$125 M to increase Ecuador’s transmission capacity

This will finance the implementation of the Ecuadorian side of the power interconnection system between Ecuador and Peru.

 


$125 M for Ecuador’s transmission capacity

Image for illustration purposes.

Ecuador, Quito: Ecuador’s government has signed a $125 million loan to improve power supply security in Ecuador and Peru and optimize market cost structures, while fostering regional power trade. This will finance the implementation of the Ecuadorian side of the Ecuador-Peru interconnection system, 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 is under the EU Global Gateway initiative and co-financed by the Inter-American Development Bank with an additional $125 million loan, with EIB Global a partner in the implementation of the initiative.

The project will be implemented by Empresa Pública Estratégica Corporación Eléctrica del Ecuador, the state-owned energy company responsible for the generation, transmission and distribution of electricity in Ecuador, increasing the countries’ transmission capacity, improving security of supply and enabling the two countries to trade electricity, which will reduce generation costs. According to CEO of Empresa Pública Estratégica Corporación Eléctrica del Ecuador Paúl Urgilés, the 500 kV electricity interconnection between the countries will enable efficient and secure electricity trade between the two countries thanks to their interconnected hydrological systems.

Source: T&D World