Ecuador has 3000 MW of renewable energy potential to unlock, while private companies anticipate a "solar energy boom"

Ecuador's Minister of Environment and Energy, Juan Carlos Blum , stated that more than 3,000 MW of private electricity projects are "in the approval process to begin construction," during the inauguration of the Faro de San Marco photovoltaic park on November 5th. This statement reflects the volume of investment seeking to materialize in the country, amidst regulatory reforms aimed at expanding private sector participation in power generation.

Estimates from Ecuador's Chamber of Energy illustrate the level of interest in renewable energy sources: more than 40 private initiatives, with a combined capacity of at least 3,000 MW, are facing difficulties moving forward. Of that total, approximately 1,000 MW correspond to solar projects and more than 2,000 MW to hydroelectric developments , according to its executive president, Roberto Aspiazu .

The scenario opens up opportunities for international suppliers such as Factiun, a company specializing in fixed structures and solar trackers , which seeks to leverage its experience in large-scale projects to expand its presence in Ecuador, where it is already studying a portfolio of photovoltaic developments.

“If I had to bet, and we are already doing so, the market is primarily Ecuador. There is a portfolio of interesting projects that we are studying,” stated Yamser Angelino , Key Account Manager of Factiun, during his participation in Future Energy Summit (FES) Peru 2026 .

The firm's track record includes the San José solar park, approximately 180 MWp, developed by Acciona Energía in Arequipa , Peru, where it incorporated its Factiun TRX tracker technology. According to company data, adapting these structures to the irregular terrain allowed for a reduction in earthworks from 80,000 m³ to 14,000 m³, a decrease of over 80% compared to initial estimates.

“Geographically, Ecuador is very similar to Peru. Geography is no longer a challenge for us,” Angelino stated.

The company also has an operational base in La Joya, Arequipa , and works with strategic partners to provide technical support to developers, from preliminary studies to installation and after-sales service.

Ecuador is preparing new conditions to attract private capital

One of the main instruments to accelerate the execution of investments is Executive Decree 515 , issued on September 29, 2026, which reformed the General Regulations of the Organic Law of the Public Electric Energy Service.

However, its implementation requires approximately 21 complementary regulations that must be issued by the Electricity Regulation and Control Agency (Arconel), related to generation, self-generation, self-supply, marketing, transmission and energy storage.

“A boom in solar energy and other renewables is coming, so we need to be ready,” said Aspiazu, who anticipated working sessions with the authorities for November 11 and 12, in Quito and Guayaquil, respectively.

Among the obstacles facing developers are environmental permits, authorizations for water use, payment guarantees, and infrastructure limitations for connecting new power plants to the National Interconnected System.

Financing also presents a challenge, especially for initiatives that involve selling electricity to the government. In these cases, investors seek contractual mechanisms that provide greater predictability for capital recovery.

The need to incorporate new energy sources intensified during 2026, when Ecuador implemented electricity restrictions for large industrial consumers due to reduced hydroelectric availability. In September, the government announced a scheme of one-day-per-week power outages for approximately 145 to 150 high-consumption companies, with the goal of reducing demand by 600 to 1,000 MW and preserving reservoir levels.

The photovoltaic sector has attracted investments totaling USD 130 million

The market is also beginning to show concrete progress. On November 5th , Faro de San Marco, an 82 MWp solar power plant located in Santa Elena , developed by Lighthouse, a subsidiary of Grupo DIFARE, began operations.

The installation, which cost USD 50 million , occupies 122 hectares and has approximately 105,000 photovoltaic modules. Its estimated annual production reaches 106,000 MWh, destined to supply companies such as Corporación El Rosado and Almacenes Tía, as well as the investing group itself.

During the inauguration, a second initiative, Faro de Galicia, of 125 MW , was announced, whose construction will require another USD 80 million and for which there is already a firm financing offer.

Both developments represent 207 MW of announced capacity, between operational and planned facilities, and show the growing prominence of private self-supply.

This scheme allows companies to produce electricity in facilities far from their consumption centers and use the networks to transport it, under the corresponding regulatory conditions.

Factiun seeks to take advantage of opportunities in the Ecuadorian market

Angelino explained that clients are modifying their contracting criteria, considering not only the price of the equipment, but also its impact on civil works, mechanical work and cabling requirements.

“They no longer just analyze the structure as a simple item, but they also analyze other items that may influence it in conjunction with the structure,” he noted.

In this regard, he highlighted the need to carry out prior technical assessments to adapt the solar trackers to the particularities of each site and avoid construction problems.

“Without prior studies, your tracker can crash,” he warned, noting that these situations still occur in the Peruvian market.

The company organizes its solutions around four components: energy generation, cost optimization, execution times and after-sales service , with the aim of supporting developers beyond the supply of equipment.

With more than 20 years of experience in the sector, according to Angelino, Factiun intends to transfer this working model to the opportunities it is analyzing in Ecuador, although it has not yet specified the power or the number of initiatives involved.

The progress of pending regulations and the ability of developers to overcome financing and connection difficulties will be key to transforming investor interest into new operational solar power plants.