Ecuador's government has signed a $125 million loan in Quito to improve power supply security in Ecuador and Peru and optimize market cost structures, while fostering regional power trade.
The loan will finance the implementation of the Ecuadorian side of the power interconnection system between Ecuador and Peru. The interconnector is a key component of the Sistema de Interconexión Eléctrica Andina consisting of a 550 km high-voltage transmission line from the Chorrillos substation in Ecuador to the Nueva Piura substation in Peru.
The project will be implemented by Empresa Pública Estratégica Corporación Eléctrica del Ecuador, the Ecuadorian state-owned energy company responsible for the generation, transmission and distribution of electricity in Ecuador, increasing Ecuador and Peru’s electricity transmission capacity.
“The 500 kV electricity interconnection between Ecuador and Peru will enable efficient and secure electricity trade between the two countries thanks to their interconnected hydrological systems," said Chief Executive Officer of Empresa Pública Estratégica Corporación Eléctrica del Ecuador Paúl Urgilés. "Spearheaded by the President of Ecuador Daniel Noboa Azín and the Minister of Energy and Mines Andrea Arrobo Peña, the project will ensure a secure and reliable supply of electricity for Ecuador with no more power cuts.”
The new electricity interconnection between Ecuador and Peru will improve security of supply and enable the two countries to trade electricity, which will reduce generation costs.
The project under the EU Global Gateway initiative, co-financed by the Inter-American Development Bank with an additional $125 million loan, will help to increase security of supply, improve the efficiency of power generation, and support the integration of a greater share of renewable energy. EIB Global is a key partner in the implementation of the EU Global Gateway initiative, supporting sound projects that improve global and regional connectivity in the digital, climate, transport, health, energy and education sectors.
