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With a cumulative score of 1.32, Ecuador ranks number 71 among emerging markets and number 100 in the global ranking.

  • Emerging markets
  • Americas

1.57 / 5

Power score

0.86 / 5

Transport score

1.03 / 5

Buildings score


Low-carbon strategy

Net-zero goal and strategy

Ecuador does not have a net-zero target or long-term strategy.

Nationally Determined Contributions (NDC)

Ecuador in March 2019 submitted its Nationally Determined Contribution (NDC), which is a country’s plan to help achieve the goals of the Paris Agreement. The NDC has a target of a 9% reduction in emissions by 2030 from the business-as-usual (BAU) scenario. With international financial and technological support, Ecuador says it could lower its emissions further – by 20.9% by 2030 compared with a BAU scenario. The mitigation sectors are energy, waste, industrial processes, agriculture and land use.

Fossil fuel phase-out policy

There is no fossil fuel phase-out policy in Ecuador.


Power policy

The September 2021 update of the Electricity Master Plan of Ecuador proposed a significant expansion of the generation park by more than 6,000 megawatts by 2031. According to the plan’s annex, these new investments will not be made if they are not from clean energies (such as renewables and gas).

In August 2021, the government also launched a tender for solar-plus-storage in the Galapagos Islands, aiming to reduce reliance on diesel generation. There are four sub-blocks with the capacity of 150 megawatts, 200 megawatts, 120 megawatts and 30 megawatts.

An 100% income tax exemption is provided for new and productive investments that engage in renewable energy including bioenergy or energy to from biomass.

Power policies

Renewable energy auction
Feed-in Tariff
Import tax incentives
Net Metering
Renewable energy target
VAT incentives

Power prices and costs

Average electricity prices in 2021 were similar to those in 2020. Since 2007, the government has issued a benefit called the dignity rate subsidy for residential consumers who have an average monthly consumption of less than half the average rate for the rest of the country.


Power market

The Ministry of Electricity and Renewable Energy (MEER) oversees renewable energy policy and planning. In 2015, the Act Establishing the Public Electric Power Service (LOSPEE) was passed, which governs Ecuador’s power sector. Under this law, the National Electricity Board (CONELEC) became the Agency for Regulation and Control of Electricity (ARCONEL). However, in May 2020, Decree 1036 established the merger of the Agency for Regulation and Control of Hydrocarbons, the Agency for Regulation and Control of Mining and the ARCONEL under the Agency for Regulation and Control of Energy and Non-Renewable Natural Resources (ARCERNNR).

While generation is open to private players in Ecuador with 61 companies in 2021, the state-owned company National Corporation of Electricity (CNEL) is responsible for more than 86% of generation. Transmission is under the responsibility of state-owned CELEC EP Transelectric and is expected to be expanded until 2025 as part of the National Transmission Expansion Plan.

The provision of electricity service in Ecuador is carried out through nine electric companies and the National Corporation of Electricity CNEL EP with its 11 business units, which cover a service area of 256,423 square kilometers.

Installed Capacity (in MW)

2012201420162018202002K4K6K8K MW

Electricity Generation (in GWh)

20122014201620182020010K20K30K GWh

Utility privatisation

Which segments of the power sector are open to private participation?


Wholesale power market

Does the country have a wholesale power market?

Not available

Doing business and barriers

Ecuador faces barriers to the deployment of more renewable generation due to characteristics of its power market. A combination of very low electricity tariffs, fossil fuel subsidies for electricity generation and low power demand growth creates a challenging environment for project developers. There is a history of protests and roadblocks whenever fuel subsidies are diminished.

Although the peak demand grows steadily every year, the country is able to meet peak power demand from its hydro capacity alone.

Currency of PPAs

Are PPAs (eg. corporate PPAs and all other types) signed in or indexed to U.S. Dollars or Euro?

Not available

Bilateral power contracts

Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?

Not available

Fossil fuel price distortions - Subsidies

Does the government influence the wholesale price of fossil fuel (used by thermal power plants) down through subsidies?

Not available

Fossil fuel price distortions - Taxes

Does the government influence the wholesale price of fossil fuel (used by thermal power plants) up through taxes or carbon prices?

Not available


EV market

Sales of electric vehicles more than tripled from 2020 to 2021, but the absolute figure is still very small, from 106 to 378, representing less than 1% of the annual sales. Further, with cuts in the price of gasoline and diesel in 2022, demand for internal combustion engine (ICE) vehicles is likely to remain stable.

EV policy

With the passage of the Organic Law of Economic Development and Fiscal Sustainability in 2021, no vehicle with low or zero emissions in the country will have to pay value-added tax (VAT) or import tax.

Transport policies

Electric vehicle target
Electric vehicle purchase grant or loan incentive
VAT incentives for EV
Import tax incentives for EV
EV charging infrastructure target
EV charging infrastructure support

Fuel economy standards

Does the country have a fuel economy standard in place?

Not available


Buildings market

The government has yet to implement any substantive policy support in this sector and the low-carbon heat market remains at an early stage

Energy efficiency policy

Does the country have a national energy efficiency plan?

Not available

Energy efficiency policy

Are there minimum energy performance standards for buildings?

Not available

Energy efficiency incentives

Is there access to loans or grants for energy efficiency measures (i.e. Wall or loft insulation or double glazing)?

Not available

Buildings policy

There are no specific laws.

Buildings policies

Low-carbon heat target/roadmap
Tax credits
Boiler scrappage schemes
Heat pumps purchase grants/loans incentive
Ban on boilers: new build homes
Ban on boilers: all homes

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