QUITO, Ecuador — As the festive season approaches, Ecuadoreans are experiencing a temporary reprieve from the severe power outages that have plagued the country throughout the year. President Daniel Noboa announced that there will be no power rationing imposed on residential areas for the time being.
However, this relief does not extend to some of the nation’s largest industrial sectors, as major mines, cement plants, and steel factories will still face continued power rationing through the final weeks of December. The Ecuadorian Ministry of Energy indicated that there are no guarantees that this rationing will be lifted in the upcoming year.
This disparity in how power is allocated between residential and industrial sectors has raised alarms within Ecuador’s business community regarding the country’s economic stability. According to the chamber of commerce in Guayaquil, the country is losing around $700 million weekly as a result of the chronic power cuts.
The latest power rationing measures, which commenced on December 20, have led some analysts to speculate whether President Noboa is leveraging the county’s limited electricity resources for political gain. With presidential elections slated for February, Noboa, a conservative leader who has committed to alleviating the country’s energy crisis and combating escalating drug-related violence, is preparing his campaign for reelection.
Noboa, 37, ascended to the presidency in a snap election at the end of last year following the abrupt dissolution of Congress by his predecessor amid a corruption scandal, which led to an early end to the prior administration’s term.
Political scientist Hernan Reyes from the Universidad Andina in Quito mentioned that Noboa is keen on preventing public frustration and discontent towards his administration. Esteban Ron, Dean of Social Sciences at SEK University in Quito, noted that the president’s suspension of power cuts in residential areas reflects an effort to regain favor with the electorate and demonstrate his commitment to serving the populace.
El Niño has contributed to Ecuador’s ongoing electricity shortages, which the government attributes to earlier mismanagement of power facilities and prolonged dry weather. Over the past two decades, Ecuador has heavily invested in hydroelectric power to provide affordable and renewable energy. However, this reliance poses challenges as it generates a staggering 70% to 90% of the country’s monthly energy output, leaving little room for alternative sources.
This summer brought some of the lowest rainfall the country has seen in 60 years, prompting the government to impose power outages that could last up to 14 hours a day across various cities. Last week, however, the Noboa administration announced improving weather conditions and repairs at certain hydroelectric plants. Additionally, an agreement to import electricity from Colombia has eliminated the need for residential power cuts.
Still, business executives express concerns over ongoing cuts in industrial areas, highlighting the potential risks of prioritizing residential needs. Patricio Alarcon, former president of Quito’s chamber of commerce, commented on the dangers of sacrificing production and job security for promises that may not be sustainable.
Marco Acuña, president of Ecuador’s national guild of engineers, warned that there could be a return to residential power cuts after the holiday season due to the country’s slow progress in diversifying energy sources. He noted that Ecuador’s fossil fuel power plants are operating at less than 40% efficiency because of mechanical issues, and the recent import deal from Colombia will only meet about 8% of Ecuador’s daily energy requirements.
In the interim, citizens are relishing the break from the persistent outages while preparing for the holidays. Street vendor Pablo Parra, who specializes in Christmas trees and lights in Quito, expressed hope that shoppers will return with the same enthusiasm as before.