Ecuador Communities Build Hydropower Plant for Conservation Funding

Nineteen families in Ecuador's Intag Valley are building a 300-kilowatt run-of-river hydropower plant, funding conservation and creating local jobs.

In Ecuador’s Intag Valley, 19 families from four communities are developing a 300-kilowatt (kW) run-of-river hydropower plant. This project, known as HidroAguagrún, aims to provide an alternative income source to large-scale extractive and productive industries common in the Imbabura province.

The families, from Cerro Pelado, Chinipamba, Nangulvi Bajo, and Barcelona, own 90% of HidroAguagrún. Registered as a business since 2022, the project stipulates that half of its net electricity revenue will go directly into a trust for conservation activities, such as cloud forest protection, once the plant is fully operational.

The initiative emerged from concerns among local families about water availability and the climate crisis in the region. Jorge Guachagmira, president of the Río Aguagrún Renewable Energy Production Association, which represents the families, stated, “We live in a remnant of the natural world, and our daily activities are affected by the expansion of the exploitation frontier, such as agriculture, livestock farming, logging or deforestation of natural ecosystems.” He added that expanding the agricultural frontier leads to greater water and climate instability.

Ecuador faces energy challenges, with 78% of its electricity coming from hydroelectric power. Recent droughts led to daily blackouts in 2024. The Intag Valley’s cloud forests and rivers are part of the Ecuadorian Chocó bioregion, a highly biodiverse area. Local communities have consistently raised concerns about the deforestation, water contamination, and biodiversity loss associated with large-scale mining projects there.

HidroAguagrún is projected to generate $120,000 annually from selling electricity to the national grid, with operations and maintenance costs estimated at $40,000 per year. According to corporate responsibility nonprofit Fundación Futuro, the project has already boosted income and skills across 17 rural businesses, trained 28 leaders and youth in sustainable energy, and created 11 permanent jobs in operations, monitoring, and ecotourism. A total of 345 people are expected to benefit from the profits over the plant’s 30-year lifespan.

The project uses a run-of-river design, generating electricity by capturing the Aguagrún River’s natural flows without a large dam or water storage reservoir. Engineers say this design has less environmental impact. The community also opted for an 800-meter underground pipe to channel water, minimizing landscape degradation.

Construction has relied heavily on local residents through 'mingas,' a traditional system of collective, voluntary labor. Technical and financial support came from nonprofits Corporación Toisán and Fundación Futuro, which each hold a 5% stake and provided more than half of the funding. Local builders, transporters, mechanics, and monitors were prioritized for construction roles.

Denis Laporta, a representative for alternative energies at Corporación Toisán, noted that the project is not a solution conceived from behind a desk. He said it integrates local people, small businesses, service providers, food vendors, and accommodation providers, fostering a local economic ecosystem.

The project is nearing completion. The first two phases, involving the intake system and the underground pipe, are complete. The third and final phase, hydrostatic testing, is underway. As of early August, the 60-square-meter powerhouse, which will house essential equipment, was 30% complete, with families hoping to finish the structure by the end of 2026. For the plant to sell energy to the national grid, it needs integration into the local grid, which currently relies on single-phase power. HidroAguagrún is negotiating an agreement with the regional electricity company to co-finance the necessary upgrade.

For travelers and hosts, this project illustrates a model for local energy independence that directly funds environmental protection in biodiverse regions like the Intag Valley.