China and Spain will make investments in Ecuador
Photo: Presidencia de la República del Ecuador.
According to an article by the media outlet Swissinfo, the spokesperson for the Ecuadorian government, Carolina Jaramillo, announced that by the end of next year, 2026, the Andean country will receive a $1 billion investment from Chinese and Spanish companies.
Spokesperson Jaramillo stated that these investments were secured during President Daniel Noboa’s international tour, during which he visited the People’s Republic of China, Spain, and Italy.
On the side of the Asian country, Jaramillo mentioned that Power China is the company that will invest $400 million in energy storage and renewable energy projects in Ecuador.
She also emphasized that the amount will be disbursed progressively until December of next year, 2026, and that the Chinese company will also provide technical assistance to optimize Ecuador’s master plans for network and energy improvement.
Likewise, the spokesperson noted that Ecuador’s electricity master plan has not been updated since 2012 and that, for now, the specific projects in which the $400 million will be invested have not yet been confirmed.
On Spain’s side, the spokesperson reported that Ecuador will receive a $600 million investment from Grupo Cox Energy, a company that specializes in renewable energy, electricity trading, photovoltaic and solar power, and maintenance of renewable energy plants.
It is known that Grupo Cox Energy will invest in five projects in Ecuador and in an 80 kilometer transmission line in the country. This agreement was formalized in a memorandum of understanding signed between the Ecuadorian government and the Spanish group’s subsidiary, Cox Ecuador.
Regarding this investment, Ecuador’s Minister of Energy and Mines, Inés Manzano, highlighted that this new agreement contributes to fulfilling the commitment made by the government to develop a sustainable energy matrix, which will enable an energy transition for Ecuador, ensuring a sustainable future for the nation.
Likewise, the Ministry of Energy and Mines reported that, of the $600 million invested by Grupo Cox, $146 million will be allocated to the Ilapo 1 and 2 project; $143 million will be used for the La Ceiba 1 and 2 project; and finally, $102 million will be used for the Malchinguí project.
It was also reported that $77 million will be used for the Matala project; $43 million will be allocated to the Tocachi project; and finally, $136 million will be used for the expansion of the National Transmission System.
All these mentioned projects will have the combined capacity to generate 536.5 megawatts peak (MWp), a fact that will contribute to the development of Ecuador’s infrastructure as well as to the diversification of electricity generation in the country.
Regarding the total investments from Power China and Grupo Cox, spokesperson Jaramillo stated that this is evidence that Ecuador generates confidence in the international arena and demonstrates the potential of the Andean country.
It is worth noting that since 2023, Ecuador has been immersed in an energy crisis, in which the generation matrix depends 72% on hydroelectric plants. This situation has led to a shortage of water in the plants due to droughts, rendering them inoperative.
This crisis has caused blackouts across the country, especially between September and December of the previous year, 2024, with some days experiencing up to 14 hours of outages, and in the industrial sector, the cuts lasted several days.
According to the Central Bank, the blackouts caused by the energy crisis resulted in losses of $1.916 billion in the country, which had a -1.4% impact on Ecuador’s Gross Domestic Product (GDP).
Last but not least, the sectors most affected by these power outages were the services sector, with $374.1 million in losses; the manufacturing sector, with $380.2 million; and the commerce sector, which was the most affected, with losses amounting to $763.1 million.
* Original text in Spanish. Translated by Large Language Model (LLM) technology.
Main Source:
Ecuador recibirá inversiones por mil millones de dólares proveniente de España y China – SWI
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