Ecuador Power EPC Market

Ecuador Power EPC Market Analysis

The Ecuador Power EPC Market is expected to register a CAGR of greater than 2.5% during the forecast period.

The market was negatively impacted by COVID-19 in 2020. Presently the market now reached pre-pandemic levels.

• Over the medium term, factors such as increasing investment in the power sector and increasing energy consumption are expected to drive the growth of the Ecuador power EPC market during the forecast period.
• On the other hand, the poor financial situation of the country is likely to restrain Ecuador's power EPC market.
• Nevertheless, the country is investing in small-scale hydro and solar projects. An increase in renewable projects with decreasing dependence upon fossil fuels is an opportunity for the players in the power EPC market.

Ecuador Power EPC Market Trends

Increasing Investments to Drive the Market

• An increase in investment and rising consumption in the country are expected to provide growth in the market. Although the country heavily relies on the hydroelectric sector, many new renewable power projects are underway.
• Ecuador is expected to open up its electricity sector to private players through moderate concessions for the construction and operation of a few projects with a capacity of around 5,000 MW and a requirement of investment estimated at USD 7.5 billion. An increase in private participation is expected to boost the market's growth.
• In October 2022, the government planned to call for tender for the Cardenillo hydro plant, estimated to be around USD 1.3 billion. Cardenillo is a 596 MW project in the Paute hydro complex. It is expected to be the final project of the complex. The project is expected to be constructed in 72 months and will likely be carried out under a 30-year public-private partnership (PPP). Still, a public selection process may not be ruled out in which the interested party would be responsible for all the investment, building, and operating the plant. It would be transferred to the government after the concession period. An increase in investments in the sector is expected to aid the market's growth.
• The country's primary energy consumption increased by 16.4% to 0.76 exajoules in 2021 from 0.66 exajoules in 2020. An increase in primary energy consumption in the country is expected to aid the market's growth.
• Hence, increasing investments in the industry are expected to drive the Ecuador power EPC market in the forecast period.

Renewable Energy Plants to Grow at the Fastest Rate

• Renewable energy emanates from natural sources that replace themselves more quickly than consumed. More emissions are produced by burning fossil fuels than by producing electricity from renewable sources. In Ecuador, over 90% of its energy generates through hydroelectricity.
• As of 2021, renewable energy constitutes around 1.31% of primary energy consumption in the country. With new wind and solar projects, it is expected to assume the nation's highest share of power generation.
• In December 2021, Ecuador's Ministry of Energy and Non-Renewable Natural Resources of Ecuador released three different tenders to build a transmission line and install 900 MW of power-producing capacity.
• Moreover, the Ecuadorian authorities plan to allocate 500 MW of installed power from plants using hydroelectricity, solar, wind, and biomass energy. These initiatives are anticipated to require USD 875 million in total investments for their development.
• The country's renewable energy installed increased by 1.77% to 5.39 GW in 2022 from 5.3 GW in 2021.
• Therefore, it is expected that renewable energy is likely to grow the fastest in the Ecuador power EPC market in the forecast period.

Ecuador Power EPC Industry Overview

The Ecuador power EPC market is moderately consolidated. Some of the major key players in this market include (in no particular order) Wärtsilä Oyj Abp, Power Construction Corporation of China, Grupo Techint, SANTOS CMI S.A., and CEYM International EPC company.

Ecuador Power EPC Market Leaders

Ecuador Power EPC Market News

• September 2022: The Ecuadorian government signed an agreement with the Spanish consortium Solarpackteam to construct a substantial photovoltaic project in Manabi Province. The plant can produce 200 MW of electricity which is expandable for an additional 100 to 150 MW.
• July 2022: Ecuadoran companies announced the replacement of two hydroelectric units and the plant's connection to a nearby substation. Empresa Eléctrica Quito (EEQ) called for new generation units for its 40 MW Cumbayá hydroelectric plant in Ecuador. USD 6.9 million was budgeted for the 609-day contract.