Green Energy Policy in Aruba Towards A Sustainable Energy Generation “the journey to sustainability knows no finish line, only higher levels” Franklin Hoevertsz Utilities Aruba N.V. 25 September 2013
Power & water: strongly dependent on fossil fuel costs • Power and water are mainly produced with Heavy Fuel Oil (HFO) • Inefficient production technologies (being phased out) • Utility tariffs are strongly dependent on HFO prices • Utility tariffs are after personnel costs the highest costs for the tourism industry (70% GDP) Government intervention in tariff
Visionof the Government of Aruba Achieve full sustainability in Energy Generation • Short term approach: Slow down of the rise or a responsible reduction of the utility tariffs • Mid-term aproach: • Reduction of the tariffs to affordable levels • More efficient, i.e. cheaper, power and water production methods • Cleaner (Greener) fuels and production methods • Reduction of the dependency on fossil fuels • Continuous reduction of greenhouse gas emissions
Short Term Approach • Dialogue with social partners and stakeholders on actions to be taken ( Case of August 2011: partial increase of tariffs) • Utility tariffs remained frozen for the remainder of 2011 and in part of 2012. • WEB and ELMAR temporarily absorbed the increase of HFO prices and will be allowed to recoup the advanced costs of fuel • The slowdown of the rise of tariffs temporarily shielded local businesses and private consumers from the rise of utility costs and prices • Thanks to more efficient production technologies and reduction of HFO prices, water and power tariffs have decreased with respectively approximately 30% and 15% in Q3 and Q4 of 2012.
Supply Side: Increase production efficiency Power production RECIPS GENERATOR Water production SWRO DONE DONE
Supply Side: Increase production efficiency Forecast Increase in production efficiency will result in reduction of the HFO consumption and HFO costs
Supply Side: Substitute of HFO with Natural Gas • HFO is at the moment as expensive crude oil • Transportation techno-logies is making Natural Gas (NG) more and more available to the world market • Increasing Global NG reserves have boosted the potential supply
Supply Side: Renewable EnergyWind • Since 2009 Aruba has a 30 MW wind park, ope-rated by an Indepen-dantPower Producer (IPP) • The IPP sells the power for a price that is fixed for 20 years • In 2014 an additional wind park will be operational. This will double the wind power contribution to 36 % • Aruba will then be one of the countries with a high percentage of RE penetration.
Supply Side: Renewable EnergySolar • The prices for photovoltaic panels (PV panels) have been going down while the efficiency is going up. • Aruba has approximately 3000 hours of sun per year • Initiatives to utilize this potential on top of, government owned homes, the base of the Royal Marines and the office of the our nature reserve, Parke Arikok • Private businesses are also picking up on this opportunity • Goal to increase this natural resource by installing as much as possible solar panels on government buildings AAA solar Park 3.3 MW
Supply Side: Renewable EnergyWaste to Energy (W2E) • With a population of 100,000 people and more than one million tourists a year, Aruba produces large quantities of waste. Until now, this waste is land filled • In 2014 companies will be invited to tender for the building and operation of a Waste to Energy (W2E) plant. • In the W2E plant old and new waste will be gasified. • The gas will be piped to the power company for combustion and subsequent power generation
Demand side The Government of Aruba is aware that drastic reductions of the utility tariffs may induce consumers to spend more water and energy and thus in the end have equal or higher utility costs than before. To mitigate this risk various activities have started in order to manage the utility demand of consumers Hunto nos ta spaar Smart metering
Demand side: increased awareness • At this moment, the level of fundamental and practical knowledge on water and power needs improvement • At the invitation of he Government of Aruba, TNO, the Dutch Institute for Applied Scientific Research, has established a subsidiary on Aruba • One of the first deliverables of TNO has been the design of a Road Map to Sustainable Energy on Aruba • TNO will soon, in cooperation with all stakeholders, initiate the “Living Lab” where in 20 private homes all kinds of energy efficient and energy saving devices will be tested
Demand side: increased awareness • For the 4rd consecutive year the Aruban Government will organize the Aruban Green Energy Conference to be held Oct. 9 - 11, this time the conference will be held in Partnership with the Caribbean renewable Energy Forum • Previous key note speakers were Al Gore and H.R.H. King Willem Alexander • Key notes speaker for 2013 will be: • H.E. M. Eman, Prime Minister of Aruba • Ms. M. Van der Hoeven, Executive Director International Energy Agency • Prof. dr. DimitrisPapastefanakis, Center for Renewable Energy Resources and Saving Greece
Demand side: incentives & substition Incentives for more efficient equipment In order to stimulate the use of more efficient equipment the Government has lowered the import duties on amongst others: • photo voltaic panels; • Hybrid; • inverter air conditioners; • and electric cars; Substitute of streetlights for LED Lights and substitute of other devices • At present 99% of all streetlights are high wattage mercury vapor lamps. • In the coming years all the mercury vapor lights will be replaced by low wattage LED streetlights • This will result in a 40% to 50% reduction of power use for street lighting. • ELMAR has already placed 1000 energy efficient LED street lights • On a case by case basis government buildings will be retrofitted with more efficient devices, e.g. inverter AC’s
Strategic partners are joining us“we have to do it our self but we can’t do it alone” The island of Aruba is committed to increase its sustainability and reducing its carbon foot print in collaboration with strategic partners in order to overcome challenges in renewable and transitional energy. Our partners: • TNO • Carbon War Room (CWR) • Dutch Gasunie • Anthony Veder • SHELL BV • ECLAC • EBN • SODM • REPSOL • CREF H.E. Mike Eman, Prime minister of Aruba and Sir Richard Branson (founder CWR)