The government of the Republic of Ecuador, launched the prioritized projects called ERNC Block I of 500 MW (ERNC Block I), through which clean energy will be supplied to the country, improving and diversifying the energy matrix, ensuring the supply of electricity to consumers.

The Ministry of Energy and Non-Renewable Natural Resources promote and will carry out Public Selection Processes  (PSP) to concession to private companies, the ERNC Block I.

Inside ERNC Block I

The ERNC Block I encompasses four non-conventional technologies (hydroelectric, photovoltaic, wind and biomass) for projects located in different geographical areas of Ecuador

The PSP foresees the proposal of private investors for projects with non-conventional renewable technologies on its own initiative or considering the different studies done by the Ministry.

Sub-block 1: Hydroelectric projects

Power required: 150 MW.

Minimum power required per project: 3 MW.

Maximum power required per project: 50 MW.

Term of concession: 30 years.

Sub-block 2: Wind energy projects

Power required: 200 MW.

Minimum power required per project: 10 MW.

Maximum power required per project: 100 MW.

Term of concession: 25 years.

Sub-block 3: Solar energy projects

Power required: 120 MW.

Minimum power required per project: 3 MW.

Maximum power required per project: 50 MW.

Term of concession: 25 years.

Sub-block 4: Biomass energy projects

Power required: 30 MW.

Minimum power required per project: 1 MW.

Maximum power required per project: 15 MW.

Term of concession: 20 years.

Public Selection Process (PSP)

•The selection of projects in each sub-block will be done based on the lowest offered price, until the power allocation of the sub-block is completed.

•In the event that there is an unallocated power from one to several sub-blocks, a complementary stage will be carried out, where the remaining power will be assigned based on the lowest price offered.

Minimum requirements for each PSP

•Access to information: The interested party shall pay US $ 10 000 for acquiring the participation rights, documents and studies.

•Financial capacity: Equity equivalent to 2 million dollars for each MW of Power Offered.

•Technical background: (i) Experience in project development of electric power generation through non-conventional renewable sources; (ii) Nominal Installed Capacity added to at least1.5 MW for each MW to be offered in no more than 5projects of the same technology of the sub-block that the offer is presented, developed in the last 10 years and in commercial operations on the date of the PSP.

Evaluation of the economic offer

•The Ministry will consider the following requirements:

1. Financial capacity

2. Technical background. 3. Legal requirements.

4. Compliance with the technical offer established in the TOR.

•Finally, along with the technical offer, a guarantee must be presented, for USD $ 20 000 for each MW of power offered. The guarantee must be in force until the award of each sub-block and in case is required by the Ministry, renewed for an additional period of 90 days.