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Tag Archives: solar photovoltaic energy in latin america
PV Profitability
The profitability of a photovoltaic system must be analyzed with certain nuances.
The weightiest factor when deciding whether it is feasible or not, is the potential energy savings during their years of life.
In the case of an isolated photovoltaic system, economic factor is not the main determining factor in deciding whether or not installation (electrification of rural areas, marine signaling, energy demand in remote locations, etc.).
Isolated (Off-grid) Systems
Installation can be evaluated for 2 reasons:
1. A range of total supply needed
2. Power grid not reach where energy demand originates
In the latter case you can opt for laying a new distribution line from the nearest point of the overall grid or choose an autonomous system.
When great powers are not needed and consumption is moderate, the option of autonomous generator is more interesting. Obviously, the higher or lower placement solar radiation level is another determinative factor.
In abundant wind areas, a wind turbine or a wind combined with photovoltaic system may be the most convenient option.
In cases where is needed a fairly large power requiring a large number of solar modules while consumption was not high enough to justify the laying of a grid line, the diesel generator can be the best option.
If both budgets (solar isolated and line grid laying) are of similar magnitude (or even laying a grid line is slightly higher), it can be more interesting access to the electricity grid, which will ensure any consumer at any time of year.
Grid connected (On-grid) Systems
It consists of a module field and inverter which can convert DC generated into AC identical to that of the electricity distribution network, to inject energy produced by the modules into the grid.
In return, you can received a contribution (feed-in tariff) established by law for a period which generally ranges between 15 and 25 years.
To realize the economic study should first determine electricity production depending on the sunshine hours of installation location and installed peak power.
Annual electricity production is then multiplied by the contribution is allocated to the project.
Finally a cash flow is prepared detailing revenues (sale of electricity and taxes recovery) and expenses (initial investment, annual maintenance and insurance costs, administrative and financial annual expenses) for the entire period.
From the data obtained the recovery period and IRR of the investment is determined.
The other way is the net-metering.
In this case, the owner of the photovoltaic system can take power from the grid when their system can not provide enough to meet demand, and inject energy to the grid when their system produces above necessary to meet demand.
The solar module prices fell reaching the threshold of U$D 0.50/W Exworks for conventional crystalline silicon modules.
Simultaneously, the price of electricity generated from fossil fuels is increasing annually.
In fact, it is estimated that several European countries will reach grid-parity (equal price between PV and conventional electricity) in 2020.
In developing countries, photovoltaic systems connected to the grid will remain still an expensive option because of the high subsidies electricity generation and distribution receive; limiting their development.
The turnkey price of a fixed installation connected to the grid (modules, support structures, inverters, protections, measurement systems, project costs, installation and administrative permissions) ranges from U$D 2 and 5/W depending on the facility size and location.
You can access content like this in Spanish in the Manual Técnico – Comercial de Energía Solar Fotovoltaica de Sopelia.
Cuba Solar Pv
Since Soviet Union demise and US blockade intensification, Cuba has made great efforts to get its energy supply.
Its plans included solar energy, mainly in inaccessible areas where the national electricity system (medical clinics, rural hospitals, social clubs, TV rooms and schools) fails.
In medical clinics 400 W power equipments were installed to provide energy to 1 fridge 12 lamps of 15 W, 1 television and 1 radio to communicate with other clinics and hospitals.
In schools solar equipment was installed to provide lighting systems, TVs and computers.
The government built TV rooms, that were equipped with solar systems, in villages that have no electricity. Each TV room has 1 solar module, 1 TV, 1 video and 30 or 50 seats according to population density. The investment was around U$D 4.500 per TV room.
The first large-scale photovoltaic energy facility has installed more than 14.100 modules domestically manufactured. The plant is located in Cienfuegos province. The park, which was build in 2012, connected 2.6 MW to the national grid.
There are also installed photovoltaic plants connected to the grid in Guantanamo, Santiago de Cuba and Santa Clara provinces. The last one can produce electric energy to daily supply about 750 homes at full capacity and can contribute to the national grid with about 962 kW.
The photovoltaic solar park of Pinar del Rio has connected its first MW of the 3 provided, to the national electricity system. This facility, located in the area of Cayo Cana, provide energy to some Wells that supply water to provincial capital and 8,000 people.
Today are already active over 15 photovoltaic plants, in which each MW installed, on average, can produce 1,5 GW/h per year; saving the country annually 430 tons of fuel.
This leap to large-scale plants shows government interest to increase solar energy use and the opportunity to exploit an abundant resource, since the solar radiation average in Cuba is greater than 1,800 kW/h /m2 per year.
In addition, modules are manufactured in a factory located in Pinar del Río province. The local industry has substantial production line technological improvements, which in 2015 reached 60,000 modules focusing on 250 W panels.
Another sign of solar energy interest is the dean Solar Energy Chair, which founded on September 6 2001, at the University of Havana, reaffirms the renewable energy use momentum in Cuba where photovoltaics plays an important role.
Solar business in Latam with Sopelia
Costa Rica Solar PV
The photovoltaic energy in Costa Rica began in 1991 with a pilot project in two indigenous “palenques” from the canton of Siquirres.
Then it spread to places like Península de Osa, Isla Caballo, Dos Bocas de Aguirre, Punta Burica de Golfito, Talamanca, Parque Nacional Volcán Chirripó, Rincón de la Vieja and some Guanacaste zones.
The Miravalles Solar Park was the first major solar electricity plant in Costa Rica and was the largest in Central America when being inaugurated, with a capacity of 1.2 GWh / year.
From Guideline NO14 MINAET the “Pilot Plan for Self Distributed Generation” ICE Group was created.
Many Costa Ricans began to install solar panels on homes and industries and more than 350 requests for interconnection were done, emerged a budding PV market in the country.
In February 2015 ICE Group closed its distributed generation pilot plan, indicating that it had reached its installation limit (10 MW).
Thereafter, users can not made new applications for interconnection.
Distributed generation projects were in the air, which has led to an atmosphere of uncertainty in the sector.
ARESEP Board approved in February 2015, with the corresponding calculation methodology, an access fee which covers all expenses incurred by distributors.
Industry sources said it was an excessively high rate, including maintenance and operating costs not related to distributed generation.
They also criticized the need to implement two measuring devices for subscribers, increasing implementation and billing costs associated with the distribution company.
It is important to unblock this situation to achieve the objectives of the National Development Plan and the VI National Energy Plan 2012-2030.
The solution could be found to continue allowing the interconnection of all stakeholders to the network, reviewing the methodology for calculating the access tariff and reviewing the approach to the need to use 2 measuring devices.
The fixed rates were also rejected by the distributors and the Costa Rican Solar Energy Association.
Regulating the incorporation of photovoltaics to the electricity grid is not easy. There are 3 very different interests (consumers, companies in the solar sector and electricity distributors).
What is clear is that if the legislation reduces the number of users interested in distributed generation, does not fulfill its mission.
Regulation should facilitate procedures for simple and speedy interface for any user, minimizing arbitrariness of either party.
In March 2016 ARESEP set new tariffs for distributed generation access.
How will be charged? It will be based on energy removal. It will not be charged for the energy generated by producer-consumer and used directly in self consumption form.
Time will tell whether the methodology established really meets the objective of encouraging the production of solar or wind energy.
In the case of large photovoltaic generation plants selected under the 7200 Law a very striking situation arises.
ARESEP announced the increase of rate bands established for bidders in July 2015 from $ 7.46 and $ 17.80 kW / h to $ 7.95 and $ 19.08 kW / h.
This increase will affect final energy consumer.
What is striking about this is that none of the four developers selected by the ICE requested any increase. This is a “gift” at final energy consumer expense.
This regulator proposal for increase 6.5% rates for a generation technology that every day is cheaper raises many suspicions.
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.
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.
Brazil Solar Photovoltaic
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.
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 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.
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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.