Ecuador’s energy crisis deepens amid historic drought and extended blackouts
Ecuador is facing a severe energy crisis caused by the worst drought in six decades drastically reducing water levels in reservoirs powering hydroelectric plants that supply over 70% of the nation’s electricity. Since October 23, 2024, power cuts have expanded from 8 to 14 hours per day, impacting cities like Quito, Guayaquil, and Cuenca, and causing economic losses of about $12 million per hour.Â
Ecuador's energy crisis deepens amid historic drought and extended blackouts. Image credit: Horror eléctrico en Ecuador
- Led by President Daniel Noboa and Energy Minister Inés Manzano, the government is enacting emergency measures like import tax exemptions for generators and seeking additional power sources amid logistical delays and regional drought challenges.
- Authorities have introduced zero tariffs on generator imports and offered special loans to help businesses and individuals cope, but the situation remains precarious, with further blackouts anticipated in the interim.
- Government officials have projected that relief from these blackouts might arrive by December, although this timeline depends heavily on improving weather conditions and successful government measures.
Ecuador is experiencing significant electricity shortages, with daily power outages lasting up to 14 hours in major towns such as Quito (population 2 million), Guayaquil (population 2.3 million), Cuenca (population 330 000), Loja (population 215 000), and Latacunga (population 98 000).
The Chamber of Commerce believes that economic losses during these outages total roughly $12 million per hour.
This widespread electricity rationing has resulted in economic losses, with some businesses closing and others relying on costly generators to keep running.
The drought-induced energy crisis has worsened in the last month, with power outages peaking on October 23, when the government increased rationing from 8 to 14 hours daily. This follows a series of disruptions that occurred earlier in April 2024.
“We have taken the painful but responsible decision to change the rationing plan, increasing it from eight to 14 hours a day,” Energy and Mines Minister Ines Manzano said.
Ecuador’s power grid primarily relies on hydroelectric plants, which generate more than 70% of the country’s electricity.Â
The persistent drought, exacerbated by the El Niño phenomenon, has significantly reduced reservoir water levels, leading to severe lows in hydroelectric power.
Ecuador needs 4 600 MW of electricity to meet the demands of its 17 million residents but is currently facing a shortage of 1 600 MW.
Ecuador’s government, led by President Daniel Noboa and Acting Energy Minister Inés Manzano, is at the heart of the issue, attempting to manage and mitigate the impacts of the country’s worst drought in over 60 years.
The Ecuadorian government imposed zero taxes on imported generators to deal with the issue. It offered special loans through BanEcuador to purchase backup power options such as generators and solar panels.
Authorities are also looking for extra generators from the United States, but logistical challenges, such as recent Hurricane “Milton” delays and a US port strike, have hampered timely delivery.
In Quito, the blackout disrupted the city’s metro system, bringing it to a halt and causing a buildup of passengers at stations. Additionally, traffic issues emerged on major avenues as traffic lights were left non-operational.
Colombia, which formerly provided Ecuador with electricity, has also ceased shipments owing to drought fears, restricting Ecuador’s alternatives.
The problem has been aggravated by a lack of investment in Ecuador’s energy infrastructure, making the country vulnerable to catastrophic weather occurrences such as drought.
Despite these attempts, Ecuadorians are ready for further blackouts, with the possibility of relief by December, dependent on weather and government action.
“We are facing a dynamic and unprecedented crisis that forces us to adapt to changing scenarios,” Manzano said.
“All of South America is facing an unprecedented drought, and Ecuador is no exception. Several countries have power outages and we have all seen shocking images of a dry Amazon River.”
References:
1 In Ecuador, power-dependent patients wait in anguish as the government imposes hours-long blackouts – AP – October 26, 2024
2 Ecuador extends drought-induced power cuts to 14 hours a day – RNZ – October 26, 2024
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