Ecuador Grid Losses Estimated at 1,200 MW as Deficit Pressure Persists

Ecuador's power deficit is not only a generation problem.

Primicias/Revista Gestion reports that Ecuador wastes close to 20% of the electricity it produces, compared with an international average near 6%.

With national generation near 6,000 MW, the outlet estimates that about 1,200 MW is lost in transmission and distribution.

Loss And Recovery Estimates

Metric	Estimate
National generation	6,000 MW
Ecuador loss rate	~20%
International loss benchmark	~6%
Estimated power lost	~1,200 MW
Recoverable if losses approached benchmark	~780 MW
Government-estimated deficit range	800-1,500 MW

The report says the electricity Ecuador loses is equivalent to about 80% of Coca Codo Sinclair's installed capacity.

Cost Comparison

Primicias/Revista Gestion reports that producing electricity from hydroelectric plants costs about 7 cents per kWh, while thermal generation costs 11-14 cents per kWh.

For state-rented barges, the report says equipment rental alone represents about 7 cents per kWh, excluding fuel.

Generating an additional 780 MW would imply annual disbursements between $250 million and $500 million, according to the same analysis.

Network Constraints

The report identifies both technical and non-technical losses: cable heating, obsolete equipment, overloaded substations, maintenance gaps, electricity theft, meter manipulation and illegal connections.

It also reports that Quito and Cuenca have loss levels near 6-7%, while some provinces exceed 20%.

Ecuador's transmission network has about 6,200 kilometers of lines and 66 substations, operating across 500, 230, 138 and 69 kilovolt lines.

What To Watch

• Whether CELEC and distribution companies prioritize substations, smart meters and fraud control in 2026 capital plans.
• Procurement timing for the Ecuador-Peru 500 kV interconnection, after the Ecuador-side process was previously declared deserted.
• Industrial curtailment exposure if grid losses remain near the estimated 20% level.
• Whether private investment rules move faster than new generation procurement.

Source: Primicias/Revista Gestion