The Ecuadorian government has unveiled a groundbreaking initiative to construct a 500-kilovolt electrical interconnection line with Peru, spearheaded by the Ministry of Energy and Mines and Celec EP’s Transelectric Unit. This project, with a budget of $264 million, aims to enhance regional connectivity and economic prospects by phasing out thermal power generation and reducing energy distribution costs. International funding sources such as the Inter-American Development Bank and the European Investment Bank are contributing to this endeavor, with Celec EP funding the remainder.

Minister Antonio Goncalves stressed the urgency of creating this binational connection, highlighting the importance of collaboration for economic and infrastructural growth. This project builds upon discussions that began over two decades ago, aiming to overcome past technical limitations and agreements, creating a robust grid link between Ecuador and Peru.

The electrical interconnection is part of the broader Sistema de Interconexión Eléctrica Andina (SINEA) initiative, promoting a regional electricity market and energy security in the Andean region. This project signifies a significant step towards sustainable energy usage and economic development between Ecuador and Peru.