Overview
The Abanico Hydroelectric Project, developed by Hidroabanico S.A., was located in the southeastern region of Ecuador, in the Morona Santiago Province. Abanico aimed to generate clean power, produce employment in an economically depressed zone, replace the use of current polluting form of energy, and improve the efficiency and competitiveness of some Ecuadorian industries. Furthermore, Abanico was selling the generated output to Ecuador’s Wholesale Power Market (WPM) through both spot market transactions and power purchase agreements (PPAs) using the Transelectric transmission company to wheel the energy. The project resulted in emission reductions from the displacement of a combination of fossil fuel-based capacity that would otherwise be generated and dispatched in Ecuador.
Benefits
Aside from positive environmental effects, the Abanico project also generated additional economic, environmental and social benefits. Over its lifetime, the project was planned to displace about 8 million gallons of diesel generation from old, obsolete thermal plants; help create 250 direct jobs and 2,000 indirect jobs during construction phase in one of the most economically depressed regions of Ecuador; provide a reliable water supply from the Abanico River to the city of Macas, through a 15 kilometer canal to be built under the project, saving US$3 million in municipal investment in water infrastructure; and help stabilize the national grid, since the project delivered power to the “tail” of the grid.