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Colombia

Solar PV Colombia

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The photovoltaic solar energy in Colombia began with the Rural Telecommunications Program and the National University technical assistance, in the early 80s.

In this program, 60 W small photovoltaic generators for rural radio telephones were installed.

In 1983 it had installed 2.950 systems. Then, the power was increased to 3-4 kW systems for earth satellite dishes.

Many companies began installing systems for telecommunications services and solar systems are currently used in microwave relay, buoys, remote stations and military bases.

These systems are now essential for country’s telecommunications.

Between 1985 and 1994 48.499 solar modules equivalent to about 2 MW power were imported. Of these, 21.238 modules with 844 kW output were used for telecommunications projects and 20.829 modules with 954 kW output for rural electrification.

On a 248 sample of these systems, 56% worked without problems, 36% worked with some problems and 8% were out of service.

Problems were found in the lack of a minimum maintenance, supply of replacement parts and undersized systems. Rather than being a technical problem, the problem is service quality and customer service. These shortcomings persist today.

In electrification programs, the standard isolated system has consisted in a 50-70 W module, a 60 to 120 Ah battery and a charge controller. These small systems provide power for lighting, radio and TV, covering the basic needs of rural population.

The current cost of this system is around U$D 1200-1500, mainly affected by the high costs of installation in remote areas.

According to the IPSE (Institute for the Promotion of Energy Solutions) there are currently more than 15.000 systems installed for these applications.

Something like what happened with solar termal case happened with solar photovoltaics in Colombia. The market had its boom in the late 80s with the mentioned rural telecommunications program.

Then in the 90s public order difficulties slowed their development, whose growth is estimated at 300 kW / year (the current installed capacity would be around 9 MW).

Photovoltaic electricity generation has huge prospects, considering that about 1 million families lack electricity service in Colombia rural areas.

Colombians achievements are very modest and current development does not match its potential. Valuable time has lost.

The most representative projects are:

* Solar-diesel hybrid system. Titumate – Unguia – Choco. Launched in June 2008

* Solar PV system of 125 kW with 2 axes 10 followers, 8 of which are located in the Upper Guajira and 2 in Isla Fuerte. Launched in September 2009

* Solar-wind hybrid system. Nazareth, La Guajira department. Launched in June 2008

* Solar PV systems for 451 homes in rural area without electricity. San José del Guaviare. Launched in November 2009

One of the most important facilities is projected in Providence, which consist in the construction, operation and maintenance of 60 MW solar photovoltaic plant and associated facilities.

The plant will be located near the international airport in Zacatecoluca, La Paz and is expected to generate 159.000 MW / year to be sold to 7 companies, which distribute electricity to final consumers.

Argentina

Argentina: The awakening of the sleeping giant

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After more than 10 years of lethargy caused by the populist “siesta”, the renewable energy sector of Argentina needs to regain lost time.

Such projects development requires a context of political and economic stability and we could say, using the football jargon, that Argentina is “preparing the stadium for playing the match”.

Next Friday 22nd April the country is preparing to cancel the debt with creditors that did not enter 2005 and 2010 swaps, and thus leave behind a default that lasted nearly 15 years.

The other leg of the table is the 531 decree of March 30rd 2016 that establishes mechanisms for achieving the goals of 8% in 2017 and 20% in 2025 (referred in 27,191 law) of electricity generation through renewable sources.

Making a flashback we can infer that to achieve such ambitious goals, the speed will be exciting:

In 2006 was set as a target for 2016, that Argentina would reach 8% of electricity generation by renewable sources.

The numbers indicate that so far in 2016 barely exceeded 2%.

That is, just over 25% of the objective reached.

And as has already occurred in the sector of renewable energies elsewhere, when hurry is need who take the initiative will get the duck to the water.

Decree 531:

* Create the trust fund of U$D 820 million “Fund for the Development of Renewable Energies” (Foder).

* Set purchase mechanisms (including hiring, self-generation or cogeneration or participation in a joint procurement mechanism) for users with power demands equal to or greater than 300 kW; which should cover at least 8% of total electricity consumption from renewable sources by 31 December 2017.

* Contemplate the possibility of quotas for technologies in bids (price “may be established” in US dollars).

* Establish more favorable conditions for national components use in projects and are planned instruments to encourage local production of components.

Sopelia develops activity in the Argentine solar sector since 2011 with its local partner Puerto Hueche S.R.L .. Engineer Nahuel Rull says:

“Can access the “RENEWABLE ENERGY PROMOTING SYSTEM” individuals domiciled in the ARGENTINA REPUBLIC and legal entities created in the ARGENTINA REPUBLIC, holders of investment projects of electricity generation from renewable sources”.

“The company provides the following services:

– Presentation to the Enforcement Authority of documentation needed to obtain the Certificate of Inclusion in the “RENEWABLE ENERGY PROMOTING SYSTEM” and to the allocation of promotional benefits

– Individual renewable sources electricity procurement

– Solar energy self-generation and cogeneration projects management

– Management of joint purchases of renewable electricity to the body designated by the Enforcement Authority.

– Foreign investors and EPCs support”

For not flooded fields or lands owners, located in northern Argentina that have 5% maximum slope, an attractive business opportunity presents itself: the photovoltaic solar energy. Also for large roofs or covers owners of the same region.

For investors who want to increase their portfolio of renewable energy projects, it is time to focus on Argentina.

For users with power demands equal to or greater than 300 kW countdown began: have 20 months to consume at least 8% of their electricity total consumption from renewable sources.

Starting gun sounded.

Colombia

Colombia Solar Thermal

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The first record about solar thermal energy use in Colombia dates back to the 50s with the installation of solar heaters in the banana workers homes located in Santa Marta. The heaters still exist, but they do not work.

In the 60s Israeli solar heaters were installed in some universities in Santander and Bogota.

In the 80s in Medellin, Manizales, some neighborhoods of Bogota and later in the Atlantic coast, solar heaters began massively used; forcing regulation of their use through INCOTEC (Colombian Institute of Technical Standards).

In March 1993 the NTC 3507 was enacted, referring to domestic hot water systems powered by solar energy installations.

In mid 90s, with the support of foundations like Gaviotas, the use of solar heaters spread to hospitals and community centers.

Until 1996, 48.901 m2 of solar thermal systems had installed, mainly in neighborhoods of Medellin and Bogota with Central Bank funding.

All this development stopped short with the introduction of a cheaper energy source, natural gas, which displaced the market of this nascent industry from then until now.

Most systems work well but some users had other expectations of them, which has hinted that the demand exceeds the capacity of the equipments.

Currently, the solar industry remains depressed in Colombia waiting for a new energy crisis.

The only program that tried timidly incorporating solar thermal energy began in 2009 in San Andrés as part of the implementation of solar energy in buildings, to evaluate their behavior in a residential installation.

State action should be directed towards the solar thermal energy development:

– To diversify the national energy matrix and give flexibility to the power supply system

– To reduce the environmental impact of fossil fuels and the reserves depletion

– To provide power supply in remote and isolated áreas

The national energy policy should move towards a gradual increase of supply based on solar thermal energy, developing strategies and setting ambitious and achievable goals, consistent with a gases emissions reducing policy.

The Law URE (Rational Use of Energy) and 3683 Decree, have not been sufficient to promote this energy source, as evidenced results obtained from its promulgation.

Colombia

Solar Colombia

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With 1.715 2014 law, which regulates the renewable energy integration to the national energy system, Colombia aims to encourage the development of energy sources with environmental, social and economic sustainability criteria.

The Mines and Energy Ministry, together with the Institute of Planning and Promotion of Energy Solutions for non-interconnected zones (IPSE), seeks to promote these projects especially in not connected rural areas.

Some IPSE projects that implements renewable energy:

– Hybrid systems (solar-diesel) in Cumaribo, Vichada and Titumate (Unguía)

– Small hydro Arusí and The Yucal (Nuqui) and Palmor, Magdalena and Guacamayas (San Vicente del Caguan)

– Photovoltaic systems in Utría National Park (Chocó), Macuira and Flamengos (Guajira)

Moreover, photovoltaic systems were installed in several indigenous communities in La Guajira; Cardon became part of the national grid; a Polygeneration (solar-diesel) Center will be created in Nazareth and the interconnection line between this town and Puerto Estrella (Uribia) will be built.

In San Bernardo islands in the Colombian Caribbean there are 3 projects. This are Isla Fuerte, Múcura and Santa Cruz Islet; in which the IPSE implement photovoltaic-diesel hybrid systems.

The Ministry intends to complement these facilities with productive projects that generate revenue to users, considering that this is a new service that should start paying and in many cases they do not have the economic resources to do so.

Between March 2 and June 30, 2015 a financing plan allocating $ 100 billion pesos for renewable energy projects, renovation and expansion of public lighting, interior or exterior lighting, cogeneration and self-generation was open.

The Mines Ministry, UPME, FIDENTER, IDB announced this special line to fund projects and investments on favorable terms.

Colombia has great potential in primary energy, a proof of this is that over 70% of electricity production comes from hydropower.

But surely the geographical position of the country to use solar energy is privileged.

It is located in the equatorial zone, which allows for constant solar radiation in certain areas of the country (Magdalena, San Andres, Providencia and La Guajira Peninsula), one of the key elements to become solar power generator.

The country biggest problem is the complex Andes region where climate often changes.

The country average radiation is 4.5 kWh / m2. The best solar resource area is La Guajira peninsula, with 6 kWh / m2 of radiation.

Given this and contrasting it with solar energy development has had so far, we can conclude that Colombia is not using its solar potential.

From the installed capacity corresponding to isolated systems, 57% is intended for rural applications and 43% to communication towers and signaling traffic.

The development of large-scale facilities is limited or almost nil.

Chile

Chile Solar PV

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Northern Chile is the region with the highest solar radiation in the world.

Photovoltaic technology was introduced in the 90s in the context of rural electrification programs.

In the area of large-scale power generation it has created in recent years a legal and economic framework that has strongly promoted its development.

The speed with which the country progressed has positioned itself as region leader, over Mexico and Brazil, in terms of growth.

Chile had 5 MW in 2012 and began 2013 with 11 MW of installed solar capacity.

The country led the region photovoltaic sector in 2014 with more than ¾ of the total. Only in the fourth quarter of that year Chile installed twice the total installed in Latin America throughout 2013.

In September 2015, 741 MW of photovoltaic energy stations were in operation, generating 131 GW/h and covering 2.3% of electricity production in the country.

A total of 2.11 GW in photovoltaic projects are under construction and green light was given for 9 other photovoltaic projects totaling 793 MW.

Together, the photovoltaic projects with environmental authorization totaled 10.33 GW by 2015.

However, the industry estimates that in 2015 only 1 MW small scale photovoltaic projects will be installed product of the entry into force of the distributed generation law.

The pessimistic diagnosis is because there are no conditions to give a true development, as with large-scale projects.

To achieve a massification of distributed photovoltaic systems is necessary to build trust with clear information; improve the categorization of authorized installers system; simplify the application, registration, change of meter and procurement process; equal rate of energy consumed with injected; facilitate access to financing.

Law 20.571 was enacted in March 2012. It was named “Net Billing” because the electricity consumed and injected are measured at different rates.

For a BT1 client means that the surplus will be assessed at 50% of the value at which buys electricity to the distribution company. This differs from the original law draft, which proposed a fee equivalent to the cost of the distribution, less 10% for administrative, billing and maintenance costs of distribution lines.

Distributed generation should really work with a law change towards a Netmetering system, following the trend of countries and states in which there have been important developments in distributed photovoltaic.

With the Net Billing current system the pay back can be more than 10 years for facilities located on RM, while with a Netmetering system could be considerably reduced.

Chile

Chile Solar Thermal

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In Chile the energy business understood has caused solar thermal for domestic applications is not subsidized, while maintaining support for hydrocarbons.

It is easier to push price increases in residential electricity rates, which can not access direct contracts and are subject to pool generation system with intermediaries.

The 2014 budget left out solar subsidies for social housing infrastructure, despite the need to extend the Law 20,365 and that this be included in the raised budget.

As the law was not extended, 2 million Chileans were left without the possibility of having free hot water in their homes and solar thermal industry begins again fojas 0 after a boom.

Law 20,365 sought to create a natural market to make unnecessary the subsidy after 5 years, but as it only lasted two years, failed to meet that goal.

On Tuesday 12 January, 2016 the project to extend the law 20,365 and make a direct subsidy for solar thermal systems in social housing exceeded its final step in Congress. Only the law publication in Official Journal is needed to take effect.

For solar thermal industry has been too long waiting time of this law.

The effects of this extension will be diluted again if long term policies in favor of maintaining incentives for solar thermal energy by individuals and businesses are not adopted.

Not only is important solar thermal energy development in the residential sector. Copper mining, dairy products, wines, concrete, bakeries, sawmills and paper mills also present opportunities for incorporating solar thermal energy.

Most industries with potential to incorporate solar thermal energy identified are in the RM (middle región), with industrial plants concentration.

Implementation opportunities in the region VIII are scarce because solar thermal energy is currently not competitive with the use of biomass fuel, abundant in this region.

There are compelling reasons to encourage the development of solar thermal systems:

* It is key for real estate who want to get the “Energy Housing Seal”

* It is estimated that each housing with thermal solar equipment will stop producing 16 tons of CO2 over its lifetime

* Capacity building and business and technological development of the sector

* Each peso that the state invests has a high social returns

Chile

Solar Chile

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The successful reform of Chilean electricity sector, in the first half of the 1980s, led to vertical and horizontal unbundling of generation, transmission and distribution; and large-scale privatization.

The electricity sector was based on thermal and hydroelectric power generation.

After natural gas cuts from Argentina, in 2007 Chile began construction of its first liquefied natural gas regasification plant in Quintero to ensure supply.

In addition, new hydroelectric and coal plants were built.

However, renewable energies development achieved in recent years is really important.

10% of the total energy matrix was of renewable energy in 2015. Only five years earlier, the figure was 1.47%.

In July 2015 the electricity generation was 6,163 GWh, 617 GWh attributable to renewable energy (14% solar).

As if this were not enough, between 2015 and 2017 Chile will double its current renewable generating capacity with 2.4 GW of projects in execution (the current renewable installed capacity is 2.2 GW), surpassing its target for 2025 of 20% of clean energy generation.

The Roadmap notes that in 2050 at least 70% of the energy matrix must come from renewable sources, focusing on solar and wind energy and complemented by new hydroelectric developments.

Projections indicate that by 2030 the renewable contribution could reach between 35% and 40%.

The Chilean government gave permission to build the world’s largest solar energy storage plant in the northern region of Atacama, which will provide 260 MW to the central grid.

Copiapo Solar, with an investment of U$D 2,000, incorporates a hybrid system of concentration towers equipped with molten salt thermal storage in combination with photovoltaic solar modules and begin operating in 2019.

The other side of the coin is the lack of a more concrete and proactive stance in relation to distributed generation and solar thermal solutions that have a positive and direct impact on the welfare of the community and SMEs, in addition to democratize the energy sector.

The most worrying situation is for solar thermal industry with little development since, in December 2013, the law that gave momentum ceased to exist.

Concerning solar photovoltaic small generation development, the expected Law 20,571 into force since October 2014, which allows small generators (less than 100 KW) to pour their surplus generation to the grid, did not have the expected results.

At mid-2015 there were only one connection finalized and 202 were pending.

The country wants to be solar leader and does not encourage its widespread use. It sounds contradictory.

This is because Chile is still focused on the electricity sector old model, which consists of large power plants and classical transmission and distribution needs associated.

We sense that modern power sector model is based on three pillars: energy efficiency, distributed generation and renewable energy.

The great potential of small-scale solar technologies are not yet taking advantage because more powerful incentives are needed to accelerate its development.

Soft loans for individuals and small businesses and a more attractive Net metering system could generate a huge impact and make Chile a self-generation leader.

Regarding the business sector, solar photovoltaic has dominance over thermal. Most companies are small and usually not exclusively dedicated to solar energy business.

Brasil

Brazil Solar Photovoltaic

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Photovoltaic solar energy in Brazil has taken important steps in self-sufficiency and net balance.

Distributed generation is entering the country more easily than large-scale facilities.

It is betting on a model of small and medium power generation plants for households and businesses consumption.

This is excellent news.

In 2012 standards were approved to reduce barriers for distributed generation and small power facilities for micro (up to 100 kW) and minigeneración (100 kW to 1 MW).

Since its publication in 2012 until March 2015, 534 systems (500 photovoltaic, 19 wind, 10 solar / wind hybrid, 4 biogas and 1 hydraulic) were installed.

In late 2015 the government launched the ProGD program that includes tax exemptions and special credit lines. It expects to reach 23.5 GW of installations, most photovoltaic, in 2030.

To achieve this goal, barriers to grid connection should be reduced, standards system power compensation should be harmonize with the terms of the offer, target audience should be increase and improvements in the application of the standard should be achieve.

The government has announced a ICMS (Imposto on Circulação of Mercadorias) reduction, levied 18% on imports and is one of the world highest.

In 2016 it also announced the exemption from Industrial Products Tax (IPI) for photovoltaic components that are not produced locally.

These taxes and fees added to the Inmetro (National Institute of Metrology, Standardization and Industrial Quality) Certification and Supplemental ISS rate, which municipalities retain on services not taxed by the ICMS (2% to 5%) represent a significant barrier to the development of photovoltaic in Brazil.

Industry sources indicate that import components to produce solar energy in Brazil now, means supporting a tax charge between 60% and 405%.

The opportunity for large scale photovoltaic solar energy has come up with the first time participation in the A-5 energy auction in December 2013 and the Pernambuco state auction same year.

Fontes I and II solar plants with 11 MW in Tacaratu, Pernambuco, and to Fontes dos Ventos wind farm of 80 MW, form a hybrid solar-wind complex of 91 MW; the first of its kind in the country.

Both projects have a 20 years solar power purchase agreement (PPA) and are the largest photovoltaic plant in operation in the country.

In the course of the 1st Reserve Energy Leilão 2015, promoted by the Brazilian Federal Government, 30 photovoltaic projects have been awarded 1,043 GWp. that will mobilize more than U$D 1,187 million investment.

The average final price of U$D 83,3271/MWh hired implies a discount of 13.5% over the initial price and a great success, reaching one of the lowest prices in the world.

The awarded projects are located in the states of Bahia, Piauí, Paraíba, Minas Gerais and Tocantins. Are 20 years contracts of energy sale, valid from 1 August 2017.

The last photovoltaic government plan sets a target for 2024 of 7 GW in large scale installations and 1.32 GW in distributed generation, doubling their previous plans for 2023.

The first solar modules factory in Brazil began operating in Valinhos in 2015 with an annual production capacity of 580,000 modules.

It aims to implement a new production line in 2016 to manufacture up to 1 million modules per year.

Brasil

Solar Thermal Brazil

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According to the IEA, Brazil is 4th in solar thermal installed capacity in the world ranking, but 32nd in solar thermal energy per capita among 57 countries.

Irradiation is extremely high in Brazil. The lowest level is in Santa Catarina, still 30% higher than the average in Germany.

Between 2009 and 2013, the Brazilian production of solar collectors grew at an annual average of over 15%, reaching an installed capacity of 9,6 million m2.

In 2012 Brazil accounted 1/3 global market of flat and pool heating collectors produced, with 965 MW, followed by Germany and the US.

Was the 5th country in solar collectors installed in 2013.

One aspect to improve are laws and regulations.

Many municipal laws are being implemented since 2006 and a few are already a reality in some cities like São Paulo.

Proposals to offer incentives for clean technologies and discounts on electricity fee to facilities equipped with solar water heating are also implemented.

In 2014, the Brazilian solar thermal park production reached 7,354 GWh from a total area of 11,24 million m2 of solar collectors installed in the country.

This year, collectors for solar water heating production grew by 4,5%, with the installation of 1,44 million m2 of collectors.

Considering a residential consumption average of 166 kWh / month, this amount of energy is enough to power 3,7 million households over one year. The city of São Paulo has 3,9 million homes.

Higher sales of solar thermal systems in 2014 were recorded in the Southeast with 61,94%, followed by the South with 21,81%, the Center-West with 10,44%. Regions with less market share were Northeast and North, with 4,51% and 1,69%, respectively.

51% of sales in 2014 was allocated to the residential segment, compared to 9% in 2013.

But the big news was use of solar energy in industry expanding. 17% in 2014 compared to 3% in 2013.

By contrast, housing programs sales was reduced from 19% to 16% in 2014.

Commercial and services segments also recorded a 16% in 2014.

The Basic Sanitation Company of São Paulo State (Sabesp) has installed a Treatment Plant Wastewater solar heater in Taubaté and Trebembé cities. The system heat water to 55 ° C for two centrifuges and other washing elements.

Low-income families in towns of Lorraine and Cachoeira Paulista, in São Paulo state, will benefit from the project “Good Solar Energy”, which envisages the installation of solar thermal energy in more than 383 homes, plus kits with fluorescent lamps.

Brasil

Solar Brazil

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Brazil is rich in natural resources. 44% of its energy comes from renewables.

Is the leader in biofuels production and has a very important contribution of hydroelectric plants.

It is between developing countries with most installed wind power, especially in the coastal area of Maranhao, Piaui, Ceara and Rio Grande do Norte.

The PROINFA program established the incorporation of 3300 MW of renewable energy. Large investments in wind and biomass were performed. However, solar has not been considered in energy integration; especially in large-scale plants connected to the grid.

The green energy Brazilian matrix was envied by many nations and the government was convinced that the country had the status of economic superpower.

Three-quarters of Brazil’s electricity came from hydroelectric plants and automobiles are moved mainly by sugar cane ethanol.

The country had just discovered huge oil reserves off its coast.

Today the picture is not as promising.

Oil production is falling and electricity rationing is discussed, which further depress the economy.

The problems began when Brazil tried to increase control over their resources and it spooked investors.

They deepened because the country has a strong dependence on hydroelectric (2/3 generation) and faces one of its worst droughts.

The reality is that Brazil’s power sector is plagued by inefficiencies.

The new oil law passed in 2010 sought to ensure state control over large deposits discovered under the sea off the states of Rio de Janeiro and Sao Paulo, demanding that Petrobras increase its controlling interest in the exploration and production.

Companies with long-term projects in Brazil reduced their plans or simply left the country.

But most damaging were gasoline prices policies.

The government prevented to Petrobras raise the prices of gasoline and diesel to contain inflation and the company incurred their first losses in 13 years.

The artificially cheap gasoline turned uncompetitive the local biofuels industry. The producers responded by cutting production, which shot ethanol prices.

Each liter of gasoline takes 1/4 of ethanol, so that increased the cost of gasoline.

To prevent an inflation increase, the government reduced the percentage of ethanol in the mixture at 20% at the end of 2011.

With refineries at full capacity, Petrobras was forced to import gasoline at market prices and sell at a loss.

The other big blow was the government’s plan to force a 20% fall in electricity prices in 2014, sliding that electricity companies would have to settle for lower profit margins.

The investor response was to sell companies shares. Eletrobras shares, the largest generator in Latin America, lost this year more than 2 decades of profits.

Although solar energy was not considered in the PROINFA and there is no state strategy to encourage it, Brazil has implemented several programs especially for electrification in rural communities.

The most important has been the PRODEEM, which was a leap for local solar industry know-how with a significant involvement in research and universities.

The other was the “Light for All” program, promoted by the state government in 2003 with the ambitious goal of bringing electricity to 10 million people.