Ecuador Power EPC Market - Growth, Trends, and Forecasts (2020 - 2025)
The market is segmented by Type (Thermal, Hydro, Renewable, and Others) and Power Distribution and Transmission
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Key Market Trends
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The Ecuador power EPC market is expected to grow at a CAGR of over 2.5% in the forecast period of 2020-2025. Factors such as increasing investment in the sector and increasing consumption of energy are expected to drive the Ecuador power EPC market in the forecast period. However, poor financial situation of the country is expected to restrain the market.
The increasing installation of different power projects, with a heavy focus on renewable energy projects in the country, is likely to drive the Ecuador power EPC market in the forecast period.
The country is investing in small scale hydro and solar projects. An increase in renewable projects with decreasing dependence upon fossil fuel can become an opportunity for the players in the power EPC market.
The renewable energy sector is likely to grow the fastest in the forecast period due to increasing investment in the industry and the further opening of the market to the private players.
Scope of the report
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Key Market Trends
Increasing Investments to Drive the Market
An increase in investment and rising consumption in the country are expected to provide growth in the market. Although the country heavily relies on the hydroelectric sector, many new renewable power projects are underway.
Ecuador is expected to open up its electricity sector to private players through moderate concessions for the construction and operation of few projects with a capacity of around 5,000 MW, and a requirement of investment estimated at USD 7.5 billion. An increase in private participation is expected to boost the growth of the market.
In May 2020, the government is calling on for bids for 200 MW of non-conventional renewable energy in August or September 2020. The project’s cost is estimated to be around USD 300 million packages, which could cover small wind and photovoltaic projects and, eventually, small hydro plants. The construction of the projects is planned to take between 24 to 36 months.
The government is expected to call for tender in the last quarter of the year for Cardenillo hydro plant, which is estimated to be around USD 1.3 billion. Cardenillo is a 596MW project that is part of the Paute hydro complex. It is expected to be the final project of the complex. The project is expected to be constructed in 72 months, is likely to be carried out under a 30-year public-private partnership (PPP), but a public selection process may not be ruled out in which the interested party would be responsible for all the investment and building and operating the plant, which after the concession period would be transferred to the government. An increase in the investments in the sector is expected to aid the growth of the market.
The country’s primary energy consumption increased by 2.5% to 0.74 exajoules in 2019 from 0.73 exajoules. An increase in primary energy consumption in the country is expected to aid the growth of the market.
Hence, increasing investments in the industry are expected to drive the Ecuador power EPC market in the forecast period.
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Renewable Energy Plants to Grow at the Fastest Rate
As of 2019, renewable energy constitutes around 1.35% of primary energy consumption in the country. With the addition of new wind and solar projects, it is expected to assume the highest share of power generation in the nation.
In 2019, The country’s first geothermal power plant is expected to be developed in Chachimbiro, Imbambura. The power plant is expected to feature 50 MW in geothermal power generation capacity. The Electric Corporation of Ecuador (Celec) authorized the hiring of a credit line for USD 60.1 million for the development of the geothermal project. The project is currently in the field development phase. Expansion into different types of energy sources may provide sustainable growth in the future and may also aid the growth of the market.
In 2019, The El Aromo solar project is expected to be tendered alongside a 110 MW wind power. The PV and wind project is expected to each take-up USD 200 million, according to Ecuador’s state-owned utility Electric Corporation of Ecuador (Celec). The project is expected to be built at a site where irradiation reaches a yearly 140 kWh per square meter. Once operational, the El Aromo solar is expected to produce 280 GWh per year. An increase in the renewable energy sector is expected to aid the growth of the market.
Therefore, it is expected that renewable energy is likely to grow the fastest in the Ecuador power EPC market in the forecast period.
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The Ecuador power EPC market is moderately consolidated. Some of the key players in this market include Wärtsilä Oyj Abp, Power Construction Corporation of China, Grupo Techint, S.A. de C.V., CEYM International EPC company, SANTOS CMI S.A.