Ecuador has experienced an energetic state of emergency for the past nine months. New demands cannot be covered by Ecuador’s National Interconnected Systems at present, since Ecuador lacks of new infrastructure and energetic projects, although there are old and inefficient sub-transmission networks, with operating characteristics and conditions that make them unsuitable to be considered. Accordingly, to the Ministry of Electrification and Renewable Energies (MEER), the Government requires all possible information about realistic alternatives for meeting its demands for next year’s dry season, including the possibility of investing in its own generating plant, or issuing special permits for the private sector, in order to ensure reliable supply to meet its demand. To determine any project sustainability, it is very important to have clear, a complete knowledge about the current situation of the Ecuadorian electrical system and its short- and medium-term prospects. On this basis, it is indispensable to examine the infrastructure, current and future, for both generation and transmission. Some research into plans and projects, both hydroelectric and thermoelectric, plus those proposed for renewable energies, will structure the likeliest scenario for expansion of generation. This task will be complemented by research into expansion plans for transmission, including expectations regarding electrical integration in the Andean Region. Because it is especially important, the Transmission Expansion Plan for 2009-2020, currently being approved by the regulatory authority and expected to be in force shortly, which will be especially useful when analyzing alternatives to supply the load form the National Interconnected Systems, or to deliver surplus energy to the system. Another fundamental aspect at present that cannot be ignored is the regulatory and financial issues. The electrical sector is being changed significantly pursuant to a Constitutional Mandate issued prior to the current Constitution and overriding laws and part of user but is now to be financed with treasury monies. These decisions, adopted at a time when high international oil market prices promised sufficient funds to cover public investment, seem difficult to apply under current circumstances. It is also necessary to examine the regulatory, technical and economic context in which energy purchase and sale transactions take place. It is important, therefore, to explore market operation rules and fundamentally the prospects for the future, which is especially important at a time of changes and transformations. Along this same line of action, to provide all information required for an implementation of new projects, the document summarizes the procedures for water use concession to generate electricity and the concession to set up and operate a generating plan, including a review of the environmental requirements. The heart of the document identifies and analyzes in a conceptual stage a Thermoelectical project of 10 MW, with possibility of using in some percent Bio Fuels from jatropha vegetable oil. The aim of this document, is to provide a wide picture of what is going on with the electrical sector in Ecuador, so this may help as a good guide or reference as base line for public or private incentives.