THE SMALL HYDRO PLANTS IN LATIN AMERICA AND THE CARIBBEAN

Transcription

1 THE SMALL HYDRO PLANTS IN LATIN AMERICA AND THE CARIBBEAN VICTORIO OXILIA DÁVALOS EXECUTIVE SECRETARY Small Hydro Energy: Local Solutions to Climate Change and Sustainable Development 29 th, October, 2013 Campinas, Brazil

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3 Mix of the total energy supply, LA&C vs. The World Hydroenergy 9% Biomass 14% LA&C (5,909 Mboe) LA&C, year2011 (5,909 Mboe) Other renewables 3% Crude oil and derivatives 41% World (91,564 Mboe) World, year 2010 (91,564 Mboe) Hydroenergy 2% Biomass 10% Nuclear 6% Other renewables 1% Crude oil and derivatives 32% Nuclear 1% Coal and coke 4% Natural gas 28% Coal and coke 27% Natural gas 22% LA&C: 10 boe/ hab. Source: SIEE-OLADE, 2013, data of the year 2012 World: 13 boe/hab. USA: 50 boe/hab. Japan: 26 boe/hab. Europe: 22 boe/hab. Source IEA, 2013, data of the year 2010

4 Per capita electricity consumption (year 2012) Source World Bank, year 2010 Source: SIEE-OLADE, 2013, data of the year 2012

5 Hydroenergy share in the power generation mix (year 2012) Source: SIEE-OLADE, 2013, data of the year 2012

6 Hydropower, potential and installed capacity (year 2012) Source: SIEE-OLADE, 2013, data of the year 2012

7 Hydropower, potential and installed capacity (year 2012) Source: SIEE-OLADE, 2013, data of the year 2012

8 Hydropower, potential and installed capacity (year 2012) Source: SIEE-OLADE, 2013, data of the year 2012

9 SHP in LA&C, potential and installed capacity (year 2011) Ranges of hydro plants of small scale Country Small (MW) Mini (kw) Micro (kw) Pico (kw) Argentina Brazil < 30 Chile Colombia 0-10 Costa Rica < 20 Ecuador 0-10 El Salvador < 20 Mexico < 30 < 500 < 100 < 10 Panama < 10 Country Potential (MW) Installed capacity (MW) Argentina Belice Bolivia 21 Brasil 25,000 4,106 Chile 117 Colombia Costa Rica 91.1 Cuba 65 Ecuador El Salvador Grenada 7 0 Guatemala Honduras Jamaica México Nicaragua Panamá Perú 254 Rep. Dominicana < 5.00 Uruguay 176 Source: SIEE-OLADE, 2013, data of the year 2011

10 Main types of incentives for Small Hydro Plants A. Preferential prices for transport and energy production. C. Priorities in the dispatch of the generated energy. E. Income tax exemption in various percentages. I N C E N T I V E S B. To provide readiness to the energy trading D. To provide readiness to foreign capital inflows F. To provide readiness to project financing

11 Incentives for SHP in some countries of LA&C Country Acts / Incentive Programs Type Argentina Bolivia Brazil Chile National Act on the promotion of renewable energy for electricity production (Act /06) Electricity Supply Program to Rural Dispersed Population in Argentina. Establish provincial energy programs for rural electrification, mainly using photovoltaic, wind, micro hydro turbines and diesel generators. The most recent policy on renewable energy was established in early 2010, when Argentina had implemented incentive in the tariffs for granting power purchase agreements (PPA) for renewable energy. Includes mini hydro projects. A Rural Electrification Decree was approved in 2005 (Supreme Decree No. 28 of 567), which aims to increase rural electrification through renewable energy development and a change in the energy mix Hydropower program. Designed by UMSA is dedicated to developing technologies to use water resources. Its goal is to get technology packages developed in different research projects, ready to be transferred to the end users, preferably rural population. The current Act 10438/02 helped to the Incentive Program for Alternative Electricity Generation (PROINFA- Programma Fonres Incentive Alternatives), which aims to encourage the involvement of Mini Hydro Power to the national grid. Free energy trading allowing producers to sell energy directly to consumers through the network at a rate of 50% discount to use the network (Act No. 9648). Exemption of the financial compensation for the use of resources (Act No No. 9427) Renewable Energy Electricity Act and Electricity Short Acts I and II. which proclaims the following: a) the free transit of the energy through the network for plants with installed capacity under 9 MW and the proportionate share of transit for plants between 9 MW and 20 MW, b) The electricity distribution companies must purchase the energy generated for all kinds of small plants and the price is set periodically by the Ministry of Energy. A. Preferential prices for transport and energy production. B. To provide readiness to the energy trading. C. Priorities in the dispatch of the generated energy. D. To provide readiness to foreign capital inflows. E. Income tax exemption in various percentages. F. To provide readiness to project financing. Source: Renewable Energy Observatory, UNIDO OLADE, 2013 F F B F B C A, B F A, B

12 Incentives for SHP in some countries of LA&C Country Acts / Incentive Programs Type Colombia Ecuador Peru Uruguay The Act 697 makes available the incentives for research and development in the field of mini hydro plants Incentives have been implemented as research grants, tax exemptions and fee waivers by reliability for SHP (<20 MW). Preferential costs depending on the energy source of the plant and the preferential entry to the network. Regulation 004/011 - CONELEC. Act of investment promotion for electricity generation (Act No. 1002) Priority dispatch of transmission system operators. Regulation 354/009 promotes the electricity generation from non-traditional renewable sources and granting a waiver of a significant percentage of income tax for the generators. Decree 455/007 provides tax benefits that may be granted (deduction of taxes in accordance with the amount of investment, tax exemptions, VAT refund). El Salvador Tax exemption for 10 years for projects under 10 MW. D, E F E A F C D, E D, E Dominican Republic In 2009, a rural electrification program for four years was implemented, initiated by the Government, where the objectives were to promote the energy access across the country and the use of renewable energy sources in marginalized rural communities; This initiative operates in 55 rural communities. It is planned to install a total of 31 micro-hydro (5-150 kw) and a wind turbine which will generate an average availability of 200 Wh per household. Act No on Incentives for Development of Renewable Energy Sources and its Special Regimes. Where it stands: exemption from income tax, tax relief to external financing, bond emissions reduction for projects through mini-hydropower plants up to 5MW. B E, F A. Preferential prices for transport and energy production. B. To provide readiness to the energy trading. C. Priorities in the dispatch of the generated energy. D. To provide readiness to foreign capital inflows. E. Income tax exemption in various percentages. F. To provide readiness to project financing. Source: Renewable Energy Observatory, UNIDO OLADE, 2013

13 Incentives for SHP in some countries of LA&C Country Acts / Incentive Programs Type Nicaragua Cuba Jamaica Act 476 for the Promotion of the Hydropower Subsector, states that hydropower schemes under 1 MW do not need a water concession, but must be granted 15 years for systems with capacities from 1 MW to 5 MW, a simplified procedure is applied to obtain a water concession from MIFIC. Act 217 General Act of Environmental Protection and Natural Resources states that projects below 5 MW of capacity is not necessary environmental impact assessment It frees of the income tax for a period of up to seven years (Act 532). In 2006 it was held a series of programs called "Energy Revolution", where, in the electricity sector, are considered: energy saving and efficiency, a higher availability of power services (implementation of distributed generation and rehabilitation of the network), and the use of renewable energy. Incentives from the government: 15% of total generation capacity of the networkwork will be provided from renewable energy resources by the end of Furthermore, a bonus of up to 15% above the utility avoided costs will be allowed to purchase electricity generated from renewable sources. D, E F D, E B A, B A. Preferential prices for transport and energy production. B. To provide readiness to the energy trading. C. Priorities in the dispatch of the generated energy. D. To provide readiness to foreign capital inflows. E. Income tax exemption in various percentages. F. To provide readiness to project financing. Source: Renewable Energy Observatory, UNIDO OLADE, 2013

14 Conclusions: 1. Most countries in the region have implemented within their internal policies and regulations, various types of mechanisms and incentives to promote the construction and operation of small hydro plants. 2. There is significant potential in many countries, for the installation of small hydro plants, which has not yet been harnessed as the case of Argentina, Brazil, Mexico and Central American countries. 3. The SHP projects should be evaluated on the basis of a socio-economic and environmental analysis, eliminating financial barriers through tariff incentives, tax exemptions and preferences in the electricity market. 4. The Governments should take advantage of abundant multilateral credit lines that currently exist to implement non-conventional renewable energy projects, including the SHP. Source: Renewable Energy Observatory, UNIDO OLADE, 2013

15 THANKS