- Japan grants $43 million to Ecuador’s Chachimbiro geothermal project, which is expected to generate 50 MW and stabilise the energy supply.
- The project will save Ecuador $147.9 million over a decade by reducing fossil fuel use and aligning with climate goals.
- Chachimbiro boosts local economic growth, creates jobs, and strengthens Ecuador’s global clean energy market position.
Japan has granted $43 million for Ecuador’s Chachimbiro geothermal project, advancing the country’s energy diversification. The project strengthens Ecuador’s energy autonomy and stabilises its electricity supply.
The Chachimbiro geothermal plant will generate 50 megawatts (MW) of power in Imbabura province. Ecuadorian ministers of Energy, Economy, and Foreign Affairs and the Japanese ambassador attended a ceremony in Quito to formalise the funding. This partnership highlights Ecuador’s commitment to diversifying its energy sources.
The Chachimbiro project aims to reduce Ecuador’s reliance on hydroelectric power, which causes frequent outages during droughts. Ecuador will stabilise its national power grid by tapping geothermal resources with a more reliable renewable energy source.
Projections suggest the plant will save Ecuador $147.9 million over the next decade by cutting fossil fuel use. This transition also helps the country meet international climate change goals by reducing greenhouse gas emissions.
Through the Japan International Cooperation Agency (JICA), Japan provides financial and technical assistance. JICA classified the project as “Category B,” indicating minimal environmental impact. The project complies with sustainability guidelines, ensuring its location avoids environmentally sensitive areas.
JICA ensures the transfer of technical expertise, helping the geothermal plant operate efficiently while meeting international standards. This collaboration promotes sustainable energy development in Ecuador.
Ecuador boasts significant geothermal potential, with several projects under exploration. Key initiatives include the Tufiño-Chiles-Cerro Negro project (330 MW), Chalupas (293 MW), Chacana-Cachiyacu (83 MW), and Jamanco (26 MW). The Chachimbiro project will set an example for future geothermal developments, proving the viability of this energy source.
Developing geothermal resources plays a critical role in diversifying Ecuador’s energy production. These efforts reduce the country’s dependence on hydroelectric power, which is vulnerable to climate change, and provide a stable energy supply.
Energy Minister Antonio Goncalves emphasised that the Chachimbiro project will drive local economic growth by stabilising the electricity supply, particularly in rural areas. The initiative will also attract more investments in Ecuador’s renewable energy sector, enhancing the country’s position in the global clean energy market.
The Chachimbiro project will create jobs and promote the transfer of advanced geothermal technologies, boosting Ecuador’s capacity for clean energy development.
As Ecuador transitions to renewable energy, the Chachimbiro geothermal plant marks a pivotal step. The project diversifies the country’s energy mix, strengthens energy security, and contributes to global climate goals.