• General State of the Economy
• Energy Resources
• Energy Balance
• Energy Infrastructure
• Education and Innovation
• Ecology and Environment Protection
• References

Source: [1,2,3,4,5]

Panoramic aerial view of Quito City, Ecuador. Envato. DJ6X5RVG8Y

As the chart above shows, most of the country's economic indicators are below the world average. In general, Ecuador is dependent on oil production, and oil prices on the world market have a direct impact on the economic performance. The highest indicators depicted in the ranking are the Inflation rate (0.89), Gross domestic product based on purchasing power parity (0.70), and Public debt as % of GDP (0.54). The weakest spots in the country's economic indicators are Index of Economic Freedom (0.16) and Charges for the use of intellectual property (0.25).

In addition to modest reserves of natural gas and coal, Ecuador has substantial proven crude oil reserves. The country is one of South America’s top oil producers, and the share of oil reserves is 0.49% of the global total. The share of the population of Ecuador is approximately 0.23% of the world's population. However, at the same time, oil reserves in Ecuador are significantly lower than those of the world leaders. For instance, they are more than 36 times less than in Venezuela and are more than 31 times less than in Saudi Arabia. [6].  
In terms of tons of oil equivalent, according to 2024 data, conventional proved reserves by fuel type were: 97.7% – crude oil, 1.4% – coal, and 0.9% – natural gas (Fig.5).

Table 1. Fossil energy resources of Ecuador

* share of the country’s reserves in world total is provided in brackets

Hydropower prevails in terms of installed renewable energy capacities (more than 96.3%), followed by bioenergy (2.8%), solar energy (0.5%), and wind energy (0.4%). Hydropower plays a major role in Ecuador’s power generation, contributing about 79% to all electricity produced in 2022.
However, the country is not fully utilizing its very high overall hydropower potential (167 000 GWh/per year) of its mountainous terrain and numerous rivers. This also applies to solar power generation, which could also be much higher due to the favorable climate conditions.

Table 2. Renewable energy resources of Ecuador

*for the majority of the territory of the country
**gross theoretical capability

The average solar activity in the country is 4.4-5.7 kWh/m² per day, and in areas of high activity, especially in the Andean highlands in the center of the country, Ecuador boasts high solar resources of 5.7-6.0 kWh/m² per day. The same region and the Galapagos Islands also have high wind speeds, reaching over 7.5 m/s at 50 m height.
The development of solar and wind energy has become particularly important in recent years due to the shortage of electricity caused by low hydroelectric output in the face of a severe drought.

ECUADOR. MARISCAL SUCRE INTL
Latitüde: -0.14 Longitude: -78.49

Average daily sky coverage over 10 years of observations, %


CLR - clear, SCT - scattered from 1/8 TO 4/8, BKN - broken from 5/8 TO 7/8, OVC - overcast, OBS - obscured, POB - partial obscuration

Source: based on NOAA U.S. Department of Commerce
Detailed information: Interactive map of solar resources

ECUADOR. ESMERALDAS AEROPUERTO (TACHINA)
Latitüde: 0.97 Longitude: -79.62
Average speed: 3.38 m/s, Operational share: 53%

Average daily wind speed for 10 years of observations, m/s, 10 m above the ground


Source: based on NOAA U.S. Department of Commerce
Detailed information: Interactive map of wind resources  

With more than 40 active volcanoes, Ecuador has a large geothermal potential that has not been fully exploited due to various infrastructural and geological constraints, but in the medium and long term the development of this type of energy appears promising.
Ecuador has one of the richest biodiversity in the world. Along with by-products from forestry, agriculture and livestock production represent significant amounts of biomass.  Biofuels such as bioethanol from sugarcane and biodiesel from palm oil are widely used in Ecuador.

Source: U.S. Energy Information Administration (Mar 2024) / https://www.eia.gov

Figure 2. The production and consumption of fossil fuels in Ecuador (coal – left, gas – in the center, oil – right)

Domestic oil production is about twice as high as consumption and has remained stable over the last ten years. The gap between output and demand allows the country to export a significant amount of crude oil, mainly to Latin and North American countries.
Compared to oil production, Ecuador's natural gas production is rather limited, and all natural gas produced in Ecuador is consumed domestically.
Although there are some coal reserves in Ecuador, they are not being exploited, and in general coal does not play a significant role in overall energy consumption. The small amounts of coal consumed are imported, mainly from the USA.

Ecuador is generally self-sufficient in electricity and even exports electricity during periods of excess generation. Over the last 10 years, electricity consumption has increased by more than a third and is mainly provided by hydroelectric power plants, which account for 79% of the country's power supply. This makes the country's energy sector highly vulnerable to droughts and correspondingly low water levels. This weakness is pushing the accelerated development of solar and wind power, the share of which has been negligible for many years.   

The territorial map of Ecuador's fossil fuel infrastructure is shown below. Ecuador's crude oil reserves are concentrated in the eastern part of the country in the Amazon. The oil produced there is transported by pipeline through the Andes Mountains to the port of Esmeraldas in the north, where also the country’s biggest oil refinery is located.
The largest reserves are in Yasuni National Park, some of which are already being produced, such as the Ishpingo, Tambokocha and Tiputini fields. However, Yasuni National Park is a protected national territory, one of the most biodiverse regions on the planet, which makes oil extraction difficult because of the risk of destroying the unique environment. In August 2023, Ecuador held a historic referendum in which a majority of Ecuadorians voted to stop oil drilling in Yasuní National Park, which will result in the preservation of about 726 million barrels of oil underground [14].

Figure 5. Basic infrastructure facilities of the fossil fuel sector in Ecuador

Natural gas production is limited in Ecuador and its infrastructure is less developed than the oil sector. All gas produced in the country is consumed domestically, predominantly by the industry sector. Nearly all of the production came from the Amistad offshore field, located in shallow water in the Gulf of Guayaquil. The rest of the natural gas is associated with oil production.

Beautiful shot of oil field drilling on the mountains. Envato. JTBAGCRW9D

Figure 6. Electricity production in Ecuador

As already mentioned, about 79% of Ecuador's electricity demand is covered by hydroelectric power plants. The Coca-Codo-Sinclair plant, located on the Coca River in Napo province, is Ecuador's largest hydroelectric plant with a capacity of 1,500 MW. Almost all of the remaining electricity is generated by conventional oil-fired thermal power plants. Natural gas and other renewable sources generate about 5% of electricity. However, the biggest operation fossil fuel power plant, the Termogas Machala, is gas powered. The Esmeraldas Oil Power Plant with a total output of 228 MW, is the country’s biggest oil power plant.

Figure 7. Renewable energy in Ecuador

Currently, the largest renewable plant in the country is the Huascachaca wind farm with a capacity of 50 megawatts, capable of providing electricity to more than 90,000 homes. It is located in San Sebastián de Juluc, on a plateau at an altitude of 1,400 meters, and is equipped with 14 wind turbines of 3.571 MW each [15].
Ecuador has recently adopted legislative amendments regarding alternative energy and energy supply. The highest priority is the development of wind and solar energy, also in order to get rid of the heavy dependence on hydropower, which has been experiencing failures due to droughts. In the field of renewable energy, many new projects have emerged, such as El Aromo, a significant solar photovoltaic (PV) plant in the province of Manabí, which will produce at least 200 MW, or the Villonaco III wind project, located in the province of Loja, with a capacity of 110 MW. In addition, as part of the Electricity Master Plan, it is planned to build the Santiago hydroelectric plant, which will consist of eight units with an installed capacity of 2,400 MW [16].

Ecuador's unique ecosystem faces various environmental challenges related to climate change, water pollution and high CO2 (0.33) and methane (0.32) emissions. As the graph above shows, the country has a relatively large forest area (0.75), but deforestation is among the main problems, and forest area change (0.11) is the weakest of those presented.

Lake in Ecuador. Envato. E97SXDLK6V

Ecuador is not included in the Climate Change Performance Index (CCPI) 2022, so this position in the chart remains unfilled.

[1] List of sovereign states and dependencies by area / Wikipedia / https://en.wikipedia.org/wiki/List_of_sovereign_states_and_dependencies_by_area
[2] List of countries and dependencies by population density / Wikipedia / https://en.wikipedia.org/wiki/List_of_countries_and_dependencies_by_population_density
[3] Ecuador / The world factbook / Library / Central Intelligence Agency / www.cia.gov
[4] GDP, PPP (constant 2011 international $) / World Bank, International Comparison Program database. License: CC BY-4.0 / Data / The World Bank / www.worldbank.org
[5] GDP per capita, PPP (current international $) / World Bank, International Comparison Program database. License: CC BY-4.0 / Data / The World Bank / www.worldbank.org
[6] Ecuador / Geography / U.S. Energy Information Administration / www.eia.gov/international/overview/world
[7] Solar resource data obtained from the Global Solar Atlas, owned by the World Bank Group and provided by Solargis / Global Solar Atlas / http://globalsolaratlas.info/
[8] Wind Map / Global Wind Atlas 2.0, a free, web-based application developed, owned and operated by the Technical University of Denmark (DTU) in partnership with the World Bank Group, utilizing data provided by Vortex, with funding provided by the Energy Sector Management Assistance Program (ESMAP). For additional information: https://globalwindatlas.info
[9] Agricultural land (% of land area) / Food and Agriculture Organization, electronic files and web site. License: CC BY-4.0 / Data / The World Bank / www.worldbank.org
[10] Forest area (% of land area) / Food and Agriculture Organization, electronic files and web site. License: CC BY-4.0 / Data / The World Bank / www.worldbank.org
[11] World Energy Resources: Hydro World Energy Council / 2013 / Publications / World Energy Council / www.worldenergy.org
[12] What a Waste 2012 (PDF) / Resources / The World Bank / www.worldbank.org
[13] BP Statistical Review of World Energy 2020 - 2022 (PDF) / BP / www.bp.com
[14] Ecuadorians vote to halt oil drilling in biodiverse Amazonian national park / August 2023 / www.theguardian.com/world/2023/aug/21/ecuador-votes-to-halt-oil-drilling-in-amazonian-biodiversity-hotspot
[15] Ecuador's 50-MW state-owned wind farm nears operations / Renewables now / https://renewablesnow.com/news/ecuadors-50-mw-state-owned-wind-farm-nears-operations-813022/
[16] Alternative Energy & Power 2023. Ecuador (PDF) / July 20, 2023 / https://practiceguides.chambers.com/practice-guides/alternative-energy-power-2023/ecuador/trends-and-developments/O14050

The sources of charts and curves are specified under the images.

For more information about the energy industry in Ecuador see here