Energy generation market in Ecuador (2020 to 2025)

Ecuador’s energy generation sector has shown steady progress toward modernization and diversification over the past several years. Significant investments have been directed toward both renewable projects (especially hydropower and solar) and the upgrade of existing thermal facilities. 

In terms of exploration, Ecuador has not yet captured a large share of worldwide exploration spending. However, it represented roughly 1% of global exploration expenditures in energy-related projects from 2020 to 2025.

Looking forward, Ecuador is focused on developing new energy generation projects to meet the market’s demand.

• Regulatory uncertainty: Evolving policies and bureaucratic procedures can complicate project approvals and investment planning.
• Local content requirements: Canadian companies may need to navigate rules favoring local participation. This can require adjustments in project execution and partnerships.
• Competitive landscape: There is increasing interest from other international players, cas well as local incumbency—This means that securing a foothold requires a clear competitive edge and robust local alliances.

Successfully addressing these challenges will likely depend on proactive engagement with Ecuadorian authorities and strategic local partnerships.

Despite challenges seen across parts of Latin America, Ecuador has demonstrated resilience and a proactive approach to economic reform. Its economy benefits from diversified exports and strategic government support, making it a positive outcome in the region. Ecuador’s commitment to sustainable development and infrastructure modernization—especially in the energy sector—has boosted investor confidence. With improving fiscal stability and a growing focus on renewable energy, Ecuador is viewed as a rising market that offers attractive opportunities relative to some of its neighbors.

• Pascuales project: 260 Megawatts (MW)
• Combined cycles: 400 MW
• Floating Mazar: 200 MW
• Reverted Mazar: 160 MW
• Photovoltaic project: 100 MW

Technical information about each project is available (in Spanish) upon request.

Ecuador’s energy generation landscape is evolving. It’s evolution is defined by factors such as:

• large capital expenditure investments
• job creation
• an expanding focus on renewables

Despite some ongoing market and regulatory challenges, the country's resilient economy and recent reforms offer attractive opportunities for Canadian companies. With targeted expertise and strategic local partnerships, Canadian firms can capitalize on growth opportunities while helping to shape a more sustainable and competitive energy future in Ecuador.

For more information on energy generation sector in the Ecuadorian market please contact Edgar Brito (Edgar.Brito@international.gc.ca).