- Press Releases
December 13 (Renewables Now) - The government of Ecuador on Friday officially launched three tender procedures for new power generation and transmission projects, giving would-be investors a chance to compete for concessions to build and operate a 400-MW combined cycle gas-fired plant, 500 MW of new non-conventional renewables and a 290.1-kilometre (183.3 miles) transmission system.
Ecuador’s ministry of energy and non-renewable natural resources said it had received a show of interest from domestic and foreign investors in the tenders since first announcing them in September this year.
On the surface, it appears that the government’s offer is consistent with what was announced months earlier. The renewables package, the so-called Bloque ERNC, consists of 500 MW worth of proposals for wind, solar, small hydroelectric and biomass energy plants scattered across Ecuador depending on resource availability.
According to the tender website, the ministry has allocated 150 MW for small-scale hydro, 200 MW for wind power, 120 MW for solar and 30 MW for biomass/biogas-based plants.
Projects will be awarded to the lowest bidders until the allocated capacity for each technology is absorbed. The awarded concessions will have a duration as follows -- 30 year for hydro, 25 years for wind and solar farms and 20 years for biomass/biogas-based plants.
The ministry has its own portfolio of 29 hydro, wind and solar projects to choose from, but said the investors can propose their own in this tender process. The entire initiative is expected to attract investments estimated at USD 875 million (EUR 775.1m).
The tendering for the renewables starts today, December 13, with the invitation to acquire participation rights. Much of the process will take place over the course of next year, with the ministry expecting to award contracts or void the procedure in December 2022.
The tenders for the gas-fired plant and the transmission lines follow a different timetable.
(USD 1.0 = EUR 0.887)