Blackouts in Ecuador Cause Huge Financial Losses

Ecuador is losing US$72 million daily due to nationwide energy blackouts, a direct consequence of the ongoing hydroelectricity generation crisis. Like Colombia, Ecuador has been experiencing droughts that have significantly impacted reservoir levels. 

“Losses amount to US$12 million per hour without electricity, which in turn costs the country US$72 million a day,” stated Roberto Luque, Ecuador’s interim Minister of Energy.

He acknowledged the magnitude of the crisis, noting that the country is facing historically low water levels in its reservoirs.

Over the last few weeks, blackouts have lasted as long as 13 hours daily. However, thanks to a slight increase in rainfall, blackouts have been shortened to 6 hours a day. The blackouts started unexpectedly on Sunday, April 14.

In response to the water shortage at hydroelectric plants, President Daniel Noboa ordered a two-day shutdown last Thursday and Friday. The energy cuts ceased on Sunday, April 21, coinciding with a referendum aimed at strengthening criminal penalties and facilitating the extradition of Ecuadorians. This referendum was a central element of the president’s agenda.

What is the current blackout situation in Ecuador?

Noboa’s administration attributes the Ecuadorian energy crisis to both environmental factors and mismanagement by previous governments.

In Ecuador, two vital reservoirs in the southern Andes, Mazar (the most crucial) and Paute, have reached “critical conditions.” Their storage levels have dropped to an alarming 0% and 4%, respectively.

Additionally, the flow at the country’s largest hydroelectric plant, Coca Codo Sinclair (situated in the northern Amazon), has decreased to only 60% of its historical average. This significant plant, with a capacity of 1,500 MW, supplies 30% of the nation’s electricity needs. The situation worsened on Tuesday when Coca Codo Sinclair had to halt operations for 12 hours due to high sediment levels.