MEEA Presentation at MHE CDM Workshop (UNEP-RISO)

Transcription

1 MEEA Presentation at MHE CDM Workshop (UNEP-RISO) Energy Sector Development in Trinidad & Tobago: Current and Future Trends in the Links to a Low Carbon Economy UTT Campus, Pt Lisas October 27, 2011

2 Table of Contents 1. Framework for Energy and Minerals Policy 2. Renewable Energy Policy Framework and Initiatives 3. Energy Efficiency and NEC Study on PLIE 4. Carbon Reduction Strategy & CNGV Task Forces 5. Potential for CDM projects under MEEA 6. Power Generation Issues

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4 Cabinet Approved Framework for Energy and Minerals Policy Currently being Developed into a Green Paper Increased exploration and production activities for oil and gas Optimization of the energy value chain Diversification of the energy sector Long term sustainability of the energy sector Building a competitive environment for future growth and development Establishment of an appropriate structural framework to allow for implementation of policies

5 Energy Policy Framework Upstream Resource Mgmt. Framework Aggressive Expl. Policy Balancing the Energy Portfolio Acreage Optimization Model for State Participation Midstream Joint Venture Refinery Projects Tarsands/heavy Oil/Asphalt Projects LNG Expansion & Development Gas Aggregation, Transmission & Distribution Down/ stream Petrochemicals & Metals Processing Renewable & Alternative Energy Biochemical & Other Energy Based Projects Industrial Manufacture Energy Based Manufacturing Backward Integration Project Development Infrastructure Development Estate Planning & Development Port Planning & Development Pipeline Development Other Energy Infrastructure Development

6 Energy Policy Framework Cross Cutting Strategies Health, Safety, Security & the Environment Energy Services Energy Efficiency International Co-operation and Joint Venture Human Capacity Building

7 MEEA/Renewable Energy Committee Mandate To develop renewable energy policy & promote development and usage of RE

8 Framework for Renewable Energy (RE) Policy Development THE GOVERNMENT OF THE MEEA RE and EE Unit Energy Efficiency (EE) and Conservation Training and Education (incl. R&D) Residential, Commercial, Agricultural & Institutions Electricity Industry Transportation Fiscal & Other Support Mechanisms

9 RE/EE Initiatives Creating an Enabling Environment - Incentives - Finance Act No.13 of Energy Audits - Review of T&TEC, RIC and EID Acts - Product and technical standards - Education and Training - Public Awareness Government leading by example through Pilot Projects community centers and schools Home Efficiency Self Sufficiency (HESS) Programme (PowerGen initiative) Wind Resource Assessment Study Regional RE Research Center T&T/USDOE/Caricom

10 Finance Act No. 13 of Renewable Energy Import Duty Exemption 0-Rated VAT Tax Credit Wear and Tear Allowance Solar Water Heater (SWH) (usage) From Caricom Sources Fully assembled SWH 25% on the acquisition of SWH by H/Hold (Max. $ ) on 150% of the cost of acquisition of SWHs SWH (manufacture/ assembly) SWH industry declared Approved Industry subject to conditional duty exemption NA NA on 150 % of cost of plant, machinery, parts & materials for use in the manufacture of solar water heaters Solar PV PV cells, whether or not assembled in modules or made up into panels PV cells, whether or not assembled in modules or made up into panels NA on 150% of the cost of acquisition of PV systems Wind Energy Wind turbines & supporting equipment Wind turbines & supporting equipment NA on 150% of the cost of acquisition of wind turbines

11 REPUBLIC OF TRINIDAD Product AND TOBAGO and Technical Standards MEEA, TTBS, Board of Engineering & other stakeholders: Specification Committee Standards for solar water heaters near completion: design and installation materials solar collectors Procedures for publication of standards to commence shortly MEEA/ Ministry of Legal Affairs Public Advisory issued advising would-be purchasers of SWHs Sub-committee of the national Electrical Code Committee Addressing compatibility issues in relation to RE and integration with the national grid. Electrical Wiring Code now includes a Part III for RE draws from the American NEC public comments received on draft Part III of code & amendments made where necessary Procedures in train for publication of the Code with new Part III

12 Legislative Agenda MPU leads the review process involving the T&TEC and RIC Acts Collaboration ongoing among MPU, MEEA, T&TEC, EID and RIC Included in MPU s work programme for fiscal year 2012 Key Issues: - Open access - Grid interconnection - Feed-in tariff - Net metering - Net billing

13 Energy Efficiency National Budget Statement 2012 Government will commission a national energy efficiency study and pilot project and a national wind resource assessment programme IDB developing with Government a sustainable energy programme with EE recognized as a major element in promoting sustainable development Policy statement: Energy efficiency and conservation will be placed on the country s energy agenda covering all consuming sectors, with the Ministry of Energy and Energy Affairs taking a leading role NEC Energy Efficiency Report under review by the MEEA - will inform Government Green Paper on Energy & Minerals Policy

14 Finance Act No. 13 of 2010 Energy Audits 75 % Accelerated Depreciation Where a certified Energy Service Company (ESCO) has acquired plant and machinery for the purpose of conducting energy audits there shall be allowed an amount of 75% of the cost incurred in the year of acquisition, and this amount shall be the only allowance on this expenditure for that year the amount of expenditure not yet allowed under paragraph above may be claimed as wear and tear allowance in proceeding year 150% Tax Allowance Company that engages ESCO Allowance of 150% of the expenditure incurred by a company that engages another company certified as an ESCO by the Minister with responsibility for energy, for the purpose of carrying out an audit for a. the design of energy saving systems, and b. the installation of the energy savings systems in the company

15 MEEA ESCO Certification Committee Terms of Reference Develop procedures and standards for the conduct of Energy Audits Certification of ESCOs Make recommendations on the award of the 150% Tax Allowance especially in relation to: qualifying expenditures and emission reduction levels Committee Members MEEA (Lead) Board of Engineering T&T Electrical Inspectorate Div. Accreditation Council of T&T T&T Green Building Council T&T Bureau of Standards RIC UTT UWI

16 NEC Energy Efficiency Report: Establishment of Frameworks for Energy Efficiency Policy & Programme for PLIE Objectives: To develop the structure and basis for a sustainable policy to promote energy efficiency and a roadmap for formulating such a policy To develop guidelines and action items for design, implementation and evaluation of an Energy Efficiency programme provide a framework for linking gas price to efficiency of operations encourage the petrochemical operators to explore the latest technologies that embrace efficiency as a prerequisite

17 Pilot Initiatives Community Centers (CCs) Greening 2 CCs GEF assistance GEF to provide technical expertise & fund greening component for 1 CC MEEA is committed to funding greening component of other CC Signing of project document imminent Baselines for expanded initiative; first phase in development (PV exterior lighting pilot) Secondary Schools RE/EE integration in school curriculum RE/ EE Technologies to be deployed

18 Pilot Initiatives Sub-Committee of Electrical Code Committee To utilize PV systems with different grid tie inverters to test the reliability of Part III of the electrical wiring code developed for RE systems and their integration with the national grid Home Efficiency Self Sufficiency (HESS) PowerGen initiative Gasparillo, Trinidad PV and Wind Technologies

19 Pilot Initiatives Government Housing Location in East Trinidad wind and other RE/EE technologies Insufficient wind data making it difficult to draw conclusions on wind availability to support a viable wind farm Supports the need to commission a wind study Other Pilot Initiatives Ministry of Housing and the Environment

20 Carbon Reduction Strategy Taskforce Mandate to develop a national Carbon Reduction Strategy a regulatory and policy environment for carbon sale, storage, credit and trading incentives to attract investment from international companies and research bodies interested in exploring possibilities of carbon and storage in T&T a Carbon Capture and Storage Project which identifies the key stakeholders, the technology and the implications for existing and future industrial plants Status Report of Taskforce near completion - to be submitted to Cabinet shortly

21 Compressed Natural Gas Vehicle Task Force Government will support and encourage the development of alternative, cheaper and cleaner fuels for transportation, such as compressed natural gas (CNG), which is cheaper and cleaner than current liquid fluids in order to reduce the domestic consumption of highly subsidized petroleum products such as gasoline and diesel

22 Potential for MEEA/CDM projects Large scale wind farm for power generation for the national grid Waste to energy - to support a national waste management strategy Conversion of PTSC buses to utilize CNG Conversion of single cycle power generation to combined cycle technology {Policy: All new power generation will utilize combined-cycle (using natural gas) as one of the energy efficient low carbon technologies as the energy standard (For the new 720 MW combined-cycle power plant alone, fuel savings at full production are expected to exceed US $35 million per annum at current fuel prices)} What about conversion of existing single cycle plants to combined cycle?

23 Power Generation/Transmission Installed generation capacity (excl. TGU) 1600 MW Peak demand 1200MW (2010) 4 generators T&TEC, PowerGen, Trinity, TGU Policy Issues: Inadequate electricity transmission capacity to move power from the plants to the demand centers Aging electricity distribution facilities in Port of Spain which needs to be upgraded majority of existing power plants are simple cycle with low conversion efficiency current pricing of electricity is low for residential and commercial customers and this has led to inefficiency in the use of electricity Excess power generation capacity with the completion of the Trinidad Generation Unlimited (TGU) plant in 2012

24 Single cycle to combined cycle at the 225 MW Trinity Power at Point Lisas (present efficiency 27.5%) This plant has been designed and laid out to accommodate conversion to combined cycle This project configuration would be similar to half the TGU plant, since the gas turbines are nearly the same model. As such, one can expect the output to be upgraded to about 335 MW at about 40% efficiency Looked at another way, it is possible to get up to 125MW more output without the use of any additional fuel Single cycle to combined cycle at the 630 MW Powergen plant at Point Lisas (present efficiency 21.5%) May not be technically feasible to retrofit the 10 original units at Point Lisas, which are 25+ years old and unreliable. However, T&TEC obtained a quotation from Powergen for the retrofit of the two new (installed 2007) 104 MW units at Pt Lisas. The price quoted was exorbitant, that is, out of all proportion to any imaginable gas savings. The project was thus scrapped

25 Early retirement for the 320 MW Powergen plant in Port of Spain (present efficiency 28%), and construction of transmission line to the new 720 MW power plant at La Brea in the south of Trinidad Conceptually, construction of the new transmission line will allow T&TEC to bring out approximately 360 MW of trapped power from the TGU plant, at 40%+ efficiency Conceptually, 280 MW of this will replace the now-280mw POS station (present efficiency ~26%), for a fuel efficiency improvement of 40/26, or about 55%. POS was never rated at more than 300 MW. Right now it is 280 MW, after a 20MW unit suffered permanent failure. An 80 MW unit has recently suffered a severe failure and is being considered for retirement. Leaving 200 MW The station is in poor condition and there are plans for retirement by Dec 2014

26 Wind Resource Evaluation Study MEEA/NEC developed a Request for Proposals (RFP) for hiring of an International Contractor to undertake a National Wind Resource Evaluation Study Other stakeholders: T&TEC, Meteorological Services Division, UWI Engineering Institute, UWI Physics Dept, BPTT, GM Wigton Wind Farm (Jamaica), CREDP RFP sent to Cabinet in February awaiting a decision Collaborating with CREDP on possible assistance for undertaking study National Budget Statement 2012 Government will commission a national energy efficiency study and pilot project and a national wind resource assessment programme

27 Monitoring & Evaluation THE GOVERNMENT OF THE Future Trends Increased Training, Education and Public Awareness RE/EE being integrated in increasing numbers of community centers and schools National energy efficiency study & implementation programme Expansion of HESS programme Expanding use of RE/EE technologies by population CCS/EOR project Expanded CNG programme Good prospects for photovoltaics industry Bright prospects for a Wind Farm Bright prospects for solar water heater assembly Good prospects for a Waste to Energy Pilot Project Very bright prospects for establishment of Regional RE Research Center in T&T Monitoring & Evaluation

28 Thank You

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