Gov’t considers contracting for power generation barges as rains provide some relief to reservoirs

Energy Minister Roberto Luque said the government is resuming negotiations with several private companies for electricity generation services. “The talks ended in December when the country’s hydro generation improved but we’re talking again because of the new crisis,” he said.

Energy Minister Roberto Luque

Under emergency contracting provisions, Luque said diesel or gas power generation barges could be installed in Ecuadorian ports and could begin operations within two to three months if necessary.

On Monday, Luque said recent rains have improved electric generation at the Paute-Mazar and Coca Coda Sinclair power plants, Ecuador’s largest, but a large electric deficit continues. “With the rain, we have increased generation at Paute since the weekend but we are still far below capacity. The situation is better at Coca Codo but we are still down 22% nationally from normal levels,” he said.

The Energy Ministry met last week with representatives of the Turkish firm Karpowership about locating generation barges to Guayaquil and Esmeralds. “This is one of the most sophisticated companies internationally and they were able to provide detailed information about costs and production capacity,” Luque said. “We have also made inquiries with three other firms and are waiting for details about their services.”

In his news conference, Luque promised to provide daily briefings on the crisis. “We will be open and transparent and provide all the information we have on a timely basis,” he said. “We apologize for the poor communication in the past and the fact we did not provide advance notice to the Ecuadorian people about the seriousness of the situation.” He added that the country is experiencing its worst drought in 60 or 70 years.

Luque said blackouts will continue for the foreseeable future but recent rains could shorten their duration.