Improving Ecuador's investment climate and energy transition

About this project

Ecuador is currently facing an energy crisis owing to a paralysis in investment in the sector over a decade, limited openness to private sector participation and non-sustainable tariff systems. This crisis was brought to the forefront by a recent episode of unprecedented electricity rationing in 2024, with daily power cuts reaching up to 14 hours. While this crisis was triggered by an acute drought affecting hydroelectric reservoirs, which supply between 70 and 80% of the country¿s electricity generation; it exposed deeper, long-standing structural weaknesses. . Against this backdrop, and in the context of a newly elected administration that has shown a clear political will to attract foreign direct investment and pursue strategic partnerships with Europe, this Action seeks to support Ecuador in its transition toward a more sustainable, diversified, and resilient energy system. It aligns with Ecuador¿s urgent need to secure a stable and modern electricity supply, while responding to the European Union¿s priority of advancing clean energy investments and regional energy integration under the Global Gateway strategy (REI)This Action proposes to support a clean energy transition in Ecuador, and will have two components: a)Support the improvement of the investment climate with a focus on attracting European foreign direct investment to strategic sectors. It will address key bottlenecks to investments and support the improvement of a more predictable regulatory environment. It wi…

Goals

Sustainable Development Goals this project works towards

• 5Gender Equality
• 7Affordable and Clean Energy

Published by

European Commission - Directorate-General for International Partnerships · Other public sector

Countries

Ecuador

Sectors

Financial policy and administrative management

Focus

Gender equality · Also contributesEnvironment · Main focusClimate mitigation · Main focusClimate adaptation · Also contributes

Published by European Commission - Directorate-General for International Partnerships to the International Aid Transparency Initiative (IATI), last updated 29 Sept 2026 and imported automatically. IATI identifier: XI-IATI-EC_INTPA-2021-ACT-63176.

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