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Renewable energy sources in Latin America and the Caribbean: two years after Bonn HUGO ALTOMONTE Chief Natural Resources and Energy Unit Economic Commission for Latin America and the Caribbean
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Renewable energy sources in Latin America and the Caribbean: two years after Bonn
Chief Natural Resources and Energy Unit
Economic Commission for Latin America and the Caribbean
REN21 – Renewable Energy Policy Network for the 21st Century. Impacts of the international renewable energy policy process. Paris, December 13-14, 2006
21 countries approved the Brasilia Platform on Renewable Energies, which establishes among its main points: “To further efforts to achieve the goal set forth in the Latin American and Caribbean Initiative for Sustainable Development of ensuring that by the year 2010 the use of renewable energy by the region, taken as a whole, amounts to at least 10% of its total primary energy supply on the basis of voluntary efforts and taking into account the diversity of national situations”.
“Regional (decentralized) regime to promote renewable energies to electricity generation”.
National subsidies to RE electricity
Regulations and rules on prices governing the operation of renewable energy generation units (setting prices);
Acts on the use of renewable (LAFRE in Mexico & other countries), which provides for the creation of a trust that will increase the share of renewable to 12% of national generation by 2012
Financing pre-investment project “Competitive call for tenders of small energy projects based on renewable sources”
Special tenders for reserve capacity of electricity (5% with RE)
“Regime to regulate and promote the sustainable production and use of biofuels”(mix B5, B!0 y E5, E10)
COUNTRIES, DATES AND % OF MIX VARIABLES
Financing pre-investment project: Competitive call for tenders
provides financial incentive payments for biofuels produced (depending on the size plants).
Exemption Tax (equipment and/or fiscal)
SUBREGIONAL POLICIES AND INICIATIVES (Central America)
Renewable sources have declined slightly as a proportion of the total energy supply, from 25.7% in 2002 to 24.8% in 2004
Decrease share of Hydro as a result of reduction in Brazil and Uruguay.
Cane products enlarged 8% due to development of ethanol in Brazil.
Although the share of other renewable (solar and wind) is not important yet, its contribution could be improved considerably with the full implementation of PROINFA
Fuelwood consumption/total oil product consumption
Forest energy dependency over the total renewable supply (FDI
(Fuelwood Supply/supply of all renewables)
(in thousands Tn CO2 / Total GWh).
On the whole, the obstacles to implementation of energy efficiency and renewable energy measures are well documented and fall into five types: technical, regulatory, economic, financial and institutional.Social ?ADICIONALITY is it new one?
STRATEGIC ROL OF BIOFUELS: reduction of GHG emissions and oil dependence
Directive 2003/30/EC:5.25% of the total transport consumption should be supplied by biofuels
A number of countries (German, Austria, Spain) applied total or partial tax exemption from 220 Euros/m3 to 470 Euros/m3.
Others (France, UK & Finland), set up directsincentive for biodiesel from 220 Euros/m3 to 330 Euros/m3
Objetivo EU en 2010: 5.25% del sector transporte deberá usar biofuels
Fuente: APER (E)
Increasing 22% surface area under Sugar Cane cultivation -- 0.4% of total area
35% of total requirements existing molasses 35%
Cuba, Guatemala, Guyana & Nicaraguagreat potential
DEFICITS in Haití, Suriname, Uruguay & Venezuela,
Land availability: less than 1% of the countries’ agricultural areas would suffice to produce enough bioethanol for E10 except forde Barbados, Jamaica, Trinidad y Tobago, Suriname y Venezuela
Brazil’s experience is it repeatable in other countries?
Other countries questions are:
ECLAC preliminary exercise showed that
2) Its real feasibility can be properly proven, especially in terms of the energy balance sheet and productivity.
3) The European experience with biodiesel is based on agricultural policies that cannot easily be replicated in the region, with large subsidies and more or less openly protectionist systems.
Latin America leads the carbon market with 49% of all registered projects and it is the largest supplier of projects under CDM (over a total of 259 projects in August 2006 )
Methane reduction in sanitary landfills accounts for the largest proportion of emission abatement projects in the region
the largest area in LAC is the reduction of methane from sanitary landfills (31% of all avoided emissions)
projects now being submitted for registration suggests that region’s potential lies in :
biomass projects; management of solid animal waste; hydroelectric power projects; and solid municipal by-products
ADICIONALITY: NEW “BARRIERS” TO DEVELOP RENEWABLE ENERGIE PROJECTS ?
Adicionality: CDM projects needs to meet regulatory, technological, market-competitiveness, economic, financing criteria for assessing the additionality of project components.
BarriersThese requirements mean that projects are very unlikely to be accepted into the CDM scheme if they are i) highly profitable; ii) conform to common practice (and hence face no particular barriers) or iii) are part of State policy
Paradox: even though the future of CDM in Latin America depends on renewable energy projects, any steps to support the development of such ventures would interfere with their eligibility as CDM projects.
In a number of sectors, the CDM rules have thus created a perverse incentive to postpone government support for renewable in order to pave the way for CDM eligibility
1-In the last few years, the region has seen a number of developments and advances in renewable energy legislation and projects
2- Renewable sources have slightly declined as a share of the total energy supply, from 25.7% in 2002 to 24.8% in 2004
3- Advances in renewable energy legislation seen in many of the region’s countries do not have yet a substantially effect on the total supply