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