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The National Assembly unanimously approved the Organic Law Project to Promote Private Initiative in Energy Generation. Among other measures, it seeks to stimulate self-consumption and promote private investment in the energy sector.
In the midst of an energy crisis that has been going on for months in the country, with officially decreed nightly blackouts to reduce consumption, the National Assembly of Ecuador has unanimously approved the Organic Law Project to Promote Private Initiative in Energy Generation, described as urgent in economic matters, and which aims to stimulate the implementation of renewable energy generation solutions and also promote private investment in the energy sector.
The initiative had been presented from the office of the Ecuadorian president, Daniel Noboa.
One of the points highlighted in the law is that renewable energy generators of up to 10 MW, whether for cogeneration or self-consumption, are exempt from the obligation to revert and compulsorily transfer the assets to the Ecuadorian State at the end of the concession period.
A relevant provision states that “legal entities engaged in thermal generation activities must present transition plans towards technologies with a lower environmental impact.”
It requires electricity distribution companies to progressively implement a public lighting renovation plan to replace current public lighting fixtures with LED and solar-powered lights.
It also provides that public and private banks may offer loans with preferential rates for the implementation of energy generation systems from renewable sources for self-consumption. It also clarifies that "these systems must allow beneficiaries the possibility of marketing any surplus energy generated."
It also allows companies established in the country to import natural gas to resolve energy shortages and reduce fuel demand.
The Organic Law was published in the Official Register the day before yesterday, Monday, less than 24 hours after it was approved by the Assembly, without any objection from the Executive Branch. |
