Post on 10-Jun-2018
THE SMALL HYDRO PLANTS IN LATIN
AMERICA AND THE CARIBBEAN
Small Hydro Energy: Local Solutions to Climate Change and
Sustainable Development
VICTORIO OXILIA DÁVALOS
EXECUTIVE SECRETARY
29th, October, 2013
Campinas, Brazil
The Small Hydro Plants in Latin America & The Caribbean
Source: SIEE-OLADE, 2013, data of the year 2012
Mix of the total energy supply, LA&C vs. The World
Crude oil and derivatives
41%
Natural gas28%
Coal and coke4%
Nuclear1%
Hydroenergy9%
Biomass14%
Other renewables
3%
LA&C (5,909 Mboe)
Crude oil and derivatives
32%
Natural gas22%
Coal and coke27%
Nuclear6%
Hydroenergy2% Biomass
10%
Other renewables
1%
World (91,564 Mboe)
LA&C: 10 boe/ hab. World: 13 boe/hab.
USA: 50 boe/hab.
Japan: 26 boe/hab.
Europe: 22 boe/hab.
LA&C, year2011 (5,909 Mboe) World, year 2010 (91,564 Mboe)
Source IEA, 2013, data of the year 2010
The Small Hydro Plants in Latin America & The Caribbean
Source: SIEE-OLADE, 2013, data of the year 2012
Per capita electricity consumption (year 2012)
Source World Bank, year 2010
The Small Hydro Plants in Latin America & The Caribbean
Source: SIEE-OLADE, 2013, data of the year 2012
Hydroenergy share in the power generation mix (year 2012)
The Small Hydro Plants in Latin America & The Caribbean
Source: SIEE-OLADE, 2013, data of the year 2012
Hydropower, potential and installed capacity (year 2012)
The Small Hydro Plants in Latin America & The Caribbean
Source: SIEE-OLADE, 2013, data of the year 2012
Hydropower, potential and installed capacity (year 2012)
The Small Hydro Plants in Latin America & The Caribbean
Source: SIEE-OLADE, 2013, data of the year 2012
Hydropower, potential and installed capacity (year 2012)
The Small Hydro Plants in Latin America & The Caribbean
Source: SIEE-OLADE, 2013, data of the year 2011
SHP in LA&C, potential and installed capacity (year 2011)
CountryPotential
(MW)
Installed
capacity
(MW)
Argentina 430 66
Belice 51.3 7.3
Bolivia 21
Brasil 25,000 4,106
Chile 117
Colombia 172 172
Costa Rica 91.1
Cuba 65
Ecuador 146 77
El Salvador 98.6 15.2
Grenada 7 0
Guatemala 62.7 35.6
Honduras 385 54.1
Jamaica 80 24
México 3250 353.5
Nicaragua 40 2.9
Panamá 122.3 38.8
Perú 254
Rep. Dominicana < 5.00
Uruguay 176
Ranges of hydro plants of small scale
Country Small (MW) Mini (kW)Micro
(kW)Pico (kW)
Argentina 0.5 - 15 50 - 500 5 - 50
Brazil < 30
Chile 2.1 - 20 101 - 2000 5.1 - 100 0.2 – 5
Colombia 0 - 10
Costa Rica < 20
Ecuador 0 - 10
El Salvador < 20
Mexico < 30 < 500 < 100 < 10
Panama < 10
The Small Hydro Plants in Latin America & The Caribbean
Main types of incentives for Small Hydro Plants
I N C E N T I V E S
B. To provide
readiness to the energy
trading
D. To provide
readiness to foreign
capital inflows
F. To provide readiness
to project financing
A. Preferential prices for
transport and energy
production.
C. Priorities in the dispatch
of the generated energy.
E. Income tax exemption in
various percentages.
The Small Hydro Plants in Latin America & The Caribbean
Incentives for SHP in some countries of LA&C
A. Preferential prices for transport and energy production. B. To provide readiness to the energy trading. C. Priorities in the dispatch of the generated energy. D. To provide readiness to foreign capital inflows. E. Income tax exemption in various percentages. F. To provide readiness to project financing.
Source: Renewable Energy Observatory, UNIDO – OLADE, 2013
Country Acts / Incentive Programs Type
National Act on the promotion of renewable energy for electricity production (Act 26 190 /06) F
Electricity Supply Program to Rural Dispersed Population in Argentina. Establish provincial energy programs for rural
electrification, mainly using photovoltaic, wind, micro hydro turbines and diesel generators.F
The most recent policy on renewable energy was established in early 2010, when Argentina had implemented
incentive in the tariffs for granting power purchase agreements (PPA) for renewable energy. Includes mini hydro
projects.
B
A Rural Electrification Decree was approved in 2005 (Supreme Decree No. 28 of 567), which aims to increase rural
electrification through renewable energy development and a change in the energy mixF
Hydropower program. Designed by UMSA is dedicated to developing technologies to use water resources. Its goal is
to get technology packages developed in different research projects, ready to be transferred to the end users,
preferably rural population.
B
The current Act 10438/02 helped to the Incentive Program for Alternative Electricity Generation (PROINFA-
Programma Fonres Incentive Alternatives), which aims to encourage the involvement of Mini Hydro Power to the
national grid.
C
Free energy trading allowing producers to sell energy directly to consumers through the network at a rate of 50%
discount to use the network (Act No. 9648).A, B
Exemption of the financial compensation for the use of resources (Act No. 7990-No. 9427) F
Chile
Renewable Energy Electricity Act and Electricity Short Acts I and II. which proclaims the following: a) the free transit
of the energy through the network for plants with installed capacity under 9 MW and the proportionate share of transit
for plants between 9 MW and 20 MW, b) The electricity distribution companies must purchase the energy generated
for all kinds of small plants and the price is set periodically by the Ministry of Energy.
A, B
Argentina
Bolivia
Brazil
The Small Hydro Plants in Latin America & The Caribbean
Incentives for SHP in some countries of LA&C
A. Preferential prices for transport and energy production. B. To provide readiness to the energy trading. C. Priorities in the dispatch of the generated energy. D. To provide readiness to foreign capital inflows. E. Income tax exemption in various percentages. F. To provide readiness to project financing.
Source: Renewable Energy Observatory, UNIDO – OLADE, 2013
Country Acts / Incentive Programs Type
The Act 697 makes available the incentives for research and development in the field of mini hydro plants F
Incentives have been implemented as research grants, tax exemptions and fee waivers by reliability for SHP (<20
MW).E
EcuadorPreferential costs depending on the energy source of the plant and the preferential entry to the network. Regulation
004/011 - CONELEC.A
Act of investment promotion for electricity generation (Act No. 1002) F
Priority dispatch of transmission system operators. C
Regulation 354/009 promotes the electricity generation from non-traditional renewable sources and granting a waiver
of a significant percentage of income tax for the generators.D, E
Decree 455/007 provides tax benefits that may be granted (deduction of taxes in accordance with the amount of
investment, tax exemptions, VAT refund).D, E
El Salvador Tax exemption for 10 years for projects under 10 MW. D, E
In 2009, a rural electrification program for four years was implemented, initiated by the Government, where the
objectives were to promote the energy access across the country and the use of renewable energy sources in
marginalized rural communities; This initiative operates in 55 rural communities. It is planned to install a total of 31
micro-hydro (5-150 kW) and a wind turbine which will generate an average availability of 200 Wh per household.
B
E, F
Dominican
RepublicAct No. 57-07 on Incentives for Development of Renewable Energy Sources and its Special Regimes. Where it
stands: exemption from income tax, tax relief to external financing, bond emissions reduction for projects through
mini-hydropower plants up to 5MW.
Uruguay
Peru
Colombia
The Small Hydro Plants in Latin America & The Caribbean
Incentives for SHP in some countries of LA&C
A. Preferential prices for transport and energy production. B. To provide readiness to the energy trading. C. Priorities in the dispatch of the generated energy. D. To provide readiness to foreign capital inflows. E. Income tax exemption in various percentages. F. To provide readiness to project financing.
Source: Renewable Energy Observatory, UNIDO – OLADE, 2013
Country Acts / Incentive Programs Type
Act 476 for the Promotion of the Hydropower Subsector, states that hydropower schemes under 1 MW do not need a
water concession, but must be granted 15 years for systems with capacities from 1 MW to 5 MW, a simplified
procedure is applied to obtain a water concession from MIFIC.
D, E
Act 217 General Act of Environmental Protection and Natural Resources states that projects below 5 MW of capacity
is not necessary environmental impact assessmentF
It frees of the income tax for a period of up to seven years (Act 532). D, E
Cuba
In 2006 it was held a series of programs called "Energy Revolution", where, in the electricity sector, are considered:
energy saving and efficiency, a higher availability of power services (implementation of distributed generation and
rehabilitation of the network), and the use of renewable energy.
B
Jamaica
Incentives from the government: 15% of total generation capacity of the networkwork will be provided from renewable
energy resources by the end of 2015. Furthermore, a bonus of up to 15% above the utility avoided costs will be
allowed to purchase electricity generated from renewable sources.
A, B
Nicaragua
The Small Hydro Plants in Latin America & The Caribbean
Conclusions:
Source: Renewable Energy Observatory, UNIDO – OLADE, 2013
1. Most countries in the region have implemented within their internal policies
and regulations, various types of mechanisms and incentives to promote the
construction and operation of small hydro plants.
2. There is significant potential in many countries, for the installation of small
hydro plants, which has not yet been harnessed as the case of Argentina,
Brazil, Mexico and Central American countries.
3. The SHP projects should be evaluated on the basis of a socio-economic and
environmental analysis, eliminating financial barriers through tariff
incentives, tax exemptions and preferences in the electricity market.
4. The Governments should take advantage of abundant multilateral credit
lines that currently exist to implement non-conventional renewable energy
projects, including the SHP.