Additional mitigation from renewable energy sources. The Yasuni Fund will be invested exclusively in renewable energy facilities in Ecuador (hydroelectric, solar, wind, and geothermal). The country’s electricity demand is growing at 6% per year and, given weak investment between 1990 and 2006, fossil fuel generation accounted for 47% of the electricity supply in 2006. The current government fostered investment in hydroelectric an renewable-based projects, increasing the share of renewable sources to 59% in 2008.
Ecuador´s hydroelectric facilities tap only 10% of the country’s potential hydro capacity. Additionally, Ecuador has very large untapped renewable energy resources. The areas that have received attention include geothermal and solar energy and, more recently, wind energy. The Yasuni Fund will accelerate the total conversion of power supply to renewable sources. The contribution of energy conversion to mitigation has been estimated to reduce 43 million tons of CO2emissions, from which at least 30% will be the direct result of the Initiative.