The Renewable Mirage Of Spain

The fact that large-scale renewable projects development started later in Latin America than in other locations, gives the region the possibility of adopting policies that have been successful in other places.

Contrary to what some may think the case of Spain is, in many ways, an example of what should not be done.

The country has only renewable native energy resources and an irrelevant carbon reserve.

Spain was the world leader in renewables and an important industrial, professional and services sector was created in the country.

Unfortunately, this development was not genuine or fruit of energy planning but the result of a custom deeply rooted in Spanish idiosyncrasy: “the pelotazo”.

Mess produced, common sense indicated to apply gradualism and long-term planning to at least preserve all that acquired know-how.

The government did the opposite.

Legal security was violated by sector regulation modifying and placed Spain on the podium of countries with most ICSID complaints.

It decreed a renewable moratorium, which has been going on for 7 years, causing small and medium-sized enterprises disappearance.

Only large companies with capacity to develop activity outside their borders survived.

In last 5 years, 1 renewable MW has not been installed.

In 2016, government has realized that it will most likely not meet European commitments made regarding renewables participation in its energy matrix.

Resultado de imagen de matriz energética renovables

The reaction has been to present an auction draft (made public last December 28th, Holy Innocents day) which shows, once again, the energy planning lack.

In the auction project:

* A Marginalist model is proposed in which the most expensive awarded price, fixed the one of previous awards.

This favors the appearance of proposals that will present reckless bid to be adjudicated and to obtain the most expensive price offered.

This criterion opposes the PAB (pay as bid), adopted in all successful international auctions.

* An Indeterminate Variable Price is proposed, a mathematical paranormal phenomenon that reflects State intervention in private activity and the total ignorance of renewable technologies operation by those who have drafted and in 2014 sanctioned the legislation that supports it.

This criterion also goes against the Fixed Cost Price per kWh offered , adopted in all international auctions that have obtained good results.

* A Technologically Neutral criterion is adopted instead of auctioning quotas for each renewable technology.

This is very dangerous because it leaves out younger technologies that now are less profitable than others, but could be more profitable in the future; as is the case of solar thermal in which Spain is the world leader.

It also goes against Technological Specification criterion, adopted in all the international auctions that have obtained good results in order to favor the renewable energy matrix diversification and several technologies development.

* There is no size discrimination. A portion of the auctioned amount is not reserved for plants under 10 MW.

* Prequalification is not required and there is no need for real projects.

It is an absurd and unreasonable proposal that turns renewable energy into a financial product and not into an energy policy tool that promotes employment and technological and industrial development.

It favors the macro projects and deepens energy sector concentration.

At international level auctions a low price concentration is taking place, with the consequent dominant position in few actors’ creation, which in long run will dilute the advantages of short term low prices.

Surely the auction will go ahead virtually unchanged and the 3000 MW will be awarded because after 7 years without business there is real desperation in the sector.

However, that auction is a success does not mean that all projects are going to materialize nor is it a guarantee that objectives will be fulfilled.

The explosive cocktail of Variable Indeterminate Price, legal uncertainty, huge initial investment, high financial leverage and yields even lower than 4% is very dangerous.

If it explodes, who will pay for the broken dishes of this irresponsible act ? We know the answer. Spanish citizens already had to “rescue” the bank sector and “compensate” energy sector.

The option of going outside auctions is not viable because in Spain there is no legislation that encourages or allows connectivity to set PPAs between private, but “Sun Tax”.

Resultado de imagen de impuesto al sol

Renewable energies grid parity is already a reality in developed countries and in some developing countries.

If aid and subsidies received from fossil fuels had been withdrawn, it would have been much earlier.

If we consider auctions as the only tool to increase renewables participation, we will be keeping an obsolete energy matrix paradigm and making a very serious error.

The energy matrix of the future is based on 3 pillars:

1) Energy efficiency

2) Renewable energies

3) Distributed generation

Real energy revolution and citizen empowerment path goes through prosumer figure and energy cooperativism development.

Concentration and energy centralization route involves only changing fossils for renewables to maintain the “statu quo” for benefit of the usual suspects, who will continue to act as a collection agency in collusion with political power of turn.

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Solar Guatemala

In 2003, Guatemala approved the Incentives Law for Renewable Energies Generation.

In 2005 tax incentives were established for 10 years, with import taxes payment exemption for equipment, components and accessories related to projects of electric power generation from renewable sources.

In 2010, the PEG-1 Indicative Expansion Plan for Generation System was launched as part of the energy matrix transformation, with the objective of at least 60% of energy being produced through renewable resources by 2022.

Resultado de imagen de mapa solar en guatemala

Guatemala conducts auctions to award electricity and energy production contracts, in which renewable energy may have a specific quota or compete with other technologies.

Since 2012, the CNEE has held bids to hire power.

Distribution companies are the off takers.

The first tender awarded a total of 393 MW to hydroelectric (221 MW), wind (101 MW), solar (55 MW) and biomass (16 MW) plants with 15-year power purchase contracts.

The second tender, in 2014, aimed at contracting 250 MW. The auction hired 322 MW and renewable energy (solar, biomass and small hydro) were awarded 116 MW.

Auctions have been the main driver of renewable energy investment in the country.

With a total of U$D 702 million 2014 was a record year of clean energy (biomass, solar, hydroelectric and wind power plants) investment.

In 2015, the first auctioned projects began to connect to the grid.

Two large-scale photovoltaic plants (30 MW and 50 MW) were connected.

Investments declined markedly in 2015, when only the solar sector received a total of U$D 66 million.

Guatemala is the second Central American energy market, with a total generation capacity of 3.7 GW.

In 2015 it generated 10.3 TWh of electricity; of which 46% came from fossil fuel-based generation, 26% from hydroelectric and 28% from renewable energies.

Resultado de imagen de energía solar en guatemala

Net metering distributed generation is allowed in the country.

In December 2015, 1,274 prosumers with a total installed capacity of 7.4 MW were connected to the grid.

The energy market in Guatemala has state and private actors operating in generation, transmission, trade and energy distribution segments.

The Ministry of Energy and Mines oversees electricity sector planning, while the National Electricity Commission (CNEE) is in charge of regulation. The Wholesale Market Operator organizes the system dispatch based on marginal cost of generation.

Guatemala is connected through the Central American Electric Integration System (SIEPAC) to Honduras and El Salvador, and northern Guatemala is also connected to Mexico´s transmission system.

The renewable energies installed capacity of Guatemala increased 38%, reaching 1 GW in December 2015.

The country’s average retail electricity prices fell 21% from U$D 228 / MWh in 2014 to U$D 181 / MWh in 2015.

In 2017 Guatemala is preparing a 420 MW tender for a 15-years period.

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Thermal Solar Collector

Thermal solar collector is responsible for capturing solar radiation and converting its energy into heat energy.

A body exposed to the sun receives an energy flow Er and heats up.

Simultaneously, thermal losses occur due to radiation, convection and conduction, which grow as the body temperature increases.

There comes a time when thermal losses Ep equals the gains due to the incident energy flow, reaching the so-called equilibrium temperature:

 Er = Ep

The equilibrium temperature of the collectors is usually between 100º and 150º C under normal conditions of use and for irradiation values in the order of 1,000 W / m2.

If it is possible to continuously extract a part of the heat produced Ee to take advantage of it as usable energy, the equilibrium conditions change:

Er = Ep + Ee

Ep is now smaller because a part of the energy received Er is tapped Ee.

The body has become a solar thermal collector.

If we want to increase Ee we have two options: reduce thermal losses Ep or increase energy flow Er.

First option involves collector design and construction improving in order to reduce losses.

For the second option is used the concentration technique, which by some optical system concentrates the solar flux on a smaller surface so that as the area decreases, the intensity increases.

In a solar collector the energy is extracted through a fluid called heat carrier.

Resultado de imagen de rendimiento colector solar térmico

The greater the difference between operating temperature and ambient temperature, the greater the thermal losses and thus the lower energy amount that heat transfer fluid will be able to extract.

The collectors must be operated at the lowest possible temperature, provided that temperature is sufficient for the specific use in each case.

This is because collector efficiency decreases as the operating temperature increases.

Improved insulation helps thermal losses reduce.

Reflection losses are due to transparent cover that usually exists in almost all collectors.

It will be necessary to properly orient the collectors so that they receive the greatest radiation amount possible during the period of use.

The question: which is the best collector ?

A priori has no answer.

It will depend on system location and energy demand that is intended to be met.

There are many types of solar collectors, but there are two large groups: unconcentrated collectors and concentrated collectors.

Solar thermal collectors according to their working temperature:

1) Low temperatura

1.1) Flate: protected and not protected

1.2) Vacuum tubes: direct flow, heat pipe and solar concentrator CPC)

2) High temperatura

2.1) Parabolic Cylinder

2.2) Central receiver system

2.3) Parabolic disks

2.4) Solar chimney

3) Other collectors

3.1) Rubber

3.2) Spherical

3.3) Conical

Resultado de imagen de colector solar térmico de baja temperatura

In next posts we will analyze in detail each collector type.

This content was extracted from the Solar Thermal Energy Technical-Commercial Manual and is part of Solar e-learning.

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El Salvador Solar PV

Until recently there were only off-grid PV systems and a limited number of on-grid systems for self-consumption in El Salvador; most of them in government buildings, schools and universities.

By the end of 2015 the largest PV system in operation was 99 kW.

In October of that year AES Moncagua PV plant, with an investment of US$ 4 million and 2.5 MW, was inaugurated.

Resultado de imagen de fotovoltaica aes moncagua

This solar plant located in San Miguel is directly connected to Electric Company of East (EEO) distribution network for later supply.

At present, it is under construction that will be the largest solar power generation plant in the country, with 100 MW of installed capacity.

It will be located in Rosario de La Paz, La Paz department, in an area of 150 blocks, a few kilometers from Monsignor Óscar Arnulfo Romero International Airport.

The project, totaling US$ 151 million, will be financed by an IDB loan of US$ 57.7 million, a co-loan from the Canadian Private Sector Climate Fund of the Americas of US$ 30 million and co-loan of a French Development Agency subsidiary of US $ 30 million.

The winning company Providencia Solar S.A. de C.V., a company incorporated in El Salvador for the sole purpose of the project developing, is owned by an independent French renewable energy producer.

At the end of June 2016 the first solar module was installed and construction began.

Initial forecasts estimate that it will be injecting power in April 2017 after 11 months of construction and an additional test perform month.

Resultado de imagen de providencia solar s.a. de c.v

Solar Reserve and La Trinidad projects (also of 2014 bid) would add 28 MW.

During January 2017, another 169.9 MW of renewable energy were awarded, of which 50 MW will be from wind energy and 119.9 MW from photovoltaic generation.

There were 29 proposals (4 of wind generation and the rest of photovoltaic).

The offers were in response to a tender launched by the country for 170 MW of renewable energy (initially 100 MW of solar and 70 MW of wind).

The bidding rules leave a construction period of 3 years for wind projects and 2 years for solar.

Tomorrow 25th of January will be official notification date and contracts will be signed between January 31st and March 27th.

There were 4 solar winning proposals for this tender.

A company combining French and Salvadoran capital was awarded 50 MW at a unit price of US$ 49.55 / MWh and another 50 MW at US$ 49.56 / MWh. The solar plant, with an estimated investment of US$ 150 million, will be located in Ozatlán, Usulután.

In addition, 10 MW of solar generation were awarded to an offer at US$ 67.24 / MWh and 9.9 MW to another offer at US$ 54.98 / MWh.

Allocation to solar projects exceeded the 100 MW expected because wind energy supply offers did not reach the initially installed capacity required.

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Free Solar Tools (II)

On Internet we can find free tools for basic or low complexity solar systems dimensioning and for certain components or accessories estimation.

Sopelia research team has carried out an exhaustive search and testing from which a new corporate website section called Free Solar Tools has been created.

Selected tools were classified into 4 categories.

Today we will analyze the second one: Consumption Calculation.

In first category we have already analyzed tools to obtain data about solar resource and other variables to consider in estimating energy solar system will provide in our location.

Now we are going to analyze tools to calculate the “load”, that is, the energy demand to be satisfied.

Tools order is not random. We have prioritized the most intuitive, the most universal and those that can be used online without download.

For this second category our selection is as follows:

1) Housing heating calculation

Approximate calculation tool developed by the Ministry of Industry, Energy and Mining of Uruguay.

Consider the variables surface, heating technology, materials, openings, insulation and roof.

Data that interests us to solar thermal system dimensioning is kcal / month.

Imagen relacionada

2) Advanced Energy Efficiency Calculator

Tool to make detailed calculations of house energy consumption.

It includes a general table (all devices), a groups table (device families) and a configurable table (custom).

Last one is a version in which you can modify table data and know more accurately your particular case.

Resultado de imagen de electrocalculator

3) Hot water, heating and pool conditioning demand calculation

Spreadsheet for hot water, heating and swimming pool conditioning demand estimation.

Only Spain localizations are deployed, but can be used as template and adapt to any location by manually solar resource and other starting data entering.

Inputs: location, number of occupants and occupant’s consumption, temperature of use, collector’s number.

Outputs: collector surface, inclination, accumulation volume, yields and savings, demand and coverage calculation and comparative graphs.

Resultado de imagen de demanda ACS, calefacción y piscina

4) Electrical consumption calculation

Only available for PC.

Cannot be viewed from mobile devices (Smartphone / Tablet).

Application developed by the Ministry of Energy and Mines of Peru to estimate electricity consumption based on each device power (W) and hours of use number.

Resultado de imagen de Ministerio de Energía y Minas de Perú

5) Energy consumption calculator

Very easy operation online free basic calculator.

Different electrical devices, their power, and their daily use regime are added.

Resultado de imagen de calculadora de consumo eléctrico

Accessing Free Solar Tools section of Sopelia’s corporate website you will find the links to have these tools and begin to configure your future solar system.

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2017: The Year In Which Argentina Made Renovable

The year 2017 in Argentina is the break point between a disastrous past and a future that can be plentiful in renewable energies field.

In RenovAr Program rounds 1 and 1.5, 2,423 MW of renewable energy projects have been awarded.

The always old-timers will say (and in some cases with reason) that many projects will not be realized.

The surprisingly low award prices and the increase in financing costs provoked by the white house tenant change make doubtful some projects profitability.

Especially the 60% that was not developed by Chinese origin promoters. The latter have the handicap of unattainable financing for the rest, but they will also have difficulty coping with the high “Argentine cost”.

The truth is that much of them will become reality and renewable energy participation in the country’s energy matrix will begin to be relevant (Law 27.191 objectives of 8% in 2017 and 20% in 2025).

Resultado de imagen de solar térmica argentina

On distributed generation side, the impulse is given by solar thermal energy, which in locations without natural gas network access is already more profitable than all other energy sources.

In addition, those who are developing new constructions in locations with natural gas network access and do not incorporate solar thermal energy in their projects, are making a serious mistake.

Energy tariffs will continue with their irreversible sincerity process.

Photovoltaic distributed generation is more difficult because involves a more important initial investment and a longer repayment term.

In locations with electricity grid access is being developed almost exclusively for lighting applications in complement with LED technology.

In isolated locations for houses electrification, water pumping, signaling and communications.

This situation is going to change throughout this year.

Decree 531 establishes the purchase mechanisms (private contracting, self-generation or cogeneration or participation in a joint purchasing mechanism) for users with energy demands equal to or greater than 300 kW; which must cover at least 8% of the total electricity consumption from renewable sources by December 31, 2017.

Sopelia is advising many companies that have already taken the first step: develop solar energy projects on the paper to evaluate purchase mechanisms versus self-generation in order to achieve (and even surpass) the required percentage.

Solar is the renewable energy with urban environment integration highest level and these companies can take advantage of their roofs to place photovoltaic or thermal systems.

Resultado de imagen de solar fotovoltaica argentina

All companies that make intensive electrical energy use or include fluids heating in their production process should elaborate these projects on paper to make the right decisions with real information that accurately reflects their particular situation.

The government could accelerate this transformation process by:

* Regulations that oblige solar thermal systems incorporation in all new construction, in Spanish CTE style

* Implementation of a serious plan (installed capacity objectives, deadlines and compliance measures of those objectives, measures to correct deviations) that really favors the distributed photovoltaic generation development in residential, commercial, services and industrial sectors

* Impulse of interconnection infrastructure investment by energy distribution companies

* Conducting a thorough study to reduce import tariffs on renewable inputs and equipment that can hardly be manufactured in short and medium term in the country.

Renewable energies put Argentina in front of another opportunity (and go …) to end its sad paradox:

Having enormous natural resources and never making a correct use of them for benefit of all its citizens.

Solar energy wherever you are with Sopelia.