Organic Law to promote private initiative in energy generation, classified as urgent in economic matters

Laws and Policies

CCLW

CCLW national policies

This law establishes a framework to encourage private investment in renewable and transitional energy sources, aiming to address Ecuador’s energy crisis while advancing the country's commitment to sustainable development. It promotes diversification of the energy matrix, transitioning to cleaner technologies, and enhancing energy efficiency across public and private sectors. The law aims to prioritise solutions aligned with environmental protection and the principles of sustainable growth, as outlined in the Ecuadorian Constitution.
Key measures include mandatory transition plans for thermal power generators to adopt lower-impact technologies, such as gas and hybrid systems, and incentives for local governments to process waste for energy generation. Additionally, the law mandates streamlined licensing processes and encourages financial institutions to offer preferential loans for renewable energy projects, enabling individuals and businesses to adopt clean energy technologies and commercialise surplus energy.