Tag Archives: energia solar en latinoamerica

Solar Thermal Brazil

According to the IEA, Brazil is 4th in solar thermal installed capacity in the world ranking, but 32nd in solar thermal energy per capita among 57 countries.

Irradiation is extremely high in Brazil. The lowest level is in Santa Catarina, still 30% higher than the average in Germany.

Between 2009 and 2013, the Brazilian production of solar collectors grew at an annual average of over 15%, reaching an installed capacity of 9,6 million m2.

In 2012 Brazil accounted 1/3 global market of flat and pool heating collectors produced, with 965 MW, followed by Germany and the US.

Was the 5th country in solar collectors installed in 2013.

One aspect to improve are laws and regulations.

Many municipal laws are being implemented since 2006 and a few are already a reality in some cities like São Paulo.

Proposals to offer incentives for clean technologies and discounts on electricity fee to facilities equipped with solar water heating are also implemented.

In 2014, the Brazilian solar thermal park production reached 7,354 GWh from a total area of 11,24 million m2 of solar collectors installed in the country.

This year, collectors for solar water heating production grew by 4,5%, with the installation of 1,44 million m2 of collectors.

Considering a residential consumption average of 166 kWh / month, this amount of energy is enough to power 3,7 million households over one year. The city of São Paulo has 3,9 million homes.

Higher sales of solar thermal systems in 2014 were recorded in the Southeast with 61,94%, followed by the South with 21,81%, the Center-West with 10,44%. Regions with less market share were Northeast and North, with 4,51% and 1,69%, respectively.

51% of sales in 2014 was allocated to the residential segment, compared to 9% in 2013.

But the big news was use of solar energy in industry expanding. 17% in 2014 compared to 3% in 2013.

By contrast, housing programs sales was reduced from 19% to 16% in 2014.

Commercial and services segments also recorded a 16% in 2014.

The Basic Sanitation Company of São Paulo State (Sabesp) has installed a Treatment Plant Wastewater solar heater in Taubaté and Trebembé cities. The system heat water to 55 ° C for two centrifuges and other washing elements.

Low-income families in towns of Lorraine and Cachoeira Paulista, in São Paulo state, will benefit from the project “Good Solar Energy”, which envisages the installation of solar thermal energy in more than 383 homes, plus kits with fluorescent lamps.

Solar Brazil

Brazil is rich in natural resources. 44% of its energy comes from renewables.

Is the leader in biofuels production and has a very important contribution of hydroelectric plants.

It is between developing countries with most installed wind power, especially in the coastal area of Maranhao, Piaui, Ceara and Rio Grande do Norte.

The PROINFA program established the incorporation of 3300 MW of renewable energy. Large investments in wind and biomass were performed. However, solar has not been considered in energy integration; especially in large-scale plants connected to the grid.

The green energy Brazilian matrix was envied by many nations and the government was convinced that the country had the status of economic superpower.

Three-quarters of Brazil’s electricity came from hydroelectric plants and automobiles are moved mainly by sugar cane ethanol.

The country had just discovered huge oil reserves off its coast.

Today the picture is not as promising.

Oil production is falling and electricity rationing is discussed, which further depress the economy.

The problems began when Brazil tried to increase control over their resources and it spooked investors.

They deepened because the country has a strong dependence on hydroelectric (2/3 generation) and faces one of its worst droughts.

The reality is that Brazil’s power sector is plagued by inefficiencies.

The new oil law passed in 2010 sought to ensure state control over large deposits discovered under the sea off the states of Rio de Janeiro and Sao Paulo, demanding that Petrobras increase its controlling interest in the exploration and production.

Companies with long-term projects in Brazil reduced their plans or simply left the country.

But most damaging were gasoline prices policies.

The government prevented to Petrobras raise the prices of gasoline and diesel to contain inflation and the company incurred their first losses in 13 years.

The artificially cheap gasoline turned uncompetitive the local biofuels industry. The producers responded by cutting production, which shot ethanol prices.

Each liter of gasoline takes 1/4 of ethanol, so that increased the cost of gasoline.

To prevent an inflation increase, the government reduced the percentage of ethanol in the mixture at 20% at the end of 2011.

With refineries at full capacity, Petrobras was forced to import gasoline at market prices and sell at a loss.

The other big blow was the government’s plan to force a 20% fall in electricity prices in 2014, sliding that electricity companies would have to settle for lower profit margins.

The investor response was to sell companies shares. Eletrobras shares, the largest generator in Latin America, lost this year more than 2 decades of profits.

Although solar energy was not considered in the PROINFA and there is no state strategy to encourage it, Brazil has implemented several programs especially for electrification in rural communities.

The most important has been the PRODEEM, which was a leap for local solar industry know-how with a significant involvement in research and universities.

The other was the “Light for All” program, promoted by the state government in 2003 with the ambitious goal of bringing electricity to 10 million people.

Solar Photovoltaic Bolivia

Until the first half of the 90s, the installed capacity in Bolivia was 5.000 photovoltaic systems mainly for telecommunications and rural households’ electrification.

During the second half of the decade, more than 5.000 systems were installed in the department of Santa Cruz in a project promoted by CRE distributor, with funding from the Netherlands Kingdom Embassy.

In addition to this, projects financed by NRECA in the so called “Yungas” region of La Paz department and Energética in Cochabamba (Chimboata and Intikanchay projects) were also implemented.

Since the year 2000, more than 2.000 systems are being installed per year from projects such as those implemented by the Social Investment Fund (FIS) and the La Paz department Prefecture.

The number of installed systems to date exceeds 35.000.

According to data provided by Energética NGO, 83,4% of existing photovoltaic solar installations are for home use, 16,3% for social using (health centers, educational units, churches, seniors centers, unions) and 0,3% are for productive use (spinning centers, craft centers, pumping systems).

Most facilities are located in the departments of Cochabamba, Oruro and Potosi.

There are three important aspects that can favor the country’s photovoltaic development:

1- The manufacture of components by Bolivian companies. One company has included photovoltaic system batteries in its offer and another produces charge controllers, PL-type fluorescent lamps and voltage converters.

2- The training of human resources in this technology, which has been included within technical training centers’ curriculums, which allows to provide the labor needed to support a significant rate of implementations.

3- Installations’ quality. Bolivia was the first country in the region to have own regulations that guarantee quality. They were developed by the BOL / 97 / G31 project implemented by the Department of Electricity and Alternative Energies financed by UNDP / GEF and issued by the Bolivian Institute for Standards and Quality (IBNORCA).

Although photovoltaic technology in Bolivia has reached a certain maturity, it still has challenges ahead. Especially in the field of productive uses which should enable rural people to increase their income. Thus, it would fulfill a great purpose: to bring development to rural areas.

The second phase of the first solar power plant was recently inaugurated in the country (the 1st phase was delivered in September 2014) with a capacity of 5.1 MW and located in Villa Bush (Pando).

Cobija Photovoltaic Solar Plant will provide continuous power to the municipalities of Cobija, Porvenir, Filadelfia, Bella Flor and Puerto Rico.

The project’s total investment was U$D 11 million. The National Electricity Company (ENDE) invested U$D 4.98 million (47%), while the Danish Cooperation made a non-repayable contribution of U$D 6 million (53%).

Energy from Cobija Photovoltaic Solar Plant is expected to substitute the consumption of 1.9 million liters (0.43 million Gallons) of diesel per year.

The projected Oruro Department solar plant will have a capacity of 20 MW and its construction will involve the investment of U$D 45 million.

Solar Thermal Bolivia

In Bolivia, it is estimated that solar thermal installations will increase at a pace of around 500 per year across the country.

This growth is obviously too slow considering Bolivia’s solar potential.

Its radiation is so high that many applications of solar thermal energy could be used.

However, the domestic market is emerging and there are few companies dedicated to this technology.

The most active area is located in the central region of Cochabamba where there are 5 companies that are mainly engaged in thermosiphon equipment installations.

In Bolivia, energy is only available to a small proportion of the population. Broad sectors of poor people in rural areas are not connected to the public electricity network.

The electricity and gas distribution network do not reach these remote regions because this expansion would not result in profits for suppliers.

The use of solar thermal energy has an enormous potential for providing hot water to communities in the highlands, where there are very low temperatures that adversely affect the region’s production and people’s daily activities.

Weather conditions in the Bolivian highlands are extreme due to night frosts. Water from pits or pipes have a very low temperature and therefore it needs to be heated by electricity or gas for people’s personal hygiene and for washing clothes and various items.

As Bolivia is located near the Equator, solar radiation is very high and with no variation between summer and winter periods. Therefore, there are ideal conditions for using solar energy in water heating.

From all of the above, it is clear that the key to overcoming this situation is to stimulate the solar thermal products market growth through policies that affect both supply and demand in the departments of La Paz, Oruro and Cochabamba.

This would contribute to poverty alleviation, environmental conservation and natural resources protection.

From a business point of view, this would encourage the establishment of many companies in the area.

The spread of this technology is currently limited in Bolivia by:

– Technological shortcomings

– Lack of means for certification rating

– Inefficient structures in service, sales and maintenance

– Distrust of potential users

– High production and services costs originated in limited production and sales volumes

– Poor access to financing

– Lack of state incentives (financing, subsidies or tax exemptions).

Solar Bolivia

Bolivia has a high energy potential, both for traditional and alternative energy.

Given its geological nature, the country produces more natural gas than oil (62% of total liquids produced from condensed).

Its natural gas reserves are the second largest in South America (after Venezuela), but considering those that are liquids free, they are the first. Besides, it is expected that they will increase by 200 to 300 trillion cubic feet.

This is the basis for the Bolivian economy. The country has export contracts with the countries that surround it. For example, Brazil has a contract for 30 million cubic feet per day for 20 years.

The power sector accounts for 63% of natural gas sales.

The electricity generated in Bolivia comes from hydroelectric plants (35%) and thermal power stations (65%).

The National Interconnected System (SIN) is 90% composed by the main centers of production and consumption (La Paz, Cochabamba, Oruro, Potosi, Chuquisaca, Beni and Santa Cruz) and by isolated systems in smaller cities and towns that complete the remaining 10% of the national electricity market (Department of Pando).

Bolivia is determined to change its energy matrix, which currently is based on thermal generation.

Authorities have repeatedly pointed that their goal is to achieve a mix of 70% of power generation by hydroelectric or from alternative sources such as wind and solar, and limit thermal to the remaining 30%.

Therefore it targets to incorporate around 183 MW of renewable energy by 2025.

Two thirds of Bolivia, whose latitudinal position is between the parallels 9º 40′ S and 22º 53′ W, are situated within the range of greater solar radiation.

Thanks to this situation, the country has one of the highest levels of solar intensity in the region.

Solar incidence in the country reaches an annual average of 5,4 kWh / m² per day of intensity and 7 h/day of effective insolation.

However, perhaps because of the high availability of natural gas, Bolivia currently has no regulations and legislation that fosters sustainable development for solar installations.

Solar Photovoltaic Argentina

The Argentine photovoltaic market is segmented into 3 types of applications:

1- Rural uses.

The demanded equipment are for electrification of rural housing posts (50W-80W); lighting systems (30W-100W); to feed water pumps that replace the traditional multi-blade mills (50W-400W).

2- Professional or business purposes.

Providing energy to telecommunications systems (100W – 400W), telemetry, markings, signage, highway emergency systems (20W – 50W), cathode protection and pipeline shutoff valves (over 20kW).

3- Institutional demand.

Includes social assistance programs, power regulating entities, organizations and state (provincial) energy companies. Equipment requests for lighting and electrification of schools, medical centers, police stations and residential users. Powers between 50W and 400W.

Until the year 1999 the demand for PV modules remained steady between 20% and 50% annual growth. From that year on, and especially after the devaluation in 2001, demand for these modules has suffered a sharp decline that has begun to reverse since 2004.

There is no domestic solar modules manufacture.

With approximately 1 to 2 MW of installed power per year, mainly in isolated applications, it seems that the only way for this market to grow is through the development of large-scale projects.

In conclusion: government authorities have not learned the lesson taught elsewhere.

Efforts should be focused on distributed systems’ installation and integration of PV in urban environments, developing residential, secondary and tertiary sectors.

The future of a solid and consistent solar PV sector clearly requires the development of:

1) A limited number of grid connected big projects.

2) Encouraging installations on residential and businesses roofs on the basis of a net metering or feed-in payment.

Currently there is no feed-in payment for solar residential electricity.

There are purchasing agreements granted in the solar electricity program GENREN of US$ 572 / MWh (Three times the average of the PPA agreements awarded in the rest of Latin America).

In the city of San Juan, a facility that used a combination of fixed and followers, polycrystalline, mono-crystalline and amorphous silicon cells structures was inaugurated in 2012.

It has 1.2 MW and has become the first solar photovoltaic plant connected to the national network of integrated power system in South America.

At domestic levels, investment in a solar PV system is recovered in about 5 years compared to a fuel generator.

Compared to the electricity network, the figures are radically different.

The electricity network has an approximate price of US$ 47 per MWh against US$ 142 solar MWh.

In other words, solar electricity costs triple the network. In this scenario, the solar investment would be recovered in 98 years (more than 3 times the equipment’s life).

The paradox is that according to an analysis by the Environmental Protection Agency of the City of Buenos Aires (APRA) each MWh that adds to the country, provided by thermal power plants, costs US$ 344.

Therefore, thermal power plants (the majority in country’s energy matrix) are selling to end users 7 times cheaper than the actual cost of producing and transporting electricity.

In addition to this, about US $ 15,000 million annually are used to import fuels.

In short, lack of common sense and any planing.

If the electricity price of other cities within the region (Santiago, Montevideo and San Pablo) was paid in Buenos Aires, the solar system investment would be recovered in 12 years.

From 2016, we will see if political change in the country will lead to the end of energy crisis and sustainable development of solar photovoltaic energy.

Solar Thermal Argentina

In terms of solar thermal energy, Argentina has entered a process of incorporating this technology taking the construction sector as an engine for market development, in absence of laws and regulations to boost it.

There are isolated initiatives. In fact, there are municipalities with Bills or solar ordinances, such as the city of Rosario.

But we could say that the field of solar thermal energy in Argentina is still in diapers.

Up to today, year 2015, there are no comprehensive measures of solar resources available, equipment have not been subjected to testing or certification and have no market sector statistical information.

Generally thermo-siphon systems are installed for DHW heating in houses and townhouses where there is no access to the gas network. Equipment for pool heating are also installed.

A 2009 estimate indicates that around 2,000 m² (about 22,000 ft²) of collectors were installed that year and were about doubled in 2010, reaching 4,000 m2 (about 43,000 ft²).

Flat collectors then constituted 2/3 of the market with a large proportion of domestic products, being vacuum tubes the most imported collectors.

In 2015, it is calculated that above 30,000 m² (around 323,000 ft²) collector capacity was installed; half of them for heating outdoor pools.

Most companies in the sector are located in the Central Region (mainly in Buenos Aires) and the Northwest Region is the one with the largest area of collectors installed, followed by the Northeast.

How could this technology’s sustained development be boosted ?

As far as the public sector is concerned, it would require:

– Elimination of the competitive disadvantage caused by high subsidies for electricity and gas network.

– Standards sanctioning and incentives creation.

– Set an example by incorporating solar systems in its infrastructure facilities.

As for the private sector, it would require:

– Introducing improvements in product quality.

– Training skilled labor on sizing and system design, installation and maintenance.

– Facing the additional challenge of foreign competition, in some cases, with equipment at a lower cost and better performance than those of domestic manufacturing.

Only in the residential sector, there is an estimated potential of 6 million m2 (about 65 mill ft²) for the production of DHW; 2.2 million m2 (around 24 mill ft²) in the public, commercial and services sectors, plus a significant potential in the industrial sector.

Considering 20 years of useful life for a thermal solar system, full investment could be recovered in about 15 years in Buenos Aires province, for instance, when compared with actual price of gas network and considering its level of insolation.

However, in cases of bottled gas and electricity, solar thermal power technology is already profitable in many parts of the central and north regions of the country.

Compared with bottled gas, investment in solar thermal systems could be recovered in 2 years.

Compared with the use of an electric water heater, investment in solar thermal systems could be recovered in about 5 years.

A consistent solar thermal market would provide several benefits to the country:

– Reduction in conventional energy demand.

– Reduction in energy imports

– Reduction of greenhouse gases’ emissions.

– Creation of a new industry sector and new jobs.

– Creation of a national industry sector with high added value.

Solar PV Latin America

Latin America generates about 7% of the world’s electricity and non-traditional sources account only for 6% of the energy mix.

It is expected that by 2050 over 20% of the electricity generated in the region will come from non-hydro renewables.

May the contribution of photovoltaics be significant?

This technology has great potential in the region, but is still marginalized to the background among the countries’ energy choices and many times what is done about it is just to “stand” and very little is accomplished.

Compared to the rest of the world, the rate of solar photovoltaic energy implementation in Latin America is very low.

Annually the installation of about 100 GW of solar photovoltaic energy is expected worldwide and usually only 1% corresponds to this region.

However, the fact of not having been one of the pioneer regions where the development of this technology began will allow learning from other regions or countries mistakes.

We must distinguish between solar industrial development (manufacturing of modules and other components) and solar energy (solar electricity).

Solar industrial development in the region has difficulties with the sharp drop in solar modules’ prices.

In contrast, solar electricity production is favored by the fall in modules prices and makes solar photovoltaic energy more competitive.

The average cost of 1 W of installed solar PV has dramatically dropped in recent years and most projections indicate that this trend will continue. The underlying costs associated with solar photovoltaic energy will also continue to decline.

PV installed capacity of Latin American countries has always been oriented to isolated applications to meet the needs of rural populations without access to electricity network.

Only after 2014 solar photovoltaic projects began to attract capital.

Latin America has 51 solar photovoltaic plants in operation and 625 MW of installed PV in 2014, compared to 133 MW in 2013. They have announced 23 GW projects, 5,2 GW in contracts, 1,1 GW under construction and 722 MW in operation.

From GTM Research consultancy recent studies show that the installed capacity in MW has increased 370% in 2014 and is expected to rise 237% in 2015.

This figure could be revised downwards following the price collapse that has rocked the oil industry and the commodity sector in recent months.

Today, in Latin American countries with good levels of radiation and without large subsidies in the energy market, the model of solar PV is self-sustaining.

In some cities in Mexico, Brazil, Chile and Peru, the solar PV cost is situated very close to grid parity.

Countries like Costa Rica, Guatemala, Mexico, Panama, Dominican Republic and Uruguay already have national laws and regulations in place for connecting photovoltaic generators under the net metering system.

The most suitable places to locate large plants are the deserts near the Pacific coast and northeastern Brazil.

Over the next 20 years it is expected that the investment in solar photovoltaic energy per year will reach about U$S 100.000 million worldwide.

A forecasted development of 3,5 GW is estimated in Latin America by 2016.

Could this be possible?

To know it, we are going to do a country-by-country analysis because there are very different realities.

Solar Thermal Latin America

Solar thermal energy for domestic applications is a mature technology that has been successfully developed in many countries for over 30 years.

It is not well understood why its underdeveloped compared with photovoltaics while almost double its performance.

It is a relatively simple technology that already has small and medium manufacturers in countries of the region such as Argentina, Uruguay and Brazil. However, there is still no certification at regional level as in Europe.

In the Caribbean nation of Barbados 80% – 90% of households have solar energy equipment on their roofs. This country ranks in the top 5 global installed capacity per capita.

There are no reliable data concerning the installed capacity in Latin America.

The most recent global estimate dating from 2012 and informs an installed capacity of 234 GWth. Brazil is among the top 7 countries with about 4 GWth (2%).

The Latin American regional market is slowly developing.

In parallel, there is an emerging incipient regulatory framework for certifications that are mainly based on regulatory frameworks of Europe and the US. COPANT is working on the unification of the regional framework of standards and certifications.

One of the main barriers to the development of solar thermal energy are important subsidies that some countries in the region granted to conventional energy.

Professionals and companies in the solar energy industry of Latin America and the Caribbean met recently in San Jose, Costa Rica, to promote the development of this technology in the region.

The meeting was made by IRENA (International Renewable Energy Agency), OLADE (Latin American Energy Organization), ICE (Instituto Costarricense de Electricidad) and the German Metrology Institute (PTB).

According to the Innovation and Technology Department of IRENA, currently the region only takes advantage of 3% of its solar thermal potential.

The most important conclusión we arrived is that the region has great potential for development of solar energy in residential and commercial areas, but experience shows that to achieve this, we must build confidence in this technology.

How is this achieved ?

Proposals were:

1) Develop mechanisms to ensure the quality of the facilities (standards and inspections)

2) Encourage best practices among professionals and companies (testing and certification)

3) Implement government policies that promote genuine development of this technology

The global analysis of the development programs of solar thermal energy estimates a worldwide installed capacity of 1,600 GWth in 2030 and 3,500 in 2050 GWth.

Will be Latin America an important player in this global installed capacity growing ?

To know that, in next deliveries we will discuss solar thermal sector of each country in the region.