Economy & Business - November 2024

ECUADOR | New energy law approved by congress. On 27 October Ecuador’s national assembly unanimously approved a bill submitted by President Daniel Noboa that aims to incentivise private investment in the energy sector. The reform creates more room for the private sector to operate in Ecuador’s state-controlled electricity sector, which continues to be hit by blackouts of up to 14 hours per day due to electricity shortages caused by low water levels at hydroelectric power stations. Among other things, the law streamlines the process for private companies to invest in renewable energy plants capable of producing up to 100MW on local media reports. Ana Corbacho, the deputy director of the Western Hemisphere Department at the International Monetary Fund (IMF), said on 25 October that, given the severe drought and electricity crisis that Ecuador is facing, “we would expect that it would have an impact both on economic conditions and fiscal needs”. Corbacho said that the IMF may need to revise its Ecuador growth outlook for 2024, which is currently 0.3%.

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