Services

Electricity

Electricity is essential to the development of all commercial and industrial sectors worldwide. Power demands increase each year, resulting in a constant search for new energy sources.

At AVL Abogados, we recognize the importance and future of the power sector in the Ecuadorian market and our clients’ need for specialized legal counsel in this area. We know the potential for renewable energy and its market trends, and this facilitates decision-making to harness opportunities for generation projects.

Our law team offers versatile counsel with the technical knowledge to speak the same language as your developers and designers.

Our services

Our services

Our experience with administrative law and public procurement, combined with our technical command of the electricity law, enable us to advise our clients when initiating or participating in auctions, tenders and public selection procedures.
We have obtained and negotiated a significant number of concessions for our clients, and have managed to coordinate all technical requirements and intermediate land ownership processes, approval of energy studies, interconnection and coordination with distribution companies, and power purchase agreements (PPAs) to implement solid renewable and non-renewable energy projects.
We have served as counsel in processes involving government institutions when negotiating licenses to safeguard the interests of our clients.
We have reached a respected position with the authorities of the sector, having obtained concession contracts for all kinds of power generation, including hydroelectric and photovoltaic plants, combined cycle generators, and robust distribution contracts, as well as permits for private transmission and dedicated lines.
We have also obtained highly favorable outcomes in various procedures, from appeals to resolutions on revocations and the expiry of concessions granted by the government.
We have accompanied our clients in negotiating and formalizing different kinds of energy contracts, obtaining optimal results for them, including structured compensation clauses for early termination and power purchase agreements (PPAs).
In addition, we have counseled our clients on formalizing contracts for financing and refinancing projects with international financial institutions such as the Inter-American Development Bank (IDB), the Andean Development Corporation (CAF), the Development Finance Corporation (DFC, formerly OPIC), and other export promotion agencies, as well as the most varied domestic and foreign banks.
We have been recognized as one of Ecuador’s most experienced firms in terms of over US$ 2 billion in financing for both public and private electricity projects.
Due diligence for the power sector to corroborate compliance with legal and contractual obligations, and to identify potential breaches that might hinder power project execution, as well as due diligence prior to the purchase of shares in various projects or assignment of rights in the power field, representing investors from several countries and even the DFC.
Our broad experience enables us to obtain and effectively comply with the requirements of the power industry, leaving no loose ends or potential contingencies, for domestic and foreign entrepreneurs or investors, and a complementary view of this highly technical market from a fiscal perspective.

Success Stories

  • Negotiating a concession and financing for an Ecuadorian company owning two photovoltaic plants in northern Ecuador, the first under 1 MW and the second over 2 MW, which we supported and counseled through the process of obtaining both licenses and financing with the IDB, CAF and Produbanco.
  • Negotiating credit with the Exim Bank of Russia to purchase combined cycle turbines for the Termomachala project for over US$ 150 million.
  • Negotiating financing for the Coca Codo Sinclair and Sopladora Hydroelectric Plants from Ecuador's Ministry of Finance in coordination with the Corporación Eléctrica del Ecuador (CELEC – Electric Corporation of Ecuador), with the Exim Bank of China and the Industrial & Commercial Bank of China (ICBC).
  • Negotiating several photovoltaic plant concessions for an Italian business group in the provinces of Loja and Los Ríos.
  • Negotiating and re-negotiating the Hidrotambo hydroelectric plant concession and leveraging trust schemes for financing, as well as obtaining modification contracts and authorizations for assignment of rights.
  • Pursuing several motions for review of revocation and expiry procedures for domestic and foreign companies before the Regulatory Agency for the industry.