are underway.
- Ecuador is expected to open up its electricity sector to private players through moderate concessions for the construction and operation of a few projects with a capacity of around 5,000 MW and a requirement of investment estimated at USD 7.5 billion. An increase in private participation is expected to boost the market's growth.
- In October 2022, the government planned to call for tender for the Cardenillo hydro plant, estimated to be around USD 1.3 billion. Cardenillo is a 596 MW project in the Paute hydro complex. It is expected to be the final project of the complex. The project is expected to be constructed in 72 months and will likely be carried out under a 30-year public-private partnership (PPP). Still, a public selection process may not be ruled out in which the interested party would be responsible for all the investment, building, and operating the plant. It would be transferred to the government after the concession period. An increase in investments in the sector is expected to aid the market's growth.
- The country's primary energy consumption increased by 16.4% to 0.76 exajoules in 2021 from 0.66 exajoules in 2020. An increase in primary energy consumption in the country is expected to aid the market's growth.
- Hence, increasing investments in the industry are expected to drive the Ecuador power EPC market in the forecast period.
Understand The Key Trends Shaping This Market
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Renewable Energy Plants to Grow at the Fastest Rate
- Renewable energy emanates from natural sources that replace themselves more quickly than consumed. More emissions are produced by burning fossil fuels than by producing electricity from renewable sources. In Ecuador, over 90% of its energy generates through hydroelectricity.
- As of 2021, renewable energy constitutes around 1.31% of primary energy consumption in the country. With new wind and solar projects, it is expected to assume the nation's highest share of power generation.
- In December 2021, Ecuador's Ministry of Energy and Non-Renewable Natural Resources of Ecuador released three different tenders to build a transmission line and install 900 MW of power-producing capacity.
- Moreover, the Ecuadorian authorities plan to allocate 500 MW of installed power from plants using hydroelectricity, solar, wind, and biomass energy. These initiatives are anticipated to require USD 875 million in total investments for their development.
- The country's renewable energy installed increased by 1.77% to 5.39 GW in 2022 from 5.3 GW in 2021.
- Therefore, it is expected that renewable energy is likely to grow the fastest in the Ecuador power EPC market in the forecast period.
