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Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005 Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH Deploying Renewable Energy Systems: Lessons from Latin America (Dominican Republic, Colombia) Dr. Bernhard Bösl GTZ – German Technical Co-operation World Bank Energy Lecture March 28, 2005 Washington DC

Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005 Deploying Renewable

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Page 1: Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005 Deploying Renewable

Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005

Deutsche Gesellschaft fürTechnische Zusammenarbeit (GTZ) GmbH

Deploying Renewable Energy Systems: Lessons from Latin America

(Dominican Republic, Colombia)

Dr. Bernhard Bösl

GTZ – German Technical Co-operation

World Bank Energy Lecture

March 28, 2005

Washington DC

Page 2: Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005 Deploying Renewable

Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005

Deutsche Gesellschaft fürTechnische Zusammenarbeit (GTZ) GmbH

GTZ Profile

Non-profit, private-sector company, owned by German Government

Commissioned by BMZ to implement Technical Co-operation

Objective: improve the living and working conditions of people in the partner countries and sustain the natural basis for life.

Facts and Figures (2003):

• Total turnover: € 885 millions

• Clients: BMZ (80 %)

other German ministries (6 %)

other governments, international organisations (14 %)

• 2,726 projects in 131 countries

• 1,430 seconded experts, 7,081 local staff

• 1,042 employees at GTZ Head Office in Germany

Further information: www.gtz.de

          

Page 3: Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005 Deploying Renewable

Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005

Deutsche Gesellschaft fürTechnische Zusammenarbeit (GTZ) GmbH

pipelineongoing

phasing out

GTZ Energy Projects Worldwide

Africa Asia Latin America

Eastern Europe

Total

Policy 1 3 4 8

Renewables 5 9 6 20

Efficiency 5 6 3 5 19

Total 11 18 13 5 47

Page 4: Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005 Deploying Renewable

Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005

Deutsche Gesellschaft fürTechnische Zusammenarbeit (GTZ) GmbH

GTZ RE Projects Latin America

Dominican Republic

Promotion of RE

2 mio €

Caribbean Community

Promotion of RE

2.2 mio €

Ecuador

Small Hydro Power

1.5 mio €,

Colombia

Feasibility Wind Park

0.19 mio €,

Chile

RE Electricity Generation

2 mio €,

Mexico

Promotion of RE

2 mio €,

Brazil

RE Rural Electrification

3 mio €,

Page 5: Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005 Deploying Renewable

Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005

Deutsche Gesellschaft fürTechnische Zusammenarbeit (GTZ) GmbH

Dominican Republic: General Information

Area: 48,730 sq km

Population: 8,715,602 (July 2003 est.)

GDP - per capita: purchasing power parity - $6,300 (2002 est.)

Climate: tropical maritime; little seasonal temperature variation

Energy Resources: Wind, Solar, Hydro, Biomass, no fossil fuels !

Power Sector:

Installed Capacity (July 2003) : 3,596 MW, Hydro: 16 %, Fossil: 84%

Peak Demand (2003): 1,950 MW

Unserved Demand (2002): 15% of potential demand

High technical and non-technical losses: 29%

High electricity prices: approx. 20 US cents / kWh

Electricity sector collapsed since mid 2003, daily blackouts of 10-20 hours

Page 6: Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005 Deploying Renewable

Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005

Deutsche Gesellschaft fürTechnische Zusammenarbeit (GTZ) GmbH

DR: Project profile

Title: Promotion of Renewable Energies in the DR (PROFER)

Counterparts: State Secretariat of Industry and Commerce

National Energy Commission

Duration: March 2003 – December 2006

Objective: Establish favourable framework conditions for the use of RE

Volume (GTZ): € 2 mio

Page 7: Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005 Deploying Renewable

Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005

Deutsche Gesellschaft fürTechnische Zusammenarbeit (GTZ) GmbH

RE Act

National Strategy

Regional cooperatio

n

Market Analysis

Feasibility Studies

Investment Guide

Policy, legal framework

Micro-HydroProject

Promotion

RE Promotion Fund

Management mechanisms Project

Selection

Evaluation, Monitoring

DR: Fields of Cooperation

Evaluate existing projects

Capacity Building

Planification, Promotion

Page 8: Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005 Deploying Renewable

Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005

Deutsche Gesellschaft fürTechnische Zusammenarbeit (GTZ) GmbH

DR: RE Act

Draft of Renewable Energy Act, including incentives like:

• Tax exemptions for imports of RE components

• Reduced transmission fees for RE electricity

• Fixed feed-in price for RE electricity

• Income tax exemptions and fiscal incentives for self-suppliers

• Grants up to 50% of the investment costs (to be decided on a case to case base, max. 5 MW)

Page 9: Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005 Deploying Renewable

Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005

Deutsche Gesellschaft fürTechnische Zusammenarbeit (GTZ) GmbH

Colombia: Project profile

Objective: identification, planning and implementation of a wind park

GTZ services:

• wind measurement

• site selection

• feasibility study

• Support during tender process

• training of EPM staff

Volume: € 190,000

Site: Alta Guajira, NE-Colombia

Counterpart: Public Utility “Empresas Públicas de Medellín (EPM)“

Duration: January 2001 – December 2002

Page 10: Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005 Deploying Renewable

Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005

Deutsche Gesellschaft fürTechnische Zusammenarbeit (GTZ) GmbH

Colombia: Results

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

ENE FEB MAR ABR MAY J UN J UL AGO SEP OCT NOV DIC

Hidrológica Eólica

Technical• Low interest by suppliers during tender process• Installed capacity: 19.5 MW• Windturbines: 15 NORDEX N60, 1,300 kW each• Grid connection: 13.2/110 kV substation, 800 m

connection line• In operation since December 2003

Wind Conditions• Average wind speed 10 m/s at 50 m height• Max. wind speed < 20 m/s• Contiuous wind direction• Low air density (90%)• High outside temperatures (25-40 C)• Annual variation complementary to hydropower

Page 11: Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005 Deploying Renewable

Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005

Deutsche Gesellschaft fürTechnische Zusammenarbeit (GTZ) GmbH

Economical• Colombian electricity market liberalized and competitive• Very low prices on electricity market (approx. 2 US cents / kWh)• Regulatory frame without specific incentives for RE• Generation costs approx. 4 US cents / kWh• Approved by Prototype Carbon Fund (approx. 3.2 mio US$ carbon credits)• Tax exemption as “innovative project” (approx. 8 mio US$ tax reduction)

Social• Project site located in indigenous reservation• Cautious negotiations and considerable

compensation measures necessary

Institutional• Very dynamic and motivated counterpart EPM

Colombia: Results

Page 12: Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005 Deploying Renewable

Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005

Deutsche Gesellschaft fürTechnische Zusammenarbeit (GTZ) GmbH

Lessons Learnt – technical

Technology is not the main issue

Reliable and mature RE technologies are available for application in developing countries

International cooperation should concentrate on broad dissemination of proven technologies

BUT Counterparts often interested in R&D

Some technical adaptations maybe necessary

E.g. adaption of wind generators to extreme wind conditions in Colombia and Mexico (high average wind speeds, low air densities, high temperatures etc.)

Technology adaptations in cooperation with providers (Public Private Partnerships)

Page 13: Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005 Deploying Renewable

Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005

Deutsche Gesellschaft fürTechnische Zusammenarbeit (GTZ) GmbH

Lessons Learnt – financial, economical

Renewable energy technologies are feasible

Due to high fuel and electricity prices and low supply reliability in the Caribbean, some RE technologies are more feasible than in other regions (e.g. wind power, solar water heating),

BUT need a level playing field

No financing without mechanisms

Financing schemes are crucial for massive deployment of RE technologies

BUT badly managed financing instruments can do more harm than good and “rules of the game” have to be defined before starting an instrument

CDM, the big push?

Carbon credits are “nice to have”,

BUT in most cases they won‘t turn an unfeasible RE project into a feasible one

Page 14: Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005 Deploying Renewable

Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005

Deutsche Gesellschaft fürTechnische Zusammenarbeit (GTZ) GmbH

Lessons Learnt – social

Acceptance of technology – core driver for success

Many projects still to technology oriented

Selection of technology should be based on users need (demand side orientation) rather on technology preferences (supply side orientation)

Poverty eradication or poverty illumination?

Creation of income generation opportunities is of core importance

Productive uses of energy must be included in the planning process from the very beginning

Energy and the MDGs

No doubt that RE technologies contribute to achieve the MDGs

BUT since there is no explicit MDG on energy, we constantly have to monitor and disseminate this energy-poverty impact chain

Page 15: Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005 Deploying Renewable

Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005

Deutsche Gesellschaft fürTechnische Zusammenarbeit (GTZ) GmbH

Lessons Learnt – institutional

Multi stakeholder approach

One of main barriers of RE dissemination is the sectors “institutional variety”

How to create benefits/synergies from this variety?

International cooperation can play the role of moderation between institutions and interests, as an interest free “honorable broker”

Multi level approach

Good experiences with combined “policy advisory” and “project development” approaches

Strengthening links between macro and micro level speeds up the learning curve, improves effectiveness, and credibility

Page 16: Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005 Deploying Renewable

Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005

Deutsche Gesellschaft fürTechnische Zusammenarbeit (GTZ) GmbH

Thank you for your attention !

Page 17: Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005 Deploying Renewable

Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005

Deutsche Gesellschaft fürTechnische Zusammenarbeit (GTZ) GmbH

Publications

Energy and Sustainable Development in Latin America

and the Caribbean

Guide for Energy Policymaking

• OLADE, ECLAC, GTZ

• June 2000

• Download (spanish, english): www.eclac.org/drni/proyectos/energía/proyecto.htm

• Update 2003, only in spanish

Page 18: Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005 Deploying Renewable

Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005

Deutsche Gesellschaft fürTechnische Zusammenarbeit (GTZ) GmbH

Energy-policy Framework Conditions for Electricity Markets and

Renewable Energies

21 Country Analyses

• Latest Edition: June 2004

• Including: Jamaica, Dominican Republic, Mexico, Colombia, Chile, Brazil(Argentina and Cuba in 2002 version)

• Download (english, german): www.gtz.de/wind

Publications

Page 19: Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005 Deploying Renewable

Dr. Bernhard Boesl, Worldbank Energy Lecture, Washington DC, March 28, 2005

Deutsche Gesellschaft fürTechnische Zusammenarbeit (GTZ) GmbH

Renewable Energy Sources in Latin America and the Caribbean

Situation and Policy Proposals

• ECLAC, GTZ

• May 2004

• Download (spanish, english): www.eclac.org

Publications