DECARBONIZATION OF THE ELECTRICITY SECTOR IN ECUADOR: REALITIES, CHALLENGES AND OPPORTUNITIES

Abstract

In 2007, Ecuador's Ministry of Energy and Mines was divided into the Ministry of Mines and Petroleum and the Ministry of Electricity and Renewable Energy (MEER), allowing for more specialized management of the country’s energy and mining resources, optimizing their administration and promoting sustainable development (CEPAL, 2024). The 2008 Constitution encourages energy efficiency and the use of renewable energies, ensuring that these practices do not undermine food sovereignty or ecological balance, aligning with the Sustainable Development Goals (SDGs) (CEPAL, 2024).. The National Plan for Good Living (PNBV) 2013-2017 aims to promote sustainable development and improve the quality of life, focusing on energy efficiency and responsible consumption (CEPAL, 2024). Ecuador faces the challenge of transforming its energy matrix, currently reliant on fossil fuels, towards renewable energy sources, which requires the removal of distorting subsidies and reinvestment in sustainable infrastructure. Despite political and social challenges, as well as a lack of infrastructure, favorable policies and the promotion of private investment can facilitate this transition. Establishing a clear regulatory framework and fostering international collaboration are essential to accelerate the adoption of renewable energies. Financing can come from multilateral funds and green bonds, ensuring transparency and accountability. This study analyzes Ecuador's efforts to decarbonize its electricity sector, highlighting the need for energy efficiency policies and reviewing global success stories to optimize the transition toward a sustainable energy model.

Keywords: Energy Decarbonization, Renewable Energies, Green Financing, Power Purchase Agreements (PPAs), Tax Incentives.