Private Investment in generation plants in Ecuador has been null over the last 10 years due to several political and economical factors. The only important hydro plant over that period, a 250 MW plant, was constructed by the Ecuadorian State. At present, the Ecuadorian State and the Ministry of Electricity are the only ones initiating the construction of new hydro plants of significant capacity for the country. This reveals the failure of the existing competitive market model that has been in place for the last 10 years, particularly in relation to incentive to private investment. Arguments are being raised to return to a centralized mandatory planning scheme, under government direction, where the Important hydro investments are made by the State and private investors are left with the thermo projects and small hydro. The presentation will discuss the hydro developments and future prospects.