Transcript Green Energy Policy - OCTA - Association of the Overseas

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
Utilities Aruba N.V.
2
Power & water: strongly dependent on fossil fuel
costs
Government intervention
in tariff
.350
150.000
.300
125.000
.250
.200
100.000
.150
.100
75.000
.050
.000
HFO/bbl
Jun-12
Mar-12
Dec-11
Sep-11
Jun-11
Mar-11
Dec-10
50.000
Sep-10
Fuel price
• 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)
Fuel prices & Power Tariff (USD)
Crude oil/bbl (WTI)
Power tariff
3
Vision of 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:
o
o
o
o
o
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
4
Short Term Approach
•
Dialogue with social partners
and stakeholders on actions to
be taken
( Case of August 2011: partial
increase of tariffs)
o Utility tariffs remained frozen for
the remainder of 2011 and in
part of 2012.
o 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.
5
Mid-long term: various complementary measures
Mid-long term
initiatives
Demand
side
Supply
side
Increased
production
efficiency
Substitute of
HFO with
Natural Gas
Increase of the
contribution of
renewable
energy
Increased
Awareness
Incentives for
for more efficient
appliances and
cars
Replacement of
inefficient
devices (e.g.
LED lights)
International
Strategic
Partnerships
6
Vs.
MSF Waterplant
SWRO Plant
Supply Side: Increase production efficiency
Power production
RECIPS GENERATOR
Conventional
Boiler / Turbine Generators
1 MWh
100 m3
Vs.
Water production
SWRO
New
Reciprocating Engines
1 MWh
100 m3
7
Supply Side: Increase production efficiency
7000
Increase in
production
efficiency will
result in
reduction of the
HFO
consumption and
HFO costs
Forecast
HFO consumption and prices
120
6000
100
5000
80
4000
60
3000
40
2000
20
1000
0
0
2005
2006
2007
2008
HFO use/day (bbl)
2009
2010
2011
2012
2013
HFO price (USD/Bbl)
8
Supply Side: Substitute of HFO with Natural Gas
• HFO is at the moment
as expensive crude oil
Price per MM BTU
25.000
• Increasing Global NG
reserves have boosted
the potential supply
20.000
15.000
USD
• Transportation technologies is making Natural
Gas (NG) more and
more available to the
world market
10.000
5.000
.000
2013
2014
LNG
2015
2016
2017
HFO
9
Supply Side: Renewable Energy
Wind
• Since 2009 Aruba has a
30 MW wind park, operated by an Independant Power Producer
(IPP)
• In 2014 an additional
wind park will be
operational. This will
double the wind power
contribution to 36 %
• The IPP sells the power
for a price that is fixed
for 20 years
• Aruba will then be one
of the countries with a
high percentage of RE
penetration.
10
Supply Side: Renewable Energy
Solar
•
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
11
Supply Side: Renewable Energy
Waste 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
12
From vision to results
A greener portfolio
2744
2397
1825
WEB CO2 emissions (T/day)
936
13%
18%
36%
5%
5%
10%
100%
87%
77%
49%
2008
HFO
2010
NG
Solar
2012
W2E
2014
Wind
13
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.
Hunto nos ta spaar
Smart metering
To mitigate this risk various
activities have started in order
to manage the utility demand
of consumers
14
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
15
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:
o H.E. M. Eman, Prime Minister of
Aruba
o Ms. M. Van der Hoeven, Executive
Director International Energy
Agency
o Prof. dr. Dimitris Papastefanakis,
Center for Renewable Energy
Resources and Saving Greece
16
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
17
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)
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