ecuador - renenergyobservatory.org€¦ · since 2007, the government of ecuador has intensified...

Observatory of Renewable Energy

in Latin America and �e Caribbean

AUGUST 2011

Final ReportProduct 1: Renewable Technological Base Line

Product 2: State of Art

Final ReportProduct 1: Renewable Technological Base Line


ECUADOR

www.google.comC

This document was prepared by the following consultants:

EDUARDO ROSERO and BYRON CHILIQUINGA

The opinions expressed in this document are those of the author and do not necessarily reflect the views of the sponsoring organizations: the Latin American Energy Organization (OLADE) and the United Nations Industrial Development Organization (UNIDO).

Accurate reproduction of information contained in this documentation is authorized, provi-ded the source is acknowledged.

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Case of Ecuador – Part I and II

CASE OF ECUADOR

Product 1: Renewable Technological Base Line


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1 EXECUTIVE SUMMARY

This document has two main sections: a) Energy technologies baseline, b) Renewable energy state of the art.

The first section examines the energy sector’s supply and demand, the sector’s consumption, and the electric power grid, based on information provided by OLADE and CONELEC. It is stressed that the consumption within the Ecuadorian energy grid is characterized by a predominance of the oil sector (82% in 2009), thus following the regional trend of substituting firewood, which in 1970 represented 39% and in 2009 registered a 4% share. Moreover, an increase in primary energy supply, especially hydropower, is seen from 1970 (2%) to 2009 (8%) (SIEE-OLADE, 2009).

With regard to the evolution of energy consumption by sector, since 1970 it has reported a rapid growth in the transport sector (2009 - 61%), while the residential sector has remained constant (2009 - 17%) however, in the last two years (2008-2009) this consumption was significantly reduced by the government's project of replacing incandescent light bulbs with compact fluorescent ones. According to the Ministry of Electricity and Renewable Energy (MEER), after two years of introducing this measure the power for lighting was reduced in peak hours by 2009 in 232 MW (MEER, 2009a).

Regarding the renewable energy participation in the electric power grid in 2009, it should be mentioned that there is a predominance of hydraulic components, with 2032 MW of installed capacity, which represents 40.2% of the country's total capacity (5050 MW, CONELEC, 2009a). The wind component is 2.4 MW, with a project in operation on the island of San Cristobal in the Galapagos Islands. It should also be highlighted the contribution of biomass in power generation, 94.5 MW through the process of co-generation, based on burning bagasse to cover the energy needs of the mills, seeking always to gain an energy surplus for delivery to the National Interconnected System (SNI).

Since 2007, the government of Ecuador has intensified the construction of new hydropower plants such as Coca-Codo Sinclair, Toachi Pilatón, Sopladora, Ocaña, etc. (MEER, 2008p).

In abstract, the renewable share in the Ecuadorian energy grid includes the following aspects: a) Power generation through using natural resources in hydropower, wind,

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biomass (co-generation) and solar (photovoltaic) projects; b) fuel gas (biogas), using organic waste produced by agribusiness; c) Use of biofuels for transport through the partial substitution of gasoline “extra” with ethanol - a pilot project in the city of Guayaquil; d) water heating through solar energy to replace the use of power or liquefied petroleum gas.

Regarding the legal and institutional framework, this document analyzes existing policies, laws and regulations in order to promote renewable energy in the power and transport sector (biofuels).

As regards to the institutional framework, the Ministry of Electricity and Renewable Energy (MEER) is responsible for designing and implementing renewable energy development programs. The National Electricity Council (CONELEC) is responsible for regulating the power sector, it approves concessions for the exploitation of renewable energy resources, and it sets the price for these energies and, in the case of biofuels, the Ministry for the Coordination of Production, Employment and Competitiveness (MCPEC) is the coordinating body for production, through the National Biofuels Council.

In addition, the most significant projects by type of technology have been presented considering the following: a) biomass, cogeneration projects using bagasse in the sugar industry, b) wind power, a functional wind farm located in San Cristobal Island; c) biogas for energy use and to reduce greenhouse gas emissions, without using power; d) small hydropower plants, which use the water potential for electricity generation and, e) biofuels through the pilot project in Guayaquil, to introduce the mixture of 5% of anhydrous ethanol with gasoline “extra” creating "ECOPAIS" fuel, and the pilot project Piñon - Galapagos, to replace the diesel used for power generation in Floreana Island, using pure vegetable oil made out from Jatropha Curcas seeds also known as piñon grown in the province of Manabi.

This document also details the lessons learned about renewable energy technologies in Ecuador, highlighting the following:

a) There is a preferential tariff for renewable energy projects;

b) There is experience in using hydropower resources, and their potential for hydropower generation is very high and could supply all the country's energy demand;

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c) The sugar industry has managed the incentives of the pricing regulations and the support of the international community to build cogeneration projects; and

d) There is experience using biofuels through the use, as fuel, of ethanol from sugar cane and piñon oil.

In section 2 (state of art), there are two model projects regarding the use of renewable resources: San Cristobal Wind Project and the Bagasse Cogeneration San Carlos Project. Each case describes the objectives, actors, legal, technological, economic, social, environmental aspects, and potential replication. This chapter finishes with the lessons learned, primarily:

a) The implementation of these generation projects help diversifying the energy grid;

b) Environmental benefits from the use of wind power for power generation lead us to conclude that this is an environment-friendly energy source;

c) The experience gained from implementing these projects is transferable to other similar initiatives (replicability);

d) The joint work of various worldwide organizations and entities made it possible to achieve the wind power project in the Galapagos Islands (coordination);

e) Financial return was not a priority, but the contribution to the environment by reducing oil spills risk was boundless;

f) There are environmental benefits from the use of sugarcane bagasse for power generation;

g) Commercial supply chains have been consolidated based on using biomass for energy purposes, which is an example for other similar projects; and

h) The cogeneration project helped to formalize the institutional payment for the energy produced by renewable sources.

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TABLE OF CONTENTS

1 EXECUTIVE SUMMARY .................................................................................... 2

2 ENERGY TECHNOLOGIES BASELINE ............................................................. 9

2.1 INTRODUCTION .......................................................................................... 9 2.2 METHODOLOGY ....................................................................................... 10 2.3 GENERAL ECUADORIAN ENERGY INFORMATION ............................. 11

2.3.1 Supply ....................................................................................................... 11 2.3.2 Energy sector’s demand ............................................................................ 11 2.3.3 Energy sector’s consumption ..................................................................... 13 2.3.4 Electric power grid .................................................................................... 14

2.4 LEGAL AND INSTITUTIONAL FRAMEWORK OF RENEWABLE

ENERGY IN ECUADOR ........................................................................................ 21 2.4.1 Legal Framework ...................................................................................... 21 2.4.2 Institutional Framework ............................................................................ 24

2.5 INFORMATION ABOUT THE MOST RELEVANT RENEWABLE

ENERGY FACILITIES. .......................................................................................... 25 2.5.1 Introduction ............................................................................................... 25 2.5.2 Eco electric Valdez, Bagasse Cogeneration Plant ...................................... 26 2.5.3 San Carlos Cogeneration ........................................................................... 28 2.5.4 IANCEM Cogeneration ............................................................................. 29 2.5.5 San Cristobal Wind power project ............................................................. 31 2.5.6 Biogas Codana Project .............................................................................. 33 2.5.7 Perlabí Hydropower Project ...................................................................... 34 2.5.8 Toachi Pilaton Hydropower Project ........................................................... 36 2.5.9 Coca Codo Sinclair Hydropower Project ................................................... 38 2.5.10 Mazar Hydropower Project .................................................................... 40 2.5.11 Euro-Solar Program ............................................................................... 42 2.5.12 Implementation of 604 Residential solar photovoltaic systems in Communities of the Esmeraldas province ............................................................. 44 2.5.13 Implementation of 619 Residential solar photovoltaic systems in Communities of the Napo province ...................................................................... 45 2.5.14 Rural Electrification Program for housing in the Amazon region (PERVA) 47 2.5.15 Rural Electrification Program for housing in the Amazon region (PERVA) 47

2.6 LESSONS LEARNED .................................................................................. 50 3.1. INTRODUCTION ........................................................................................ 53 3.2. METHODOLOGY ....................................................................................... 54

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3.3. SAN CRISTOBAL WIND POWER PROJECT ............................................. 54 3.3.1. Overview ............................................................................................... 54 3.3.2. Project Objectives .................................................................................. 56 3.3.3. Stakeholder Analysis ............................................................................. 56 3.3.4. Legal Aspects ........................................................................................ 58 3.3.5. Technological Aspects ........................................................................... 59 3.3.6. Economic Aspects ................................................................................. 67 3.3.7. Social Aspects ....................................................................................... 67 3.3.8. Environmental Aspects .......................................................................... 69 3.3.9. Replicability of the Project ..................................................................... 71 3.3.10. Interviews .............................................................................................. 72

3.4. BAGASSE COGENERATION PROJECT .................................................... 80 3.4.1. Overview ............................................................................................... 80 3.4.2. Project Objectives .................................................................................. 82 3.4.3. Stakeholders Analysis ............................................................................ 82 3.4.4. Legal Aspects ........................................................................................ 82 3.4.5. Technological Aspects ........................................................................... 82 3.4.6. Economic Aspects ................................................................................. 86 3.4.7. Social Aspects ....................................................................................... 86 3.4.8. Environmental Aspects .......................................................................... 87 3.4.9. Replicability .......................................................................................... 89 3.4.10. Interviews .............................................................................................. 89

3.5. LESSONS LEARNED .................................................................................. 96

4. REFERENCES .................................................................................................... 98

GRAPHS

Graph 1: Structure of Primary Energy Supply 2009 (SIEE-OLADE, 2009) ................. 11

Graph 2: Evolution of sector energy consumption (SIEE-OLADE, 2009) ................... 12

Graph 3: Sector Energy Consumption by 2009 (SIEE-OLADE 2009) ......................... 13

Graph 4: Final Energy Demand by type of energy 2009 (SIEE-OLADE 2009)............ 14

Graph 5: Installed capacity, power output 2009, CONELEC, 2009a) .......................... 15

Graph 6: Installed capacity, power output (1999-2008, CONELEC, 2009a) ................ 15

Graph 7: Annual Electric Power Supply Nationwide 2009, CONELEC, 2009b) .......... 16

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Graph 8: Total Produced and Imported Energy (1999-2008), CONELEC, 2009b) ....... 17

Graph 9: Annual demand per consumer group, CONELEC, 2009c) ............................ 17

Graph 10: Energy consumption per capita (1999 – 2009, CONELEC, 2009d) ............. 18

Graph 11: Project’s location on San Cristobal Island (Ergal, 2010). ........................... 60

Graph 12: Simplified wind turbine (Gamesa Corporation) ........................................... 63

Graph 13: Geographic location of Marcelino Maridueña (Source: Sugar Mill San Carlos) ........................................................................................................................ 81

Graph 14: Location map within the cogeneration unit’s sugar mill (Source: Sugar Mill San Carlos) ................................................................................................................. 81

Graph 15: Schematic diagram of a steam-Rankine cycle for biomass cogeneration using a condensing- extraction steam turbine (Source: Sugar Mill San Carlos). .................... 83

Graph 16: Cogeneration process simplified diagram. (Source: Sugar Mill San Carlos) 85

TABLES

Table 1: Preferential Renewable Energy Prices in USD $ cts/kWh .............................. 19

PICTURES

Picture 1: Ground breaking for the San Cristobal wind power project. (Source: consultant) .................................................................................................................. 76

Picture 2: Wind towers’ sea shipping. (Source: consultant) ......................................... 76

Picture 3: Wind towers’ ground shipping. (Source: consutant) .................................... 77

Picture 4: Wind turbines foundations builder. (Source: consultant) .............................. 77

Picture 5: Installation of wind turbine blades. (Source: consutant) ............................... 78

Picture 6: Installation of the nacelles with cranes. (Source: consultant) ....................... 78

Picture 7: Opening with the visit of President Rafael Correa. (Source: consultant) ...... 79

Picture 8: Front view of San Cristobal wind farm. (Source: consultant) ....................... 79

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Picture 9: Entrance to the Cogeneration Plant (Source: consultant) .............................. 93

Picture 10: View of the substation of San Carlos Cogeneration Project (Source: consultant) .................................................................................................................. 94

Picture 11: Turbine generator area of the Cogeneration Project (Source: consultant) ... 94

Picture 12: Rear view of the Cogeneration Project facilities (Source: consultant) ........ 95

Picture 13: View of control room of the Cogeneration Project (Source: consultant) ..... 95

ABBREVIATIONS AND ACRONYMS

BCE Ecuadorian Central Bank

BOE Barrel of oil equivalent

CENACE National Center for Energy Control

ECLAC Economic Commission for Latin America and the Caribbean

CONELEC National Electrification Council

ERGAL Renewable Energy for Galapagos

INEC Ecuadorian Institute of Statistics and Censuses

LRSE Electricity Sector Law Regime

MAE Ministry of Environment

MCPEC Ministry of Production, Employment and Competitiveness Coordination

MEER Ministry of Electricity and Renewable Energy

MRNR Ministry of Non-Renewable Resources

OLADE Latin American Energy Organization

UNIDO United Nations Industrial Development

SIEE Energy Economic Information System

NIS National Interconnected System

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2 ENERGY TECHNOLOGIES BASELINE

2.1 INTRODUCTION

Ecuadorian economic and social growth, progress and development of industry and technology, and the population lifestyle evolution make it necessary to implement ongoing strategic planning in the energy sector. Hydrocarbons, electricity and renewable energy need to be treated in full under a policy that encourages the efficient use of resources and savings. All aimed to ensuring energy supplies in the short, medium and long term that would meet the demand of present and future generations. The Renewable Energy Observatory is an information system that shows the sector’s current status.

Renewable energy sources are expected to hold a growing share in meeting future energy demands, thereby substituting non-renewable fossil fuels, some of which are imported.

Ecuador is already using certain alternative energy supplies based on renewable resources that partially replace oil & gas products, whose reserve horizon is relatively short on a national plane if no new reserves are confirmed.

The Renewable Energy Observatory is an information system that shows the current situation of the energy sector in Ecuador regarding the primary regulations and projects under development that are expected to become a significant source of information for project promoters, developers and investors.

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2.2 METHODOLOGY

The information required for the preparation of this report was obtained from various State energy-sector bodies of Ecuador, such as the Ministry of Electricity and Renewable Energy (MEER), the National Electrification Council (CONELEC), the Ministry of Non-renewable resources (MRNR), the Ministry of Environment (MAE), among others.

It includes the main components of the regulatory framework for renewable energy, such as: a) the Electricity Sector Law Regime (LRSE); b) the CONELEC Regulation No. 003/011 on “Determining the methodology to calculate the term and preferential prices for generation and self-generation projects; and c) Regulation No. CONELEC – 004/11 on “Dealing with Energy Produced with Non-conventional Renewable Energy Resources.”

Other sources were the Central Bank of Ecuador (BCE), the Ecuadorian Institute of Statistics and Censuses (INEC), the National Center for Energy Control (CENACE), ERGAL Implementation Unit (Renewable Energy for Galapagos), secondary sources from other bodies such as the Economic Commission for Latin America and the Caribbean (ECLAC), OLADE’s Economic Information System (SIEE), etc.

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2.3 GENERAL ECUADORIAN ENERGY INFORMATION

2.3.1 Supply

The Ecuadorian energy grid is characterized by a predominance of the oil sector (82% in 2009), related to the regional trend of substituting firewood use as an energy source, which in 1970 represented 39% and in 2009 had a 4% share. Moreover, and increase of hydropower in primary energy supply is seen from 1970 (2%) to 2009 (8%) (SIEE-OLADE, 2009). The energy supply mix also reports a 4% share for natural gas, used for generating electricity.

From the data provided on Figure 1, we conclude that Ecuador’s primary energy resource is fossil fuels: oil and natural gas (86%); and that only 14% comes from renewable energy sources. The subsequent effect is generating more greenhouse gas (GHG) emissions, which justifies this country’s policy of diversifying the energy mix by incorporating a greater supply of clean (renewable) energy products.

Oferta de Energía Primaria 2009

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Graph 1: Structure of Primary Energy Supply 2009 (SIEE-OLADE, 2009)

2.3.2 Energy sector’s demand

With regard to the evolution of energy consumption by sector (see Graph 2, SIEE-OLADE, 2009), since 1970 there is rapid growth in the transport sector.

It can also be noticed that consumption in the residential sector has remained constant; however this consumption in the last two years (2008-2009) dropped as a consequence

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of implementing the national project for substitution of incandescent lamps to compact fluorescent lamps. In this regard, the Ministry of Electricity and Renewable Energy (MEER) reported that after two years of introducing this measure, generating power during peak hours for lighting was reduced by 232 MW in 2009 (MEER, 2009 a).

Evolución del consumo sectorial de energía

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Fuente: SIEE - OLADE

Graph 2: Evolution of sector energy consumption (SIEE-OLADE, 2009)

In the industrial sector there is a sustained growth of energy consumption since 1970 (297 ktoe) reaching in 2009 values close to 1600 ktoe, which is a reflection of the accelerated industrialization process.

The remaining sectors: commercial, agricultural and construction show a moderate growth in the period above reviewed. (SIEE-OLADE, 2009).

As a conclusion of the energy-sector demand status, growth is seen in the transportation and manufacturing industries, which is covered through greater use of liquid biofuels, power generation using wind resources, and co-generation using biomass wastes from agro-industrial processes.

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2.3.3 Energy sector’s consumption

Graph 3 shows the energy consumption by sector in 2009 where the transport sector contributes with 61% of total consumption, followed by the residential sector with 17%, and the industry with 15%. The high percentage of the consumption in the transport sector comes from the growth in the Ecuadorian fleet which coerces on the consumption of oil and diesel. Government policies have identified a huge savings potential during the past three years within the transport and residential sector. In that sense new projects have been introduced (ECOPAIS fuel use: a mixture of 5% ethanol in gasoline “extra” consumed in the city of Guayaquil, on a pilot project) and new technologies like hybrid cars, efficient public transportation and low consumption light bulb.

Consumo sectorial de energía 2009

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COMERCIAL,SER,PUB

AGRO,PESCA,MINER.

CONSTRUCCION,OTR.

Fuente: SIEE - OLADE

Graph 3: Sector Energy Consumption by 2009 (SIEE-OLADE 2009)

Graph 4 shows the structure of final energy demand per energy. Within the transport sector it was found a prevalence of the use of Diesel Oil & Gas, followed by fuel oil.

Within the residential sector we can see a predominant use of LPG, which is used both for cooking and for tap water heating, followed by fuel wood and electricity. Attempts have been made to reduce LPG consumption in Ecuador because it is a subsidized product. The official retail price set by the government is $1.65 per a 15 kilos tank, while the international import price of the product is between $10 and $12 (SIEE-OLADE, 2009). The use of renewable energy through several technologies such as solar panels would help to reduce the consumption in this sector and the introduction of efficient technology such as induction stoves for cookers.

The industrial sector has a considerable use of diesel, followed by fuel oil and electricity, reflecting the dependence of this sector on fossil fuels for its production processes. It is clearly seen the need to incorporate clean energy into productive

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processes, which is one of the objectives of the policies established by the Government and are being pursued through initiatives such as "”zero fossil fuels on the Galapagos Islands.”

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Graph 4: Final Energy Demand by type of energy 2009 (SIEE-OLADE 2009)

2.3.4 Electric power grid

In 2009, the Ecuadorian electric power grid had a composition with a predominance of hydraulic components (see Graph 5), with about 2032 MW of installed capacity, which represents nearly 40.2% of the country's total capacity (5050 MW, CONELEC, 2009a ); but this figure represents only 8% of existing hydropower potential (OLADE, 2010). Also significant are projects using biomass through co-generation (94.5 MW), which burn bagasse to meet the energy needs of the sugar mill, seeking to produce an energy surplus for sale to the National Interconnected System (SNI). The wind generation component is 2.4 MW, with a project on San Cristobal in the Galapagos Islands (CONELEC, 2009a).

As for the rest of the power generation, it should be highlighted the contribution of diesel-based power plants (966 MW) and turbo-gas power plants (875 MW), and the importance of electricity supplied by Colombia (635 MW) in existing electricity interconnection, which enabled to solve drought problems (CONELEC, 2009a).

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Graph 5: Installed capacity, power output 2009, CONELEC, 2009a)

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Graph 6: Installed capacity, power output (1999-2008, CONELEC, 2009a)

During the last decade the hydraulic, thermal turbo-gas and thermal turbo-steam power generation has remained relatively constant. On the other hand, thermal generation (with internal combustion engines located on barges or installations on the continent) has met the country’s growing energy demand (see Graph 6). Of note is the amount of energy imports from Colombia and Peru through existing power inter-connection lines, which has avoided the need for heavy rationing and the construction of emergency generation infrastructure (CONELEC, 2009a).

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In 2009, electricity generation with hydropower contributed over 50% of total generation at national level (see Graph 7, CONELEC, 2009a). Although in late 2009, Ecuador suffered one of the harshest droughts in recent decades hydro generation occupied a dominant place. It should be noted that the generation trend of past years was maintained throughout that year (see Graph 8), although it wasn’t fully able to cover demand for November and December, time when the country experienced power outages ( CENACE, 2009).

Graph 7: Annual Electric Power Supply Nationwide 2009, CONELEC, 2009b)

Since 2007, the government of Ecuador has intensified actions to build new hydroelectric plants such as Coca-Codo Sinclair, Toachi Pilaton, Sopladora, Ocaña, etc. (MEER, 2008p). In 2010 it was announced the construction of several power plants, which will be operating sometime in 2011. (MEER, 2010w)

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Graph 8: Total Produced and Imported Energy (1999-2008), CONELEC, 2009b)

With regard to electricity demand by a consumer group, Graph 9 shows that the residential sector ranks first in intensity of electricity use with 35% of total demand, followed by 30% of the industrial sector, 20 % of the commercial sector, 6% of street lighting, and 9% others (CONELEC, 2009a).

Graph 9: Annual demand per consumer group, CONELEC, 2009c)

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The government of Ecuador, aware of this issue, since 2007 implemented a project on energy saving in the residential sector called “Dignity rate,” which sets consumption limits compensating consumers with a preferential rate. (CENACE, 2009). The effect of this measure can be seen in the slight increase in electricity consumption per capita in the years after the measure (2008 and 2009), reaching 4.5% and 3.7% respectively (See Graph 10).

Graph 10: Energy consumption per capita (1999 – 2009, CONELEC, 2009d)

As for the price of energy produced from renewable resources, the CONELEC established a preferential price in accordance with Regulation 004/11 (in USD $ cts/kWh), which are detailed in Tables 1 and 2. The conditions to avail from these prices are detailed in the legal framework, which is presented latter.

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Table 1: Preferential Renewable Energy Prices in USD $ cts/kWh

POWER PLANTS Continental Territory

Galapagos Territory

Wind 9.13 10.04

Photovoltaic 40.03 44.03

Biomass and bio-gas < 5 MW 11.05 12.16

Biomass and bio-gas > 5 MW 9.60 10.56

Geothermal 13.21 14.53

Source: CONELEC, April 2011

Table 2: Preferential Prices for Hydroelectric Plants of up to 50 MW in USD $ cts/kWh

PLANTS PRICE

Hydroelectric plants of up to 10 MW

7.17

Hydroelectric plants greater than 10 MW and up to 30 MW

6.88

Hydroelectric plants greater than 30 MW and up to 50 MW

6.21

Source: CONELEC, April 2011

At residential level there is a national unified electricity rate of ¢ 8.6 cents per kilowatt hour, which was set in July 2008 by the Government (CONELEC, 2008).

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In summary, the renewable’ share in the energy mix of Ecuador focuses on:

a) Generation of electricity through the use of natural resources in hydropower, wind, biomass and solar (photovoltaic) projects;

b) Fuel gas production (biogas), using organic waste, which are contaminants waste in the food industry and once these are processed contribute to the process;

c) Biofuels use for transportation through the partial substitution of gasoline “extra” with ethanol (5%), in a pilot project in Guayaquil;

d) Water heating with solar energy to replace the use of electricity or liquefied petroleum gas with production equipment by the private sector.

Ecuador has experience in proper use of technologies related to the implementation of medium, small and micro capacity hydropower plants. The country has plants in various provinces. There are sugarcane bagasse power generating plants, associated with sugar mills for self consumption and sale to the national network. Wind power plants with an operation plant (Galapagos) are being implemented, and there are several yet to be funded (Galapagos, Loja, Imbabura, and Azuay). In regards to solar energy there is a national capacity to manage photovoltaic rural projects, especially in isolated communities in the Amazon region and some in the Galapagos Islands. In spite of important studies carried out in the country aimed to the knowledge and analysis of the potential, there is not yet geothermal generating plants in the most important binational area between Ecuador - Colombia, it is necessary to go to the exploratory wells drilling stage and establishing a pilot plant.

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2.4 LEGAL AND INSTITUTIONAL FRAMEWORK OF RENEWABLE ENERGY IN ECUADOR

2.4.1 Legal Framework

In order to establish the legal and institutional framework for renewable energies in Ecuador it is important to mention the national policy under which this energy is developed. It is derived from the National Constitution, and among its articles it considers the renewable energy promotion and use as transcribed below:

“Article 15 .- The State shall promote within the public and private sector the use of environmentally clean technologies and low impact clean alternative energy. Energy sovereignty will not be achieved at the expense of food sovereignty, or affect the right to water.”

“Article 313 .- The State reserves the right to administrate, regulate, control and manage the strategic sectors in accordance with the principles of environmental sustainability, precaution, prevention and efficiency.”

“Article 413 .- The State shall promote energy efficiency, development and use of environmentally clean and healthy technologies and practices, and diversified, low-impact and non-threatening to food sovereignty, to the ecological balance ecosystems and water rights renewable energy.”

“Article 415 .- The Central Government and the decentralized autonomous governments will adopt comprehensive and participative urban land use planning policies... The decentralized autonomous governments will develop programs for rational use of water and waste reduction, recycling and proper treatment of solid and liquid wastes.”

It should also be noted that the Government’s National Development Plan entitled: “National Well-Living Plan 2009-2013” sets some goals and policies on renewable energy development, including:

“Objective 4: Ensuring the rights of nature and promoting a healthy and sustainable environment.”

“Policy 4.3: Diversifying the national energy mix, promoting efficiency and a greater share of sustainable renewable energy1.”

1 ESPINOZA, Juan L., “Energía Renovable en Ecuador: Situación actual y perspectivas”, Conference USFQ, Quito, Ecuador, July, 2010.

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Additionally, in 2008 the MEER prepared a document entitled "Energy Policies of Ecuador from 2008 to 20202”, highlighting the following state policies for the energy sector’s sustainable development related to renewable energy:

“c) developing a model of environmentally friendly energy technologies.”;

“d) formulating and carrying out a National Energy Plan, which defines the sector’s optimized expansion in the sustainable development context.”;

“f) promoting the development of sustainable energy resources and fostering projects with renewable generation sources (hydropower, geothermal, solar and wind power), and new efficient electric generation, including nuclear, except generation based on the use of diesel.”;

“n) reducing fuel consumption for transport substituting it with compressed natural gas - CNG, electricity and the introduction of hybrid technology.”

¨Additionally, it details policies for the Development of Biofuels, Biogas, and the promotion and development of geothermal energy.”

With regard to specific laws in force for the promotion and development of renewable energy in the electricity sector there are the following provisions:

•••• Electricity Sector Law Regime (LRSE) R.O.S. 43 from October 10, 1996 Chapter IX, article 63, where the State is committed to promoting the development and use of unconventional energy resources. In Chapter XI, Article 67 of this Law includes tariff advantages and exemptions to income tax to encourage energy production based on renewable energy such as solar, wind, geothermal, biomass, etc

•••• Art. 67.-

Waive the payment of fees, additional taxes and other charges affecting the importation of materials and equipment not produced in the country for research, production, manufacture and installation of systems for the use of solar, wind, geothermal, biomass and other prior CONELEC’s favorable report.

Waive the payment of income tax for five years from the time of its implementation to the companies that with their investment, establish and operate electricity production plants using not conventional energy resources mentioned in the preceding paragraph.

2 Ministry of Electricity and Renewable Energy, Energy Policies of Ecuador 2008 – 2020, 2008.

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General Bylaws of the Electricity Sector Law Regime, Art. 53, 77, which establishes inter alia the following: “the operation of generation plants using non-conventional sources will be subject to specific CONELEC’s regulations” and, “The State shall promote the use of non conventional renewable energy resources, with priority allocation of funds from the Marginal Rural and Urban Electrification Fund (FERUM).”

•••• Regulations for FERUM Management, which defines the destination of the funds for new construction, expansion and improvement of distribution systems in rural and marginal urban areas, or for generating systems that use non-conventional renewable energies in rural areas.

•••• Regulations of Dispatch and Operation of the National Interconnected System (NIS), which determines that greater generators over 1MW synchronized to the NIS should conduct their transactions in the Wholesale Electricity Market (MEM). This is an obstacle to the mini and micro hydropower plants; it connects to the distribution voltage level. It works in the same way for connected or isolated photovoltaic systems. Regulation is not applicable, as it requires the costly installation of meters.

•••• CONELEC Regulation 008/08, lays down the procedures for qualifying FERUM projects. It determines a reserve of 7.5% of the FERUM budget for border provinces, Amazon region and Galapagos. It also states that renewable energy projects may be submitted to the CONELEC by development agencies, provided that the project cannot be handled through networks, or considered by the Electricity Distribution Company in the area, as a nonrenewable energy project.

•••• CONELEC 003/11 Regulation, on determining the methodology for calculating the terms and referential prices for generation and self-generation projects developed by private initiatives, including those using renewable energy.

o CONELEC decides on the terms to be used in Enabling Instruments for the following cases: a) generation projects that are delegated to private initiatives; b) generation projects that use renewable energy and abide by the regulations for the incentives provided for this type of project; and c) self-generation projects that are developed by private initiatives.

o CONELEC will determine the prices in the following cases: a) for each public selection process for generation projects that are delegated to private initiatives and contained in the Electrification Master Plan (EMP); b) for each negotiation process for generation projects that are proposed by and delegated to private initiatives; c) for generation projects using renewable energy and abiding by the regulations for the incentives provided to this type of projects; and, d) for marketing energy surplus from self-generation projects.

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•••• CONELEC Regulation 004/11, on dealing with energy produced with Renewable, Non-Conventional Energy Resources: wind, biomass, bio-gas, photovoltaic, geo-thermal, and hydroelectric plants of up to 50 MW of installed capacity. Those interested in carrying out a project using renewable sources may request preferential treatment as a non-conventional generator, and will have to submit the appropriate requirements to CONELEC. The preferential prices to be paid for energy that is measured at the point of delivery are those indicated in Tables 1 and 2. The prices established in these regulations will be guaranteed and will be in effect for 15 years as of the signing date of the Enabling Instrument for all companies that sign said contract until December 31, 2012. CENACE is obliged to dispatch preferentially all electric energy that plants using non-conventional renewable resources deliver to the system, up to a ceiling of 6% of the installed and operational capacity of the NIS.

The biofuel legal framework is given by several Executive Orders: No. 1831 (07/10/2009), No. 1495 (12 / 19 / 2008) and, No. 1879 (05/08/2009), which provide the prices of anhydrous ethanol, biodiesel and vegetable oil; such orders also fix the price of anhydrous ethanol at $ 0.76 / l excluding VAT, and it transfers all the powers of the biofuels issue to the (MCPEC).

2.4.2 Institutional Framework

In 2007, the Government created the Ministry of Electricity and Renewable Energy (MEER) specialized in the sector and responsible for designing and implementing policies and programs regarding renewable energy development in the country through the Under secretariat of Energy Efficiency and Renewable Energy.

Additionally, the National Electricity Council (CONELEC) is responsible for the electricity sector’s regulation (including renewable energy) and approves the concessions for the exploitation of renewable energy resources and also setting these energies prices.

Regarding biofuels the governing body on this issue is Ministry of Production, Employment and Competitiveness Coordination (MCPEC), chaired by the National Biofuels Board, a multisectoral body composed of various biofuels related Ministries, state companies and private sector representatives.

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2.5 INFORMATION ABOUT THE MOST RELEVANT RENEWABLE ENERGY FACILITIES.

2.5.1 Introduction

As stated in the above chapters, Ecuador has several projects that use renewable energy for electricity generation and also for the capture of greenhouse gases. Among the most significant projects, a few initiatives were selected by technology type.

In regards to biomass, there are 3 relevant projects under the co-generation type using bagasse in the sugar industry. The contribution of these projects to national generation is important (see Graph 7).

On the other hand, the first wind farm in Ecuador in operation is located in Galapagos on the San Cristobal Island, which is a significant environmental and energy contribution to the island’s ecosystem.

There are two types of facilities in regards to biogas:

a) Biogas production for energy use (reduced consumption of fossil fuels in the boilers);

b) Capture of biogas for greenhouse gases reduction, without being used for energy (due to the lack of quantification of the captured biogas).

An example of capturing such gases may be pig farms, where there is a significant production of methane gas, which still has no quantifiable energy use.

Ecuador has experience managing hydroelectric plants (especially small ones) that are primarily focused on using hydro potential for electricity generation.

Finally, there are several rural electrification projects on photovoltaic systems in isolated communities, which due to their size do not really impacting the global energy mix but are very important for the target population, since they allow access to modern energy sources.

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Although within the national regulatory framework (Regulation CONELEC 004-11) preferential prices for renewable energy projects have still not been made massified, considering the great potential existing in this country.

Detailed below are a number projects that use renewable energy that currently exists in the country.

2.5.2 Eco electric Valdez, Bagasse Cogeneration Plant

Parameter Units Information

Country Ecuador

Facility’s name Eco electric–Valdez,Bagasse Cogeneration Plant

Location (Town / Province) Guayas Province

Technology type Biomass

Operation date 2008

Type of service (public / private)

Private

Legal Status (Ltd/Business Corporation Public Company)

Business Corporation

Contact Person Mr. Ralf Schneidewind

[email protected]

Year of reference

Rated power

Power output

Generated power

% of energy sold / delivered to the public service

MW

MW

GWh

%

2009

36,50

35,20

76,64

52,4

27


Plant Factor

Efficiency

%

1264.12 (MWh/TEP)

Used energy source

Source name

Consumption source in year of reference

ton/day

Biomass

Bagasse

Investment

US$

Price of sold energy US$/MWh 97,2

Ceased CO2 emissions tCO2/year 70.887

Short description

This is a Biomass Cogeneration plant implemented in “Compañía Azucarera Valdez S.A.”. The Project increases current plant capacity by 27.5 MW and sells excess power to the National Interconnected System of Ecuador.

Project’s relevant aspects High socio economical impact in a deprived area in the Country.

High component of cleaner production (use of sugar cane residues for power generation).

Information sources Mr. Ralf Schneidewind

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2.5.3 San Carlos Cogeneration


Country Ecuador

Facility’s name Bagasse Cogeneration Project

Location (Town / Province) Marcelino Maridueña

Technology type Power electricity cogeneration from bagasse

Operation date 2005


Private


S.A.

Contact Person Mr. Amalio Puga/ [email protected]

Mr. Roberto Rodriguez

Year of reference

Rated power

Power output

Generated power


Plant factor

Efficiency

MW

MW

GWh

%

%

2009

35

28

133.86

24.7

Used energy source

Source name

Biomass

29



Ton/day

Bagasse

Investment

US$

Price of sold energy US$/MWh 102.3

Ceased CO2 emissions tCO2/year 40402

Short description

The Project is located in the sugar mill and is aimed to increase the installed cogeneration capacity and the efficiency of the boilers and the use of bagasse in steam production.

Project’s relevant aspects High socio economical impact in a deprived area in the Country.

High component of cleaner production (use of sugar cane residues for power generation.

Information sources Mr. Amalio Puga

2.5.4 IANCEM Cogeneration


Country Ecuador

Facility’s name Northen Sugar mil Gridta - IANCEM

Location (Town / Province)

Ibarra

Technology type Power electricity cogeneration from bagasse

Operation date 2008

30



Public /Private


Gridta

Contact Person Mr. Fausto Rivera

[email protected]/[email protected]

Year of reference

Rated power

Power output

Generated power


Plant factor

Efficiency

MW

MW

GWh

%

%

2009

3

Used energy source

Source name


ton/day

Biomass

Bagasse

Investment US$

31


Price of sold energy US$/MWh

Ceased CO2 emissions tCO2/year

Short description

Project’s relevant aspects

Information sources

2.5.5 San Cristobal Wind power project


Country Ecuador

Facility’s name San Cristobal wind power project

Location (Town / Province) Galapagos, San Cristobal Island

Technology type Wind Turbine-Engines

Operation date October 2007


Public-Private


Eolicsa S.A.

Contact Person Mr. Luis Vintimilla

[email protected]

Year of reference 2009

32


Rated power

Power output

Generated power


Plant factor

Efficiency

MW

MW

GWh

%

%

2.4

2.4

3.20

100

Used energy source

Source name


ton/day

Wind power

Wind turbine

Investment

US$

9515998

Price of sold energy US$/MWh 122.1


Short description

Project’s relevant aspects First large-scale renewable energy project in a very environmentally susceptible protected area

Information sources Electricity Ministry, Conelec Cenace, Elecgalapagos, EOLICSA, etc.

33


2.5.6 Biogas Codana Project


Country Ecuador

Facility’s name Codana Biogas project

Location (Town / Province) Milagro/Guayas

Technology type Biomass

Operation date October de 2008


Private



Contact Person Bolivar Malta

[email protected]

Year of reference

Rated power

Power output

Generated power


Plant factor

Efficiency

MW

MW

GWh

%

%

2008

Used energy source

Source name


Biomass

Anaerobic reactor for biogas production

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ton/day

Investment

US$

Price of sold energy US$/MWh Self production


Short description

The objective of this project is to replace the open anaerobic ponds used to process vinasse produced by an anaerobic reactor in the distillation process and thus to reduced fuel consumption in boilers

Project’s relevant aspects Capture of methane produced by vinasse anaerobic production in the ponds.

Driving this methane to the plant boilers to get a substantial reduction in fuel used

Reducing the possibility of an explosion at the plant due to the produced biogas.

Reducing the stench caused by methane in the ponds and improving environmental quality in the area.

Information sources Mr. Bolivar Malta, [email protected]

2.5.7 Perlabí Hydropower Project


Country Ecuador

Facility’s name Perlabí Hydropower Project

Location (Town / Province) San José de Minas / Pichincha

Technology type Small hydropower plant

35


Operation date 2004


Public/Private



Contact Person Mr. Fernando Velastegui/ [email protected]

Year of reference

Rated power

Power output

Generated power


Plant factor

Efficiency

MW

MW

GWh

%

%

2009

2.79

2.5

13.95

12.4

Used energy source

Source name


ton/day

Hydraulic

Hydraulic

Investment US$

Price of sold energy US$/MWh 24


Short description

This is a small hydropower plant located on the Chirizaca river, which does not affect in any way the river bed.

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Project’s relevant aspects In addition to contributing to the reduction of thermal generation in the Country, it helps regulating the distribution network voltage of Quito`s power utility company

Information sources Mr. Fernando Velastegui/ [email protected]

2.5.8 Toachi Pilaton Hydropower Project


Country Ecuador

Facility’s name Toachi Pilaton Hydropower Project


80 km south west of Quito, between the provinces of Pichincha and Cotopaxi

Technology type Hydropower plant

Operation date In December 2007 the construction began, which was expected to be completed in December 2011, but there were setbacks with the construction company.


Public/Private


Contact Person Mr. Byron Granda

[email protected]

Year of reference

Rated power

MW

228

37


Power output

Generated power


Plant factor

Efficiency

MW

GWh

%

%

Used energy source

Source name


ton/day

Hydraulics

Hydraulics

Investment US$ 470,600,000, from the Ecuadorian Investment Fund in the energy and hydrocarbon sector (FEISEH).


Ceased CO2 emissions tCO2/year Approximately 1 million tones of CO2 per year, when the project is operational.

Short description

The Project`s goal is to transfer the Toachi river flow through a tunnel, achieving a total installed capacity of 228 MW at two plants: the Sarapullo Plant that collects the Pilaton river waters to generate 50MW, and Alluriquin with an installed capacity of 178 MW which collects Toachi and Pilatón river flow.


Construction of two hydropower plants; environmental management and sustainable development plan; reduction of environmental pollution, avoiding the burning of fossil fuels.

Information sources Web Portal of the Ministry of Electricity and Renewable Energy (MEER):

38


<http://www.meer.gov.ec/Meer/portal_meer/

internaView.htm?code=602&template=meer.internas3>

2.5.9 Coca Codo Sinclair Hydropower Project


Country Ecuador

Facility’s name Coca Codo Sinclair Hydropower Project


It is in the sub basin of the Coca river at the Sucumbíos province.

Technology type Hydropower plant

Operation date April 2008 was set as the date to begin the construction with 60 months duration.


Public/Private


Contact Person Ministry of Electricity and Renewable Energy (MEER)

Year of reference

Rated power

Power output

Generated power


Plant factor

Efficiency

MW

MW

GWh

%

%

1500

39


Used energy source

Source name


ton/day

Hydraulics

Hydraulics

Investment US$ 1,590,000,000 from the Ecuadorian Investment Fund in the energy and hydrocarbon sector (FEISEH). Trust with the National Finance Corporation



Short description

The Project consists of run of the Coca river exploitation capturing the Salt River and restitution in Codo Sinclair. It has a side inlet, two grit chambers, two adduction tunnels that goes to a compensating reservoir that serves as a surge tank, penstock and turbine building.

Project’s relevant aspects With the Project is expected to: address the existing energy demand in the Country, to reduce electricity imports from Country neighbors, to reduce dependence on thermal generation plants.




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2.5.10 Mazar Hydropower Project


Country Ecuador

Facility’s name Mazar Hydropower Project


Cola de San Pablo sector, Paute river, Azuay province

Technology type Hydropower plants

Operation date Construction began in March 2005. By mid-2010 the first turbine came into operation.


Public/Private


Contact Person Ministry of Electricity and Renewable Energy (MEER)

Year of reference

Rated power

Power output

Generated power


Plant factor

Efficiency

MW

MW

GWh

%

160

800 GWh are expected

41


%

Used energy source

Source name


ton/day

Hydraulics

Hydraulics

Investment US$ 461 million, with funds from the Ecuadorian Investment Fund in the energy and hydrocarbon sector (FEISEH). A trust was established with the National Finance Corporation.


Ceased CO2 emissions

tCO2/year It is expected to cease 1 million tones of CO2 per year

Short description

This is the second development stage of Paute River hydropower potential in the Cola of San Pablo area. This will increase the lifespan of the Paute – Molino Project, because of the retention of sediments through the Mazar reservoir. It constitutes a use of upstream Central Mill Paute river flow, near the mouth of the Mazarriver.


It consists of rock fill dam forming a reservoir of 410 Hm3 of total volume. The normal maximum level of the reservoir is at 2153 m above sea level. Central Mill and Blower plant average power energy is expected to be increased by over 12%.




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2.5.11 Euro-Solar Program


Country Ecuador

Facility’s name Euro-Solar Program


Zone 1: Esmeraldas and Guayas with 25 communities

Zone 2: Orellana and Sucumbíos with 34 communities

Zone 3: Napo, Pastaza and Morona con 32 communities.

Technology type Generating electricity with solar energy for community use, completed with computers, s projector, a medicines refrigerator and a water purifier.

Operation date In January 2007 construction began, construction is expected to be completed by October 2011.


Public, in 91 communities of the Country


Contact Person Mr. Renato Oña, Ministry of Electricity and Renewable Energy (MEER), [email protected]

Year of reference

Rated power

Power output

Generated power


Plant factor

Efficiency

MW

MW

GWh

%

43


%

Used energy source

Source name


Solar photovoltaic

Solar photovoltaic

Investment US$ Total budget: 4,794,083 Euros, European Commission contribution: 3,773,512 Euros, national counterparts: 1,020,571 Euros.



Short description

The Project delivered 1 technology Kit by community including: a) 1 1100 Wp PV system, b) Internet access and IP telephony through V-SAT satellite connection, c) lighting of community facilities, d) computers (5 laptops, 1 MPF, 1 Projector, e) 1 refrigerator for medicines, f) 1 water purifier, g) 1 battery charger.

Project’s relevant aspects Building sustainability mechanisms within the communities and participant organizations through training, monitoring and on-line and in site evaluations so once the program is implemented it becomes self-sufficient in the medium and long term.




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2.5.12 Implementation of 604 Residential solar photovoltaic systems in Communities of the Esmeraldas province


Country Ecuador

Facility’s name Installation of 604 residential solar photovoltaic systems in communities of the Province of Esmeraldas


Telembí, Chumundé and San Gregorio parishes, Esmeraldas Province

Technology type Generating electricity with solar energy for community use.

Operation date In June 2006 the construction began and its implementation started in February 2008.


Public, in 604 homes in remote rural zones in the province of Esmeraldas.


Contact Person Ing. Edison Chicaiza, Ministry of Electricity and Renewable Energy (MEER), [email protected]

Year of reference

Rated power

Power output

Generated power


Plant factor

Efficiency

MW

MW

GWh

%

%

Used energy Solar Photovoltaic

45


source

Source name


Solar Photovoltaic

Investment US$ Total budget: USD $ 1,400,000, of which USD$ 274.365 were provided by the MEER. The external contribution was World Bank's resources within the PROMEC Project.



Short description

The Project took the following steps: selection of the Communities, training local technicians and installation of 604 solar photovoltaic systems: photovoltaic panels, charge controller, batteries and lighting. This initiative was part of the general PROMEC Project, implemented with World Bank’s funds.

Project’s relevant aspects The establishment of a community enterprise to ensure the project’s sustainability in each of the selected communities.




2.5.13 Implementation of 619 Residential solar photovoltaic systems in Communities of the Napo province


Country Ecuador

Facility’s name Implementation of 619 Residential solar photovoltaic systems in Communities of the Napo province.

46



Napo Province

Technology type Generating electricity with solar photovoltaic energy for community use.

Operation date In January 2007 the construction began and it was completed in May 2008.


Public, in 619 homes in remote rural zones in the province of Napo


Contact Person Mr. Edison Chicaiza, Ministry of Electricity and Renewable Energy (MEER), [email protected]

Year of reference

Rated power

Power output

Generated power


Plant factor

Efficiency

MW

MW

GWh

%

%

Used energy source

Source name


Solar photovoltaic

Solar Photovoltaic

Investment US$ Total budget: USD $ 1,800,000, of which USD$ 439,070 were provided by the MEER. The external contribution was World Bank's resources within the

47


PROMEC Project.



Short description

The MEER is the implementing agency in charge of PROMEC general project, therefore it selected the communities, and is in charge of training local technicians and users, and installing 619 home systems that incorporate photovoltaic panels, charge controllers, batteries and lighting.

Project’s relevant aspects The establishment of a community enterprise to ensure the sustainability of the Project in each of the selected Communities.




2.5.14 Rural Electrification Program for housing in the Amazon region (PERVA)


Country Ecuador

Facility’s name 2.5.15 Rural Electrification Program for

housing in the Amazon region (PERVA)


Napo, Morona Santiago, Pastaza, Zamora Chinchipe, Orellana and Sucumbíos province.

Technology type Generating electricity with solar photovoltaic energy for community use.

48


Operation date In July 2010 the design and selection of beneficiaries’ communities began. The Project has duration of 2 years.


Public; in 15,000 homes in hard to reach rural zones.


Contact Person Ing. Fausto Cevallos, Ministry of Electricity and Renewable Energy (MEER), National Energy Council (CONELEC), [email protected]

Year of reference

Rated power

Power output

Generated power


Plant factor

Efficiency

MW

MW

GWh

%

%

Used energy source

Source name


Solar photovoltaic

Solar Photovoltaic

Investment US$ USD $53 million from the Government.



49


Short description

The Project is intended to protect these vulnerable clean energy sources and environmentally friendly Country Zones. The Indigenous Communities to be served with basic services like electricity, belong to different ethnic namely: Siona, Cofan, Secoya, Huaorani, Záparos, Kichwa, Achuar and Shuar.

Project’s relevant aspects It has been planned to undertake energy studies of 2145 Amazonian communities energizing; training to 60 consultants, who which in turn will lead to 240 squad members; evaluation of existing natural resources for power generation; social, economic and environmental diagnosis to define the community characteristics and environment; installation and implementation of sustainability programs. The Project is coordinated by: CELEC EP, with the collaboration of the National Secretariat of Planning and Development (SENPLADES), the Institute of Public Purchasing (INCOP), National Electricity Council (CONELEC).




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2.6 LESSONS LEARNED

In the early 70’s water resources were well used to generate electricity, where the government encouraged significant projects such as the Paute and Agoyan hydropower plants, and several other small ones.

The potential for hydropower generation, as estimated by the authorities in the energy sector (MEER and Ministry Coordinator of Strategic Sectors) is a potential that could supply the entire energy demand of the Country and even at certain times of year it could have an exportable surplus to our neighbor countries: Colombia and Peru. To take advantage of this potential it is required a significant investment and because of this, implementation is slow.

Since 2007, the Ecuadorian state has recovered the leader role on the energy field and has taken a political line of incentives to the industry, thus creating a Ministry specialized in the power and renewable energy sector (MEER, Ministry of Electricity and Renewable Energy).

Due to its location, Ecuador has great potential to exploit renewable resources such as water, biomass, photovoltaic, solar thermal, etc. The agricultural sector, particularly the sugar industry has channeled tariff regulations incentives and international community support to build Cogeneration Projects with a significant contribution to the energy sector. Policies implementation including the development of Energy Efficiency, has made a substantial contribution to stop the inertia of the electric power and energy consumption of the Country. Technology substitution in the field of residential lighting has greatly contributed to this objective.

On the other hand, the development of wind Projects should be reinforced with long-term measurements and with the development of a wind map with energy use purposes and not only informative.

The low cost in the implementation of photovoltaic systems could lead to such Projects to substantially be part of the Ecuadorian energy mix.

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With regard to biofuels, there are two initiatives that are currently developed by the National Government3:

Pilot Project in Guayaquil to meet the demand this city has for gasoline “extra” of about 927,000 l/day, and to introduce the blend of 5% of anhydrous ethanol with gasoline extra to create a fuel named "ECOPAIS." Currently, 73,000 gallons of ECOPAIS per day are being distributed in 19 PETROECUADOR gas stations.

Piñon – Galapagos Pilot Project, in order to replace the diesel used for power generation in Floreana to (Jatropha curcas) pure vegetable oil grown in the province of Manabi. Several cooperation agreements have been developed for the implementation of the Project, describing the acquisition of generators, training farmers, acquiring the seed and socializing the Project in Galapagos.

In summary, Ecuador has solid experience using hydropower resources for electricity generation, and the technical resources, equipment and capital have all been allocated by the national government to implement such projects. Furthermore, using hydropower resources to provide low-cost energy is a priority policy for the government. Therefore, several projects are being developed with financial resources contributed directly by the government.

Likewise, there are three sugar cane bagasse co-generation plants operating under normal conditions, and this experience could be replicated using biomass wastes generated by other agro-industries.

As for bio–fuels, the results seen so far in operating the pilot project of mixing ethanol (at 5%) with “Extra” gasoline in Guayaquil lead us to believe that use of these fuels could be expanded, either by increasing the amount of ethanol in the mix (10%) or by including other cities in the project.

With regard to wind energy projects, the plant that is now in operation is providing important lessons that will be the basis for the new plant being developed on the

3 Patricia Recalde, Ministry of Electricity and Renewable Energy Presentation: "” Biofuels Current Status and Prospects in Ecuador”, V Latin American and Caribbean Biofuels Seminar, Chile, August, 2010.

52


Galapagos Islands and for projects that are in the negotiation phases in different parts of the national territory (Loja and Imbabura).

As for thermal solar energy, water heating systems are in the hands of the private sector and mass use will depend on the policies made by local (town) governments to incentivize their use and substitute the LPG that is currently used, thereby fulfilling the national policies to promote solar energy use for water heating.

Finally, with regard to solar photovoltaic energy, the governments have been supporting projects designed for remote areas, and have several new in initiatives planned or in the beginning phases. They will benefit from the lessons generated by previous projects both among community organizations and in the form of technical support and follow-up.

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3. STATE OF THE ART OF RENEWABLES IN ECUADOR

3.1. INTRODUCTION

As stated in the above chapters, renewable energy use in Ecuador has great potential due to its geographical location and climate.

Within this context, the wind resource is an important potential to be exploited in this country, especially when the development of wind energy and equipment have been so decisive in the last decades internationally. Also, biomass is a very interesting source which has been lately exploited for electricity cogeneration. The agricultural sector daily produces huge amounts of organic waste which can be reused for energy production, following the example of the sugar cane industry.

In that sense, this chapter describes two projects related to the generation of electricity using wind and Bagasse (Biomass) from a sugar mill.

The wind project to be described is the first of its kind in Ecuador and can be used as a model for many similar schemes which may apply in Ecuador’s mainland and in the Galapagos Islands. Taking into account the geographic location of San Cristóbal Wind Project and its peculiar characteristics of fossil fuel substitution and risk of transportation, this Project represents a breakthrough in renewable energy development in Ecuador.

With regard to the Biomass Project, the industrial sugar sector in Ecuador has a significant importance in coastal provinces and in the provinces of Imbabura and Cañar. Most sugar mills have empowered their facilities to allow bagasse cogeneration. The contribution of this type of Cogeneration to the Interconnected National System has displaced fossil fuels thermal generation, and has helped to diversify the renewable sources energy mix. In that regard, it describes a Bagasse Cogeneration project using sugar.

54


3.2. METHODOLOGY

The criteria taken into account in the selection of the two Projects considered as case studies were:

a) Local economic growth; b) Replicability possibility; c) Environmental Aspects; d) Energy delivered to the Interconnected National System.

The Information on the San Cristobal Wind Project, which is presented in this report, was gathered during a visit to the facilities of the Project, additional data required were provided by the San Cristóbal Wind power company S.A. EOLICSA. In addition to these sources it was also used Basic Project Information collected in the Project implementation unit "ERGAL" - Renewable Energy for Galapagos, a joint initiative of UNDP and the Ministry of Electricity and Renewable Energy. The data on the San Carlos Bagasse Cogeneration project, were gathered during a visit to the project facilities, provided by the company through their staff and the interviews held with managers and workers. Besides these sources it was also used Basic Project Information gathered from the Ministry of Environment.

3.3. SAN CRISTOBAL WIND POWER PROJECT

3.3.1. Overview

The San Cristóbal Wind Project is part of the “Project of Renewable Energy for Electricity Generation in the Galapagos Islands” under the Ecuadorian Government Program, sponsored by the Global Environment Facility (GEF) and United Nations Program for Development Program (UNDP). This Program involves public, private, local and international donors to re-electrify the four inhabited islands of Galapagos. The Government of Ecuador has contributed with about 3.3 million US dollars to the San Cristobal Wind Project (Ergal, 2010).

The Program seeks to annex global photovoltaic energy and Wind power to replace fossil fuels (mainly diesel) used for electricity production in the Galapagos archipelago. In addition, the Program will substantially reduce the volume of diesel annually transported to the islands that will lessen the environmental threat from fuel spills causing great harm to the unique ecosystems’ biodiversity of the island.

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The San Cristobal Wind Project includes technical assistance from “e8” company, whose experts provide their knowledge and experiences in the field of renewable energy development. This Project is a partnership between the Government of Ecuador, the United Nations Program for Development (UNDP) and the WIND POWER PROJECT SAN CRISTOBAL COMMERCIAL TRUST. The members of the Trust are the organization's member companies “e8” (American Electric Power-AEP, RWE). The Galapagos Power Utility Company - SA Elecgolapagos is adherent and sole beneficiary of the Trust (Curbel, 2010).

The project is designed to replace the energy generated by diesel combustion in technical and economically feasible amounts. This is the energy used in the San Cristobal and Santa Cruz islands which is expected to be replaced by a clean energy source based on wind turbines, with the dual aim of reducing greenhouse gas emissions and minimizing environmental risks associated with current power generation system. The San Cristobal Wind Project of 2.4 MW, will provide approximately 50% of annual electricity demand of the island of San Cristobal when it is working in a hybrid way with the diesel generator units (Ergal, 2010).

The San Cristobal Wind Project is (Ergal, 2010):

•••• The first large-scale wind farm Project in Ecuador, made up of three wind turbines of 800 KW each, with a total capacity of 2,400 kW;

•••• Six years of development and implementation project, at a cost of US$10 million;

•••• Completed with 2 sets of 6 kW each photovoltaic systems, and Training Programs in Solar and Energy Efficiency;

•••• A project built in an area declared by UNESCO as a World Heritage Site, and which is part of the Renewable Energy Program in the Galapagos Islands of the Republic of Ecuador, sponsored by the United Nations Program for Development ( UNDP);

•••• One of the largest wind-diesel hybrid systems in the region, which supplies more than 50% of the electricity demand of the island;

•••• Includes a Program for the protection of endemic bird species in danger of extinction (Galapagos Petrel);

•••• Registered as a Clean Development Mechanism (CDM) under the Kyoto Protocol;

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•••• A nonprofit project, implemented under a joint partnership between public and private companies;

•••• Uses an innovative financial structure, which includes contributions from the United Nations (UNF), donations from Ecuadorian taxpayers, capital of Ecuador's government and “e8” companies.

3.3.2. Project Objectives

The main objective of the San Cristobal Wind Project is to replace the energy generated by diesel combustion in all its technical and economical factors as possible by a clean energy source based on wind turbines. This change in the electricity system will contribute to the development of clean energy in Galapagos, and will reduce the emission of greenhouse gases while contributing to eliminate the underlying risks of oil spills associated with the current system of power generation (Villavicencio, 2010).

Other objectives of this project are (Ergal, 2010):

•••• Becoming an example of multilateral cooperation in the struggle to mitigate the effects of climate change under the aegis of the United Nations Framework Convention on Climate Change (UNFCCC);

•••• Contributing to the biodiversity’s protection;

•••• Reducing reliance on diesel and fuel supply costs for electricity generation in Galapagos;

•••• Providing valuable lessons for the global promotion of distribution systems and power generation at small scale;

•••• Fostering within the local population the access to non-conventional clean energy;

•••• Developing awareness in the local population on the effective management of energy demand and energy saving practices.

3.3.3. Stakeholder Analysis

After signing the cooperation agreement between the Ecuadorian government and the “e8” on April 25, 2003, a technical team was created to prepare the necessary studies

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and to create the conditions for the project’s implementation. “e8” member companies provided advice and technical direction, besides funding the work of experts and consultants who were hired to implement the Project. On the other hand, several local and international strategic partners who contributed significantly to the success of the Project also joined the initiative.

The Company “American Electric Power (AEP)”, one of the nine members of “e8” that acted as a leader for the development of San Cristobal Wind Project, appointed a Project Manager and a local manager in Ecuador to monitor and support the project’s implementation. The project’s development and implementation involves the participation of several member companies of the e8. “Hydro Quebec”(HQ) coordinated the Environmental Impact Study and a series of bird monitoring, in collaboration with “Scottish Power” (SP). HQ also provided technical assistance for the assessment of the current diesel generation plant in San Cristobal and in identifying possible environmental impacts that should be taken into account. Companies such as: “Electricité de France” (EDF), “RWE”, and “ENEL” contributed with their expertise; “Ontario Power Generation” (OPG) supported the project with funding for wind measurement system on a tower of 50 meters.

The Galapagos National Park (GNP) and the Charles Darwin Foundation (CDF) conducted several studies of mortality monitoring nesting sites; they have also carried out studies of night flight patterns and increased population of Galapagos Petrel, a bird in danger of extinction. These organizations were supported by an Oversight Committee which provided advice and technical assistance.

Galapagos Power Utility Company (Elecgalapagos S.A.) through its direct administration and technical and institutional support was a key element for the development and implementation of the Project.

Elecgalapagos S.A. became an “e8” partner in the Commercial Trust created to implement the Project.

Fondos Pichincha (Ecuador) was appointed as Trustee of the Commercial Trust. This Trust is managed by a Trust Committee consisting of 3 members: 2 delegates from the “e8” (AEP and RWE) and a delegate from Elecgalapagos SA. After the first years of operation, most members of the Trust Committee shall be part of Elecgalapagos S.A.

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The UNDP office in Quito played an important role in the administration of the United Nations Fund (UNF) assigned to the Project. In addition, UNDP officials gave advice on local administrative subjects and facilitated the import and refund of taxes (VAT) (Curbelo, 2010).

3.3.4. Legal Aspects

According to CONELEC regulations, electricity rates on the Galapagos Islands are preferential to achieve the objective of the present government to promote renewable energy use to generate electricity, as detailed in the information presented in the chapter that contains the regulatory framework.

Project Management:

The “e8” proposed creating a nonprofit Commercial Trust, registered in Ecuador, to be responsible for the administration and supervision of the construction and operation of the San Cristobal Wind Project. It was also established a business corporation in accordance with the laws of Ecuador as an independent power producer called “SAN CRISTOBAL WIND POWER PLANT-EOLICSA” that will produce electricity and will sell it to Elecgalapagos SA, the local power utility company. Trust regulations allow Elecgalapagos SA and / or others, to allocate funds, shares or rights to the Trust, subject to compliance with relevant regulations, to become “supporters” and / or designated beneficiaries of the Trust (Curbelo, 2010)

The work plan for the San Cristobal Wind Project has a business focus and includes a business plan and continual training for the staff. Since the funds allocated to the Project are not refundable, all proceeds can be reinvested to further support the responsible management and implementation of other renewable energy systems in San Cristobal (Ergal, 2010).

The Commercial Trust and Elecgalapagos S.A., are shareholders of San Cristóbal Wind Power Inc. EOLICSA received CONELEC’s Generation Permit for the construction and operation of the wind farm and to sell power to Elecgalapagos SA and / or others according to the regulations of CONELEC.

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After 12 years determined by the CONELEC, or if regulations are modified in the future, it is possible that EOLICSA might request a purchase contract amplifying (PPA) to clarify the terms and conditions for the energy sale.

On the other hand, Elecgalapagos, retains ownership of the current diesel generation system and is responsible for its management.

EOLICSA foresees an Operation and Maintenance (O & M) agreement with Elecgalapagos for the provision of services for the operation, maintenance and energy release of San Cristóbal Wind Project on a contractual basis.

E8 members will not own any shares of EOLICSA. Instead of focusing on ownership issues, they will focus on governance and evaluation of the first years of operation of Wind power plant. To this end, “e8” members will be majority in the Trust Committee during the first six years of operation. This period includes the stages of construction, warranty period, initial operation, monitoring mortality of petrels, long-term administration contracts, and possible replacement of the battery system (if they are used). This majority is justified considering the lead role of “e8” as Project developers, and in compliance with their commitment to continue providing technical support and ongoing training (PNUD, 2006).

3.3.5. Technological Aspects

The San Cristóbal Wind Project in the Galapagos Islands (see Graph 11) is a hybrid wind-diesel power generation system. This Project will allow reducing the amount of diesel used in electricity generation and promotes the use of renewable energy in Galapagos.

Power energy needs of the Population of the Galapagos Archipelago are stocked primarily with electricity generators run on diesel. For this reason, the Ecuadorian government, aware of the risks of oil spills that threaten Galapagos’ fragile ecosystems, sought the help of the United Nations Development Programme (UNDP) to find clean energy production and environmentally friendly mechanism.

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Graph 11: Project’s location on San Cristobal Island (Ergal, 2010).

Used technology:

The system implemented in the San Cristobal Wind Project is considered a hybrid wind-diesel “high penetration” system, as it is expected that the Powers Wind turbines generate more than 50% of the required energy demand in San Cristobal. The implementation of hybrid power generators calls for thorough studies and engineering work in order to meet the electricity requirements of users satisfactorily and achieve an

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optimum balance between the energy produced by Powers Wind turbines and power generated by the diesel power plant. Achieving this balance is challenging; especially given the variation of both wind energy and user’s demand. This change represents an additional challenge due to this energy’s high cost and difficulty of storing.

The solution to these problems lies in a proper study of resources and demand, and the selection of quick response equipment and electronic controllers. Another fundamental factor in these systems’ implementation is the location of the wind farm. To ensure a farm project proper function, it is necessary to implement long and continuous monitoring of wind speeds to determine the most suitable place to locate the wind farm. In the case of San Cristobal Wind Project, 2 towers of 20 meters height were installed, which monitored the wind for a period of 5 consecutive years before construction begins. Data from measurements of wind speeds and topographic maps of the area provided for the Project were carefully analyzed by computer models that enabled to determine an average annual power produced by the wind turbines. This analysis identified possible locations for Wind Power Turbines. Once the site was identified on the hill “El Tropezon”, a tower of 50 meters to monitor Wind Power characteristics was installed to verify the results of previous tests, which confirmed that indeed “El Tropezon” was the most suitable site to build the wind farm.

The definition of the San Cristobal Wind Project followed the “spiral design” which begins by defining the general requirements, conducting studies, and then proposing the conceptual design of the project.

The Wind Project, as it was conceived in the Pre-Feasibility Study conducted in 2001, should have a power of approximately 1 750 KW and a small photovoltaic capacity coupled with the existing diesel power plant for Elecgalapagos.

The “e8” took the results of the Pre-Feasibility Study, and agreed to consider the Project in more detail during the feasibility study phase.

During this phase, the work was divided between some specific activities assigned to “e8” companies and other Ecuadorian professionals. The Company “American Electric Power (AEP)” was responsible for leading and coordinating the different organizations that would be involved in the study phase. Additionally, a website of the Wind Project was created to facilitate the flow and exchange of Information with all stakeholders involved in the project.

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The Feasibility Study included an Environmental Impact Study, several geotechnical investigations and the best site for implementing the Project, engineering, topographical and archaeological studies, a monitoring program of Galapagos Petrel, wind monitoring and power demand.

On February 2005, the “e8” presented the Project’s Feasibility Study, based on the results of the mentioned researches. The installation of 3 wind turbines of 660 kW induction type each was identified as baseline, with a total of 1,980 kW, including a set of batteries for energy storage which is coupled to a diesel plant

Selected System:

To contract the equipment’s manufacturing and works’ construction a bidding process was carried out. The final wind turbines configuration (manufacturer, minimum power, number and diameter of blades and revolutions per minute) were selected based on the market rates at the time of the bidding.

MADE a Spanish Company was selected to manufacture the wind turbines, control systems, and it is in charge of automating existing diesel plant. The Ecuadorian company Consorcio Santos-WCC was selected for the construction and logistical coordination of the work.

The system selected for the Project includes three (3) wind turbines of 800 kW each, without a battery system for energy storage. Three of the existing diesel generators of 650 kW will be equipped with automated control systems. A control system performs the dispatch of hybrid wind - diesel, ensuring that quality and amount of energy produced meet the system’s demand.

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Graph 12: Simplified wind turbine (Gamesa Corporation)

The wind turbines manufactured by the MADE (see Graph 12) are Model AE59 with 59 meters diameter blades and 51.5 meters high at the hub, with a capacity of 800 kW each. The wind turbines blades were designed taking into account the wind characteristics in the Galapagos Islands.

A collector system gathers the energy from each wind turbine through an underground cable to the limits of the wind farm. From this point, the energy is carried for about 3km through a transmission line which has been in underground installed to avoid impacts of the petrels. From here, the energy transmission is carried through an air transmission line for about 9 km until connecting to the distribution substation to the current diesel plant.

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In the fields of Elecgalapagos diesel plant it was built a new Control Building that includes a control room, files room, office and meeting room for the project’s operation and maintenance team.

The contract with MADE is considering remote monitoring and troubleshooting via Internet, from the headquarters of MADE in Spain.

The Project does not include provisions for energy storage due to maintenance considerations. Therefore, when the implemented system starts generating energy overnight at magnitudes higher than the demand, the surplus may not be used in the existing system. Energy storage will be considered in coming years, as storage technologies improve and become more affordable.

Project’s Operation:

For two full years of operation of the Project, 2008 and 2009, it can be seen a penetration of the wind power generation by over 30%. Although expectations were much higher, partly replacing the fuel transportation to the islands makes of this Project one of the largest environmental impact project in Ecuador.

The Table 3 and 4 below, these show the most relevant data of the wind farm operation. You can see the low penetration of wind the early months of the year (January-April) that corresponds with the seasonal conditions of the islands. The hybrid system could be helped with a spare efficient new generation engines, which further decrease the need for fuel for the generation and thus lowering the specific consumption per kWh. (Average yield of 11-12 kWh per gallon today, while new engines have a yield of about 17-18 kWh / gallon).

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Table 3: Operation details of the San Cristobal Project 2007 and 2008 (Source: Elecgalapagos Statistics 2007-2008, own calculations)

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Table 4: Operation details of the San Cristobal Project 2009 and 2010 (Source: Elecgalapagos Statistics 2009-2010, own calculation

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3.3.6. Economic Aspects

Funding for the San Cristobal Wind Project, which is administered by the Commercial Trust Trustee has a very particular structure. It is mainly formed by international funds from international donors, FERUM funds allocated by the Ecuadorian government to promote renewable energy Projects and grants funds from income tax, paid by taxpayers in Ecuador. The Wind Project was described by the Municipal Government of San Cristobal as a community benefit, achieving that some national taxpayers assign to the Project a part of their income tax (up to 25% ) (See Table 5) (Ergal, 2010).

The Commercial Trust defines the contributions and roles of each of the constituents.

Table 5: Project Funding (Source: own elaboration)

3.3.7. Social Aspects

The main beneficiaries of the Wind Project are: Elecgalapagos SA, the inhabitants of San Cristobal Island, Galapagos’ environment (flora and fauna), and the Ecuadorian Population. The San Cristobal Wind Project is a significant step in relation to Ecuador’s goal of reducing consumption of fossil fuels on the Galapagos Islands for the year 2015 (Curbelo, 2010).

CONTRIBUTION AMOUNT (USD)

E8 contribution of $ 5475640

United Nations Foundation Contribution

(UNF) to the San Cristobal Project

$326196

Donations income tax $ 408643

FERUM fund contribution $3305519

Total funding $9515998

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Elecgalapagos will assume ownership of the Project’s facilities, its staff will be trained on subjects regarding the installation, operation and maintenance of renewable energy systems (UNDP, 2006).

Other indirect beneficiaries of the Project are those countries with small populations or inhabited islands that similarly seek to implement renewable energy systems. The Project benefits other countries in the following aspects (Curbelo, 2010):

•••• It provides a model for developing and implementing renewable energy systems;

•••• It will be taken as a reference project in terms of costs for implementing hybrid wind-diesel power systems in remote locations;

•••• It presents a model of multilateral cooperation of strategic partners from public and private sectors aiming to implement similar projects.

Alliances:

Elecgalapagos SA, the vertically integrated power utility company Galapagos became an “e8” partner in the promotion and development of the Project. The company has the proper authorization of CONELEC to increase its generation capacity through renewable energy. Current legislation allows Elecgalapagos SA to develop renewable energy projects by themselves or to structure deals with strategic partners for this purpose, upon CONELEC’s approval.

Before structuring the Commercial Trust to develop the project, and facing the potential accession of Elecgalapagos to the Trust on July 1st, 2003 it was signed a “Preliminary Activity Agreement”. Based on this agreement, the “e8” carried out several institutional, financial, engineering, environmental activities, with local cooperation and support of Elecgalapagos S.A.

Its participation in this project was facilitated by the pre-existing Agreement since 1994 between the UNDP and “e8” for collaboration on issues related to climate change and sustainable development in the Country of UNDP field.

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In the context of this Agreement UNDP requested “e8” support to boost energy initiative in Galapagos, once it had completed the feasibility study conducted by Lahmeyer International Company. The reason “e8” was involved it was because its staff’s experience in the activities of generation, transmission, distribution and operation of global energy, its experience in the implementation of hybrid photovoltaic, wind-diesel systems, and its desire to support the countries under UNDP’s scope in their efforts to promote sustainable development and reduce poverty through the provision of clean, efficient and reliable services for the Rural Poor Communities around the world.

On February 20, 2002, the Ministries of Energy and Environment of Ecuador signed an agreement with UNDP, which states that “the (Ecuadorian) Government expressed its interest on Galapagos re-electrification through renewable energy given the risks associated with transport and handling of fossil fuels for operating the existing thermal generation system (diesel) and locally and globally greenhouse gases emission.”

Other project’s civil society partners are the Charles Darwin Foundation and the former Ecuadorian Ornithological Corporation (now Birds and Conservation). These institutions, along with Elecgalapagos SA, the Galapagos National Park and an expert ornithologist helped structuring the Project in such a way as to avoid possible negative impacts on the Population of the Galapagos Petrel, a species in danger of extinction. They also provided crucial assistance to “e8” team in the preparation of Environmental Impact Assessment Project. Were part of the Petrel Protection Committee, which was composed by ornithologists from the Charles Darwin Research Station, the Catholic University of Quito and the Birds and Conservation Corporation. The Committee gave its support to the Wind Project’s development of Environmental Management Plan (UNDP, 2006).

3.3.8. Environmental Aspects

The San Cristobal Wind Project promotes a more sustainable energy for the Galapagos Islands and helps fighting global climate change assigned to the greenhouse gas emissions from electricity production by fossil fuels. The Project has developed sustainable solutions to deliver services to the community based on renewable energy. It promotes a wider use of renewable energy technologies and assists the creation and market mechanisms consolidation providing the private sectors with motivations to invest in these technologies. The Project also addresses biodiversity protection through a substantial decrease in the volume of diesel to be annually transported to the islands, thereby reducing the environmental threat associated with oil spills, which can cause serious damage to the rich biodiversity of the islands (Curbelo, 2010).

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CO2 Emissions Reduction through Sustainable Development of Renewable Energy Production.

The primary sources of greenhouse gases include water vapor, carbon dioxide (CO2), methane (CH4), nitrous oxide (N20) and ozone (03). CO2 is the primary greenhouse gas emitted by human activities. The burning of fossil fuels are the highest CO2 energy-related emissions, such as emissions from diesel power generators similar to those currently used in the Galapagos Islands.

The small islands are located in the tropical zones at higher latitudes. They have characteristics that make them particularly vulnerable to climate change effects, including sea levels rise and extreme weather events.

Climate change, before 2050 will contribute to the reduction of water resources in many small islands, causing a significant risk of critical water shortages during periods of low rainfall in most Caribbean and the Pacific islands which will be unable to meet its local water demand.

Environmental procedures:

To determine the feasibility of the Project, a preliminary study and a Final Environmental Impact Study (EIAD) were performed. The final study was completed and publicly presented on September 2004, which was approved by the government of Ecuador and accepted without objection by the strategic partners of the Project. The Plan also includes an EIAD Environmental Management Project for 15 years and provides the guidelines to carry out monitoring in the short and long term as well as recommendations for the proper handling of the Population of the Galapagos Petrel. “e8” technical team, PNG technical experts and ornithologists, formed a Technical Committee on May 2005 to detail the actions to be taken to implement the plan suggested in the EIA. The environmental permit (LA) for the implementation of the San Cristobal Wind Project was granted by the Ministry of Environment in March 2006 (Curbelo, 2010).

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3.3.9. Replicability of the Project

The San Cristobal Wind Project has drawn a road map for future similar Projects. Project model emphasizes the involvement of local stakeholders and is characterized by an open scheme to sharing experiences in order to disseminate Lessons Learned both locally and globally.

Undoubtedly, the Project development process has helped officials from Elecgalapagos, e8, UNDP, national and local authorities, become aware of the inherent peculiarities in the development of such Projects. Lessons Learned, especially in the practical aspects of the Project such as the establishment of a scheme of independent power producer (IPP) to supply Generated power from Renewable power sources, where efforts were made possible for the implementation future re-electrification projects in other islands of Galapagos and elsewhere.

Also, the experience in planning and implementation of environmental impact studies could also be used to reduce barriers and costs in other similar Projects in the future.

Elecgalapagos has also strengthened its capacity to negotiate power purchase agreements with independent power producers, as well as for operating, maintenance and dispatch activities in hybrid systems. Finally, the Government institutions such as the Ministry of Electricity and Renewable Energy and CONELEC may take the results as a reference for establishing policies and regulatory frameworks for the electricity sector.

Many elements of the Project are transferable to other islands in a similar way where they have isolated generation systems from major interconnected networks. The fame of the Galapagos islands has global significance, especially now that UNESCO in 2007, has declared it as a Natural Heritage in danger. Given this reality, the San Cristobal Wind Project has the potential to become the model for other development initiatives of renewable energy Projects in the Galapagos Islands, Latin America and elsewhere, since its applicability contributes directly to the protection of the environment and the promotion of policies to achieve true sustainable development.

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3.3.10. Interviews

INTERVIEW WITH MR. LUIS VINTIMILLA, EOLICSA’s GENERAL MANAGER.

On your opinion, what are the positive and negative aspects of the project?

Undoubtedly, the fundamental positive aspect is to replace a large percentage of the diesel power generation in San Cristobal Island, for energy coming from a clean and renewable source, such as Wind power. This is an important step towards achieving the great goal of totally eliminating the use of fossil fuels in Galapagos. Another important fact is the incorporation, through sustained training of Elecgalapagos staff in the operation and administration of these new technologies.

As a negative element it may be mentioned some outages caused because of problems regarding Elecgalapagos distribution system and diesel generation system, which operates in parallel with the EOLICSA system. This has caused some perception on the Population, which has wrongly attributed these failures to the operation of wind farm: we need a more intensive information campaign to highlight the benefits of renewable energy systems.

What is the local share of the Project within the production processes of the region?

Elecgalapagos staff, a state-owned concessionary power utility company in Galapagos. Its staff is constantly trained and is directly involved in the operation and maintenance of wind system, with a view to that in the near future, it becomes the state-owned company that takes full ownership and autonomous administration of these facilities. On the other hand, through such staff’s participation in San Cristobal Wind Project, Elecgalapagos prepares its professional staff to efficiently meet the remaining renewable energy projects on the other islands of the archipelago.

Under what criteria is the sustainable project?

The development scheme designed for the San Cristobal Wind Project, comes from the consideration that it becomes economically sustainable. While initial investment’s funding was sustained in non-reimbursable contributions (mainly from “e8” and Elecgalapagos) the project is expected to generate its own revenue to cover operating and maintenance costs that will allow it to work in an autonomous and sustainable way. This is done based on the Sales contract of the energy produced by the EOLICSA at the wind farm to Elecgalapagos distribution system, which is fulfilled without restriction

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during the first 3 years of operation of the Project, and it is hoped that this would continue, if it continues to maintain the commitment of key stakeholders

Do you think that the project can be replicated on the mainland or on other islands of the Galapagos Archipelago?

Certainly, this development scheme Project, as a combination of nationally and internationally private sector efforts jointly with the Ecuadorian public sector bodies and international organizations, is particularly replicable in other islands of Galapagos, especially for renewable energy projects in other sectors of the continent that are not financially attractive for private investment, but which are an important component of social and environmental benefit.

INTERVIEW WITH MR. GABRIEL SALAZAR YEPEZ, VICE MINISTER OF RENEWABLE ENERGY AND ENERGY EFFICIENCY OF THE MINISTRY OF ELECTRICITY AND RENEWABLE ENERGY.

On your opinion, what are the pros and cons of such Project within the renewable energy spectrum in the country?

Pros:

It is the first wind farm in the Country with the respective contribution to the change in the energy mix towards a more sustainable and environmentally model, especially in vulnerable areas such as the Galapagos Islands.

It was possible to initiate the penetration of this Technology type in Ecuador. It was used as a starting point for fostering other wind farms projects in mainland Ecuador and other islands of the archipelago.

The Project was able to displace fossil fuels use in Galapagos, with corresponding environmental and economic benefits.

Cons:

The sizing of the Project and seasonal characteristics of wind resources have caused the Plant to have a low factor in the order of 15%.

The visual impact of the Project is low as it is located in an area away from the tourist sites. The windiest months, coincidentally are the cloudiest preventing sighting of the Project in operation.

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Since this is the first experience of such Projects in the Galapagos Archipelago, it became an expensive project in terms of their initial Investment.

What is the national policy, if any, to the inducement of such projects?

The Constitution of the Republic, Article 413, is very explicit in Renewable Energy promotion in Ecuador.

CONELEC, specifically issued the appropriate Regulation for the promotion of renewable energies as to provide preferential price and delivery.

The MEER, at its functional organizational structure, has given prominence to the promotion of renewable energy. Also in electrification master plans, there are specific chapters of this Technology development types.

How sustainable are this kind of projects?

Renewable Energy Projects cannot be assessed with common financial parameters such as IRR or NPV. Such Projects have special advantages compared to conventional energy, for example:

Allowing energy to places where power grids cannot be built.

Providing sustainability to the production energy model, since they are based on inexhaustible renewable sources on a human scale.

Causing minimum environmental impacts with appropriate technologies, displacing the use of large amounts of scarce and polluting fossil fuels.

On the other hand, renewable production technologies have advanced at a rapid pace in the last decade and their production costs have significantly declined.

The sustainability of such projects must be based on the Plant’s proper sizing, technical environmental proper coordination, and an adequate policy for the promotion of these technologies.

What difficulties should be overcome for the development of such Projects to be effective and replicate in a better way?

It is necessary to lift the restriction on the granting of new concessions to private stakeholders for these Projects.

Enlarge regulatory and financial incentives for this type of renewable energy.

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We need this type of Projects to have proper coordination with the Ecuadorian government, so they are built on criteria that maximize their support to society’s welfare.

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Photographic Record

Picture 1: Ground breaking for the San Cristobal wind power project. (Source: consultant)

Picture 2: Wind towers’ sea shipping. (Source: consultant)

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Picture 3: Wind towers’ ground shipping. (Source: consutant)

Picture 4: Wind turbines foundations builder. (Source: consultant)

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Picture 5: Installation of wind turbine blades. (Source: consutant)

Picture 6: Installation of the nacelles with cranes. (Source: consultant)

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Picture 7: Opening with the visit of President Rafael Correa. (Source: consultant)

Picture 8: Front view of San Cristobal wind farm. (Source: consultant)

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3.4. BAGASSE COGENERATION PROJECT

3.4.1. Overview

The Project is aimed to use cogeneration from bagasse ( residual renewable fuel source from sugar cane processing) by the Agricultural and Industrial Society S.A

.

With this project’s implementation, the sugar mill has been able to deliver electricity to the national grid, thus avoiding the emissions from fossil fuel power plants that would have given the same amount of power to the grid. Therefore, this initiative avoids CO2

emissions while contributing to regional and national sustainable development.

Cogeneration bagasse is an important contribution to the energy strategy of the Country. This Cogeneration is an alternative that allows postponing the installation and / or delivery of electricity produced at power plants operating on fossil fuels.

Due to improvements in the efficient use of steam for sugar production and increase in the efficiency of bagasse burning (more efficient boilers), it get an excess steam that is exclusively used for electricity production (through turbo-generators).

The sugar mill is located in the canton Marcelino Maridueña, in the eastern sector of the Guayas province and its total area is 337 km2.

To the north is bounded by Chimbo river and the cities of Naranjito, Milagro and General Elizalde (Bucay); to the south by the river Barranco Alto, with the city of El Triunfo and Yaguachi ; to the east by the provinces Chimborazo and Cañar; to the west by the city of Yaguachi, as shown in Graph 11.

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Graph 13: Geographic location of Marcelino Maridueña (Source: Sugar Mill San Carlos)

Graph 14: Location map within the cogeneration unit’s sugar mill (Source: Sugar Mill San Carlos)

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3.4.2. Project Objectives

The main objective of the Project is the generation of electricity through direct biomass combustion (Bagasse) in aqua-tube boilers in order to achieve the production of high-pressure steam, which is conducted to the turbine for electricity generation. This energy is consumed in the sugar process, and the excess is supplied to the National Interconnected System (Sociedad Agrícola Industrial San Carlos S.A., 2007).

3.4.3. Stakeholders Analysis

The main project’s stakeholders are: a) the sugar mills owners, b) investors who supported the idea, c) workers who benefited from better environmental conditions due to waste disposal, d) company’s shareholders with higher profits for the proper use and sale of energy.

3.4.4. Legal Aspects

For projects of this nature, the respective CONELEC regulation sets the rates, duration and form of release for energy delivered to the National Interconnected System.

The price set for energy produced by this project is 9.67 USD cts per kWh. Price validity was set at a period of 12 years from the date of signing the permits agreement (2005).

3.4.5. Technological Aspects

Technology used is the Rankine steam cycle, which consists of biomass direct combustion in a boiler to generate steam, which is then expanded through a turbine. Other steam-cycle plants are placed in the industrial area so that residual heat from the steam turbine is recovered and used to meet heat demand in the industrial process.

The Rankine steam cycle involves heating pressurized water to feed the resulting steam turbine-generator, and the condensed one is partially or fully re circulated to the boiler. In some cases they use a heat exchanger to recover heat from the gas flow of the air

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preheated, and a deaerator is often used to remove dissolved oxygen from the water before it enters the boiler. “Back pressure” turbines were used where steam is delivered at a pressure substantially above ambient pressure. This leaves the turbine still as steam, it is sent to an industrial process to meet heating needs, then it condenses into water. Finally it is partially or completely re circulated to the boiler.

A “condensing-extraction" (CEST) turbine could be alternatively used if the demand for process steam can be satisfied using only a portion of the available steam. This design includes the ability to extract steam in one or more points along its route to meet the needs of the process (Graph 15). The steam that is not extracted continues its way to sub-atmospheric pressures, thereby increasing the amount of energy generated per steam unit compared with the “counter-pressure” turbines. The non extracted steam is then turned into water in a condenser that uses atmospheric air and / or cold water to cool it off.

The steam-Rankine cycle uses different boiler designs, depending on fuel used availability and characteristics. The initial steam’s temperature and pressure, together with the pressure that expands determine the amount of electricity that can be generated per kilogram of steam. In general, while higher the maximum pressure peak and steam temperature, the more efficient, sophisticated and costly the cycle is (Moreta Vasquez, 2006).

Graph 15: Schematic diagram of a steam-Rankine cycle for biomass cogeneration using a condensing- extraction steam turbine (Source: Sugar Mill San Carlos).

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The sugar mill uses the steam-Rankine cycle as the basic technology of its cogeneration system because it allows an increasing amount of surplus electricity to be generated. It is for this reason that the Sociedad Agrícola e Industrial San Carlos S.A. (Agricultural and Industrial Society San Carlos S.A.) had in mind to increase the capacity from 7MW up to 35MW; the implementation of this foreseen plan was undertaken in two phases:

•••• The first phase was finalized by mid 2005; it consisted in the implementation of a turbine extraction/counterpressure of 16MW, which added to the initial installed capacity it came up to 23 MW.

•••• The second phase was foreseen for the year 2007, in which it was installed a turbo generator of 12MW, reaching a total capacity of 35 MW.

By mid 2005, it included turbine generators of 16 and 12 MW, repowering a boiler of 220 psi to 600 psi. No turbine was turned off, reaching a total capacity of 35 MW (Moreta Vasquez, 2006).

Table 6 shows the installation of units for the bagasse cogeneration project.

ACTIVITY

Before expansion 2003 1 TG of 3 MW, and 1 TG of 4 MW

3 boilers of 220 psi

Before Expansion 2005 A TG of 16 MW and a TG of 12 MW

1 TG of 3 MW, and 1 TG of 4 MW

1 repowered boiler to 600 psi

2 boilers of 220 psi

Table 6: Technical data of the bagasse cogeneration project (Source: own elaboration)

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Data TG 16 MW

TG 12 MW

TG 3 MW

TG 4 MW BOILER 600 psi

Year of manufacturing

2004 2004 1973 1976 2004 (repowered)

Lifetime(years) 1 1 32-33 29-30 1

Start of operation Dec./2004 Mar./2005 Jun./1974 Jul./1977 Oct./2004

Hours of operation/ year

4.320 4.320 4.320 4.320 4.320

Maintenance hours / year

2.880 2.880 2.880 2.880 2.880

Table 7: Information on old and new equipment (Source: own elaboration)

The hours of operation of the equipment are calculated from the time of harvesting (6 months per year). Maintenance is designed on a 4-month /year.

Graph 16: Cogeneration process simplified diagram. (Source: Sugar Mill San Carlos)

In Graph 16, it can see in the cogeneration process a simplified way. Sugar cane is transported to the mills, where the juice is extracted and separated from bagasse. In turn, bagasse is burned in the boilers to generate steam at high pressure, which is then fed to the turbine generators thus producing electricity.

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3.4.6. Economic Aspects

The lack of guarantees of sales in the electricity production sector can be considered as a barrier for investors who think about getting involved in this new activity. There is priority for the sale of energy generated with renewable resources, but there isn’t anything sure about the money collection because distribution companies have priority on payment before generators.

Despite of this negative aspect, it is important to mention that the project also has positive economic aspects. It is crucial to highlight that the sugar mill was registered as a cogeneration project of bagasse in the UNFCC, and therefore it is a Clean Development Mechanism. That is why the project has an account where the CERs are deposited (for every ton of CO2 reduced it is obtained one CER). The sale of CERs contributes to the recovery of the initial investment (Moreta Vasquez, 2006).

3.4.7. Social Aspects

The implementation of the sugar mill has had positive aspects in the local communities. Jobs were created, which contributed to lowering the unemployment rate. Roughly 170 temporal jobs were created for the construction of the substation; 6 direct jobs for the industrial sector; and several other temporal jobs were created during the harvest.

Also, the population benefits from a cleaner environment considering that through this project it is reduced the emission of green house gases (GHG) or any other pollutant gases, which are a result from the biogases’ decay. Moreover, the company also benefited considering that with this project, the entity started to generate electric energy for its own consumption.

Training was give to all the new workers that were hired for this project regarding the use of the new installed equipment. This contributed in increasing the workers´ knowledge and technical skills. The operators and other employees had to assist to a training program which taught them technical issues in order to operate and maintain the equipment. In this manner the operation risk, which was high during the first few years, was reduced and thus the workers´ performance was improved and it was possible to maintain a safe working environment and also minimize the risks.

Also, it is important to highlight that the income that is generated from the exceeding electric energy that is sold to the national grid, it becomes direct benefits to the workers

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due to their participation that these have in the company utilities, according to the labor law (Moreta Vasquez, 2006).

3.4.8. Environmental Aspects

The production of electric energy through the cogeneration with bagasse has had positive environmental aspects. First, it was used a source of energy (bagasse of sugar cane) for the generation of clean electric energy that was sold to the National Interconnected System. Second, with this renewable energy project it was reduced the use of thermal power plants for the generation of energy that would constantly provide energy to the national grid by using energy obtained from conventional energy sources (fossil fuels). Third, it was able to implement industrial operations, methods processes and technologies that minimize the environmental impacts. Fourth, the implementation of the project allowed using the exceeding bagasse generated at the sugar mill, which without the project would have been exposed outside on the sun and it would have decomposed and therefore would have generated gases, including methane. Fifth, the Environmental Management Plan and the Contingency Plan was undertaken to minimize the environmental risks. The Environmental Management Plan was approved by CONELEC and by the Ministry of Environment. Sixth, as it can be visualized in Table 8, during the project (2005 – 2011) it has been able the reduction of roughly 306,118 ton of CO2 thus contributing in this manner to the mitigation of climatic change (Sociedad Agrícola e Industrial San Carlos S.A., 2007).

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San Carlos Project of Cogeneration with Bagasse

Reduction of emissions connected to the national grid

ITEM 2005 2006 2007 2008 2009 2010 2011 Total of CERs

Installed capacity

(MW) 35 35 35 35 35 35 35

Internal

consumption(MW) 6,5 6,5 6,5 6,5 6,5 6,5 6,5

Standby (MW) 7 7 7 7 7 7 7

Installed capacity

available for sale

(MW) 16,5 21,5 21,5 21,5 21,5 21,5 21,5

Installed capacity

that is currently

available for sale

(MW) 15 15 15 15 15 15 15

Hours of

oepration (hrs.) 4,32 4,32 4,32 4,32 4,32 4,32 4,32

Energy to be sold

to the national

grid, aplicable for

CERs (MWh) 64,8 64,8 64,8 64,8 64,8 64,8 64,8

Intensity of the

Base Line Carbon

(tonCO2/MWh) 0,719 0,719 0,72 0,7194 0,7194 0,72 0,719

Total of reduced emissions (tonCO2) 40,4 44,3 44,3 44,296 44,296 44,3 44,3 386,118

Table 8: Reduction of emissions of CO2 by the San Carlos Project of Cogeneration with Bagasse (2005-2011) (Source: Sociedad Agrícola e Industrial San Carlos S.A.)

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3.4.9. Replicability

The project provides a number of successful lessons to be used by similar companies to take advantage of renewable resources for electricity generation, which are used in the production process. Such surplus can be sold to the National Interconnected System (NIS), thereby reducing the energy generated by power plants using fossil fuels.

The overall surplus bagasse is a residue of sugar production, with consequent environmental pollution. With this application it becomes an important process’ sub product that generates added value bringing a surplus to the company's balance sheet, for saving energy that should be purchased from the power utility company and income from power sold to the grid.

Additionally, these Projects are subject to the sale of certificates of reduction of polluting emissions through the Clean Development Mechanism of the Kyoto Protocol, avoiding generation and use of fossil fuels energy (polluting). Profits from the sale of carbon certificates, contribute to the overall financing of the investment required for the project’s adoption and implementation.

From the social point of view, this type of projects generates additional jobs, both at the plant’s construction and equipment operation stage.

3.4.10. Interviews

INTERVIEW TO ENTREPRENEUR MR. AMALIO PUGA PEÑA, ENVIRONMENTAL COORDINATOR OF BAGASSE COGENERATION PROJECT

On your opinion, what are the positive and negative aspects of the project?

We believe that there are no negative aspects associated with the Project, all aspects are positive. Among them one can mention the following:

The use of a renewable energy source for electricity generation.

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The shift of power stations that generate and feed into the National Interconnected Energy System from fossil fuels (non-renewable sources). Each electricity megawatt generated from Bagasse means one less megawatt generated from fossil fuels.

Project implementation can consume bagasse surplus generated in the Mill, which without the Project would be placed open pit leading to decay and consequent generation of gases, including methane.

The creation of jobs, especially during the construction of the plant.

Constant staff’s training responsible for operation and maintenance of the plant, which helps to improve their knowledge, expertise and technical skills to better perform their duties and maintain safe working conditions.

The generation of additional financial resources, from power surplus sales, brings benefits to the company’s shareholders and employees, through its participation in corporate profits.

What is the project’s local share within the production processes of the region?

At the First Meeting of the Council of Ministers of Energy, Electricity, Hydrocarbons and Mines of the Andean Community held in Quito in January 2004, they set the foundations of Andean Energy Alliance (AEA), which was designed based on five thematic axes; one of them is the development of renewable energy. The Bagasse cogeneration project is framed in this thematic axis, since it is the first Ecuadorian project on power generation from Biomass with connection to the national grid.

Under what criteria is the sustainable project?

The Project is sustainable because it relies on electricity from a renewable source (sugar cane). Bagasse is used (residue from cane sugar milling process) as fuel in boilers to produce steam at high pressure that passes through the turbine generating electricity required in the factory for the sugar industrial process. Surplus energy is then delivered to the national grid. This Project helps reducing fossil fuel consumption (non renewable) in power generation activities in Ecuador, and also reducing greenhouse gases emission, which is why it has been recognized and registered by the CDM Executive Board of the United Nations as a Project of Clean Development Mechanism (CDM Registration No. 210).

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What government support is needed for the development of such projects?

Tax exemption is needed on the imports of machinery, equipment and systems for implementing or improving electric power generation from Renewable and non conventional power sources (solar, wind powers, etc).

INTERVIEW WITH MR. GABRIEL SALAZAR YEPEZ, VICE MINISTER OF RENEWABLE ENERGY AND ENERGY EFFICIENCY OF THE MINISTRY OF ELECTRICITY AND RENEWABLE ENERGY:

On your opinion, what are the pros and cons of such Project within the spectrum of renewable energy in the country?

Pros:

Inserting biomass’ use in Ecuador, at the right prices and strong production for self consumption and surplus contribution to the national interconnected system.

Sugar bagasse and other biomass are used, which before were dismissed without using them.

A great research has been done in this mill to adapt its boilers to burn bagasse mixtures and thus contributing to power even in the off-harvest season.

Biomass production channels and trading channels are activated such as: wood chips, rice husks, rice hulls, balsa wood, palm, etc.

Cons:

The costs of energy production in the mill are high when using other types of biomass, mainly due to high transportation costs and biomass increasingly high prices (wood chips).

What is the national policy, if any, to the incentive of such projects?

The CONELEC’s Regulation provides preferential prices and dispatch to these types of technology.

Power limits have been increased which can be considered for price and shipping preferences.

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How are sustainable are these kind of projects?

These Projects are sustainable as long as biomass prices are appropriate, there is the required amount, and transportation and storage are at reasonable costs.

All these aspects influence on the production price ranging from US$ 9 cts/ kWh when produced from bagasse, and up to US$ 25 cts/ kWh when produced from other biomass such as eucalyptus wastes.

What barriers should be overcome for the development of such Projects to be effective, so it could be replicated in a better way?

Achieving adequate biomass’ quantities and prices.

Achieving financial incentives for the mills so them to reach efficiency improvements in their production processes, having remaining steam to generate electricity.

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Photographic Record

Picture 9: Entrance to the Cogeneration Plant (Source: consultant)

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Picture 10: View of the substation of San Carlos Cogeneration Project (Source: consultant)

Picture 11: Turbine generator area of the Cogeneration Project (Source: consultant)

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Picture 12: Rear view of the Cogeneration Project facilities (Source: consultant)

Picture 13: View of control room of the Cogeneration Project (Source: consultant)

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3.5. LESSONS LEARNED

Implementing such co-generation projects with biomass and using wind resources is a great help in diversifying the energy mix, given that Ecuador requires fossil fuels for electricity generation.

The environmental benefits from the use of renewable resources for electricity generation are important, as these energy products do not generate polluting emissions.

Implementing wind projects necessarily requires wind speed studies over periods of at least two years, to enable more reliable forecast, otherwise the deviations from what has been estimated can be very serious.

The replicability of such projects is broader, both on the continent and on other islands such as Santa Cruz and/or Baltra, considering the premise of fossil fuels substitution for electricity generation.

The joint work of various organizations and entities worldwide made it possible to implement the Galapagos Wind Project.

The financial return was not a priority, but the contribution to the environment by decreasing oil spillage risk is unquantifiable in the case of the wind project that was presented.

There are environmental benefits from using sugar bagasse for power generation, since they consume the surplus bagasse generated at the mill, which if not incorporated into the production process would continue being a source of pollution, as its decomposition generates gases, including methane.

Productive and commercial chains of this type of biomass for energy use have been created. This is an example for other similar ventures.

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Despite when the cogeneration project was implemented there were not enough guarantees for the payment of energy, the project helped to formalize the institutional payment for this type of energy produced from renewable sources.

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4. REFERENCES

CENACE (National Energy Control Center), 2009, Annual Report 2009, page 25, Energy consumption.

CONELEC (National Electricity Council), 2009a, , Statistics of the Ecuadorian Energy

sector 2009, Sector’s Indicators. [Online] Available at: http://www.conelec.gov.ec/, Statistics/Sector’s Indicators/Installed capacity [07/25/2010]

CONELEC (National Electricity Council), 2009b, Statistics of the Ecuadorian Energy

sector 2009, Sector’s Indicators. [Online] Available at: http://www.conelec.gov.ec/, Statistics/Sector’s Indicators/ Yearly Energy supply pert type of energy resource. [07/25/2010]

CONELEC (National Electricity Council), 2011, , Regulation No. 004/11, Treatment for the energy produced with renewable energy sources non conventional. Available at: http://www.conelec.gov.ec/.[25/07/2010]

ONELEC (National Electricity Council), 2009d, Statistics of the Ecuadorian Energy

sector 2009, Sector’s Indicators. [Online] Available at: http://www.conelec.gov.ec/, Statistics/Sector’s Indicators / Energy consumption per capita [25/07/2010]

CONELEC (National Electricity Council), 2009d, Statistics of the Ecuadorian Energy

sector 2009, Sector’s Indicators. [Online] Available at: http://www.conelec.gov.ec/, Statistics/Sector’s Indicators / Energy consumption per capita [25/07/2010]

SOCIEDAD AGRÍCOLA E INDUSTRIAL SAN CARLOS S.A., 2007. Presentation of

the CDM Case: San Carlos Project of Cogeneration of Bagasse. Comunidad Andina. [Online] Available at: <http://www.comunidadandina.org/desarrollo/cl_sancarlos.pdf> [25/08/2010]

CURBELO Alonso, Dr. Alfredo, 2010. Evaluation Report of Medium Term: Renewable

Energy for the Generation of Electric Energy – Electrification of Galapagos with

Renewable Energy. [Online] Available at: <http://www.undp.org/evaluationadmin/downloaddocument.html?docid=4648> [15/08/2010]

ERGAL, 2010. Isla San Cristóbal. [Online] Available at: <http://www.ergal.org/cms.php?c=1293> [10/08/2010]

ESPINOZA, Juan L., 2010. Renewable Energy in Ecuador: Current Status and

Prospects, Conference USFQ, Quito, Ecuador, July 2010. USFQ: Quito. GAMESA CORPORATION, 2010. Gamesa: Products and Services, Aerogeneradores. [Online] Available at: http://www.gamesacorp.com/es/productos-servicios/aerogeneradores/ [20/08/2010]

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MEER (Ministry of Electricity and Renewable Energy), 2008p, Policies and Strategies for Changing the Energy Mix of Ecuador, May 2008.

MEER (Ministry of Electricity and Renewable Energy), 2009a, Report of the Project results in saving lamps 2009, National Bureau of Energy Efficiency

MEER (Ministry of Electricity and Renewable Energy), 2010w, Power Sector prepared

for the dry season 2010, [Online] Available at: http://www.meer.gov.ec/, Press: Press Room / drought [08/10/2010]

MORETA Vasquez Silvia Eugenia, 2006, The Clean Development Mechanism (CDM)

in Ecuador: Case of the Sugar Mill San Carlos., Escuela Politécnica Nacional, Quito, Ecuador, [Online] Available at: <http://bibdigital.epn.edu.ec/handle/15000/317> OLADE (Latin American Energy Organization), 2009, Energy Economic Information

System (SIEE) (2010). < http://www.olade.org/producto/SIEE>

Ministry of Electricity and Renewable Energy (MEER), Ecuador's Energy Policy 2008

– 2020. Quito: MEER.

RECALDE, Patricia, Ministry of Electricity and Renewable Energy (MEER), 2010. Presentation: Current status and Prospects of Biofuels in Ecuador, V Latin American and Caribbean Biofuels Seminar, Chile, August 2010. MEER: Chile. Villavencio, Arturo, ERGAL, 2010. Presentación: Electrificación en base a renovables

en Patrimonios de la Humanidad: EL caso de las Islas Galápagos, Talle de América Latina y El Caribe: Fuentes Renovables de Energía y Mitigación de Pobreza. [Online] Disponible en: http://www.fundacionbariloche.org.ar/idee/taller%20renovables/panel%203/Villavicencio.pdf [14/08/2010]

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