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Electricity Market and Promotion of Renewables in

Ecuador

Julio Csar Cadena Salazar
EUETIB, Barcelona Industrial Engineering College
POLYTECHNIC UNIVERSITY OF CATALONIA
Barcelona, Spain
juliocadena20@hotmail.com
Jessica Marcela Mario Salguero
EUETIB, Barcelona Industrial Engineering College
POLYTECHNIC UNIVERSITY OF CATALONIA
Barcelona, Spain
jezbel1989_18@hotmail.com


Abstract this work aims to clarify the structure and
organization of Ecuadorian power system, especially how is
conformed its electricity market and the programs of expansion of
electricity generation based in the impulse to the renewable energy
projects. The summary the benefits and difficulties that the
Ecuadorian policies impose to the generators that use renewable
resources is showed. Also presents a short analysis of the
renewable energy potential that can be used in electricity
generation.
KeywordsEcuador; electricity; market; styling; impulse
renewables.
I. INTRODUCTION
Ecuador is a country that is located in the nor-occidental
region of South America, its territorial extension is 283.561 km,
where inhabit around 14.4 million of persons. The country has
four main geography regions: the coast comprises the low-lying
land in the western part of the country, including the Pacific
coastline, the highlands is the high-altitude belt running from
north to south along the center of the country, its mountainous
terrain dominated by the Andes mountain range, the east
comprises the amazon rainforest areas in the eastern part of the
country, all its area is near to the half of the countrys total
surface area, the insular region comprising the Galapagos islands
located to 1000 km to the west of the coast in the Pacific Ocean.
Ecuadors capital is Quito. According to CEPAL (Economic
Commission for Latin America and Caribe) Ecuador is the third
economy with faster economical growing [21].
In the last 6 years, the Ecuadorian State has focused the
Energy development as strategic sector to the economic and
social growing of the country. Much so that the policies and
structures of the electric market are recent, because in the
decades of 70, 80 and 90, the electric sector was under the
management and promotion of Electrification Ecuadorian
Institute INECEL, which faced severe rationing in the years
1995 and 1996, when access the electricity sector closed to
financial sources, which led to of the Regimen Law of Electricity
sector LRSE in 1996, with a strong focus in the private
development.
Since 1999 began a business model based in the
segmentation of activities of generation, transmission and
distribution of electric energy.
In 2008, this model relied on growth of generation to the
private investment finished its validity after reaching a
significant deterioration: the high investment required by the
large hydroelectric projects carried with them the high risk in the
recuperation of the investment to long term, which could not be
faced by the private actors [11].
It is so that for the energy crisis due to drought between
October of 2009 and early 2010, Ecuador undertook a change
from a sectorial planning to integral planning in base to national
targets, transforming the electrification in a public service in
which the State is the majority shareholder and responsible of
supply the resources to cover the investment in generation,
transmission and distribution [3].
On other hand, the country is undertaking a change in the
electrical grid that seeks to maximize the renewable resources,
that due a geomorphologic and topographic conditions besides
to geographic location that Ecuador has. The goal is to go from
being a country with incipient development of the energy
renewable sources (without consider the big hydroelectric
plants) that in 2012 represented the 2.02% (103,72MW) [11] and
depending of energy importation from Colombia and Peru, to be
in 2016 a country that cover the electricity demand and possibly
to be an energy exporter, this energy will come the 95,14% from
renewable resources [22], which the 90% will be gotten from
hydroelectric power plant, according to Esteban Albornoz,
Minister of Electricity and Renewable Energy of Ecuador [1].
II. REGULATION
According with the Constitution of the Republic of Ecuador,
determined in 2008, in its chapter Five - Strategic Sectors,
Services, and Public Companies, the electric sector is recognized
as strategic sector for the country, as is indicated in the following
articles:
Article 313
The Ecuadorian State reserves the rights to administrate,
regulate, control, and manage all the strategic sectors, in
accordance with environmental sustainability principles,
precaution, prevention, and efficiency.
The strategic sectors, of decision and exclusive control of
the state, are those whose importance and magnitude have
decisive economic, social, politic, or environmental influence,
and shall be oriented to the full development of human rights
and social interest.
Strategic sectors are considered, the energy in all its forms,
telecommunications, nonrenewables natural resources,
transportation, hydrocarbon refining, biodiversity and genetic
heritage, radio electric spectrum, and other determines by the
law [5].
Besides, the state of Ecuador is in charge to control and
manage as well technical as financially of this strategic sector,
as is indicated in the articles 314 and 315 of the Ecuadorian
Constitution:
Article 314
The state will be responsible of the public services supply,
drinkable water and irrigation, sanitation, electric energy,
telecommunications, roadways, port and airports infrastructures,
and others determined by the law. The State will dispose that the
tariffs and prices of the public services be equitable, and will
establish its control and regulation [5].
Article 315
The state constitute public companies to manage the
strategic sectors, provision of public services, sustainable
harnessing of the natural resources or public properties, and
development of other economic activities [5].
In this way the Ecuadorian government has unified all the
electric sector, in order to fulfill the warranties of improvement
the service as well as its coverage at national level. This
unification contemplates the purchase of shares of nonpublic
electric companies, by this way the market of the power system
in Ecuador is centralized dispatch.
III. ELECTRICITY MARKET
According to the article 11 of the Regimen Law of Electricity
sector, the national electric sector will be structured in the
following way:
A. Generation Company GENCO
CELEC EP (Electric Corporation of Ecuador)
Through executive decree 220, a January fourteen of 2010,
was created the Strategic Public Company CELEC EP. Initially
was formed by seven business units, but a progressive way,
other business units have been forming, at the date CELEC EP
is formed by thirteen business units.
Generation: HIDRONACIN, ENERNORTE, GENSUR,
HIDROPAUTE, TERMOESMERALDAS, ENERJUBONES,
HIDROAGOYN, TERMOPICHINCHA, HIDROTOAPI,
HIDROAZOGUEZ, ELECTROGUAYAS, TERMOGAS
MACHALA.
Transmission: TRANSELECTRIC.

The main activities of CELEC EP, are as follows:
Generation, transmission, distribution, commercialization,
importation, and exportation of electric energy; but actually is
in charge of generation and transmission of electric energy at
national level.
B. System Operator (SO)
TRANSELECTRIC
The Electric Corporation of Ecuador, CELEC EP through of
its business unit TRANSELECTRIC, is responsible to operate
the National Transmission System (NTS), its fundamental
objective is the electric energy transport, guaranteeing free
access to transmission network to all companies of the electric
sector, both generators and distributors.
The National Transmission System is composed by
substations and transmission lines throughout the whole
Ecuadorian territory, it disposes of:
45 substations nationwide (they include 2 mobile
substations and 2 of sectioning), with a maximum
capacity of transformation of 7 304.56 MVA, which
6578.46 MVA were operating and 726.10 MVA were in
reserve to supply any contingency.
1 841 km of transmission lines of 230 KV.
1 868 km of transmission lines of 138 KV.
Installed capacity of transformation of 8918 MVA [20].
In the following fig. 1 is shown the National Interconnected
System of generation and transmission.

Fig. 1. National Interconnected System. Electric Map Configuration March
of 2015. Source: CENACE
C. Distribution Company (DISCO) Commercializer
(Retailer)
CNEL (National Electricity Corporation)
CNEL, assumed the full rights and obligations to operate in
the national electric sector as the distribution electricity
company, after signing a license agreement with the National
Committee of Electricity (CONELEC), March ten of 2009 in
Quito Ecuador.
The National Electricity Corporation CNEL is dedicated to
the distribution and commercialization of electricity in 42% of
the Ecuadorian territory accounting more than 1.6 million of
clients, providing more than 35% of the energy generated
nationwide. The rest of Ecuador, is provided of energy by the
electric companies (E.C.) delegated for a province or for a
defined sector, they are eleven in total:
CNEL Regional (Esmeraldas, Manab, Santo Domingo,
Los Ros, Milagro, Pennsula de Santa Elena, El Oro,
Bolvar, Sucumbos)
E.C. Galpagos
E.C. Riobamba
E.C. Azogues
E.C. Ambato
E.C. Norte
E.C. Cotopaxi
E.C. Quito
E.C. Guayaquil
E.C. South
E.C. Center South
The commercialization of energy in Ecuador is realized
directly by one of the DISCO mentioned before, depending of
the geographic place where the final user or small consumer
belongs. In order to solve any electric energy commercialization
problem, the Ecuadorian government has established that the
distribution companies have geographic information system,
which have all the electric system information at network level
and users level, this system allow them to make sectored
energetic stocktaking, so that they can easily find the most
critical areas, and optimize the service.
D. Market Operator
CENACE (National Centre of Energy Control)
CENACE, was created by a law of the electric sector
regime, published in the official register, supplement 43 of
October 10 of 1996, and its statute approved through ministerial
agreement 151 of October 27 of 1998; as a civil corporation of
private right, nonprofit, whose members include all the
generation, transmission, distribution and large consumers,
forming the Wholesale Electricity Market (WEM) of Ecuador.
Their functions are related with the coordination of the
operation of the National Interconnected System (NIS) and the
management of the financial and technical transactions of the
WEM, accordance with the regulation promulgated for the
electric sector (law, regulations, and procedures) [16]
CENACE has the obligation to communicate to whom are
involved in the market, the energy selling price for each
scheduled period, determined as the schedule marginal cost.
Other functions include:
Safeguarding the conditions of operation security of the
NIS.
Being responsible of the energy supply to the market, at
the lowest possible cost
Preserving the global efficiency of the sector.
Creating market conditions for the commercialization of
electric energy by generations companies by providing
them the access to the transmission system; and
Informing to CONELEC whenever it be required.
E. Regulator
CONELEC (National Committee of Electricity)
CONELEC, exercise all the regulation and control
activities. Its actions attach to the principles of decentralization,
deconcentration, deregulation, and administrative efficiency,
established in the modernization law, also it doesnt exercise
business activities in the electric sector.
Its main function as was mentioned before is to regulate the
electric sector and look out for the compliance of the legal
dispositions, technical regulations and other electrification rules
of the country, according with the national energy policy.
Besides, issue regulations to prevent practices that undermine
competition in the electricity sector, and mean concentration of
market to the detriment of the interest of consumers and the
community. CONELEC is operating since 1998.
The following list distinguishes the functions and faculties
of CONELEC:
Being a regulator and controlling entity, through of
which the Ecuadorian state can delegate the activities of
generation, transmission, distribution, and
commercialization of electric energy to concessionaires
companies.
Being executor of the national electrification policy,
Approving the pricing policy for the transmission and
distribution services for final consumers,
Elaborating the bases for granting the authorization of
generation, transmission, and distribution of electricity
Looking after of security, national interest and assume,
through third parties, the activities of generation,
transmission, and distribution of electric energy,
whenever the obligated ones to make it, dont do it.
F. Small Consumers
They constitutes natural or juridical persons that grants
domain over an installation that receives the electric service. In
Ecuador the small consumers cant choose a marketer in a freely
way. The service is rendered by the corresponding distribution
dealer company, according the list mentioned in DISCO, i.e.
according the location of the costumer in a geographic place.
G. Large Consumers
Companies, Industries, and other consumers that due their
great energy demand, they are not considered as normal users
or small consumers, whereby, they can freely agree with a
generator or distributor, the energy supply as well as the prices
of electric energy for their own consume.
The requirements the Ecuador demand, are: power
maximum demand equal or greater than 2 (MW) during at least
6 or 12 last months, preceding the application. The total number
of large consumers that were approved and at the date have a
current rate are twelve (12), see Table 1.
TABLE I. LARGE CONSUMERS IN ECUADOR [17]
No. Company
Commercial
Name
Energy
Distribution in
Charge of:
1
Cristalera del Ecuador
S.A.
CRIDESA
Electric Company
of Guayaquil
2
Holcim Ecuador S.A.,
Planta San Rafael
HOLCIM
CEMENTOS - San
Rafael
Cotopaxi
3
Productos Familia
Sancela del Ecuador S.A.
PRODUCTOS
FAMILIA
SANCELA
Cotopaxi
4 Industrial Danec S.A. DANEC Quito
5
Sociedad Agricola e
Industrial San Carlos
SAN CARLOS
CNEL Regional
Milagro
6 Ecudos S.A. ECUDOS
CNEL Regional
Milagro
7 Plsticos del Litoral S.A. PLASLIT
Electric Company
of Guayaquil
8 Novacero Aceropaxi NOVACERO Cotopaxi
9 Slica del Ecuador S.A. SALICA
CNEL Regional
Santa Elena
10 Producargo S.A. PRODUCARGO
CNEL Regional
Milagro
11 SURPAPELCORP S.A.
SURPAPELCORP
S.A.
CNEL Guayas -
Los Ros
12 SWISSGAS
SWISSGAS DEL
ECUADOR S.A.
CNEL Guayas -
Los Ros

Fig. 2 shows how the electricity market flow among the
different companies related.


Fig. 2. Structure of Ecuadorian Power System. Source: CONELEC
IV. PRICE OF ELECTRICITY
LRSE article 53: The prices applicable to final consumers
will cover the referential prices of generation, the costs of
transmission system and value added of distribution (VAD)
average of all companies of distribution of the country.
Nowadays, the low consumption consumers, up 110KWh in
the highlands region and 130kWh in the coast region, are
beneficiaries of the tariff of dignity. Around of 2.5 million of
residential customers qualify for this tariff of a total universe of
4.1 million.
The tariff of dignity is subsidized by the State and
equivalent to USD 0.04 per kWh, while that the official price
the electric energy in the country is USD 0.0933 per KWh. In
the 2013, the subsidy to the electricity exceeded USD 412
million [2].
V. CURRENT SITUATION
According the data of Electricity Master Plan 2012-2021, at
the moment the country consumes approximately three times
more the electric energy that 20 years ago, the total electric
demand increased from 6 348 MWh in 1990 to 20 383 MWh
in 2010. During the same period, the representation of
hydropower in the electricity grid was reduced from 76% to
only 42%. The thermal generation that uses fossil fuels
increased from 21% to 52%, and the power plant of Biomass
(bagasse sugarcane) represented the 1% of generation. For
cover the 5% of remaining demand, Ecuador has had to import
electricity from the electricity systems of near countries.
Increasing units that consume fuels fossils causes the
augmentation of the demand for them in the hydrocarbon sector,
added to normal growth of others sector of the national
economic and the limited refining capacity determine the need
of import in increasing amounts of oil products (diesel, GLP,
naphtha).
In fig. 3 is possible to see the gross generation structure,
where for the first semester of 2012, was of 4 813.39 GWh,
distributed in this way: 3 840.93 GWh hydraulic energy
(72.32%), 1286.24 GWh thermal energy (26.72%), 1.90 GWh
from nonconventional energy (0.04%) and 44.32 GWh energy
imported from Colombia (0.92%).


Fig. 3. Gross generation structure, January March 2012. Source: CENACE
VI. POTENTIAL RENEWABLE SOURCES
A. Geothermal energy:
Exist 11 geothermic prospects, which is in study by CELEC
EP, the geothermal projects Chachimbiro y Chacana, Jamanco
y Cachiyacu. During the 2012, Chalpatan project was
developed. Further, in the frame of the binational agreement
Ecuador-Colombia are developing the feasibility of geothermic
binational project Tufio-Chiles-Cerro Negro. The goal is to
incorporate a geothermal power plant of 30MW in early 2019
[12].
B. Wind energy:
In the country exist high wind potential by the existence of
the Andes Mountains and the closeness the Pacific Ocean. This
rugged terrain promotes the local wind formation, generate by
the temperature differences associate to plateaus, valleys, river
channels, microclimates and others.
Nowadays, there are not the general map of the wind
resources with purposes of electric generations that cover all the
Ecuadorian territory. However, the places with wind potential
have been identified by pragmatic methods and professional
criteria of expert in the topic. Consequently, the table II defines
the sites apparently usable with wind potential.
TABLE II. PLACES WITH WIND POWER POTENCIAL
Province Location
Carchi El ngel
Imbabura Salinas
Pichincha Machachi, Malchingui, Pramo grande
Cotopaxi Minitrac, Tigua
Chimborazo Chimborazo, Tixn, Altar
Bolivar Salinas, Simiatug
Azuay Huascachaca
Loja Saragura, El Tabln, Man, Villanaco, Membrillo
Galpagos San Cristobal
Source: INECEL

The first wind park in Ecuador, San Cristobal is located in
Galpagos Islands works since October 2007 with potential
installed of 2.4 MW. Current the construction of the wind park
of 2.21 MW in the Baltra Island is in execution.
C. Solar energy:
Current in the country through the programs as Euro-Solar
and the fund FERUM, has driven the use of solar power for
electric generation in remote rural distribution networks.
Euro-Solar program is a regional agreement subscribed in 2006
between the Europe Union and 8 Latin-American countries
including Ecuador. This program has as goal to improve the
life condition in health, education and telecommunication
aspects of 91 rural communities in the country through to access
to a sources of renewable electric energy.
The incentive to the renewable energy through of the
regulation No. CONELEC 004/11 has determined the
construction of three photovoltaic solar projects with power
around of 1 MW each one, these are building in Malchingui,
Paragachi and Escobar zone.

D. Biomass:
The potential of biomass is of big interest in the Ecuador by
their farming traditions, whose activities generate large amount
of waste that can be harnessed energetically. In the Ecuador has
installed many biomass power plants, principally based in the
use of sugarcane bagasse in the private sector among which:
Ecoelectric (36.5 MW), San Carlos (35 MW) and Ecudos (29.8
MW).
E. Hydropower:
The Ecuador has 11 hydrographic systems with a theoretical
potential of 73 390 MW, of which after economic feasibility
studies a usable power of 21 520 MW was estimated, 90% in
the Amazonian slopes and 10% in the Pacific slopes [13].
VII. PROMOTION OF THE RENEWABLE ENERGY
With the aim of reducing the dependence of electric energy
from Thermal power plants, is necessary to look alternative
sources of energy that jointly with the hydropower ensure year
after year the supply of the demand, therefore the Ecuadorian
state has committed in encouraging the development and use of
nonconventional energy resources through of the public
organizations, development banks, the universities and private
institutions [16].
The generators that uses renewable energy can access to all
the incentives for the development and cleaner production
established in the article 235 of Organic Code of the Production,
Commerce and Invesment. Similarly, this projects can access
to the benefits indicated in the article 67 of the LRSE.
Article 235. Incentives to cleaner production:
The tax benefits that are created in the production code, and
Benefits of economic character that is obtaining of the transfer
as Negotiable Permits Download, or pollution rights
according to the national normative and the Autonomous
Decentralized Governments, with their respective periods of
validity, the transfer mechanism of these rights and the
environmental quality desired obtaining to long term [4].
Article 67:
Exoneration from payment tariffs, other additional taxes and
levies that affect to importations of material and equipment not
produced into the country, for the research, production,
fabrication and installation of systems designed to using the
solar energy, wind power, geothermal, biomass and other
previous favorable report from CONELEC.
Exemption from income tax, during five years since the
installation to the companies that with their investment, install
and operate power plants using the nonconventional energy
resources indicated in the preceding paragraph [16].
Besides, according the article 63 of the LRSE, the
CONELEC assign priority funds for Rural Electrification Fund
and Urban Marginal FERUM to projects of rural electrification
based in renewable energy resources. Preferably in the
population located in the frontier provinces, in the Amazon
region and Galpagos [6].
By Regulation No. CONELEC 008/08 Procedures to
submit, rate and approve projects FERUM, the renowable
energy proyect for their development can access to the
following maximun values for housing benefit:
Wind power generation: USD 1.350/house
Energy services with Biomass: USD 600/house
Generation with pico, micro or mini-hydropower:
USD 2.400/house.
Photovoltaic generation: between 3200 to
4000USD/user type.
VIII. SHARE OF RENEWABLE ENERGY IN THE ELECTRICITY
MARKET
With the purpose of encouraging the share of generators of
power energy based in renewables resources, CONELEC
proposed the regulation No. CONELEC-001/13, which
complements the No. CONELEC-004/11, these regulation
establish the following preferential conditions:
Preferential period:
During the first 15 years of operation the generators will sell
the electricity to preferential prices described in the table III.
TABLE III. PRECIOS PREFERENTES ENERGA RENOVABLE (CENT
USD/KWH) [10]
Power plant
Continental
territory
I nsular territory
of Galpagos
Wind power 9.13 10.04
Photovoltaic 40.03 44.03
Solar thermoelectric 31.02 34.12
Marine currents 44.77 49.25
Biomass and Biogas < 5 MW 11.05 12.16
Biomass and Biogas > 5 MW 9.60 10.56
Geothermal 13.21 14.53
For the hydropower plant up to 50 MW are recognized the
prices indicates in the Table No. IV. No payment will be
recognized by availability to the production of the renewable
power plant.
TABLE IV. PREFERENTIAL PRICES HYDROELECTRIC POWER PLANTS UP
50MW (CENT USD/KWH) [10]
Capacity (C) of Hydroelectric Power plant Cost
C < 10 MW 7.
C of 10 MW to 30 MW 6.88
C of 30 MW to 50 MW 6.21
Upon completion the preferential period the renewable
power plants will pass to an ordinary period with a similar
treatment to any conventional generator, according to the rules
in force at that time, the sale price of the energy will be
negotiated with the regulations in effect at that time.
The prices established in the Table No. 3 and No. 4 will be
actualized in function of studies made by the CONELEC in
2015
Preferential dispatching:
The CENACE will be dispatched, obligatorily and preferred
the electric energy that nonconventional renewable power plant
can deliver the system, but cannot excess the 6% of install
capacity and operative from generators of the NIS, for the
calculation of limit considering all the nonconventional
renewables power plants, exception the hydropower minors to
50 MW, the biomass and the geothermal plants are not
limitation according the Resolution No. 102/12 on 01 of
November 2012.
Liquidation in the market:
In case of that the renewable energy production surpass the
6% of install capacity and operative from generators of the NIS,
the State will pay the production costs of this generators.
Limit of generation:
Exist a share of 100MW for the biomass and biogas. But
the project of hydropower generation dont have limit.
Knowledge transfer:
For the country to progress in the development of
generation technology on aspects related to the design,
construction, operation and maintenance is requirement for the
companies that 100% of unskilled manpower and at least 50%
of the technical staff working in the stages: construction and
operation until the finalization of the concession period is
Ecuadorian.
Restriction:
The generation projects less than 1MW have to locate as
minimum to 1Km of distance respect other similar projects into
the same area.
Operation conditions:
The delivery point and measurement of the energy
produced by renewables generation plants will be the point
connection with the transmission system or distribution, and the
same technical parameters established for conventional
generators are required.
Tests and experimental operation:
The electric energy produced by renewable energy during
the testing stage dont have remuneration, but in the
experimental operation time will be paid to preferential price
[9].
Autogenerators:
The Autogenerator plants that use renewable energy,
destined to producer energy to meet the energy demand of their
own consumption cannot generate annual surplus majors at
25% [14]. Also they cannot benefit of neither period nor
preferent prices.
IX. EXPANSION OF THE GENERATION
To accomplish the Generation expansion plan 2013-2022,
the Ecuadorian State will invest USD 6.012 million and the
private generation companies USD 1.072 million [13].
In the fig. 4 is presented the generation projected evolution
by technology type in the period 2013-2022. It shows clearly
that the energetic matrix toward the future is based primarily in
the input the hydropower energy, result of achieving the
important projects currently under construction and in studios.

Fig. 4. Composition of the generation per type of technology (GWh) [13]

As was mentioned before, Ecuador accounts with high
hydro potential, which is a positive factor that in coming years
are going to be taking advantage, with promotion in the
expansion of the generation with the construction of 8
hydroelectric projects and the first wind farm, see Table V.
TABLE V. EXPANSION IN GENERATION [17]
Project Name Location
I nstalled Power
(MW)
Total Budget
(Million
dollars)
Coca Codo
Sinclair
Napo, Sucumbios 1 500 2 245
Sopladora
Azuay, Morona
Santiago
487 735.2
Toachi Pilatn
Pichincha,
Cotopaxy, Sto.
Domingo
253 528
Minas San
Francisco
Azuay 270 508.8
Delsitanisagua Zamora Chinchipe 115 215.84
Mazar Dudas Caar 21 51.2
Manduriacu Pichincha 60 132.9
Quijos Napo 50 115.9
Total Hydroelectric Generation 2 756 4 533
Villonaco Loja 16.5 41.8
Total Wind Generation 16.5 41.8
Total Emblematic Projects 2 772.5 4 574.64

These projects are estimated to be finished to 2016
accounting an 93.53% of energy supply for hydroelectric, is
necessary to mention that the wind project Villonaco, is
already operating. When the projects enter into operation the
hydroelectric offer in Ecuador will be duplicated with an
increment of 2 773 (MW), mainly guided by Coca Codo
Sinclair which will cover a 36% of the national demand [17].

Besides, it is planned that starts in operation 7 centrals of
thermal generation (national production fuels), other 2
hydroelectric projects (Mazar and Ocaa), execution of 5
projects of renewable energy in Galapagos Island, and others at
national level, also, studies for geothermal and hydroelectric
projects [22].

Also Ecuador is leading the planning of the Regional
Electrical Integration System (SINEA) formed by Colombia,
Ecuador, Peru, Chile and Bolivia. This project will integrate
the electricity markets of the member countries with an
interconnection lines of 500kV [22].

The fig. 5 shows the perspective of electricity generation in
2016, where the predominant the hydropower and it see the
inclusion of wind power, biomass, geothermal will be in smaller
scale.


Fig. 5. Perspective of Electricity generation in 2016 [22]
CONCLUSIONS
Accounting all these expansion, Ecuador plans to mitigate
the use of thermal energy and the importation from abroad,
changing the electrical matrix based in utilization of renewable
resources, efficiency use of energy, improvement of the quality
and management of service, and the plan of regional
integration.
As can be seen, in the country, the participation of
renewable energy sources, is restricted only to the hydroelectric
and few little projects such as the traditional biomass, in so far
as other renewable sources havent play any paper in Ecuador,
therefore, the new government has promoted the impulse of
renewables proponing alternative projects and incentives to
promote this kind of generation
Ecuador is the country with the highest concentration of
rivers per km
2
in the world, thats why, hydroelectricity is the
principal source of electric generation to impulse as can be seen
in the set of regulations that benefit it. But still missing laws that
helping to mitigate the ambient and social effects that the large
dams producers. For this reason the generation projects, to
displace traditional plants should be analyzed with great caution
and based in an environmental social and economic long-term
study.
Ecuador yet has deficits in regulations and norms that
regulate the technical aspect and quality of energy from
renewable resources. Is necessary working in this aspect for that
all sectors involved in the generation development theirs system
with right efficiency.
The Ecuadorian policy is committed in promoting the
inclusion of renewable energy in the energy matrix of the
country with a series of fiscal and economic benefits especially
for the hydropower sector, by the numerous basins existent. But
it is forgetting the education policy for the people that inform
them of renewable resources and efficient use of energy, which
prevents the people are part of change and have no awareness of
the environmental damage caused by generation with fossil fuels
and the real price of energy because it is subsidized by the State.
Thus, the consumer does not feel the need nor to be
economically viable change their basic traditional systems as for
instance the hot water obtained from petroleum liquefied gas
(PLG) to the solar collectors, or just the fact of designing their
homes in ways that are energy efficient. So even there are the
incentives for electricity generation from renewable resources,
lack the culture of the people to accept and use these alternatives.
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