Government will cut power to large companies one day a week; Renews contract with Turkish barges

Anticipating the impact of El Niño on the country’s power supply, Energy Minister Juan Carlos Blum announced Friday that electric service to 150 large companies will be cut one day a week. Blum said companies would have the option of rescheduling their workweek to include Saturdays and Sundays but acknowledged this would not be possible in most cases.

The government says it has renewed contracts for two Turkish power generation barges docked near Guayaquil.

“We have met with representatives of the companies that are the largest consumers of electricity in the country to explain the new plan,” Blum said. “Our objective is to protect and strengthen the power grid, specifically to maintain water levels in the hydroelectric reservoirs in the sierra.” He added that as a result of El Niño, drought conditions in the highlands could extend two to three months beyond normal.

“We have no way of knowing the impact of this El Niño but past experience, especially in 1998 and 2024, tells us we must prepare for dry weather in the region where much of our electricity is generated,” he said. “The weather experts seem to agree that this will be a very strong El Niño.”

He acknowledged that the loss of 400 to 450-megawatt electricity transfers from Colombia “came as a shock” for the country’s power system. “We understand that Colombia has its own concerns about El Niño and are taking action to protect their resources.”

Blum said “all eyes are on the Mazar reservoir” in Azuay Province. “The generating units at this complex can produce almost 40% of Ecuador’s power so a key objective is to maintain the water level there,” he said, adding that the level has dropped rapidly in recent weeks.

On Friday, the level at Mazar stood at 2,136.5 meters above sea level while it was at the maximum of 2,153.5 meters on August 13. Without significant rainfall, engineers at Mazar say its facilities can continue generation for seven to eight weeks.

In an interview on Guayaquil’s Radio Centro, Blum did not offer a specific date when corporate power cuts would begin but said it “will happen soon.” He said that most of the companies affected are manufacturers located in Guayas, Pichincha, Manabi and El Oro Provinces. “These companies have previously been notified that they should begin development of their own power generation facilities so they can operate independently of the national power grid,” he said

It was unclear how much electricity the corporate restrictions will save. Blum claimed it would “preserve almost 1,000 megawatts” but an estimate by the Ecuador Electric Corporation (CELEC) put the savings at 200 to 300 megawatts.

In his interview, Blum said the government has renewed contracts with two Turkish power generation barges docked near Guayaquil. “These units can produce 200 megawatts and this will be added to the national electric grid in the coming days,” he said. “We are in discussions with the Karpowership Corporation to lease a third barge that would arrive in late November or early December.”

Blum said the government is “dedicated” to avoiding power shortages similar to those of 2024. “We will not experience a repeat of that crisis,” he said.