Ecuadorian President Noboa threatens to disconnect large companies lacking self-generated power

Ecuadorian President Daniel Noboa has issued a stern warning to major electricity consumers, stating that companies failing to implement self-generation systems by December 2026 will face disconnection from the national grid. Noboa firmly rejected any possibility of further deadline extensions, emphasizing the urgency for these businesses to comply.

"If they don't have self-generation... they will be shut off, disconnected," Noboa declared during a media interview. This directive targets 171 high-consumption companies that are required to develop their own power generation capacity. The move comes as Ecuador prepares for its dry season, a period typically marked by reduced hydroelectric power output and increased strain on the national system.

The government's objective is to alleviate the significant demand that large industries and mining operations place on the National Interconnected System (SNI). Some of these entities consume between 150 and 200 megawatts. Noboa dismissed concerns about companies meeting the investment timeline, stating, "I don't know if they can make it, but they should have made the investment eight years ago. They have to move, they have to shake themselves up."

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If they don't have self-generation… they will be shut off, they will be disconnected.

Experts suggest that self-generation can enhance operational continuity and shield companies from electricity price volatility. Marcelo Cabrera, coordinator of the Master's in Renewable Energies at the Universidad Internacional del Ecuador, views the move positively, noting that reduced reliance on the national grid during an energy crisis would benefit the entire system. He recommends companies adopt strategic plans, prioritizing renewable sources like solar or wind power, with thermal generation serving as a backup.

Economic analyst Freddy Cevallos added that the cost of installing self-generation capacity should be weighed against the potential losses incurred from power supply interruptions. The government reports having already recovered over 500 MW of capacity, with private projects expected to add more than 700 MW between 2026 and mid-2027.

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I don't know if they can make it, but they should have made the investment eight years ago. They have to move, they have to shake themselves up.