Sinkhole Threatens Coca Codo Sinclair Power Plant, Ecuador’s Electricity and Tourism at Risk

January 2025 — A rapidly expanding sinkhole near Ecuador’s largest hydroelectric facility, the Coca Codo Sinclair power plant, is raising alarms about the country’s energy future. The sinkhole, which formed in the El Chaco region of Napo Province, is dangerously close to the plant’s infrastructure and may destabilize operations within the next year if mitigation efforts fail. Experts warn that a potential shutdown of the plant could have devastating consequences for Ecuador’s electricity grid, economy, and thriving tourism industry.

Coca Codo Sinclair: The Backbone of Ecuador’s Electricity

The Coca Codo Sinclair hydroelectric facility, completed in 2016 with an investment of $2.2 billion, produces approximately 30% of Ecuador’s electricity. Located along the Coca River, the plant was designed to harness the river’s natural power to generate 1,500 megawatts of electricity. This capacity makes it the cornerstone of Ecuador’s transition toward renewable energy and a key factor in reducing the country’s reliance on imported fossil fuels.

However, the plant has faced significant challenges since its inception, including structural defects and environmental controversies. In 2021, reports of cracks in its penstocks—the massive pipelines that channel water to the turbines—emerged, prompting costly repairs. The current threat from the sinkhole adds yet another layer of uncertainty to the plant’s future.

The Expanding Sinkhole

The sinkhole, which began as a small depression in 2020, has grown to alarming proportions due to soil erosion and geological instability in the area. This phenomenon has been exacerbated by the rapid retreat of the San Rafael waterfall, located upstream of the plant. The waterfall’s disappearance in 2020 triggered severe erosion along the Coca River, destabilizing the surrounding terrain.

Geologists and engineers have warned that the sinkhole’s proximity to critical infrastructure, including pipelines and power lines, poses an imminent risk. Government officials and private contractors are working on stabilization measures, such as filling the sinkhole and reinforcing the soil. However, these efforts are costly and time-consuming, and their success is uncertain.

Ecuador’s Energy Challenges

Ecuador’s electricity grid relies heavily on hydropower, which accounts for over 80% of its energy production. While this dependency has allowed the country to achieve one of the lowest carbon footprints in the region, it also makes the grid vulnerable to climatic and geological disruptions.

The loss of Coca Codo Sinclair’s output would create a massive shortfall in electricity, forcing the government to rely on aging thermal power plants and expensive imports from neighboring countries like Colombia and Peru. This would likely result in higher electricity costs for consumers and frequent blackouts, as the country’s grid struggles to meet demand.

Energy shortages could also hinder Ecuador’s efforts to attract foreign investment and develop key industries, further straining the economy.

Tourism at Stake

Ecuador’s tourism sector, which contributes over $2 billion annually to the economy, could be severely affected by electricity disruptions. Popular destinations such as the Galápagos Islands, Quito’s historic center, and the Amazon rainforest depend on reliable electricity for transportation, lodging, and other essential services.

Power outages could disrupt airport operations, hotel accommodations, and tourist attractions, deterring international visitors. This is particularly concerning given that the country has been positioning itself as a premier destination for eco-tourism and adventure travel.

Additionally, areas like the Amazon and the Andes—which are already grappling with water rationing due to prolonged droughts—may face even greater challenges in providing basic services to both residents and tourists.

Government and Public Response

The Ecuadorian government has declared the sinkhole a national emergency and allocated funds for immediate mitigation. However, critics argue that these measures are reactive rather than preventive. Environmental groups have also called for greater accountability, citing the ecological risks posed by large-scale hydroelectric projects like Coca Codo Sinclair.

Meanwhile, local communities near the sinkhole are living in fear of displacement, as continued erosion threatens their homes and livelihoods. Some residents have already been evacuated as a precautionary measure.

A Pivotal Year Ahead

The next 12 months will be critical in determining the fate of the Coca Codo Sinclair power plant and, by extension, Ecuador’s energy and economic stability. Engineers, policymakers, and environmentalists must work together to address this multifaceted crisis.

If the sinkhole cannot be stabilized and the plant’s operations are compromised, Ecuador could face an energy crisis with ripple effects across its economy, including its vital tourism industry. As the country grapples with these challenges, the world watches closely, hopeful for a solution that balances infrastructure resilience with environmental sustainability.