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Assembly approves Noboa’s energy law; Reservoir, rivers show small rise; Fuel demand for generators increases; No ‘politics,’ in drought, Petro says

Oct 29, 2024 | 0 comments

The National Assembly unanimously approved President Daniel Noboa’s proposal to increase the amount of electricity private companies can generate rom 10 megawatts to 100. In addition to the higher generation allowance, the legislation eliminates the lengthy approval process that kept most private contractors out of the market in the past.

The law also eliminates restrictions on the importation of natural gas for the purpose of electricity generation.

Colombia says it is ready to resume electricity transfers to Ecuador as conditions improve.

During the Assembly debate, Economic Development committee chief Valentina Centeno said it was critical to “expand opportunities” for private businesses to support the country’s energy needs. “With this legislation we are expressing solidarity with Ecuadorian families who are facing an energy and economic crisis due to a historic drought,” he said. “This indicates we are doing everything possible to improve this difficult situation.”

The law went into effect Monday afternoon after being entered in the official registry of laws.

Reservoir, rivers show small rise
Technicians at the Mazar reservoir report a rise in water level of one-and-half meters following rains on Sunday and Monday and say further rise is possible. At noon Monday, the reservoir was 2,113.2 meters above sea level, up from 2,111.7 on Saturday. The minimum operational level for power generation at Mazar is 2,110.

The rain also increased the flow of Cuenca’s four rivers, although the ETAPA reports the change was “slight.” ETAPA also said the rain improved the city’s drinking water supply in the Cajas mountains foothills.

The ETAPA weather service says that conditions remain favorable for more rain through Wednesday.

Fuel demand increases
The demand for gasoline and diesel is rising as a result of use of generators during power blackouts. Both nationally and in Azuay Province, the amount of gasoline purchased has increased about 6%, according to distributors. Despite increased purchases, Carlos Salazar, representative Azuay’s service stations, says that supplies are sufficient to cover the demand.

Salazar said that nationally, the demand for diesel fuel has increased more than 10%. “There is some concern about diesel supply but, to date, demand has been met,” he said, adding that large generators used by industries are mostly powered by diesel.

No politics in drought, Colombia’s Petro says
In a Sunday interview, Colombia President Gustavo Petro dismissed media reports that Colombia was restricting electricity transfers to Ecuador due to political disagreements. “This is total bunk,” Petro said. “There are no politics in our management of the drought and our assistance to our friends in Ecuador. This is about people, not ideology, and the people of our two countries are suffering equally from the drought. As conditions here improve with the recent rains, we will resume power transfer to Ecuador.”

Petro said he talked Sunday to Ecuador President Daniel Noboa about the situation while Noboa made a day trip to Colombia for discussions with private utility companies.

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