This paper explores the key challenges and strategies for achieving the geothermal energy target of 1000 MW in Ecuador. Despite the new political decision to address the change of energy matrix based on new renewable power developments, there are other factors to be considered before achieving this goal. At first, the energy policy concentrating on the regulatory gap to promote geothermal energy projects is assessed. Furthermore, the technical and economic potential of geothermal power with a focus on the latest investment and institutional support in the geothermal energy sector is addressed. Current investment and prioritisation of other energy resources (renewable and nonrenewable) in Ecuador is also discussed. Finally, the environmental issues regarding geothermal developments in the Ecuadorian context are highlighted.