The Organic Energy Efficiency Law was published in Official Register Supplement No. 449 dated March 19, 2019. The main topics included in the new law are the following:


  • National Energy Efficiency System: It comprises several institutions, policies, and investment plans and programs created to ensure compliance with the National Energy Efficiency Plan (PLANEE in Spanish).   The PLANEE will be mandatory for the public sector and indicative for the private sector.

  • National Energy Efficiency Committee (CNEE in Spanish): The National Energy Efficiency System will be monitored by the Ministry in charge of energy efficiency public policy, through the National Energy Efficiency Committee as its technical body.

  • Responsibilities of Decentralized Autonomous Governments (GADs in Spanish): On the basis of their competencies in the traffic, transport and construction sectors, GADs are required to implement the regulations for the National Energy Efficiency System.

  • Energy Efficiency in Construction:
    • The Ministry responsible for construction and housing will coordinate with the Ecuadorian Standardization Service and GADs on the formulation of policies and regulations for industrial, commercial, recreational and residential buildings and equipping which will be mandatory for designers, constructors, owners and users of the buildings.
    • Such regulations will establish a procedure to evaluate and rate energy consumption in new and refurbished, expanded or renovated buildings.
    • Constructors are required to inform buyers of the energy ratings of the buildings as concerns the future energy consumption benefits of their investments.

  • Energy Efficiency in Transport:
    • For public, heavy load and logistics transport, priority will be given to electric technology and to projects seeking energy efficiency policy implementation, which may be carried out through public-private partnerships.  
    • The Organic Law on Public Electric Power Service is amended to permit charging of electric cars, for which purpose an agreement should be entered into with electric power distribution companies.
    • The PLANEE will define a policy establishing progressive consumption and emission levels for new vehicles.
    • The Government and GADs will develop scrappage programs.
    • By 2025, all vehicles used for urban and inter-parish public transport in continental Ecuador shall be electric-powered.
    • The Ministry in charge of hydrocarbon policy will implement policies and actions to guarantee fuel quality, encourage the use of biofuel, and promote electric transport.

  • Classification of electric power consumers. There are large, medium and small electric power consumers.  The regulations will establish ranges for classification. In addition, the regulations will establish energy savings obligations for large consumers.

  • Financing of energy efficiency projects:  The regulations will establish a financial mechanism to channel non-reimbursable fund allocations made in the context of domestic and international cooperation for development of energy efficiency projects.  The entity in charge of energy policy will manage this mechanism and set priorities for the projects. The regulations may also provide for other sources of financing for the projects.

  • Incentives.
    • The regulations will establish conditions, parameters and procedures for issuance of energy savings certificates.
    • Preferential financing conditions will be made available for energy efficiency projects.
    • The regulations will establish preferential fares for electric public and private transport.
    • GADs will provide incentives over a ten-year period for the purpose of promoting the use of electric vehicles, such as, for instance, an exemption from driving restrictions for traffic congestion reduction for those vehicles.

Warning: This newsletter by Pérez Bustamante & Ponce (PBP) is not and cannot be used as legal advice or opinion since it is merely of an informative nature.