international and latin-american experiences with policies for the promotion of renewable energy

8/14/2019 International and Latin-American experiences with policies for the promotion of renewable energy

1/35

UniversidadAutnomadeGuadalajara

ov.

,

Internationaland

Latin

American

experienceswithpoliciesforthe

promo ono

renewa e

energy

DetlefLoy

Berlin/Germany


2/35

T eexamp eo w n energy:

....

countrieswithgoodwindregimes,buthardly

anywind

energy

use

,

energygeneration

Whatarethereasonsforsuchadivergent

Loy Energy ConsultingUAG04.11.2008 2


3/35

Whatisspecificaboutelectricityfrom

areo ten nterm ttent, .e.notconstant y

available(wind/solar);

need

for

parallel

grid

operation

RESintensitydependsverymuchonlocation (forwindontopography,vegetation,turbineheightetc.)

RESavailability

not

always

matching

with

site

of

electricit demand andnearmain rid forwindand

water:landaccessibility sometimesnotsecured

periods(often>10years)



4/35

Whatisspecificaboutelectricityfrom

ewtec no og es manyun nowns,e.g.

effect

on

grid

stability

env ronmenta mpacts

constructionrequirements

emount ng

a ter

en

o

e

t me maintenancerequirements

secur y ssues



5/35

Basicthoughts

upportsc emestryto a anceoutmar et stort ons

and/or

are

introduced

to

directly

favour

electricity

from

Supportschemeshavetoavoidburdeningthestate

u ge

or

ncreas ng

consumer

ar s Theyshouldmatchwithregularmarketfunctionsandfit

ntoex st ng ega structures

Generationbased

incentives

are

generally

better

than

onetimepayments

Theyareimportant,butnottheonlysuccessfactor

5Loy Energy ConsultingUAG04.11.2008for

RES

technologies

!!


6/35

sectorsunbundled?

self

generation

allowed?

pr vatesectorgenerat ona owe transmissionofelectricitybythirdpartiesallowed?

u c

accep ance Landaccess

DoesPowerExpansionPlanprovidefortransmission options

(construction

of

new

lines

to

potential

wind

locations)? Ispermissionprocedureestablishedandunbureaucratic?

6Loy Energy ConsultingUAG04.11.2008


7/35

o uo asys ems enewa e o r o o an ar s w

or

w/o

certificateso Feedintariffs andpremiums

o Financialincentives(Directinvestmentsubsidies)

o Fiscalsupports (taxincentives)

Schemesvaryconsiderablybetweencountries;mostcountr esusemoret anonesc emeatat me



8/35

Government a s Customers a

Investmentaid

Support/pricelevelsetbyauthorities

AmountofRESsetinthemarket Feedintariffs

(fixedorpremium)

Taxsupport

Tendering

Supportlevelsetinthemarket

AmountofRESsetbyauthorities

Quotas

+



9/35

UAG04.11.2008 9Loy Energy Consulting


10/35

CountriesinLatinamericawithspecific

regu a ons

or

e ec r c y

Argentina since1998 2006 Premium

Brasil since2002

Feed

in

tariffs

and

calls

Chile (since2008) Quota

DominicanRepublic(since2007) QuotaandPremium

Ecuador since2000

Feed

in

tariffs

Nicaragua (since2002) Premiumandmainly

Loy Energy Consulting 10UAG04.11.2008


11/35

Feedin

tariff/

Tenders

Quota

Ecuador: Newin2007 2.4MW(=totalendof2007)



12/35

Highlyliberalizedelectricitymarket

Highgrowthrateforelectricitydemand

Insecureenergysupply(gasimports)

Favourablewindconditions,largegeothermalpotentialandbiomassresourcesinmanyregions

investmentactivitiesandnewlawwithquotaobligation(sinceApril2008)



13/35

Liberalised market was lookin at leastcost o tions

notatlongtermenergysecurity

unknown;speculationwithgeothermalconcessions

Noadministrative

permission

procedures

in

place

electricity

nanc ngsec orno accus ome o ns a a ons

Nolandresourceplanninginplace



14/35

.

,

LawisbasicallyamendingtheElectricityActof1982

Allcompanies

selling

electricity

over

the

two

main

grids

either

to

distributioncompaniesordirectlytofinalconsumershavetoprove

from2010onthatacertainquotaofallelectricitysoldannually

AppliestoallsalescontractssignedafterAugust31,2007

,onwillbecounted

uota will be 5 between 20102014 and increase from 2015 b

0.5%pointsannually,untilreaching10%in2024



15/35

.

,

Quotacanpartiallybeaccomplishedbyhydropowerwith2040MW.

w z :w .

suppliedelectricity(valueofNov.2008).Ifithappensagainwithin

followin 3 ears enalt willincreaseto3.3USct erkWh

Thepenalty

volume

will

be

transferred

to

and

shared

proportionally

amongallcustomersofthosecompaniesthathaveaccomplished

theobligation.

Flexibility:

electricity

volumes

exceeding

the

quota

can

be

shifted

intothefollowingyear;partoftheobligationcanbeshiftedtothe

nextyear;companiesmayexchangevolumesinexcessoftheirown



16/35

ImpactoftheLaw:

.

,

GeneratorshavetoincorporateownRESplantsorcontractRESelectricity

Electricitydealers

will

seek

to

get

RES

electricity

anywhere

on

the

market

Potentialweaknesses:

Penaltycouldbetoolowtoreallyactasacommercialthreat

Regulated

electricity

customers

have

no

choice

for

other

distributor Windandgeothermalmaynotbethefirstoptionduetorelativelyhighup

rontcosts

Only11%oftheexpectedcapacityexpansioninthenextdecadewillbe

.

for2020

CostsforRESelectricit willnotbecontrolled but100%transferredonto

thefinal

consumer



17/35

Statedominatedelectricitysector:singlebuyer principle

Lawof

1990

allowed

for

private

engagement in

electricity

generation,butonlywithRESandupto15%(now30%)of

totalinstallednationalcapacity(notincludinghydropower)

RESelectricity

will

be

purchased

for

up

to

20

years

from

any

plantof>20MWand


18/35

SeveralregulationsstatethatRESotherthanhydropowershouldbegivenpriority.

Reducingdependencefromenergyimports isGovernmentpolicy

Windregime is

matching

well

with

dry

season

(low

available

capacityfromhydropower)



19/35

ar a y pr va ze e ec r c y mar e , u s s a edominance

ow r r s r ov rn n con ro n ow coscoverage (high subsidies)

,

power

NewMinistry for electricity and renewable energy

Feedintariffs inplace since 2000,to be paid for 12years,annual revision



20/35

Paymentproceduresareunclear(nomechanismfor

sharingof

extra

costs)

ElectrificationMasterPlannotspecificaboutgrid

Thereisnofinancialstability(seedebtsituationofdistributingutilities)

investorsandfinancingsector



21/35

El caso actual de M xico

generacindeelectricidadpara

- autoabastecimiento,- cogenerac n,

- exportacin,

- comoproductorindependienteparaCFE,

- ocomo

pequeo

productor

ContratodeInterconexinparaAutoabastecimiento

ContratodeInterconexinparaFuentesdeEnergaSolar aPequeaEscala(menosde30kW)

IniciativadeLeyparaelAprovechamientodelasFuentesRenovablesdeEnerga(LAFRE)

UAG04.11.2008 21Loy Energy Consulting


22/35

verv ewo

suppor

sys ems

n

Source: Optres, 2008



23/35



24/35

Three

main

amendments

(2000/2004/2009) Constantmonitoringandrevisions

ec no ogyan s espec c ar s

Tariffstructurepreventsconcentrationonprimewindlocations(negative:lowmediumcapacityfactor)

development(highertariffs)



25/35

Germany: Renewable Energy Sources Act

Outcome-based, cost-reflective incentive (preferential purchase

- Main Features -

pr ce per

Priority for grid connection, purchase and transmission of

Consistent purchase price (tariff) paid by the grid operators- Lon -term ers ective and investment securit 1530 ears

- Incentive for opening up new potentials and technologies Strong incentive for efficiency boost and cost reduction

- ar s eren a e y source an s ze o e p an- Annual degression rates taking into account technical development

Nationwide e ualization between all rid o erators and electricitsuppliers for fees paid; customers pay for additional costs, no statesubsidy ! Exemption for energy-intensive industries and rail system

UAG04.11.2008 Loy Energy Consulting 25


26/35

German Renewable Energy Policy:

Renewable Energy Sources Act (EEG) - 2004

Feed-in tariffs for renewable energy plants

(commissioned in 2007 and degression in 2008)

Cents/kWh Duration (a) Degression 2008

Small Hydro Power 6.65 - 9.67 30 -Biomass 8.03 - 21.14 20 1%

-. .

Wind onshore 5.18 - 8.19 20 1%

Wind offshore 6.19 - 9.10 20 -37.95 - 54.21 20 5 - 6.5%Source: BMU: Renewable Energies in Figures, 2007, EEG

Loy Energy Consulting 26UAG04.11.2008

Note: tariffs and degression rates will change as from Jan. 1, 2009


27/35

ermany renewa e energy e ectr c ty

Contribution of renewable energy sourced electricity generation

in Germany 1990 - 2007

100,000

80,000

90,000Hydropower Wind energy

*

50,000

60,000

70,000

GWh]

EEG

1. August 2004

30,000

40,000

[First feed-in tariff

1. January 1991

. pr

0

10,000

,

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

* solid, liquid, gaseous biomass, biogenic share of waste, landfill and sewage gas;Electricity f rom geothermal energy is not presented d ue to the low vo lumes of electricit y

Source: Source: BM U accord ing to Working Group on Renewable Energies / Statist ics (AGEE-Stat) 27


28/35

ermany:

ecrease

o

ee

n

ar s

A partir del 2013:remuneracin elica

international and latin-american experiences with policies for the promotion of renewable energy

Documents