Toward a Sustainable Energy Future in the Americas - … · Toward a Sustainable Energy Future in the Americas ... Solar wind geothermal etc ... •Tax Incentives: Barbados, Dominican

FIER 2013 – Republica Dominicana

Toward a Sustainable Energy Future in the Americas

Mark Lambrides

Department of Sustainable Development

Organization of American States (OAS)

Some generalizations about the energy sector in LAC today

• Energy sector has experienced steady growth since 1970s. Economies continue to grow driving demand outpacing ROW.

• Large disparities among countries of LAC (big 6 account for 84% of electricity production (OLADE)

• Less than 10% of the total population in LAC does not have access to electricity ~40 million people (Between 20% and 90% of the rural population in LAC does not have access to electricity)

Oil, gas, and hydro dominate …quite a diverse energy portfolio

Sources of Energy

Latin America and the Caribbean (2005)

Coal

4,6%

Oil

45,5%

Gas

19,5%

Nuclear

1,2%

Traditional biomass

14,9%

Hydro

10,5%

Solar wind

geothermal etc

0,4% Modern biomass

3,3%

Geothermal,

0.5%

Hydroenergy,

11.3%

Vegetable coal,

1.5%

Industrial Timber,

0.7%

Residential

Timber,

3.6%

Agricultural

Timber,

0.3%

Cane products,

5.7%

Other

renew ables,

1.3%

Oil,

41.7%

Nuclear,

1.6%

Unsustainable

Timber

2.2%

Coal,

4.8%

Natural gas,

24.5%

Renewable,

24.8%

Other non-

renewables,

0.5%

Source: CEPAL, Altamonte, 2006. ‘Renewable Energy Sources in LAC: 2 years after Bonn’

Generalizations regarding the generation of electricity in the Americas

• Latin America: Electricity generation dominated by large scale hydropower (59%) and natural gas (22%)

• Caribbean: Almost exclusively oil/diesel generator (imported oil)

Electricity sources: Latin America

(Source: The World Bank, 2010)

80% of population are living in urban coastal areas

Even with modest economic growth..

• Latin America's economy expected to grow 3 percent annually - the region will need to nearly double its installed power capacity to about 600 gigawatts by 2030 at a likely price tag of $430 billion (Source: IDB,

Rethinking Our Energy Future, 2013)

Gas and hydropower are expected to dominate future growth of power supplies, while gasoline/diesel will dominate transportation fuels. Significant potential for renewables (esp. wind, biomass, biofuels, and geothermal)

The Americas: Rich in Renewable Energy Resources

80% of world’s liquid biofuels production from U.S. and Brazil

Rapidly Expanding RE Development in Americas

• Three top ten geothermal producers: USA, Mexico, El Salvador (great potential in Peru, Chile, St. Kitts and Nevis, Dominica, and more)

• Wind: 1000+ MW in USA (60GW), Brazil (2.5GW), Mexico (1.3GW). Estimates of 33% growth of wind over next 4 years with 1 GW+ in Chile, Argentina, Uruguay…

• Important biomass electricity production in USA, Brazil, Mexico

• Key LAC PV Projects: Chile, Brazil, Dominican Republic, Barbados…

But, despite current diversity…

Strategies to address the energy sector challenges

• Energy resources diversification (…and expansion)

• Energy Efficiency

• Interconnections/Cooperation between countries

• Policies, regulations and markets favor conventional energies

– Need for IPP access and long-term power purchase agreements (challenge in some areas of the region, esp. Caribbean. In CR and Mexico , unique RE opportunity)

– Need for RE specific programs and policies: • NEPs/Targets: Brazil, Mexico, Chile, Jamaica, many others

• RPS: Chile, Nicaragua, multiple USA States

• FITs: Argentina, Brazil, the Dominican Republic, Ecuador, Honduras and Nicaragua

• Competitive Bidding/Tenders: Argentina, Brazil, Costa Rica, El Salvador, Honduras, Jamaica, Mexico, Panama, Peru, and Uruguay, Dominican Republic, Puerto Rico

• Tax Incentives: Barbados, Dominican Republic, USA (and many more examples)

(Sources include: IDB, Earnst & Young, OLADE, OAS)

How do we expand access/diversify with renewables?

1. Increase the rate of Energy Efficiency measures Potential for 20-25% of energy consumption reduction

Strategies to address the energy sector challenges

Energy Savings Demand Side Management (DSM)

Programs (i.e. Mexico’s CONAE/FIDE)

Commercial efficiency programs (i.e. Caribbean Hotel Association Efficiency Program)

Improve transportation systems (roads, public transport, efficiency standards)

Interconnections/Cooperation among countries – South America

Link fuel supply lines (i.e. Natural gas pipelines Bolivia/Brazil/Argentina)

Link power grids (Colombia-Chile?)

Central America (SEIPAC)

• Key Considerations:

– Get policies and regulations right… build confidence

– New large suppliers?

– CA-Mexico

– CA-Colombia

(Map source: World Bank/WEC)

Distances (average) in

miles

128 mi

270 mi

78 mi

60 mi

120 mi26 mi

55 mi

35 mi

30 mi

30 mi

33 mi 100mi

60 mi

90 mi

Distancias

Caribbean - Distances Between Islands

18

Snapshots of Several Caribbean Interconnection Scenarios (Source: World Bank/Nextant)

Eastern Caribbean Gas Pipeline Proposed Route

Dominica Interconnections

Northern Ring Interconnections Alternative Puerto Rico and St. Kitts and Nevis – US Virgin Islands Interconnections

Nevis to St. Kitts Study (OAS/Kema Inc.)

19

St Kitts

Nevis

New 69/11 kV

transformer at

Basseterre

New 9 mile

69 kV overhead

line

Revise connection

at St Kitts

shoreline

New 69/11 kV

transformer

at generator

SKN to Puerto Rico Study (OAS/Kema Inc.)

~60 mi

~40 mi

Dominican Republic to Puerto Rico Study (World Bank – Tractabel Engineering/GDF Suez)

Mark Lambrides – Energy Section Chief [email protected] 202-458-6261

Hemispheric Partnerships

• Energy and Climate Change Partnership of the Americas www.ecpamericas.org

• Renewable Energy and Energy Efficiency Partnership www.reeep.org

Policy/Technical Assistance

• Support Preparation of National Energy Policies, Plans, Laws, Regulations

• Identify/assess sustainable energy project opportunities, and support their development

• Build human and institutional capacity for the governance of energy

• Caribbean region occupies at least 50% of the Section’s TA work

OAS – Energy and Climate Change Section

What is ECPA?

Partnership of stakeholders on energy and climate change

Medium for exchange of best practices

Dialogue forum

• Working group meetings

• Ministerial events

• Summit processes related to energy and climate

SKN to Puerto Rico Study

(OAS/Kema Inc.)

Seven pillars

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Energy Infrastructure

New Study Released Last Week

www.caf.com/_costom/static/agenda_energia/index.html?

Thank you! Mark Lambrides

Department of Sustainable Development

Organization of American States

T. +1.202.458.3745

F. +1.202.458.3560

[email protected]

www.ecpamericas.org