The country’s government is developing several hydroelectric projects that will come online between now and 2014, as part of its overall strategy to meet anticipated growth in energy demand. This new generation capacity will be added to an electricity transmission system that is already overloaded and in need of upgrades.
The IDB loan will enable Ecuador to increase the overall capacity of its transmission system by building and expanding electrical substations and transmission lines and acquiring the necessary transformers and related equipment.
These investments will satisfy 20% of Ecuador’s expected transmission needs over the next four years, while also helping to modernize the management of transmission services. As a result, Ecuador will triple its transmission reserve capacity, satisfying an incremental demand of 60.105MWh a month, equivalent to the amount needed to supply electricity to 500,000 average households.
By improving the overall reliability and quality of the electric power supply, the project will also have a positive impact on investments and economic activity.
