Businesses Ordered to Run Generators 14 Hours a Day as Electricity Crisis Deepens

Ecuador's electricity crisis has reached a new threshold — the government is now ordering private businesses to generate their own power for most of the working day.

The Order

CENACE (Centro Nacional de Control de Energia), Ecuador's national grid operator, issued an order effective March 17, 2026 requiring businesses with self-generation capacity to run their own generators from 9:00 AM to 11:00 PM on weekdays — a 14-hour daily window covering virtually all business hours and into the evening.

The order, reported by Primicias, applies to commercial and industrial operations that have backup generation equipment. In practice, this means factories, shopping centers, hotels, hospitals, large office buildings, and other businesses with diesel or natural gas generators must run them continuously during the mandated hours rather than drawing from the national grid.

Why This Is Happening

Ecuador's electricity system is in crisis due to a convergence of failures:

Coca Codo Sinclair — The Dam That Was Supposed to Fix Everything

The Coca Codo Sinclair hydroelectric dam, Ecuador's largest power plant with a nameplate capacity of 1,500 MW, is currently operating at just 37% capacity — approximately 549 MW. The dam, built by Chinese firm Sinohydro and inaugurated in 2016, was intended to make Ecuador energy self-sufficient.

Instead, it has been plagued by problems: construction defects (thousands of cracks in the machinery hall), sedimentation from the Coca River, environmental damage including the erosion of the San Rafael waterfall, and chronic maintenance issues. At 37% capacity, it is generating roughly one-third of what it was designed to produce.

Colombia Cut Off Electricity Exports

The trade war between Ecuador and Colombia has spilled into the energy sector. Colombia has suspended approximately 450 MW of electricity exports to Ecuador — power that Ecuador was importing to cover its domestic shortfall. The suspension is part of the broader bilateral dispute that has seen both countries impose 50% tariffs on each other's goods.

The loss of 450 MW from Colombia, combined with the underperformance of Coca Codo Sinclair, leaves Ecuador with a massive supply deficit during peak demand hours.

Drought and Low Reservoir Levels

Ecuador's electricity system is approximately 70% hydroelectric, making it critically dependent on rainfall and reservoir levels. Below-average rainfall in recent months has reduced water levels at hydroelectric facilities across the country, further constraining generation capacity.

The Impact

Unscheduled Blackouts

Despite the self-generation mandate, unscheduled power outages were reported in Quito and Guayaquil on March 18 — the day after the order took effect. Neighborhoods in both cities experienced cuts lasting several hours, with no advance warning from authorities.

The government had previously implemented scheduled rolling blackouts (cortes programados) in late 2024 and 2025, but those were eventually reduced. The return of unscheduled outages suggests the grid is under more stress than officials are publicly acknowledging.

Business Costs

Running diesel generators for 14 hours a day is enormously expensive. Diesel fuel costs have risen alongside global oil prices, and the wear on generation equipment from continuous operation accelerates maintenance cycles. Businesses that cannot self-generate — smaller shops, restaurants, and offices without backup power — face productivity losses from outages.

Residential Impact

While the CENACE order targets businesses, the underlying problem affects everyone. When the grid cannot meet demand, residential areas face outages too. Ecuadorians have learned to keep flashlights, charged devices, and non-perishable food on hand — habits that had briefly receded when the 2024-2025 blackout crisis appeared to ease.

What This Means for Expats

• Expect power outages. Whether scheduled or unscheduled, blackouts are likely to continue and potentially worsen as the dry season progresses. If you live in Ecuador, you should have a contingency plan
• Invest in a UPS (uninterruptible power supply) for your computer, router, and essential electronics. A basic UPS costs $50-150 and provides 15-30 minutes of backup power — enough to save work and shut down safely
• If you work from home, consider a portable generator or a coworking space with backup power. Prolonged outages can disrupt remote work, video calls, and internet connectivity (routers lose power even if your laptop has battery)
• Stock your refrigerator and freezer strategically. During blackout periods, a full freezer stays cold longer than a half-empty one. Keep ice packs ready and minimize opening the door during outages
• The electricity crisis affects water supply in many areas, since pumping stations require power. Fill water containers and bathtubs before anticipated outage periods
• If you are considering renting or buying property, prioritize buildings with backup generation. In the current environment, a building with a generator is not a luxury — it is a practical necessity
• Monitor CENACE and local utility company announcements for scheduled outage information. The Empresa Electrica (local electric utility) in your region typically publishes schedules on social media and their website

Source: Primicias