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ENERGY POLICY 2030: RENEWABLE ENERGY

COMMITMENT IN URUGUAY

Ramón Méndez Secretary of Energy

Uruguay

OVERVIEW OF URUGUAY

Country name: República Oriental del Uruguay

Land area: 176,215 km2

Population: 3.3 million inhabitants

Annual growth rate: 0.3 %

Density: 18.8 inhabitants/km2

Life expectancy: 76 years

Infant mortality rate: 7.7/1000 (22.8 in Latin Am)

ECONOMICALLY SUSTAINABLE

SOCIALLY SUSTAINABLE

EDUCATIONALLY SUSTAINABLE

Only country in world to meet goal of full countrywide

coverage of school-age children and teachers

“One laptop

per child”

program

ENVIRONMENTALLY SUSTAINABLE

Source: IEA

THE ENERGY SECTOR

IN A

STRONGLY GROWING COUNTRY

ENERGY FIGURES

Total Energy Consumption 3,107 ktoe

Energy Consumption / inhabitant 0,93 toe/inhab

Electrification 98,7 %

Mean annual power demand 1,050 MW

Peak power demand (july 5 2011) 1,747 MW

FRAMEWORK AND HISTORICAL BACKGROUND

• Uruguay has:

- no oil

- no natural gas

- no coal

• Almost no space for new large hydropower plants (75% of

present electric mix)

High dependency on oil: imports represented 27% of

total imports of Uruguay

2008: Council of Ministers

2010: Special Committee

including all Political Parties

Multidimensional and integrated vision, including technological, economic, geopolitical, environmental, ethical and social factors

ENERGY POLICY 2030

• Four strategic guidelines

• Short, medium and long term goals

• More than 30 working areas

Supply Energy mix diversification, reducing share of oil and increasing the participation level of non-traditional renewable energies, with incentives but no subsidies

Institutional

Directive role of the Government with a stable and transparent regulatory framework for both State owned and private companies

STRATEGIC GUIDELINES

STRATEGIC GUIDELINES (continue)

Demand

Energy Efficiency in all energy sectors, all economic activities (transport, building, industry) and at all educational levels.

Social Adequate energy access to all citizens as a human right

WHAT HAVE WE DONE?

WHAT ARE WE DOING?

INVESTMENT OPORTUNITIES

BUILDING THE

APPROPRIATE FRAMEWORK

BUILDING CAPACITIES

• Strengthening energy planning capacities

• End-use energy survey:

108 homogeneous groups

• Measurements and potential maps

(wind, solar, biomass, cogeneration, saving)

• Graduate Courses in Energy (Universidad de la República)

• R&D Energy Fund: 2.6 MMUS$ / year (ANII)

• Package of Laws and Decrees

• Investment Promotion Law (RE and EE tax incentives)

EXPECTED INVESTMENTS (2011-2015)

6.2 billion dollars (16% of GDP)

• 2.4 billion public sector

• 3.8 billion private sector or public-private parternship

WIND ENERGY

• 0 MW in 2007

• First wind farms installed today (4% of average power demand)

• Goal 2015: 600 MW installed

(55% average power demand)

• Tender processes / 20 years contracts

• 946 MW offered in the 1st tender (6:1) (january)

• 1097 MW offered in the 2nd tender (7:1) (august)

• Price: 62 - 64 USD/MWh (no subsidies!)

• Up to 44% domestic participation

BIOMASS HEAT AND POWER

• First 8 power plants already installed

(16% of average power demand)

• Fuel: forestry, rice, bagasse, black liquor

• 50% - 60% domestic participation

• Feed in Tariff Decree (no subsidies!)

• No power limit

WASTE TO ENERGY PROGRAM

• Input: agriculture, industries, cities

(Uruguayan agroindustry produces

large amounts of organic waste)

• Output: biogas, heat, electricity

30% of agroindustrial waste used to produce energy

2015 goal:

Developing an ambitious program (GEF financed Project)

SOLAR ENERGY

- Solar thermal promotion Law

- Heat water capacities replacement

(Public Utility funding)

- 1 MWp PhotoVoltaic pilot farm

GRID-CONNECTED MICROGENERATION

• Uruguay: first country in Latin America to enable

grid-connected renewable microgeneration

• Net metering contract

BIOFUELS

2013 Goals: E10 / B5

Biofuels

+

Electricity

+

Human Food

+

Animal Food

+

Social

Sustainability

ENERGY EFFICIENCY POLICIES (HIGHLIGHTS)

ENERGY EFFICIENCY

• EE promotion law

• National EE Master Plan

• Labels

• Audits

• EE Garantee Fund

• Energy saving credits

(boosting EE investments)

• Tax redefinition

• Public sector (audits, managers, plans,

lamps, labels, transportation)

• Wide educational and cultural program

ENERGY INTENSITY

(koe/US$)

ENERGY / GDP

(TOE / 1000 $)

ALL TOGETHER:

2015 ENERGY MIX

53% RENEWABLE

GLOBAL PRIMARY MIX 2015

ELECTRIC MIX 2015

HYDRO

63%

BIOMASS

13%

LNG

8%

OTHERS

1%

WIND

15%

90% RENEWABLE

73 US$/MWh

46 US$/MWh

DECREASING ENERGY COST

Electricity cost according to rain probabilities

69 US$ spread

25 US$ spread

DECREASING CLIMATE DEPENDENCE

Electricity cost according to rain probabilities

Thank you for your attention …

director@dne.miem.gub.uy

69 US$ spread

25 US$ spread

DECREASING CLIMATE DEPENDENCE

DECREASING ENERGY COST

Renewable Energies and Energy Efficiency in Uruguay: Increasing sovereignty and reducing energy cost