Comparison between Wind Energy Public Policies in

Comparison between Wind Energy
Public Policies in Brazil and Colombia
Claudia Lorena Esquivel
PhD Candidate - University of Sao Paulo
Teacher University of San Buenaventura - Cali
Outline
Carry out an analysis of the most relevant elements
in energy planning of the energy grid - Installed
capacity for wind energy
 Review the legal framework in order to assess the
inclusion of wind power within the energy grid
 Identify the effect of these policies on the electric
market
Energy Planning
• It is a strategic issue for the economic development
of any country
• How do countries define strategic plans and design
public policies to meet the expectations of CO2
reduction and at the same time to develop a
reliable and secure system that responds
satisfactorily to the demand?
Energy grid in Colombia
and Brazil
https://erenovable.com/importancia-de-energia-eolica/
Energy planning and Wind Power in
Brazil
The long term energy planning is drawn up by the Ministry of
Mines and Energy and the Energy Research Company which
has been set out in the National Energy Plan 2030 document
The proposal has a greater
expansion of new renewable sources
Photovoltaic
Wind power
Biomass
Solar
Brazil has one of cleanest energy (electricity grids in the
world - approximately a 90% of electricity energy comes from
renewable sources
Hydraulic energy
Installed Capacity of Wind Power
in Brazil
www.energiaestrategica.com/desarrollo-e-implementacion-deproyectos-de-energia-eolica/
The strategic planning of the Brazilian Government provided
for the alternative sources of energy is in concordance with
the planning criteria for the development provided in the
Federal Constitution in its Article 174.
The long-term planning for
the energy sector is the TenYear Plan for Expansion PNE
and the last was prepared for
2030.
Renewable
energies:
an
opportunity to diversify the
energy
grid,
to
achieve
technological innovation and
develop
new
businesses
creating conditions
for
a
sustainable economy.
Colombia’s Electric System
 Strong
population
concentration in areas
connected to the National
Interconnected System
 Installed power generation
capacity: 15,513 MW (6th
largest in Latin America)
 Heavy dependence on
hydro (70% of total installed
capacity and 2ND after
Brazil)
Renewable Energy Participation in
Colombia’s Energy Basket
Main factors for current limited renewables:
Abundant water resources
Reliability issues
Limited to non-existent knowledge of market regarding
renewables potential
Colombia’s Renewables Potential:
Wind Power
• Relevant elements in energy planning of the energy
grid in terms of the expansion of the capacity installed
for wind energy.
• Regulatory incentives in the legal framework that
contemplates the contractual options of how the
wind power can be negotiated.
• Both developed and emerging countries include in
their economic development and energy policy an
increase of installed capacity of renewable energy.
• Brazil meets its energy demand with a 61% and
Colombia with 70% of hydroelectric power.
• The lack of water in a reservoir constantly threat
with a supply crisis, before it is forced to use the
thermoelectric stations which are highly polluting and
expensive
It is indispensable to create conditions that ensure the
opening of spaces for alternative sources.
This diversification process should be done by ensuring the
continuity and security of the electric sector.
Wind power, among few other renewable energy sources,
constitutes an alternative of an important impact in energetic
transitions that are carried out in both countries.
Brazil
Colombia
Central hydroelectric
power
Biomass
1%
2%
6%
Central hydroelectric
power
Thermal generation
with gas
Liquid
0%
8%
7%
8%
3%
7%
-1%
59%
Wind generating
central
Hydroelctrical power
plant HHP
Thermal generation
with gas
Thermal - carbon
9%
Thermal - carbon
11%
GL
70%
9%
Plant thermonuclear
Wind
Liquid
Source: Aneel
Biomass
Source: XM and UPME
Incentives for Renewable Energy
Brazil
Incentive Program
Sources - PROINFA
for
Alternative
New phase of wind power incentives.
Thus, the electrical energy market
includes two trading environments:
- the regulated market of electrical
power;
- the other the wholesale energy
market,
in both energy can
participate.
The contracts of wholesale market are
bilateral and the price is freely
negotiated, generating a greater risk
and it usually has a short term
duration
Colombia
Law 1715/15 and Decree 4541 /2017
ELECTRIC MARKET
 Brazil had renewable
auctions since 2009
energy
 Colombian the renewable energy
have not participation in the
market
CONCLUSIONS
The two countries have clean electric matrices if the main source is
considered to be hydraulic generation, however they must diversify this
matrix to avoid vulnerability to drought seasons.
Therefore, participation with renewable energies should continue to be
increased; the most interesting is the wind energy due to its enormous
competitive advantages in terms of prices, participation in the auctions and
in addition it is environmentally friendly.
Within the incentives created by Brazil, the aspect of competition as a
criterion to enter to participate in the electricity market, always has been
present -PROINFA- and it is currently maintained in the auction system.
CONCLUSIONS
• With regard to Colombia, it is pertinent to design and implement
public policies with specific targets for increasing the wind power
source, which should include benefits that will allow private
investments and thus bring new players into the sector Electrical, with
which it is democratized its operation and management.
Therefore, it is essential that Colombia incorporate mechanisms that
allow the development of wind energy projects with private public
participation.
• Just as Brazil has done, Colombia requires that the wind source
actively participate in the electricity market, which depends to a large
extent on the progress made in connection with the national
distribution and transmission system.
CONCLUSIONS
• Current regulations in Colombia offer a greater degree of legal certainty for
investors in wind power sources, however greater benefits are required to
make it attractive. This is essential for the wind power source to acquire
greater stability and competitiveness compared to conventional sources of
energy.
THANK YOU