Abstract
This paper describes the current energy sector in Ecuador, its present structure, the oil industry, subsidies, and renewable energy, focusing on the evolution and reform of the electricity sector. Currently, 86% of the primary energy originates from nonrenewable sources. In 2005, the gross electricity generation was 15 127 GWh (45.5% hydropower, 43.11% thermal, and 11.39% imported). Ecuador is the fifth largest oil producer in South America but lacks sufficient oil refining capacity. Reserves of natural gas (NG) are small, and most of NG is produced from oil fields without energy recovery. Several projects are underway to increase the utilization of NG and renewable energies to meet Ecuador commitments to the Kyoto Protocol.
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