Energy

Electricity is an essential ally for the development of all commercial and industrial sectors worldwide

With the constant growth in energy demand year after year, the search for energy sources becomes recurrent and essential. At AVL Abogados, we understand the strategic importance of the energy sector in the Ecuadorian market and the need for our clients to have specialized legal advice to navigate this complex and dynamic environment.

We recognize that the future of the energy sector is increasingly tied to the use of renewable energies. This transition to more sustainable energy sources not only addresses the need to diversify energy sources but also aligns with global and local trends to minimize an environmental impact. Therefore, our legal advice focuses on facilitating strategic decision-making and leveraging opportunities in the development of renewable energy projects.

Our team of attorneys is recognized for providing versatile and technical advice, capable of communicating in a common language with developers and designers of energy projects.

This approach allows us to understand and anticipate the specific needs of our clients, providing legal solutions that are both practical and innovative. We are involved in all stages of our clients’ projects, from planning and financing to implementation and operation, ensuring regulatory compliance and risk mitigation.

At AVL Abogados, we are committed to supporting our clients in navigating the complex regulatory and contractual frameworks that govern the energy sector in Ecuador.

Our deep understanding of the market and our experience advising stakeholders in the energy sector enable us to provide high-quality service tailored to the specific needs of each client. We offer the necessary legal support for the success and growth of our clients’ energy projects.

Our team of lawyers in the energy sector is distinguished by its deep knowledge and experience in the electricity sector, providing comprehensive and specialized legal advice.

Our main strengths are:

  • Technical-Legal Expertise: We hold significant technical knowledge that allows us to communicate in a shared language with developers and designers of energy projects. This capability helps us understand our clients’ specific needs and provide precise and effective solutions.

  • Focus on Renewable Energies: We recognize the growing trend towards the use of renewable energies and are well-versed in the opportunities and challenges this presents. Our experience in managing such projects enables us to advise our clients on strategic decision-making and leveraging sustainable opportunities.

  • Comprehensive Advisory: We offer versatile advice that covers all stages of energy projects, from obtaining the necessary permits and negotiating contracts to managing national and international financing. We can advise on establishing the required guaranteed structures for effective implementation. We ensure that our clients comply with all regulations and legal requirements, minimizing risks and optimizing outcomes.

  • Permit Management: Our ability to handle complex regulatory and contractual aspects allows us to effectively protect our clients’ interests.

These strengths position us as leaders in legal advisory in the energy sector, providing our clients with the confidence and support needed for the success of their projects.

Learn About Our Firm's Notable Cases:

  • Negotiation of the concession and financing for an Ecuadorian company owning two photovoltaic plants—one with less than 1 MW and the other greater than 2 MW—located in the northern part of the country. We have supported and advised the company throughout both the process of obtaining the necessary permits and the financing from the Inter-American Development Bank (IDB), the Development Bank of Latin America (CAF), and Produbanco.

  • Negotiation of a loan with Russia’s Exim Bank for the purchase of combined cycle turbines for the Termomachala project, totaling over $150 million.

  • Negotiation of for the financing of the Coca Codo Sinclair and Sopladora hydroelectric plants on behalf of the Ministry of Finance of Ecuador [Ministerio de Economía y Finanzas], in coordination with the Ecuadorian Electric Corporation [Corporación Eléctrica del Ecuador] (CELEC), with China’s Exim Bank and ICBC.

  • Negotiation of concessions for several photovoltaic plants for an Italian business group in the Ecuadorian provinces of Loja and Los Ríos.

  • Negotiation and renegotiation of a concession for the Hidrotambo hydroelectric plant and leveraging trust schemes for financing of this project, as well as achieving amendment agreements to concession contracts and authorizations for the assignment of rights from concession contracts.

  • Representation in several review processes regarding revocation and expiration proceedings for national and international companies before the regulatory and control agency [Agencia de Regulación y Control de Electricidad].

  • Advice for the development of dedicated transmission lines for mining projects.

  • Advice to clients participating in the public selection processes by the Ministry of Energy for the allocation of energy blocks of up to 500 MW.

  • Advice and defense in administrative proceedings initiated by the Regulatory Agency against hydroelectric generation companies for alleged noncompliance.

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Recognitions

Chambers Latin America Guide, 2025

“AVL Abogados is a very professional team with a high quality of work and solid arguments.”

Xavier Andrade

“Xavier Andrade Cadena produces great work, is very cost-effective and knows his subject matter. I would rate him highly.”

Rodrigo Borja

“Rodrigo Borja adapts well to changes, is very updated and hands-on, and no detail escapes him. He is also very strategic in recommendations and above all provides good quality of service.”

 

Chambers & Partners

When is a lawyer in the Energy area needed?

  • Legal advice is required from the incorporation of the company that will apply for the necessary permits to participate in the Ecuadorian energy sector, as well as for foreign companies interested in investing in energy projects in Ecuador and participating in public selection processes for electric projects.

  • Also, advisory services for obtaining the necessary permits and authorizations for the development of energy projects, including negotiations with the State to secure these permits.

  • Legal advice is required for the negotiation and execution of energy purchase agreements with Ecuadorian distribution companies, as well as energy purchase agreements for self-consumption in the case of self-generators, and connection agreements with the transmission company.

  • Legal representation during administrative proceedings initiated by the regulation and control agency of the energy sector, applying specialized legal knowledge of the electricity sector.

  • Advisory services for financing energy sector projects, including regulatory advice for obtaining the necessary authorizations for the transfer of shares in companies that hold permits in the electricity sector.

What services does AVL provide in this area?

  • AVL Abogados advises clients focused on the energy sector, from obtaining the necessary permits and authorizations to operate to negotiating and signing contracts with the State, such as energy purchase agreements, connection agreements, and operation and maintenance contracts.

  • We advise our clients who require enabling titles and permits for the distribution and transmission of electric energy.

  • We also advise clients who need to obtain the necessary permits for the development of distributed generation systems for self-supply, which involves a series of permits with the distribution and commercialization companies in Ecuador.

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