Electrification: A dream against the current for shrimp industry in Ecuador

Published 2022년 11월 20일

Tridge summary

Ecuador's shrimp industry, its largest source of export revenue, is looking to replace diesel with electricity use, a move that could increase efficiency and profitability. The government has not yet utilized a $200 million loan from CAF, approved in 2019, to fund this transition. The lack of a state entity to guarantee the loan and the absence of diesel fuel subsidies have hindered the progress of the project. The shift to electric power could potentially save the state $300 million in diesel subsidies allocated to the industry. Some private companies have already initiated self-electrification, showing promising results in efficiency and productivity. The need to speed up the process is underscored due to the industry's increasing sustainability requirements in major markets like the US and Europe.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

In recent years, each government on duty has admitted how advantageous it can be for Ecuador, in terms of efficiency and profitability, to get its shrimp industry, the largest source of export currency, to replace the use of diesel with electricity. The plan consists of agreements, conventions, resolutions and rules that aim for the country to take advantage of a $200 million loan that CAF approved in 2019 for that purpose, but which to this day remain unused. A third extension for its use is due to expire in December. The plan to go towards a change of matrix began in 2017 with an agreement between the Ministry of Energy and the National Electricity Corporation (CNEL) to invest in infrastructure that allows the expansion of power lines to rural areas where the shrimp pools are. Although the project was advancing between studies and procedures, says José Antonio Camposano, president of the National Chamber of Aquaculture (CNA), since 2019 he has had the first major obstacle that ...

Source: Expreso