April 24, 2026
“The mind is like a parachute… it only works if we keep it open.”
Albert Einstein
There are problems in Ecuador’s electricity supply… again. This is hardly a surprise. The undeniable mediocrity and massive corruption among those responsible for the sector — who see energy as no more than a way to make money— has, once more, taken its toll.
The blackouts during the first stage of President Noboa’s administration were avoidable. At the beginning of 2023, the arrival of a severe dry season was anticipated, and a plan was drawn up in order to deal with it. However, even though resources were available to finance the plan, the government of banker Guillermo Lasso did nothing to make it happen. Later, under the newly elected government of Daniel Noboa, that emergency plan was not only ignored, but funds were actually withdrawn from electricity companies in order to reduce the fiscal deficit. Immediately afterward, in an openly corrupt operation, tens of millions of dollars were squandered on the contracting of obsolete thermoelectric equipment, at the same time as system maintenance was neglected. In this scenario, and now without access to electricity from Colombia due to the “trade war” unleashed by Noboa, the dogma of privatization is being promoted by the passing of economic legislation designated as ‘urgent’.
The underlying problem is not, however, lack of electricity. While future projected blackouts will cause havoc in the general population and also severely compromise the manufacturing sector, the real issue is the way we understand and organize energy: as a short-term business with permanent patches, rather than as the material foundation of a national project.
The many problems caused by the government itself – problems compounded by predictable environmental issues – there is an urgent need for greater electricity supply and a much more reliable system. That is obvious. But the matter is far more complicated.
Solving the problem of lack of electricity is not simply a matter of increasing supply to meet growing demand, although in the short term this may be necessary, nor will diversification or cutting-edge technology prove sufficient. Nor can the issue be resolved by temporary fixes, or by privatization or state-control dogmas, it requires structural political decisions with long-term horizons.
What is needed is a process of change that transforms energy structures across the economy and society itself, and at the same time highlights the energy challenge of cities. This implies decentralising energy to the greatest possible extent, but doing so without ending up trapped by mega-projects that, among other difficulties, are susceptible to high levels of vulnerability. The process must also assume the responsibility of decarbonization by gradually and systematically overcoming the use of fossil fuels.
A fundamental element of this structural change is understanding energy as a right, not as a commodity or mere input, implying the planning and building of an energy system that is high quality, sustainable, economic, reliable, as well as democratic and socially equitable. The task must begin by combating “energy poverty” that exists among broad segments of the population, while simultaneously confronting energy waste, for example the huge amounts of electricity allocated to mining megaprojects that are neither socially nor environmentally sustainable nor financially beneficial for the country.
If energy is a right, efficiency in its use, transformation, transmission, and consumption is therefore essential, as is diversification of sources and technologies. Achieving energy sovereignty is indispensable: that is, maximizing self-sufficiency without undermining food sovereignty or harming communities and Nature, including water cycles.
With regard to cities, a crucial point is that energy use is both extremely complex and unavoidable. Simply abandoning fossil fuels and promoting private electric vehicles — which may reduce air pollution — will not solve transportation problems. Rising demand for metal intensive electric cars, increases the need for rare earths and resources such as Lithium; expands mining frontiers, especially in the Global South; and leads to what is known as “green colonialism.” The real solution lies in reducing the demand for private vehicles by providing efficient, high-quality public transportation systems: subsidized mainly and necessarily by municipalities. Cargo transport systems using truly renewable energy sources are also needed.
As well as energy use, efficient and sustainable transportation systems also lead us to value the capacity to build/rebuild cities participatively, reconnecting them to rural areas, while considering population density, productive structures, and consumption patterns. Amongst the many actions needed are a change in the paradigm of architecture and housing construction, as well as urban road organization and the provision of more green spaces full of life and biodiversity – more parks and urban gardens – helping leave behind consumerist logic and the frantic pace of urban life. The challenge here is to displace private vehicles, reducing their use while at the same time strengthening public transport and reclaiming urban spaces for people. This is an indispensable, concrete option already being utilized in several countries.
Other possibilities include encouraging solar energy use in homes through municipal policies that support panel installation, potentially manufactured locally.
At this point, for Ecuador a new long-term horizon of regional integration with Colombia and Peru is emerging as a necessity, as is an adequate energy pricing and subsidy policy with an integral vision — social, productive, ecological, and energy focussed — with which to overcome the fiscal adjustments tied to International Monetary Fund (IMF) conditions.
The viability of the energy system must be planned democratically and aligned with social and ecological justice and the strengthening of institutions, but not through mere legal reforms. State energy companies must be fortified, allowed to function properly, and given sufficient guarantees to secure external funding.
In summary, we must promote the highest level of national energy self-sufficiency, involving not only companies but also communities. The transition must be based on energy democracy, which means empowering consumer participation in decision-making, supporting community and cooperative electricity generation, and ensuring active involvement of municipalities, provinces, and the central government.
A key point is that in the face of the dual challenge of efficiency and sufficiency, energy consumption must be recognised as an energy source in itself. Together with the previously mentioned aspects, recognizing efficiency as an energy source would shape the elements of a democratic and democratizing energy transition that is broad based, fair, and sustainable. The goal must be to benefit the majority, not to consolidate a process that allows economic elites to continue accumulating wealth while wasting energy. The implication is a rethink of the energy (and economic) system from its foundations upwards, which, without neglecting technical issues, prioritises equity, democratic participation, and respect for Human Rights and the Rights of Nature.
To achieve this, the fundamental questions are: energy for what; energy for whom; energy controlled by whom; what kind of energy; how energy is obtained, distributed, and consumed. At all times, we must also consider a crucial point: redesign requires participation, not imposition. As a consequence, this is a political (not partisan, to be clear), rather than simply a technical issue
Ultimately, the energy debate is not only about megawatts or infrastructure. It is about the kind of society we want to build: one that guarantees life? Or one that remains subordinated to capital accumulation? In current circumstances, with mediocre and corrupt governments — such as the present Ecuadorian version — that see energy as a business opportunity, these questions find no place, and will not find the right answers.
Economist, specialized in energy economics in Germany. President of the Ecuadorian Constituent Assembly (2007–2008). Minister of Energy and Mines (2007); Ecuadorian State Petroleum Corporation (CEPE—now PETROECUADOR)executive; and advisor to the Latin American Energy Organization (OLADE) in the 1980s..
