Tag Archives: latinoamérica

Chile

Chile Solar PV

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Northern Chile is the region with the highest solar radiation in the world.

Photovoltaic technology was introduced in the 90s in the context of rural electrification programs.

In the area of large-scale power generation it has created in recent years a legal and economic framework that has strongly promoted its development.

The speed with which the country progressed has positioned itself as region leader, over Mexico and Brazil, in terms of growth.

Chile had 5 MW in 2012 and began 2013 with 11 MW of installed solar capacity.

The country led the region photovoltaic sector in 2014 with more than ¾ of the total. Only in the fourth quarter of that year Chile installed twice the total installed in Latin America throughout 2013.

In September 2015, 741 MW of photovoltaic energy stations were in operation, generating 131 GW/h and covering 2.3% of electricity production in the country.

A total of 2.11 GW in photovoltaic projects are under construction and green light was given for 9 other photovoltaic projects totaling 793 MW.

Together, the photovoltaic projects with environmental authorization totaled 10.33 GW by 2015.

However, the industry estimates that in 2015 only 1 MW small scale photovoltaic projects will be installed product of the entry into force of the distributed generation law.

The pessimistic diagnosis is because there are no conditions to give a true development, as with large-scale projects.

To achieve a massification of distributed photovoltaic systems is necessary to build trust with clear information; improve the categorization of authorized installers system; simplify the application, registration, change of meter and procurement process; equal rate of energy consumed with injected; facilitate access to financing.

Law 20.571 was enacted in March 2012. It was named “Net Billing” because the electricity consumed and injected are measured at different rates.

For a BT1 client means that the surplus will be assessed at 50% of the value at which buys electricity to the distribution company. This differs from the original law draft, which proposed a fee equivalent to the cost of the distribution, less 10% for administrative, billing and maintenance costs of distribution lines.

Distributed generation should really work with a law change towards a Netmetering system, following the trend of countries and states in which there have been important developments in distributed photovoltaic.

With the Net Billing current system the pay back can be more than 10 years for facilities located on RM, while with a Netmetering system could be considerably reduced.

Chile

Chile Solar Thermal

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In Chile the energy business understood has caused solar thermal for domestic applications is not subsidized, while maintaining support for hydrocarbons.

It is easier to push price increases in residential electricity rates, which can not access direct contracts and are subject to pool generation system with intermediaries.

The 2014 budget left out solar subsidies for social housing infrastructure, despite the need to extend the Law 20,365 and that this be included in the raised budget.

As the law was not extended, 2 million Chileans were left without the possibility of having free hot water in their homes and solar thermal industry begins again fojas 0 after a boom.

Law 20,365 sought to create a natural market to make unnecessary the subsidy after 5 years, but as it only lasted two years, failed to meet that goal.

On Tuesday 12 January, 2016 the project to extend the law 20,365 and make a direct subsidy for solar thermal systems in social housing exceeded its final step in Congress. Only the law publication in Official Journal is needed to take effect.

For solar thermal industry has been too long waiting time of this law.

The effects of this extension will be diluted again if long term policies in favor of maintaining incentives for solar thermal energy by individuals and businesses are not adopted.

Not only is important solar thermal energy development in the residential sector. Copper mining, dairy products, wines, concrete, bakeries, sawmills and paper mills also present opportunities for incorporating solar thermal energy.

Most industries with potential to incorporate solar thermal energy identified are in the RM (middle región), with industrial plants concentration.

Implementation opportunities in the region VIII are scarce because solar thermal energy is currently not competitive with the use of biomass fuel, abundant in this region.

There are compelling reasons to encourage the development of solar thermal systems:

* It is key for real estate who want to get the “Energy Housing Seal”

* It is estimated that each housing with thermal solar equipment will stop producing 16 tons of CO2 over its lifetime

* Capacity building and business and technological development of the sector

* Each peso that the state invests has a high social returns

Chile

Solar Chile

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The successful reform of Chilean electricity sector, in the first half of the 1980s, led to vertical and horizontal unbundling of generation, transmission and distribution; and large-scale privatization.

The electricity sector was based on thermal and hydroelectric power generation.

After natural gas cuts from Argentina, in 2007 Chile began construction of its first liquefied natural gas regasification plant in Quintero to ensure supply.

In addition, new hydroelectric and coal plants were built.

However, renewable energies development achieved in recent years is really important.

10% of the total energy matrix was of renewable energy in 2015. Only five years earlier, the figure was 1.47%.

In July 2015 the electricity generation was 6,163 GWh, 617 GWh attributable to renewable energy (14% solar).

As if this were not enough, between 2015 and 2017 Chile will double its current renewable generating capacity with 2.4 GW of projects in execution (the current renewable installed capacity is 2.2 GW), surpassing its target for 2025 of 20% of clean energy generation.

The Roadmap notes that in 2050 at least 70% of the energy matrix must come from renewable sources, focusing on solar and wind energy and complemented by new hydroelectric developments.

Projections indicate that by 2030 the renewable contribution could reach between 35% and 40%.

The Chilean government gave permission to build the world’s largest solar energy storage plant in the northern region of Atacama, which will provide 260 MW to the central grid.

Copiapo Solar, with an investment of U$D 2,000, incorporates a hybrid system of concentration towers equipped with molten salt thermal storage in combination with photovoltaic solar modules and begin operating in 2019.

The other side of the coin is the lack of a more concrete and proactive stance in relation to distributed generation and solar thermal solutions that have a positive and direct impact on the welfare of the community and SMEs, in addition to democratize the energy sector.

The most worrying situation is for solar thermal industry with little development since, in December 2013, the law that gave momentum ceased to exist.

Concerning solar photovoltaic small generation development, the expected Law 20,571 into force since October 2014, which allows small generators (less than 100 KW) to pour their surplus generation to the grid, did not have the expected results.

At mid-2015 there were only one connection finalized and 202 were pending.

The country wants to be solar leader and does not encourage its widespread use. It sounds contradictory.

This is because Chile is still focused on the electricity sector old model, which consists of large power plants and classical transmission and distribution needs associated.

We sense that modern power sector model is based on three pillars: energy efficiency, distributed generation and renewable energy.

The great potential of small-scale solar technologies are not yet taking advantage because more powerful incentives are needed to accelerate its development.

Soft loans for individuals and small businesses and a more attractive Net metering system could generate a huge impact and make Chile a self-generation leader.

Regarding the business sector, solar photovoltaic has dominance over thermal. Most companies are small and usually not exclusively dedicated to solar energy business.

Brasil

Brazil Solar Photovoltaic

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Photovoltaic solar energy in Brazil has taken important steps in self-sufficiency and net balance.

Distributed generation is entering the country more easily than large-scale facilities.

It is betting on a model of small and medium power generation plants for households and businesses consumption.

This is excellent news.

In 2012 standards were approved to reduce barriers for distributed generation and small power facilities for micro (up to 100 kW) and minigeneración (100 kW to 1 MW).

Since its publication in 2012 until March 2015, 534 systems (500 photovoltaic, 19 wind, 10 solar / wind hybrid, 4 biogas and 1 hydraulic) were installed.

In late 2015 the government launched the ProGD program that includes tax exemptions and special credit lines. It expects to reach 23.5 GW of installations, most photovoltaic, in 2030.

To achieve this goal, barriers to grid connection should be reduced, standards system power compensation should be harmonize with the terms of the offer, target audience should be increase and improvements in the application of the standard should be achieve.

The government has announced a ICMS (Imposto on Circulação of Mercadorias) reduction, levied 18% on imports and is one of the world highest.

In 2016 it also announced the exemption from Industrial Products Tax (IPI) for photovoltaic components that are not produced locally.

These taxes and fees added to the Inmetro (National Institute of Metrology, Standardization and Industrial Quality) Certification and Supplemental ISS rate, which municipalities retain on services not taxed by the ICMS (2% to 5%) represent a significant barrier to the development of photovoltaic in Brazil.

Industry sources indicate that import components to produce solar energy in Brazil now, means supporting a tax charge between 60% and 405%.

The opportunity for large scale photovoltaic solar energy has come up with the first time participation in the A-5 energy auction in December 2013 and the Pernambuco state auction same year.

Fontes I and II solar plants with 11 MW in Tacaratu, Pernambuco, and to Fontes dos Ventos wind farm of 80 MW, form a hybrid solar-wind complex of 91 MW; the first of its kind in the country.

Both projects have a 20 years solar power purchase agreement (PPA) and are the largest photovoltaic plant in operation in the country.

In the course of the 1st Reserve Energy Leilão 2015, promoted by the Brazilian Federal Government, 30 photovoltaic projects have been awarded 1,043 GWp. that will mobilize more than U$D 1,187 million investment.

The average final price of U$D 83,3271/MWh hired implies a discount of 13.5% over the initial price and a great success, reaching one of the lowest prices in the world.

The awarded projects are located in the states of Bahia, Piauí, Paraíba, Minas Gerais and Tocantins. Are 20 years contracts of energy sale, valid from 1 August 2017.

The last photovoltaic government plan sets a target for 2024 of 7 GW in large scale installations and 1.32 GW in distributed generation, doubling their previous plans for 2023.

The first solar modules factory in Brazil began operating in Valinhos in 2015 with an annual production capacity of 580,000 modules.

It aims to implement a new production line in 2016 to manufacture up to 1 million modules per year.

Brasil

Solar Thermal Brazil

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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.

Brasil

Solar Brazil

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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.

Bolivia

Solar Photovoltaic Bolivia

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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.

Bolivia

Solar Thermal Bolivia

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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).

Bolivia

Solar Bolivia

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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.

Argentina

Solar Photovoltaic Argentina

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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.