Nicaragua’s Green Revolution
Guisell Morales-Echaverry
Ambassador of Nicaragua to the
United Kingdom of Great Britain
and Northern Ireland
Bristol, June 15 2016
Contents
A BRIEF LOOK BACK
NICARAGUA’S GREEN REVOLUTION
• Why Nicaragua is leading the Green Revolution
NICARAGUA’S RENEWABLE ENERGY GOALS
• Transformation and Diversification of the Energy Matrix
SOCIO-ECONOMIC IMPACT AND DEVELOPMENT
GREEN ENERGY SECTORS: PROJECTS AND DEVELOPMENT
THE ROAD AHEAD
CONCLUSIONS
THE BATTLE OF OUR TIME: CLIMATE CHANGE
u VIDEO
Nicaragua has
historically depended on
fossil fuels for
electricity generation
and transport.
A BRIEF LOOK BACK
Birth of our Green Revolution
2012: Nicaragua
invested the fifth
highest percentage
worldwide of its
GDP in developing
renewable energy
2007:
Commencement
of the Sandinista
Government
2013: The amount
of investment
attracted by the
country for
renewables was
the largest per
capita in Latin
America
2014: Renewables
represent 52% of
the total
electricity supply
Evolution of renewable energy
u
Evolution of electricity generation in
Nicaragua
u
Wholesale prices and the evolution of renewable
energy in Nicaragua.
Why Nicaragua is leading the green revolution
1. The country is endowed with abundant natural resources
• Nicaragua has territory of 130,000 km², holds 7 percent of the world’s bio-diversity, the
largest tropical forest located to the north of Amazonas, the largest lake in the Central
American isthmus, 28 volcanoes and 800 km of shoreline in the Pacific and the Caribbean.
2. Green-oriented government
• Since 2007, the Government of Nicaragua has implemented various strategies to foster
investment in the renewable energy sector of the country.
NICARAGUA RENEWABLE ENERGY GOALS
1. 75 %
renewable
by 2017
2. 90 %
renewable
by 2020
DIVERSIFICATION OF THE ENERGY MATRIX
Source: Nicaraguan Energy Institute (INE).
DIVERSIFICATION OF THE ENERGY MATRIX
Nicaragua has a diversified renewable
matrix.
In 2014, 52% of the 4.4TWh generated in
the country came from biomass,
geothermal, solar, small hydro and wind.
Source: Multiconsult y Cia. Ltda.
Sustainable Electrification and Renewable Energy Program
National Sustainable
Electrification and Renewable
Energy Program
Off-grid Rural Electrification
Project
Rural Electrification Project
in isolated areas, PERZA
PROJECT
SOCIO-ECONOMIC IMPACT AND DEVELOPMENT
A GREEN REVOLUTION FOR THE PEOPLE
SOCIAL POLICIES IN FAVOR OF THE POOR
•UNIVERSAL FREE HEALTH AND EDUCATION, including university,
technical and rural education: preventive, family and community
health model.
•Minimum wage:
+40.67%
•Subsidies:
US $1,110.4/year
§Public Transport
US $321.08/year
§Water:
US $53.51/year
§Energy
US $160.54/year
§Food:
US $200.68/year
§Solidarity bonus:
US $374.59/year
•Capitalisation per poor family:
§Hambre cero (Zero Hunger):
Up to US $1,500; Average: US $710
§Usura Cero (Zero usury):
US $250
GOVERENMENT PROGRAMS FOR LIFE QUALITY
IMPROVEMENT AND FOOD SECURITY 2007-2016
MICRO STRATEGY
1. Strengthening Family, Community, Cooperative and Associative
Economics
• Hambre cero [Zero Hunger]
• Usura cero [Zero Usury]
2. Improved yields, Productivity and Value added
•Better practices
•Technology
•Irrigation
•Funding
•
•
•
•
Technical assistance
Marketing support
Agribusiness
Cooperativism and Asociativity
CARIBBEAN COAST
LANDS
Delimiting and titling of 23
indigenous territories:
• 314 Communities
• 37,657 Km2
• +200,000 people
• +35,000 families
• 31% of the national
territory and +55% of the
territory of the Caribbean
Coast
STRATEGY
SHORT TERM
MEDIUM TERM
LONG TERM
•Food crops (grains,
vegetables, roots and
tubers, spices)
•Artisanal fisheries
•Semi perennial highvalue crops (cocoa,
coconut, oil palm,
citrus, rubber, bamboo,
breadfruit, pejivalle
palm, cashew)
•Agroforestal model
•Plantations of tropical
wood (teak, mahogany,
Granadillo, Nambar,
Pochote)
13
INCLUSION AND BALANCE OF NATIONAL RELATIONSHIPS
SOCIAL COHESION
UNAG, UPANIC
FEDEGAN
COOP
CABINETS
National
Government
+
Big and small producers
+
Workers
PROSPERITY-PEACE - STABILITY - SECURITY–
COMPLEMENTARITY-WORK - VOLUNTEERING
+
Regional Governments
+
+
Local Governments
Organized
Communities
10
Evolution of Extreme Proverty
EVOLUTION OF GENERAL POVERTY
• measured by consumption
80%
70%
68.5%
67.8%
70.3%
63.3%
60%
50%
47.9%
45.8%
50.1%
48.3%
42.5%
40%
30.5%
30%
30.1%
30.9%
29.6%
26.6%
20%
14.8%
10%
1998
2001
2005
2009
Nacional
Urbano
2014
Rural
GREEN ENERGY SECTORS
PROJECTS AND DEVELOPMENT
GREEN ENERGY REVOLUTION
THE ROAD AHEAD
RENEWABLE ENERGY POTENTIAL
THE ROAD AHEAD
u
Prospective for the Renewables Energy, The Expansion Plan.
Projects
Boboké
Larreynaga
Tumarín
PiedraPuntuda
ElDiamante
CopalarBajo
SaltoY-Y
ElCarmen
PiedraCajon
Valentin
CorrienteLira
Mombacho
Casitas
Apoyo
Chiltepe
Biomasa1
Biomasa2
CASUR
Montelimar
MMV
Source
Hydroelectric
Hydroelectric
Hydroelectric
Hydroelectric
Hydroelectric
Hydroelectric
Hydroelectric
Hydroelectric
Hydroelectric
Hydroelectric
Hydroelectric
Geothermic
Geothermic
Geothermic
Geothermic
Biomass
Biomass
Biomass
Biomass
FuelOil
2015
2016 2017
2018
2019 2020
2021
2022
2023 2024 2025 2026 2027
70MW
17MW
253MW
15MW
5MW
150MW
25MW
100MW
22MW
28MW
40MW
25MW
35MW
36MW
35MW
30MW
30MW
24MW
30MW
140MW
THE ROAD AHEAD
u
Central American: Demand and Supply of Energy in Regional Electricity Market (MER)
Installed Capacity by country
Source: Calculated
using electric
Subsector Statistics
2013, CEPAL.
LESSONS LEARNED
The change of the institutional framework in Nicaragua
The stability of the wording in the energy policy
The high level of cooperation between the executive and the Legislature
The existence of an investment promotion agency with public-private participation
The speed in the granting of authorizations
The support of international cooperation
The inclusion of direct negotiation on power purchase
Financing from local banks
Energy Prices Stability
The technical conditions of the electric distribution circuits
The maturation of the regional market
Hydroelectric power plants as ancillary services
THE ROAD AHEAD: CHALLENGES
Conclusions
Nicaragua’s Green Energy
Revolution has just
started
Nicaragua as a model for
other Green Revolutions
Nicaragua’s renewable
energy sector has a bright
future, both for utility
scale and small scale
projects, due to the
country’s largely
untapped renewable
resources
The vision, compromise,
support and measures put
in place by the Sandinista
Government of National
Reconciliation and Unity,
lead by President Daniel
Ortega has enabled the
Green Revolution
THE BATTLE OF OUR TIME:
CLIMATE CHANGE
THE PARIS AGREEMENT
NICARAGUAN POSITIVE CONTRIBUTION
TO CLIMATE CHANGE
PLANES DE
REFORESTACIÓN
REFORSTATION
PLANS
Emission Reductions Program Idea Note
Planes secuestro CO2
2015
Reduction de
2.1 millions
of ton of CO2
emissions
Emisiones anuales CO2
11.0 millones de
toneladas
4.8 millones de
toneladas
Nicaragua
11
Nicaragua
rejects
explicitly
the Paris
Agreement
THANKS VERY MUCH
MUCHAS GRACIAS