Transcript Renewable Energy in Latin America and the Caribbean

SUMMIT IMPLEMENTATION REVIEW GROUP (SIRG)
Sixth Regular Meeting of 2008
December 10-12, 2008
Hotel Royal Decameron Salinitas
El Salvador
OEA/Ser.E
GRIC/O.6/doc.3/08
9 December 2008
Original: English
PRESENTATIONS BY THE PARTNER INSTITUTIONS OF THE
JOINT SUMMIT WORKING GROUP - JSWG
INTER-AMERICAN DEVELOPMENT BANK
(Energy Security)
ENERGY
SECURITY
Vicepresidence for
Sectors and
Knowledge
. Infrastructure and
Environment Sector
. Energy Division
German Cruz
December 2008
Primary Energy
• Crude oil is the more accessible and
commercial form of primary energy around
the world
• Petroleum derivates can be used for
transportation sector o thermal power
generation
• Other fossil sources like gas, or coal are
used fundamentally for thermal power
generation.
• Other sources supply of primary energy,
Primary Energy Supply
Primary Energy Supply
100
80
60
%
40
20
0
Andean
Region
Caribbean
Central
America
Fossil Fuel
Source: OLADE SIEE, 2005
Southern
Cone
Renewable Energy
Mexico
LAC
Western Hemisphere- oil
Hemisferio Occidental: Producción y Consumo de Petróleo (mbd) 1965 - 2006
35000
Consumo (mbd)
30000
25000
Importación (mbd)
20000
Producción (mbd)
15000
19
65
19
67
19
69
19
71
19
73
19
75
19
77
19
79
19
81
19
83
19
85
19
87
19
89
19
91
19
93
19
95
19
97
19
99
20
01
20
03
20
05
10000
Fuente: BP Statistical Review of World Energy June 2007
Western Hemisphere- oil 2020
Hemisferio Occidental: Producción y Consumo de Petróleo (mbd) 1965 - 2020
40000
Consumo (mbd)
35000
30000
Importación (mbd)
25000
20000
Producción (mbd)
15000
19
65
19
68
19
71
19
74
19
77
19
80
19
83
19
86
19
89
19
92
19
95
19
98
20
01
20
04
20
07
20
10
20
13
20
16
20
19
10000
Fuente: BP Statistical Review of World Energy June 2007 y Cálculos Propios
Western Hemisphere
Oil Stocks (Bb)
1985
1995
2005
% of total
stocks
164
173
163
~ 0%
102
89
59
36.5%
63
84
104
63.5%
Non-Andean
5
10
16
9.9%
Andean
57
73
87
53.6%
Western
Hemisphere
NorthAmerica
SouthAmerica
Energy Sector in
Latin America and the
Caribbean
• Energy production and consumption in the
region is comparatively low, although these are
rising.
• The intensity of energy use and energy supply
varies across the region.
• Much of the region’s energy consumption is
concentrated in Argentina, Brazil, Mexico, and
Venezuela.
• Across the region, the sectors consuming the
most energy are:
– Industry (region-wide average of 38%)
– Transportation (32% on average)
Evolution of Electricity
Generation by source
- Latin America -
Energy supply LAC- 2004
Other nonUnsustainable
Timber
renewables,
Other
renew ables,
1.3%
0.5%
2.2%
Nuclear,
1.6%
Coal,
4.8%
Cane products,
5.7%
Agricultural
Timber,
0.3%
Residential
Timber,
3.6%
Industrial Timber,
0.7%
Oil,
41.7%
Renewable,
24.8%
Hydroenergy,
11.3%
Vegetable coal,
1.5%
Geothermal,
0.5%
Natural gas,
24.5%
Source: Altamonte, 2006. ‘Renewable Energy Sources in LAC: 2 years after Bonn’
Renewable Energy in LAC*
• Today, renewable sources of energy
generate 24.8% of LAC’s electricity.
– Studies indicate they could generate up to
47% of the electric demand estimated for
2030.
• Biomass and biological wastes are another
important source of renewable energy in the
region
• Central America and the Caribbean could
replace between 10% and 50% of their
* LAC: Latin American and the Caribbean
gasoline consumption through the
Hydropower
• The region as a whole relies heavily on
hydroelectricity (Brazil, Colombia, etc.)
• The region holds 21 % of global hydrogeneration capacity.
• Most countries in the region use already a
good portion of their hydraulic potential to
generate electricity.
• Most countries operate on the multi-megawatt
range. However, small hydropower should be
exploited as a good alternative given the high
rainfall
indices
and
rough
topography
of
many
Source: Huacuz, J., 2003
countries.
Br
a
Co z il
lo
m
bi
a
Pe
r
M u
e
V xic o
en
ez
ue
A
rg la
en
ti n
a
Bo
li v
ia
Ch
i
Ec l e
ua
d
Pa or
ra
gu
a
G y
uy
Co an
sta a
Ri
G
ua ca
te
m
a
H
on l a
du
ra
Pa s
na
Su m a
ri
El nam
e
Sa
lv
a
D
om dor
.R
e
U p.
ru
g
N uay
ica
ra
gu
a
Cu
ba
H
ai
Ja t i
m
a
Ba ica
rb
ad
Tr
os
in
G
id
ad rena
da
&
To
ba
go
Power (MW)
Hydropower, cont.
Hydropower Potential LAC
160,000.00
140,000.00
120,000.00
100,000.00
80,000.00
60,000.00
40,000.00
20,000.00
0.00
Source: OLADE, 2005. ‘Energy Statistics Report 2005’
Solar Energy
• Thanks to its low cost is becoming an attractive
means of bringing electricity to isolated rural
communities.
– The first solar cells cost around $200 dollars per
watt. Today they cost less than $3 dollars per
watt.
• Peru- Sustainable Rural Electrification:
Installation of 12,500 Photovoltaic systems in
rural households ill-suited for grid extension in
four regions of the country.
• Chile- Rural Electrification Program: IDB
Geothermal Energy
• Costa Rica generates 98 percent of its electricity
through renewable sources, thanks in part to a
growing reliance on geothermal energy.
• Mexico is now the world’s third largest producer
of geothermal electricity.
– It generates 953 MW for around 6,600 GWh of
geothermal energy per year, contributing 3.1% to
the Mexico’s electricity supply (global geothermal
supply is 0.442%).
– Studies have shown a potential for 3,650 MW
(20,460 GWh) that could provide more than 12%
of total electricity generation.
Source: Gawell & Greenberg, 2007. ‘2007 Interim Report, Update on World Geothermal Dev.’
Wind Energy
• Most commercial RE alternative in the
developed world. Estimated $71 billion invested
in RE worldwide in 2007, of which 47% was for
wind.
• Principal component for decarbonizing society
since free of GHG emissions
• New materials, turbine designs and new
technologies have slashed the cost per watt
Wind Energy LAC
• Good experiences with pilot projects at different
levels: Costa Rica (commercial), Colombia
(technical cooperation).
• Brazil: Rapidly increasing its wind installed
capacity:
– 2006: 28MW
– 2007: 237 MW
– Expected increase from new projects: 1400 MW
• Mexico - La Venta II: total installed capacity of
83.3 MW and 307,728 MWh estimated yearly
average generation.
– Expected increase 3000 MW for 2006-2014 according to
the Mexican Wind Energy Association
Biofuels
Sustained Biofuels
Certain importing markets will require biofuels that
meet certain sustainability standards.
• LAC has the potential to be at the forefront of
creating a sustainable biofuels industry.
• IDB partners with the Roundtable on Sustainable
Biofuels to increase investment in sustainable
biofuels.
• The IDB is currently :
- Developing internal sustainability guidelines for
•
biofuels
- Developing a “scorecard” to promote only the most
sustainable biofuels
What lies ahead
• Increase energy efficiency and reduce
harmful pollution while also promoting
economic development.
• Investment needed in Energy in LAC
(2005-2030)
• The energy demand in LAC will increase 75% by
2030.
• Required investments: US$ 1,600 billion
• In the next decade alone, LAC will require a
50% increase in its installed capacity, more
than 90GW
Towards the future:
Supply and Demand balance achieved
through RE and EE
Renewable Energy: Importance
for Poverty Alleviation
• Energy security has important implications on Poverty
• Poverty is still higher than in 1980 in both relative and
absolute terms
• Approx. 10% of total population (50 million people)
does not have electricity
• Poverty relief linked to increased energy consumption
• For the 16 countries which are net importers of oil, the
price increase of hydrocarbons poses an increasing
challenge.
• Some of LAC’s major exporters are experiencing
reduction in the productivity of their deposits
Sustainable Energy: A priority for the IDB
Challenges for the Region
• Achieve sustainability of energy supply and rational
use of resources
• Energy access for all the population
• Within the region some countries face:
– Energy security issues and high energy bills
– Urban pollution problems and extreme vulnerability to
climate change
• Regulatory and institutional frameworks
• Pre-investment resources to support project
preparation and development
Conclusions
• The Western Hemisphere is an energy net importer
• The deficit originates from the energy gap of North
America
• With declining stocks, this gap will tend to widen
with time.
• Climate Change is likely to add extra strain to the
energy deficit.
• Renewable Energies and Energy Efficiency will
contribute to cover the energy deficit.
• Climate Change Mitigation and Adaptation are
becoming part of Energy Security strategies.