Tag Archives: solar energy

Where Is Solar Industry in Latam ?

The solar market in South America is one of the most promising in the world.

As energy consumption soars, companies, governments and consumers are looking for ways to make power and heat generation more affordable. Decision makers at all levels are preparing to start work on future solutions to satisfy the new energy thirst in the region.

The solar market in Brazil shows enormous potential, being globally considered one of the most promising markets in the solar industry future.

Chile is a leader in the region and Uruguay is an example for other countries.

These days, Argentina stands as the land of opportunities for the solar sector in order to recover lost time and it seems that Colombia travels the same path.

Sopelia and Intersolar South America have reached a collaboration agreement to be Media Partners.

Intersolar South America became the fifth event of Intersolar, the solar industry world leading exhibition series.

The international exhibition and conference for the solar industry in South America will be held at the Expo Center Norte in Sao Paulo, Brazil between 23 and 25 August 2016.

It has focused on the areas of photovoltaics, PV production technologies, energy storage and solar thermal technologies.

Since its founding, Intersolar has become the most important industry platform for manufacturers, suppliers, distributors, service providers and members of the solar industry.

With 9,000 visitors from 34 countries and over 800 conference attendees, Intersolar South America 2015 attracted more than twice its expected attendance, becoming the largest exhibition and solar conference in South America.

115 exhibitors from 11 countries presented their products in 2015 (an increase of 60% compared to 2014) and gave very positive feedback on their testimonies.

The meeting is a combination of local and international experience.

Intersolar South America meets the photovoltaic sector to discuss the current status and trends in strategic photovoltaic markets in South America, as well as technology and new business opportunities innovations.

The event is an important meeting point for professionals throughout the entire photovoltaic value chain, and is much more relevant, given the recent strong growth of PV markets in South America.

2016 Intersolar South America will be developed alongside ENIE, the largest exhibition of Brazil for electrical installations, between 23 and 25 August, making the biggest event so far this year.

The signed agreement between Sopelia and Intersolar South America makes this event an engine in itself and a key exhibition platform for the solar industry in Sao Paulo in 2016.

More information www.intersolar.net.br

Costa Rica Solar Thermal

In mid-2015 was held in San Jose, Costa Rica an international event to bring together experts from different countries to share experiences on solar thermal technology developed in their areas.

The forum was jointly organized by the International Renewable Energy Agency (IRENA), the Latin American Energy Organization (OLADE), the Costa Rican Electricity Institute (ICE) and the National Metrology Institute of Germany (PTB).

The forum aimed to bring together experts to support the implementation of mechanisms for quality assurance in order to increase confidence in the technology and spur development, issues of products control, installations and installers, and a visit to the laboratory of solar energy and energy efficiency facilities of the Costa Rican Energy Institute was held.

The most important technical standards of the sector in Costa Rica are:

INTE * 03/01/28 / 2013. Solar thermal systems and components. Solar collectors. General requirements

INTE * 03/02/28 / 2013 Thermal solar systems and their components. Prefabricated systems. General requirements

INTE * ISO 9459-2 / 2013 Solar Energy. Systems for domestic water heating. External test methods for the characterization and yearly performance prediction of solar systems.

In Costa Rica, 41,3% of households use hot water systems (ACS), which mostly operate with electric power.
These systems represent an estimated national consumption of over 250 GWh / year.

It is very evident the need to establish a set of policies and incentives in order to achieve mass use of solar thermal technology in the residential sector.

These should include a technology implementation strategy, covering regulatory aspects, technical training and creation of laws governing the sector.

The aim would be to create a framework to introduce solar thermal systems to replace electric water heating equipment.

The country has approximately 1,200,000 homes for about 4,500,000 inhabitants (3,75 persons / household), of which only 3% are multifamily housing.

It follows that the basic ACS system for the average residential sector of Costa Rica with country radiation levels, would be payed at a more than reasonable time.

One of the most important facilities is located in a Tamarindo (Guanacaste) hotel.

A total of 164 collectors (330 m²) and 25,000 liters storage supplies hot water to 240 rooms and an industrial laundry, generating 529,600 kWh annually.

The investment will pay off in just 36 months with the savings generated.

Solar Costa Rica

Between 2006 and 2013, Costa Rica attracted more than U$D 1,700 million for renewable energies projects financing.

In 2013, a record of U$D 600 million was allocated to renewable energy. About 40% were allocated to non-hydroelectric renewable energy, especially wind power.

The electrical system of Costa Rica was 100% renewable in early 2015.

This was made possible by rain and by the strong commitment to renewable energy made in the Central American country.

According to the Costa Rican Electricity Institute, during the first 75 days of the year it was unnecessary to use fuel to feed the power grid of the country.

With reservoirs (Arenal, Cachí, La Angostura and Pirrís) full and what was generated in geothermal, wind, solar and biomass; thermal plants remained as a contingency alternative had not to resort.

Costa Rica has always the greener energy matrix in Central America with 80% coming from hydroelectric and 20% from renewables (mainly wind and geothermal).

One key to this development has been the integration into the Renewable Energy and Energy Efficiency in Central America (4E) Program, implemented by the International Cooperation Office of German government, by the General Secretariat of the Central American Integration System (SG -SICA), which works to promote a clean matrix in the region.

The problem is that too depends on the weather. If it does not rain enough, the water shortage creates a problem.

Costa Rica is proposed that its energy is completely clean by 2021. Currently, about half of the primary energy sources are renewable.

The country implemented two mechanisms to facilitate the penetration of renewables.

The first, a specific auctions system by technology that allowed to increase the hiring of additional capacity.

The second, a program to encourage consumers local generation who can sell excess energy to the grid.

However, no progress has been made in solar generation.

The Regulatory Authority for Public Services (ARESEP) proposed a price band for new companies that produce electricity on a solar photovoltaic large scale.

They were discussed in June 2015. The rates approved applies for all plants with capacities equal to or less than 20 MW, in accordance with the provisions of the 7200 Law, which regulates electricity trade between the ICE and private generators.

The intention is to allow private providers to obtain enough income to cover their operating costs, to recover the investment and a reasonable return for the level of risk associated with the electricity generation.

The average cost of the investment, the average cost of operation, the plant factor and the performance are calculated to determine the rate.

With this data rate is calculated with an upper and lower limit. Most of the information used comes from a study by German aid agency GTZ.

The band values will be reviewed once a year by fixing the ordinary procedure, which will begin on the first working day of February each year.

The small-scale generation to consumption is regulated by the POASEN Statement for levels at or below 1 MW generation.

Solar PV Colombia

The photovoltaic solar energy in Colombia began with the Rural Telecommunications Program and the National University technical assistance, in the early 80s.

In this program, 60 W small photovoltaic generators for rural radio telephones were installed.

In 1983 it had installed 2.950 systems. Then, the power was increased to 3-4 kW systems for earth satellite dishes.

Many companies began installing systems for telecommunications services and solar systems are currently used in microwave relay, buoys, remote stations and military bases.

These systems are now essential for country’s telecommunications.

Between 1985 and 1994 48.499 solar modules equivalent to about 2 MW power were imported. Of these, 21.238 modules with 844 kW output were used for telecommunications projects and 20.829 modules with 954 kW output for rural electrification.

On a 248 sample of these systems, 56% worked without problems, 36% worked with some problems and 8% were out of service.

Problems were found in the lack of a minimum maintenance, supply of replacement parts and undersized systems. Rather than being a technical problem, the problem is service quality and customer service. These shortcomings persist today.

In electrification programs, the standard isolated system has consisted in a 50-70 W module, a 60 to 120 Ah battery and a charge controller. These small systems provide power for lighting, radio and TV, covering the basic needs of rural population.

The current cost of this system is around U$D 1200-1500, mainly affected by the high costs of installation in remote areas.

According to the IPSE (Institute for the Promotion of Energy Solutions) there are currently more than 15.000 systems installed for these applications.

Something like what happened with solar termal case happened with solar photovoltaics in Colombia. The market had its boom in the late 80s with the mentioned rural telecommunications program.

Then in the 90s public order difficulties slowed their development, whose growth is estimated at 300 kW / year (the current installed capacity would be around 9 MW).

Photovoltaic electricity generation has huge prospects, considering that about 1 million families lack electricity service in Colombia rural areas.

Colombians achievements are very modest and current development does not match its potential. Valuable time has lost.

The most representative projects are:

* Solar-diesel hybrid system. Titumate – Unguia – Choco. Launched in June 2008

* Solar PV system of 125 kW with 2 axes 10 followers, 8 of which are located in the Upper Guajira and 2 in Isla Fuerte. Launched in September 2009

* Solar-wind hybrid system. Nazareth, La Guajira department. Launched in June 2008

* Solar PV systems for 451 homes in rural area without electricity. San José del Guaviare. Launched in November 2009

One of the most important facilities is projected in Providence, which consist in the construction, operation and maintenance of 60 MW solar photovoltaic plant and associated facilities.

The plant will be located near the international airport in Zacatecoluca, La Paz and is expected to generate 159.000 MW / year to be sold to 7 companies, which distribute electricity to final consumers.

Argentina: The awakening of the sleeping giant

After more than 10 years of lethargy caused by the populist “siesta”, the renewable energy sector of Argentina needs to regain lost time.

Such projects development requires a context of political and economic stability and we could say, using the football jargon, that Argentina is “preparing the stadium for playing the match”.

Next Friday 22nd April the country is preparing to cancel the debt with creditors that did not enter 2005 and 2010 swaps, and thus leave behind a default that lasted nearly 15 years.

The other leg of the table is the 531 decree of March 30rd 2016 that establishes mechanisms for achieving the goals of 8% in 2017 and 20% in 2025 (referred in 27,191 law) of electricity generation through renewable sources.

Making a flashback we can infer that to achieve such ambitious goals, the speed will be exciting:

In 2006 was set as a target for 2016, that Argentina would reach 8% of electricity generation by renewable sources.

The numbers indicate that so far in 2016 barely exceeded 2%.

That is, just over 25% of the objective reached.

And as has already occurred in the sector of renewable energies elsewhere, when hurry is need who take the initiative will get the duck to the water.

Decree 531:

* Create the trust fund of U$D 820 million “Fund for the Development of Renewable Energies” (Foder).

* Set purchase mechanisms (including hiring, self-generation or cogeneration or participation in a joint procurement mechanism) for users with power demands equal to or greater than 300 kW; which should cover at least 8% of total electricity consumption from renewable sources by 31 December 2017.

* Contemplate the possibility of quotas for technologies in bids (price “may be established” in US dollars).

* Establish more favorable conditions for national components use in projects and are planned instruments to encourage local production of components.

Sopelia develops activity in the Argentine solar sector since 2011 with its local partner Puerto Hueche S.R.L .. Engineer Nahuel Rull says:

“Can access the “RENEWABLE ENERGY PROMOTING SYSTEM” individuals domiciled in the ARGENTINA REPUBLIC and legal entities created in the ARGENTINA REPUBLIC, holders of investment projects of electricity generation from renewable sources”.

“The company provides the following services:

– Presentation to the Enforcement Authority of documentation needed to obtain the Certificate of Inclusion in the “RENEWABLE ENERGY PROMOTING SYSTEM” and to the allocation of promotional benefits

– Individual renewable sources electricity procurement

– Solar energy self-generation and cogeneration projects management

– Management of joint purchases of renewable electricity to the body designated by the Enforcement Authority.

– Foreign investors and EPCs support”

For not flooded fields or lands owners, located in northern Argentina that have 5% maximum slope, an attractive business opportunity presents itself: the photovoltaic solar energy. Also for large roofs or covers owners of the same region.

For investors who want to increase their portfolio of renewable energy projects, it is time to focus on Argentina.

For users with power demands equal to or greater than 300 kW countdown began: have 20 months to consume at least 8% of their electricity total consumption from renewable sources.

Starting gun sounded.

Colombia Solar Thermal

The first record about solar thermal energy use in Colombia dates back to the 50s with the installation of solar heaters in the banana workers homes located in Santa Marta. The heaters still exist, but they do not work.

In the 60s Israeli solar heaters were installed in some universities in Santander and Bogota.

In the 80s in Medellin, Manizales, some neighborhoods of Bogota and later in the Atlantic coast, solar heaters began massively used; forcing regulation of their use through INCOTEC (Colombian Institute of Technical Standards).

In March 1993 the NTC 3507 was enacted, referring to domestic hot water systems powered by solar energy installations.

In mid 90s, with the support of foundations like Gaviotas, the use of solar heaters spread to hospitals and community centers.

Until 1996, 48.901 m2 of solar thermal systems had installed, mainly in neighborhoods of Medellin and Bogota with Central Bank funding.

All this development stopped short with the introduction of a cheaper energy source, natural gas, which displaced the market of this nascent industry from then until now.

Most systems work well but some users had other expectations of them, which has hinted that the demand exceeds the capacity of the equipments.

Currently, the solar industry remains depressed in Colombia waiting for a new energy crisis.

The only program that tried timidly incorporating solar thermal energy began in 2009 in San Andrés as part of the implementation of solar energy in buildings, to evaluate their behavior in a residential installation.

State action should be directed towards the solar thermal energy development:

– To diversify the national energy matrix and give flexibility to the power supply system

– To reduce the environmental impact of fossil fuels and the reserves depletion

– To provide power supply in remote and isolated áreas

The national energy policy should move towards a gradual increase of supply based on solar thermal energy, developing strategies and setting ambitious and achievable goals, consistent with a gases emissions reducing policy.

The Law URE (Rational Use of Energy) and 3683 Decree, have not been sufficient to promote this energy source, as evidenced results obtained from its promulgation.

Solar Colombia

With 1.715 2014 law, which regulates the renewable energy integration to the national energy system, Colombia aims to encourage the development of energy sources with environmental, social and economic sustainability criteria.

The Mines and Energy Ministry, together with the Institute of Planning and Promotion of Energy Solutions for non-interconnected zones (IPSE), seeks to promote these projects especially in not connected rural areas.

Some IPSE projects that implements renewable energy:

– Hybrid systems (solar-diesel) in Cumaribo, Vichada and Titumate (Unguía)

– Small hydro Arusí and The Yucal (Nuqui) and Palmor, Magdalena and Guacamayas (San Vicente del Caguan)

– Photovoltaic systems in Utría National Park (Chocó), Macuira and Flamengos (Guajira)

Moreover, photovoltaic systems were installed in several indigenous communities in La Guajira; Cardon became part of the national grid; a Polygeneration (solar-diesel) Center will be created in Nazareth and the interconnection line between this town and Puerto Estrella (Uribia) will be built.

In San Bernardo islands in the Colombian Caribbean there are 3 projects. This are Isla Fuerte, Múcura and Santa Cruz Islet; in which the IPSE implement photovoltaic-diesel hybrid systems.

The Ministry intends to complement these facilities with productive projects that generate revenue to users, considering that this is a new service that should start paying and in many cases they do not have the economic resources to do so.

Between March 2 and June 30, 2015 a financing plan allocating $ 100 billion pesos for renewable energy projects, renovation and expansion of public lighting, interior or exterior lighting, cogeneration and self-generation was open.

The Mines Ministry, UPME, FIDENTER, IDB announced this special line to fund projects and investments on favorable terms.

Colombia has great potential in primary energy, a proof of this is that over 70% of electricity production comes from hydropower.

But surely the geographical position of the country to use solar energy is privileged.

It is located in the equatorial zone, which allows for constant solar radiation in certain areas of the country (Magdalena, San Andres, Providencia and La Guajira Peninsula), one of the key elements to become solar power generator.

The country biggest problem is the complex Andes region where climate often changes.

The country average radiation is 4.5 kWh / m2. The best solar resource area is La Guajira peninsula, with 6 kWh / m2 of radiation.

Given this and contrasting it with solar energy development has had so far, we can conclude that Colombia is not using its solar potential.

From the installed capacity corresponding to isolated systems, 57% is intended for rural applications and 43% to communication towers and signaling traffic.

The development of large-scale facilities is limited or almost nil.

Chile Solar PV

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 Solar Thermal

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

Solar Chile

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.