Potential and Impacts of Cogeneration in Tropical Climate Countries: Ecuador as a Case Study

High dependency on fossil fuels, low energy efficiency, poor diversification of energy sources, and a low rate of access to electricity are challenges that need to be solved in many developing countries to make their energy systems more sustainable. Cogeneration has been identified as a key strategy for increasing energy generation capacity, reducing greenhouse gas (GHG) emissions, and improving energy efficiency in industry, one of the most energy-demanding sectors worldwide. However, more studies are necessary to define approaches for implementing cogeneration, particularly in countries with tropical climates (such as Ecuador). In Ecuador, the National Plan of Energy Efficiency includes cogeneration as one of the four routes for making energy use more sustainable in the industrial sector. The objective of this paper is two-fold: (1) to identify the potential of cogeneration in the Ecuadorian industry, and (2) to show the positive impacts of cogeneration on power generation capacity, GHG emissions reduction, energy efficiency, and the economy of the country. The study uses methodologies from works in specific types of industrial processes and puts them together to evaluate the potential and analyze the impacts of cogeneration at national level. The potential of cogeneration in Ecuador is ~600 MWel, which is 12% of Ecuador’s electricity generation capacity. This potential could save ~18.6 × 106 L/month of oil-derived fuels, avoiding up to 576,800 tCO2/year, and creating around 2600 direct jobs. Cogeneration could increase energy efficiency in the Ecuadorian industry by up to 40%.