Ecuador is significantly advancing its renewable energy projects, backed by the Inter-American Development Bank (IDB) and the International Finance Corporation (IFC). These initiatives aim to diversify the country's energy matrix and decrease reliance on fossil fuels.
On June 23, 2025, President Daniel Noboa's spokesperson announced a $77 million liquidity guarantee from the IDB for 12 renewable energy projects. This guarantee mitigates risk, activating in case of payment defaults from private projects. The projects include photovoltaic initiatives and the expansion of the Villonaco III wind project.
Furthermore, on May 30, 2025, GPS Group and the IFC signed a strategic collaboration agreement to drive Ecuador's energy transition. The goal is to generate at least 400 megawatts from renewable sources, focusing on solar photovoltaic projects. This partnership also seeks to explore financing options to accelerate the country's energy transition by promoting private investments.
These efforts align with the Electric and Mining Investment Plan 2025-2030, presented on February 21, 2025, by the Ministry of Energy and Mines. The plan includes $7 billion in investments to incorporate 5,700 megawatts from hydroelectric projects, supplemented by other energy sources. Minister Inés Manzano emphasized the importance of diversifying the energy matrix for sustainable supply.
These initiatives aim to strengthen the national electricity system, reduce dependence on fossil fuels, and promote a just and sustainable energy transition in Ecuador.