Ecuador has announced a call for tenders to attract private-sector investors to build and operate 200 MW of renewable energy projects.
Ecuador’s ministry of energy and non-renewable natural resources on Tuesday said it is offering 24 projects across small hydro, biomass, wind and solar power technologies, ranging from 3.44 MW to 50 MW of individual capacity.
The energy authority expects the projects to mobilise up to USD 300 million (EUR 255m) in private investments, bring cutting-edge technology and create new jobs, it said.
According to the timetable, preliminary documents related to the selection process will be up for review and consultation in the upcoming period, with final version ready in November 2020. The call for tenders will officially be launched on November 6, while winners will be known in early August 2021.
The winning parties will build, operate and maintain the facilities as concessionaires for 20 years for biomass-fired plants, 25 years for wind and solar parks and 30 years for small hydropower plants. After that, the plants will be turned over to the state, the ministry said.
Locations for all projects have been chosen. For some projects, the ministry has worked out a definitive design, pre-feasibility or feasibility studies.
The government of Ecuador offers incentives to stimulate private investment in the power generation sector, among them a 12-year exemption of income taxes, reduced to eight years for projects located within the areas of Quito and Guayaquil.
Ecuador has potential to develop 10,678 MW of energy capacity from biomass, mainly from palm oil trees, 660 MWp from solar and 884 MW of wind power, according to the ministry.
(USD 1.0 = EUR 0.850)
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