US and Ecuador Sign Nuclear Energy Cooperation MOU, 300MW SMR Tender Planned

The Agreement

US Deputy Secretary of State Christopher Landau and Ecuador's Foreign Minister Gabriela Sommerfeld signed a Memorandum of Understanding Concerning Strategic Civil Nuclear Cooperation on April 1, 2026, in Washington, D.C. The MOU establishes a bilateral framework for nuclear energy development, technology transfer, and regulatory capacity building.

Parameter	Detail
Date signed	April 1, 2026
US signatory	Deputy Secretary of State Christopher Landau
Ecuador signatory	FM Gabriela Sommerfeld
Type	Memorandum of Understanding (non-binding framework)
Scope	Civil nuclear energy cooperation
Key deliverable	300MW SMR tender (2026)
Regulatory framework	To be developed under MOU

Ecuador's SMR Plans

Ecuador is planning to issue a competitive international tender for a 300MW small modular reactor (SMR) installation during H2 2026. Key parameters:

Parameter	Detail
Target capacity	300 MW (net)
Technology	Small modular reactor (SMR)
Tender timeline	H2 2026 (expressions of interest)
Estimated construction	5-7 years from contract award
Estimated commissioning	2032-2034
Estimated capex	$2.5-4.0 billion
Potential sites	Under evaluation (coastal preferred)
Grid integration	Baseload capacity

Ecuador would become the first South American country with a concrete SMR deployment timeline, ahead of Argentina (which has operated the Atucha I and II reactors since 1974 and 2014 but has not committed to SMR technology) and Chile (which has conducted feasibility studies but set no tender date).

Potential SMR Vendors

The international tender is expected to attract bids from leading SMR developers:

Vendor	Country	Technology	Capacity	Status
NuScale Power	United States	VOYGR	77 MW per module (scalable)	NRC-certified design
GE Hitachi	US/Japan	BWRX-300	300 MW	Under NRC review
Westinghouse	United States	AP300	300 MW	Pre-licensing
Rolls-Royce SMR	United Kingdom	UK SMR	470 MW	UK GDA process
CNNC	China	ACP100 (Linglong One)	125 MW	Under construction (Hainan)
KHNP	South Korea	i-SMR	170 MW	Under Korean licensing

The MOU's alignment with US SMR export strategy suggests NuScale, GE Hitachi, and Westinghouse are the preferred vendors from the US perspective. However, Ecuador has not committed to a US-only procurement, and Chinese and Korean vendors may offer competitive financing terms.

Energy Diversification Context

The MOU is directly linked to Ecuador's 2024 blackout crisis, which exposed the structural vulnerability of the national grid:

Ecuador's Current Energy Mix

Source	Installed Capacity (MW)	Share of Generation	Vulnerability
Hydroelectric	~5,100	~75%	Drought, climate variability
Thermal (oil/gas)	~2,800	~18%	Fuel cost, emissions
Floating generators	~600	~5%	Temporary, expensive
Wind	~21	<1%	Intermittent
Solar	~45	<1%	Intermittent
Biomass	~130	~1%	Seasonal
Total	~8,700	100%	--

The 75% hydroelectric dependence made Ecuador acutely vulnerable to the 2024 drought, which reduced reservoir levels below 30% and triggered months of rolling blackouts costing an estimated $3-4 billion in economic output.

Proposed Future Mix (2035 Target)

Source	Current Share	2035 Target	Change
Hydroelectric	~75%	~55%	-20 pp
Nuclear (SMR)	0%	~8%	+8 pp
Solar	<1%	~12%	+11 pp
Wind	<1%	~8%	+7 pp
Thermal	~18%	~12%	-6 pp
Other (biomass, geothermal)	~6%	~5%	-1 pp

A 300MW SMR would provide approximately 8% of current generation capacity as reliable, weather-independent baseload power -- directly addressing the intermittency and drought vulnerability that caused the 2024 crisis.

IAEA Technical Cooperation

The MOU builds on existing International Atomic Energy Agency (IAEA) engagement with Ecuador:

IAEA Activity	Status	Timeline
Country Nuclear Infrastructure Review (CNIR)	Completed	2025
Integrated Nuclear Infrastructure Review (INIR) Phase 1	In progress	2026
Regulatory framework development	Early stage	2026-2028
Human resource development	Ongoing (training programs)	2025-2030
Site evaluation methodology	Planned	2027

Ecuador must progress through the IAEA's Milestones Approach -- a three-phase framework for countries introducing nuclear power -- before construction can begin. Ecuador is currently in Phase 1 (consideration before a decision to launch a nuclear power program).

Regulatory and Institutional Requirements

Ecuador currently has no nuclear regulatory authority. The MOU framework includes provisions for:

• Creation of a national nuclear regulatory body (independent from the Ministry of Energy)
• Nuclear liability legislation aligned with international conventions (Vienna Convention or Paris Convention)
• Non-proliferation commitments -- Ecuador is a signatory to the Treaty of Tlatelolco and the NPT, but additional safeguards agreements may be required
• Emergency preparedness framework -- national-level nuclear emergency response capacity
• Waste management plan -- SMR designs produce significantly less waste than conventional reactors, but a national policy is required

Financial and Economic Implications

Financial Aspect	Estimate
Total project cost	$2.5-4.0 billion
Construction jobs	3,000-5,000 (peak)
Operational jobs	300-500 (permanent)
Levelized cost of energy (LCOE)	$60-90/MWh (SMR estimate)
Compared to hydro LCOE	$30-50/MWh
Compared to thermal LCOE	$90-140/MWh
Compared to imported electricity (Colombia)	$45-55/MWh (now unavailable)

While SMR power is more expensive than hydroelectric on a per-MWh basis, it provides baseload reliability that hydro cannot guarantee during drought periods. The 2024 blackout crisis demonstrated that the cost of unreliable power (estimated $3-4 billion in economic losses) far exceeds the premium for nuclear baseload.

US Strategic Interests

The MOU aligns with broader US nuclear export policy objectives:

• Counter Chinese nuclear expansion -- CNNC has been aggressively marketing the ACP100/Linglong One in Latin America and Africa
• SMR market development -- US vendors need international orders to achieve manufacturing scale and reduce per-unit costs
• Non-proliferation framework -- US cooperation ensures adherence to the highest safeguards standards
• Rare earth and uranium supply chains -- Ecuador's mining reform law (effective March 2) enables exploration for nuclear fuel minerals
• Bilateral relationship deepening -- the nuclear MOU complements the March 13 trade agreement and Operation Southern Spear security cooperation

Regional Context

Country	Nuclear Status	Reactors	Capacity
Argentina	Operating	3 (Atucha I, II, Embalse)	1,641 MW
Brazil	Operating	2 (Angra 1, 2)	1,884 MW
Mexico	Operating	2 (Laguna Verde)	1,552 MW
Chile	Feasibility study	0	--
Ecuador	MOU signed, tender planned	0	300 MW (planned)
Colombia	No program	0	--
Peru	Research reactor only	0	--

What to Watch

• Tender specifications (H2 2026) -- whether the terms favor US vendors or maintain open competition, which will signal the depth of MOU alignment
• IAEA INIR Phase 1 completion -- the review will identify regulatory and institutional gaps that must be addressed before procurement
• Financing structure -- whether US EXIM Bank or DFC provide concessional financing (as indicated at the Critical Minerals Ministerial) or whether Ecuador must seek commercial financing
• Community acceptance -- nuclear energy faces social resistance in many countries; Ecuador has no history of nuclear development and public opinion is untested
• Regulatory authority establishment -- the timeline for creating an independent nuclear regulator will be a binding constraint on the overall project schedule
• Site selection -- coastal locations (for cooling water access) in seismically active Ecuador will require rigorous geological assessment

Source: U.S. State Department