On Friday, Ecuador’s government signed a deal with Spanish company Solarpack to construct and operate the country’s first large-scale solar power project. The project is expected to require an investment of nearly $145 million, according to Reuters.
The Solarpack project will be located in the El Aromo area of coastal Manabi province and will have a capacity of 200 MW.
“With an investment of nearly $145 million, the El Aromo photovoltaic project will be a reality in 2025,” said President Guillermo Lasso at the signing ceremony.
“Investors have confidence that they are negotiating with a serious government, an honest government,” Lasso added.
According to Reuters, Solarpack will provide the investment and hold the concession for 20 years. The project is expected to reduce CO2 emissions by 221,000 tonnes per year.
Ecuador had the capacity to produce some 6,400 MW of energy in 2021, largely from thermo and hydropower. Nevertheless, the country is looking for private funding to develop renewable energy projects that can meet domestic demand and enable exports to Colombia and Peru.
According to the government, it will require around $2.2 billion in private funding to develop renewable energy projects over the next decade.