The CNA recognizes the initiative of the National Government to involve the rivate sector in electricity generation during the crisis

Ecuadorian shrimp production and export at risk if unforeseen power cuts continue

ECUADOR
Monday, September 30, 2024, 00:00 (GMT + 9)

The shrimp sector predicts serious problems in its production chain if the planning of electrical rationing is not complied with and there is no timely communication to citizens, since industries such as shrimp feed manufacturing require minimum times to turn on their equipment.

The same happens with shrimp packing plants, which must plan the reception of the product for its classification, processing, packaging and placement in containers for export. Not having defined schedules prevents them from organizing logistics and puts the fulfillment of commitments to clients at risk. Likewise, packing plants require electricity to process and freeze shrimp at -18 °C, which demands considerable energy volumes. This process is essential to preserve the quality of the product and comply with food safety standards.

On the other hand, the lack of energy in shrimp farms affects the pumping of water, which puts oxygen conditions and the survival of the crustacean at risk.

Unexpected power outages in these key areas of the industry can generate economic losses that would exceed 5 million dollars per day. In this sense, the National Chamber of Aquaculture (CNA) estimates that, if this scenario continues, the sector could accumulate losses of tens of millions in a few weeks, compromising not only exports, but also the internal production of inputs and the survival of shrimp in the pools that depend on electrical systems.

In addition, the CNA requests a differentiated approach to electrical rationing by areas categorized as industrial, for example, in the Durán and Yaguachi cantons of the province of Guayas, arguing the following:

1) Industrial demand in Durán is 140 MW, almost double that of residential demand (80 MW), which requires special treatment compared to other cities.

2) It is proposed to limit power interruptions for the industrial sector to just once a day, minimizing the impact on productivity.

3) Advance announcements on energy restrictions, to allow efficient planning of industrial operations.

The CNA recognizes the initiative of the National Government to involve the private sector in electricity generation during the crisis. To participate in this plan, interested parties must register their generation engines with the electricity distribution companies, after which meters will be installed that record both private consumption and the energy delivered to the National Interconnected System. In addition, the State will issue a credit note to cover the operating costs of the generator, including fuel and maintenance.

The union reiterates its willingness to work together with the authorities and actors involved, in order to find solutions that protect this vital industry for the Ecuadorian economy. For this reason, they insist that the flow of information from the authorities of the energy sector be improved, hoping that certainty will be given in the hours of power cuts, as well as the approximate duration of this crisis that is already seriously impacting national productive activity.

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