energy natural gas water

Estado actual y perspectivas de la situación

energética-industrial en Colombia y las posibilidades

para la Cooperación Internacional en el sector

Fact-finding mission Renewable Energies Export

Initiative of the German Federal Ministry for Economic

Affairs and Energy “Off-grid Colombia“

Juan Fernando Higuita Peña

Múnich, 1 de julio de 2014

Agenda

1. Characteristics of Colombia’s electricity sector

2. Supply side

• Current situation and expansion plan

• Electricity prices and Tariff scheme

3. Demand side

• Current situation and energy forecast

• Industrial sector

• Energy efficiency

4. Renewable Energy Law

• Renewable energy targets

5. Opportunities for International Cooperation

Installed capacity

14,559 MW

International

Electricity

Transactions

Export: 662,3

GWh/year

Import: 28,5 GWh/year

Transmission 24,309 KM

Operators

Generating

companies

43

Transmission

companies

9

Distribution

companies

29

Commercialization

companies

67

Source: XM, 2013

Colombian electricity system

Colombian National Transmission System – 2011

Source. (UPME, 2012)

Colombian electricity market (cont’d)

Source: Schematic of Colombian Electricity System. Source (XM, 2013, own translation)

Supply side – current situation

Resources

2012

(MW) 2013 (MW) Share (%)

Hydro 9,185 9,315 64.0%

Thermal 4,426 4,515 31.0%

Gas 2,122 1,972

Coal 997 997

Number 6

fuel oil 307 307

Diesel fuel 678 917

Jet1 46 46

Gas-Jet A1 276 276

Small capacity 693 662 4.5%

Hydro 591 560

Thermal 83 83

Wind 18 18

Cogeneration 57 66 0.5%

Total SIN 14,361 14,559

Total installed capacity in the National Interconnected System, December 31st 2012 – 2013

Source: (XM, 2014)

Hydro Thermal Small capacity cogeneration

Supply side – Power generation expansion plans

Name Capacity [MW] Type Starting date

Amoyá 78,0 hydro apr-13

Cucuana 60,0 hydro oct-13

Gecelca 3 164,0 thermal dic-13

Termocol 201,6 thermal dic-13

Sogamoso 800,0 hydro may-14

El Popal 19,9 hydro jun-14

El Quimbo 420,0 hydro dic-14

San Miguel 42,0 hydro dic-15

Ambeima 45,0 hydro dic-15

Carlos Lleras 78,1 hydro dic-15

Tasajero II 160,0 thermal dic-15

Gecelca 3.2 250,0 thermal dic-15

Termonorte 88,3 thermal dic-17

Porvenir II 351,8 hydro dic-18

Ituango 2.400,0 hydro jul-22

Source: (UPME, Plan de expansión de referencia Generación- Transmisión 2013-2027, 2013)

83.3% Hydro

16.7% Thermal

8

Restrictions

Generation cost

Transmission (STN)

CUvn,m,i,j = [(Gm,i,j + Tm + Dn,m + Cv m,i,j + PRn,m,i,j + R m,i)

Distribution (STR & SDL)

Recognized losses

Variable trading cost

32%

7%

37%

13%

4%

7%

Tariff scheme

Components of the regulated tariff, current tariff formula, CREG resolution 119 of 2007. Source: adapted

from (Santa María, et al., 2009)

Category percentage

Social stratum 1 subsidized 60%

Social stratum 2 subsidized 50%

Social stratum 3 subsidized 15%

Social stratum 4 neutral

Social stratum 5 and 6 Pay contribution 20%

Industry total consumption

Commerce Pay contribution 20%

Public buildings total consumption

Subsidies:

m.a.s.l: 1000m or above 0-130 kWh

m.a.s.l: below 1000m 0-173 kWh

9

Categories for users

Average household electricity consumption

Source. (Vélez Álvarez, April 2014) Subsidies:

m.a.s.l: 1000m or above 0-130 kWh

m.a.s.l: below 1000m 0-173 kWh

1 US$: 1,900 COP

1 EUR: 2,500 COP

Source. (XM, 2013b)

11

Electricity prices: Spot market and

contracts

Demand side – current situation

45.768 47.017 48.829

50.815 52.853 53.870 54.679

56.236 57.150 59.366

-

10.000

20.000

30.000

40.000

50.000

60.000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

GW

h-

año

Annual evolution of electricity demand

Source: (UPME, Plan de expansión de referencia Generación- Transmisión 2013-2027, 2013)

Demand side – Energy forecast (GWh)

Source: (UPME, Proyección de demanda de energía eléctrica en Colombia, 2014)

Demand side – Peak load (MW)

Source: (UPME, Proyección de demanda de energía eléctrica en Colombia, 2014)

Demand side – electricity consumption per capita

Source: (UPME, Proyección de demanda de energía eléctrica en Colombia, marzo 2014)

Industry – energy demand

Source: (UPME, Proyección de demanda de energía eléctrica en Colombia, 2014)

Industry – tariff

Source: (Federação das Indústrias do Estado do Rio de Janeiro-Firjan, 2014)

1 USD = 2.25BRL ; 1 EUR = 3.1019 BRL (Average 12 months, Exchange Rates UK)

Energy efficiency – PROURE 2010-2015

Strategic Subprograms

SPE-1 Institutional Strengthening

SPE-2 Education, R+D+I, Knowledge management

SPE-3 Financial strategy and Boosting market

SPE-4 Consumer protection and Right to information

SPE-5 Monitoring indicators and targets

SPE-6 Promotion of the use of Non-Conventional Energy Sources

Residential Commerce, Services

and Public sector Industrial Transport

Lighting

Refrigeration

Burners

Buildings

Motors

Lighting

Boilers

Combustion

Cogeneration

Energy management

SME’s

Cold chain

Lighting

Refrigeration

Air conditioning

Buildings

Street Lighting

Conversion

technology

Transport modes

Good practices

Industry – energy efficiency

Industrial sector

Subprogram Objective

Optimizing energy use in driving force Promote the replacement of existing motors by high-efficiency

motors.

14.000 kW >> 6 million USD

Optimization of combustion processes Promote the use of waste heat generated in combustion processes.

Training programs and applied research >> 500.000 USD

Efficient lighting Replacement of lights in the near 500 industries >> 5 million USD

Comprehensive management of energy

in industries with emphasis on cleaner

production

Promote standardization and renovation of electrical grids and

overall minimization of energy losses.

500 enterprises >> 35 milion USD

Cogeneration and self-generation Develop training programs, applied research and development of

standards >> 15 million USD

Rational and efficient use of energy in

Small and Medium Enterprises – SMEs

Promote capacity building in energy management; technological

innovation; develop credit lines for project financing >> 15 million

USD

Optimization of the use of boilers Promote good operational practices aimed at better use of boilers or

technological conversion >> 30 million USD

Optimization of the cold chain Strengthen education on sizing, operation and maintenance of air

conditioning systems and refrigeration >> 1 million USD

Source: (UPME, May 2010, own translation)

Renewable Energy Act – 1715, 2014

o Object: - Promotion and development of non-conventional energy sources (mainly

renewable energy sources) in the national energy system, by integrating them to the electricity market.

o Purpose: - To establish the legal framework and instruments for the promotion of non-

conventional energy sources.

- Establish lines of action for the fulfillment of the commitments undertaken by Colombia on renewable energy, energy efficiency management and reduction of GHG emissions.

- Encouraging investment, research and development of clean technologies for energy production, energy efficiency and demand response

Renewable Energy Act – 1715 (cont’d)

- Non-Conventional Energy and Energy Efficiency

Management Fund (FENOGE)

This Fund aims to finance programs designed for residential sector levels 1, 2

and 3 and for the implementation of self-generation solutions and energy

efficiency improvement projects, studies and energy audits. The Fund will be

ruled by the Ministry of Mines and Energy- MME.

- Reduction of diesel consumption in ZNI by

promotion of hybrid solutions

Renewable Energy Act – 1715 (cont’d)

Price instruments

Fiscal incentives

Reduction in income tax

Reduction in VAT

Customs duty exemption

Acelerated depreciation of assets

Guaranteed acces to the grid

Net-metering (bi-directional meters)

Renewable energy targets

Share of FNCE in the National grid and off-grid systems

Year Off-grid Grid connected

2015 20% 3.5%

2020 30% 6.5%

Source: (UPME, 2010, p. 10)

Opportunities for International Cooperation

1. Promote the development of public-private partnership (PPP)

programs.

2. Identify Colombian companies, which are interested in setting up joint

ventures.

3. Take advantage of the off-grid areas (ZNI) to develop small and medium

pilot projects to supply the energy needs of communities and/or

industries that are making use of fossil fuels for electricity generation.

4. Develop suitable business models of mutual advantages for utility

companies and rural/urban communities.

Opportunities for International Cooperation

1. Case 1: Rural electrification in “Vigía del Fuerte and Bojayá”

2. Case 2: Thermal district “La Alpujarra”

3. Case 3: Urban solid waste management. “Environmental

park”

Rural electrification: Vigia del Fuerte & Bojayá

- Hybrid system:

solar + diesel +

battery system

- 10 million USD

- International cooperation

programs

- National funds

Thermal district

28

Recolección y

transporte

Generación y

gestión en la

fuente

Transferencia,

tratamiento y

aprovechamiento

Disposición

final

Reincorporación

de subproductos a

la cadena

Cadena de valor servicios de aseo - visión de

futuro gestión integral residuos

Environmental Park

Contexto Proyecto Parque Ambiental en la gestión integral de residuos sólidos

Estación de transferencia

EDS

Tecnologías de conversión biológica y

química

Compostaje, digestión anaeróbica, co-

digestión, hidrólisis , fermentación, otros

Tecnologías de conversión térmica

Incineración, pirolisis, gasificación, RDF,

desactivación, otros

Tecnologías de clasificación y conversión

mecánica

Plantas de clasificación de materiales

Tecnologías de conversión Mecánico-

biológicos/químicos

Combinación de tratamientos

Componente 2 Viabilización de negocios

valorización de residuos sólidos

Componente 1

References

o EPM. (2013). Centro de documentos. Tarifas de energia de anos anteriores. Retrieved June 8, 2013, from EPM website:

http://www.epm.com.co/site/Home/Centrodedocumentos/Clientesyusuarios/Energ%C3%ADa/Tarifasdeenerg%C3%ADa.aspx

o Firjan (2014). Compare o custo da energia para indústria. Ranking: Países, Ranking de tarifa média industrial de energia elétrica, em R$/MWh, dos países

selecionados. Retrieved 2014-31-May from http://www.quantocustaenergia.com.br/quantocusta/comparacoes/confira-os-rankings/paises/ranking-paises-

quanto-custa-a-energia-eletrica-para-a-industria-no-brasil-sistema-firjan.htm

o Ley 1715 (2014, 13 de mayo). Por medio de la cual se regula la integración de las energías renovables no convencionales al sistema energético nacional.

Bogotá D.C., Colombia.

o Santa Maria, M., Von Der Fehr, N.-H., Millan, J., Benavides, J., Gracia, O., & Schutt, E. (2009). El mercado de la energia electrica en Colombia:

caracteristicas, evolucion e impacto sobre otros sectores. Fedesarrollo. Bogota D.C: La Imprenta Editores Ltda.

o UPME. (2010). Programa de uso racional y eficiente de energía y fuentes no convencionales – PROURE. Plan de acción indicativo 2010-2015, resumen

ejecutivo. Unidad de Planeación Minero Energética - UPME. Bogotá, D.C: Ministerio de Minas y Energía.

o UPME. (2012). Plan de Expansion de Referencia Generacion Transmision 2012-2025. Unidad de Planeacion Minero Energetica - UPME. Bogota D.C:

Ministerio de Minas y Energia.

o UPME. (2013). Plan de Expansion de Referencia Generacion Transmision 2013-2027. Unidad de Planeacion Minero Energetica - UPME. Bogota D.C:

Ministerio de Minas y Energia.

o UPME. (2014). Proyección de demanda de energía eléctrica en Colombia – Revisión marzo de 2014- UPME. Bogotá, D.C: Ministerio de Minas y Energía.

o Vélez Álvarez, Luis G. (2014). Sobre el consumo de subsistencia en la tarificación de los servicios públicos domiciliarios. Retrieved 2014-31-May from XM:

http://luisguillermovelezalvarez.blogspot.de/2014/04/sobre-el-consumo-de-subsistencia-en-la.html

o XM. (2013). Descripcion del Sistema Electrico Colombiano. Estructura del mercado. Retrieved 2014-31-May from XM:

http://www.xm.com.co/pages/descripciondelsistemaelectricocolombiano.aspx

o XM. (2013b). Informe de operación del SIN y administración del mercado. Retrieved 2014-31-May from XM:

http://informesanuales.xm.com.co/2013/SitePages/operacion/Default.aspx

o XM. (2014). Informe de operación del SIN y administración del mercado. Capacidad efectiva neta. Retrieved 2014-31-May from XM:

http://informesanuales.xm.com.co/2013/SitePages/operacion/2-6-Capacidad-efectiva-neta.aspx

Thank you

Choosing digital media over printing is acting in harmony with the environment

Juan Fernando Higuita Peña

Development & Innovation Department

Phone : (+57) 4 3804836

Email: juan.higuita@epm.com.co