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Thursday, January 14, 2010
Today's News Headlines
* First Baja California wind project starts operations - Mexico
* LNG-fired thermo capacity set to double - minister - Chile
* Matrix as diverse as it has ever been - minister - Chile
* Eletronorte reconnects thermo plant as Venezuelan exports fall - Brazil
* December power demand falls 0.3% - Argentina
* Dams record eighth straight month of lower than average levels - Colombia
* EDC to start programmed power rationing in Caracas - Venezuela
* Energy agreements unite three firms on hydro projects - Guatemala
* China's Ex-Im bank signs US$1.7bn loan MOU for 1.5GW hydro plant - Ecuador
* IN BRIEF Aneel okays commercial operations for Barra do Braúna hydro - Brazil
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* First Baja California wind project starts operations - Mexico
The 10MW La Rumorosa I wind farm owned by Mexico's Baja California state government began commercial operations January 13, project manager Arturo Corral told BNamericas.
The farm is located in the La Rumorosa area between Tijuana and Mexicali in the Sierra de Juárez region. It is the first wind plant in the La Rumorosa area and will serve as an example for other projects soon to follow.
Construction was completed last October by Mexican firm Turbopower Services, which won the EPC contract with its bid of US$26.2mn. The company has been carrying out tests since October.
The wind farm will be operated by Turbopower Baja Energy for one year, after which it will be turned over to the state government.
It is expected to operate at an annual average of 30% capacity and will be used for public lighting, Corral said.
The farm is made up of five turbines manufactured by Spain's Gamesa and is the first phase of Baja's wind development plans.
Corral said the most significant factor for construction was avoiding the large rocks found in the mountain region.
The company, however, found a very large rock located below ground in an area not covered by the soil analysis. This required dynamiting, for which Turbopower had to acquire a permit from the Mexican armed forces.
"The permits take a long time to get, and that was the greatest challenge we faced. We had to try and get the permit in time to not delay the project," Corral said.
Baja California state's second phase of wind development plans entails a tender for a 100MW project that will be constructed and operated by a private firm.
The Rumorosa area has an estimated 3GW of wind potential, and generated power could be exported across the border to the US to help satisfy California's desire for clean energy.
By David Biller
Business News Americas
* LNG-fired thermo capacity set to double - minister - Chile
The amount of imported LNG used to fuel thermo power plants on Chile's central SIC could double in 2010, Chile's energy minister Marcelo Tokman said at a press conference.
"LNG is now accounting for 13% of the power produced on the SIC," Tokman said. "And its participation in the matrix is only going to grow."
One of the positive results of the introduction of LNG in September 2009 is the reduced reliance on diesel for thermo generation, according to the minister.
"Generation with diesel has almost completely disappeared," Tokman said. "In 2008 at one stage almost 52% of our thermo plants ran on diesel which meant extremely high costs on the system. At the end of 2009, it was about 5%."
"This is a very good indicator of the security of our system. The crisis is now history," Tokman continued.
NEW CAPACITY, FLAT DEMAND
In 2009, increased capacity and flat demand led to greater reserve capacity on the grid. SIC capacity increased by 1.4GW in 2009, from around 13GW to 14.5GW. Demand barely rose over the period, according to the minister.
"In 2008 there were many times where our reserve margin was zero. But today we see the reserve at 1.8GW on the SIC. There are no supply concerns, and projects with another 3GW of capacity are currently under construction."
"Energy efficiency is here to say," Tokman said. "Not only as a response to crisis, but in terms of changed consumer habits."
Chile began importing LNG in late 2009 at the GNL Quintero facility in central region V.
By Christopher Lenton
Business News Americas
* Matrix as diverse as it has ever been - minister - Chile
Chile's energy matrix continued to diversify in 2009, the country's energy minister Marcelo Tokman told journalists at a press conference in Santiago.
"It is the most diversified matrix we've had in our history," the minister said. "In 2009 we brought on new conventional and unconventional sources of energy including wind, biogas, LNG at Quintero, and we have a plant in the Los Lagos region that runs on biodiesel.
"This doesn't take into account what we are adding in 2010 including geothermal potential," Tokman added. "We are also looking into second generation biofuels. We have to date approved US$45mn in financing for studies in second generation biofuels from biomass and micro and macro algae."
The country is making important strides in solar power as well, the minister added. This week Corema, Chile's regional environmental regulator for northern region Antofagasta, approved Spanish firm Solarpack's EIA to construct and operate Chile's first solar plant. Tenders are also set to be announced in the coming weeks for two solar pilot plants in the north of the country.
THE EXPLOSION OF WIND
The presence of wind farms has seen a sharp rise in Chile and is central to the diversification of the matrix, according to the minister.
"Wind has exploded in Chile," Tokman said. "Before this government it didn't exist. Until 2007, we only had 2MW in the south of Chile. But now we should have 200MW of installed capacity by the end of 2010.
"In 2006 we had three turbines in the country," Tokman continued. "Today there are 91 in operation. Wind projects totaling 686MW are undergoing environmental approval process, and this is on top of the 1.3GW of projects that already have approval. We are talking about something that wasn't part of the matrix a few years ago, and now it plays an important role."
In 2009, non-conventional renewable projects totaling 949MW of new capacity were submitted for environmental approval, 809MW of which was wind capacity. This figure also includes 9MW of solar projects, 28MW of biogas projects, 25MW of biomass projects and 78MW of mini-hydro capacity, according to the minister.
"For the first time ever, we had more renewable projects approved for environmental licensing than thermo projects," the minister said.
By Christopher Lenton
Business News Americas
* Eletronorte reconnects thermo plant as Venezuelan exports fall - Brazil
Brazilian state-run utility Eletronorte has reconnected the 47MW Floresta thermo plant in order to compensate for reduced power exports from Venezuela to Roraima state, a spokesperson for Eletronorte told BNamericas, confirming local reports.
"The company reconnected the Floresta thermo plant on January 11 to compensate for the reduced Venezuelan power exports. There is no risk of a blackout or supply failure in the region," the spokesperson said.
Brazil's northern state of Roraima is not connected to the national interconnected power grid. The region receives part of the power it needs from Venezuela.
Eletronorte said local customers will not pay extra charges due to the usage of the thermo plant.
Roraima's state government is also studying power acquisitions from the private sector.
Venezuela is facing a severe power crisis because of low hydro levels.
By João Carvalho
Business News Americas
* December power demand falls 0.3% - Argentina
Power demand on Argentina's national grid fell 0.3% to 9.02TWh in December from 9.05TWh in the same month of 2008, power consultancy Fundelec said in its monthly report.
The reduction was attributed to weaker demand in greater Buenos Aires and coastal regions.
December demand was up 4.8% from 8.61TWh in November 2009.
Annual demand in 2009 fell 1.3% from 2008, the first time annual demand has fallen since 2002, according to the report.
Thermo generation accounted for 42.7% of power produced in December, while hydro represented 47.8%.
Nuclear generation accounted for 7.2% of total power generated during the month, and imports made up 2.2%, Fundelec said.
On average over the course of 2009, thermo made up 55.1% of the power mix, hydro 36.2%, nuclear 6.8% and imports 1.8%.
By Business News Americas staff reporters
* Dams record eighth straight month of lower than average levels - Colombia
For the eighth straight month, dams in Colombia have registered lower than average water levels, according to wholesale power regulator XM.
Hydro power accounted for 1.95TWh of power produced on the country's national SIN grid in December, down 50% from the same month of 2008.
Total generation on the SIN grid last month reached 4.76TWh, an increase of 0.8% over December 2008.
Over 80% of Colombia's installed capacity is hydro, but thermo generation has been increasing because of droughts blamed on the El Niño weather pattern.
By Business News Americas staff reporters
* EDC to start programmed power rationing in Caracas - Venezuela
Venezuelan state power distributor EDC will begin implementing rotating four-hour programmed power cuts in Caracas that will affect specific zones every other day, state news agency ABN reported.
The programmed cuts will save 2.6GWh/d in January, 2.1GWh/d in February, 1.4GWh/d in March, 900MWh/d in April and 3.6GWh/d in May.
EDC distribution clients can log on to its website to verify their power cut zone. The rationing is expected to last through May.
Hospitals and educational institutions will not be included in the power cuts, ABN reported.
Venezuela's power crisis is becoming increasingly severe as levels at the Guri dam, which provides about 70% of the power consumed in Venezuela, continue to fall. The water level is currently at 261m, 10m below normal.
Venezuelan authorities are trying to reduce national consumption by 20% to prevent the water level at Guri from reaching the emergency level of 240m. If waters drop below that level, authorities will have to reduce Guri capacity by 5GW.
Shopping malls and other industries have already been forced to cut power demand. Public employees, meanwhile, saw their work day cut in half to reduce power consumption in offices.
Venezuela's state power company Corpoelec is rushing ahead with plans to install new backup thermo capacity, but some analysts say that the company has not been moving fast enough.
By Business News Americas staff reporters
* Energy agreements unite three firms on hydro projects - Guatemala
New Zealand-based energy investment firm World Energy Research (WER) has enabled a partnership with German company Wasserkraft Volk and Guatemalan firm Energía Total to develop hydro projects in Guatemala, WER said in a statement.
Wasserkraft Volk has been commissioned to build three hydro plants in Guatemala. Energía Total will purchase 100% of the power generated by the three units, according to the statement.
WER is in charge of funding and managing the project.
After this phase is complete, WER has plans for 10 more hydro plants in Guatemala, according to the statement. It's also exploring Guatemala's solar, wind, biomass and geothermal energy potential.
By Business News Americas staff reporters
* China's Ex-Im bank signs US$1.7bn loan MOU for 1.5GW hydro plant - Ecuador
The governments of Ecuador and China have signed a memorandum of understanding (MOU) for a US$1.7bn loan to finance the 1.5GW Coca Codo-Sinclair hydroelectric plant in Napo province, Ecuador's state news agency Andes reported.
Finance minister María Elsa Viteri signed the MOU with China's Ex-Im bank on Tuesday in China.
"The negotiation has not been closed yet, but there are advances in the agreements," Andes reported Viteri as saying in a phone interview.
The project will have a total cost of US$1.98bn, with the difference to be provided by local funds, BNamericas reported previously.
China's Sinohydro will take charge of the plant's construction, according to a report by Spanish news agency EFE.
By Business News Americas staff reporters
* IN BRIEF Aneel okays commercial operations for Barra do Braúna hydro - Brazil
Brazilian utility sector regulator Aneel has authorized the start of commercial operations for the first 13MW turbine at the Barra do Braúna hydro plant, according to the country's official gazette.
The 39MW Barra do Braúna hydro is located in the southeastern state of Minas Gerais.
The other two turbines are also set to start operations this year.
By Business News Americas staff reporters
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In-deph interview
* Colombia's power challenges
Luis Rico
CEO
Isagen
Colombia
http://www.bnamericas.com/interviews/electricpower/Luis_Rico_,Isagen,/169884035
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Main companies covered in today's news
* Comisión Federal de Electricidad
http://www.bnamericas.com/company-profile/en/Comision_Federal_de_Electricidad-CFE/169884035
* Grupo Isolux Corsán S.A.
http://www.bnamericas.com/company-profile/en/Grupo_Isolux_Corsan_S,A,-Isolux_Corsan/169884035
* General Electric Company
http://www.bnamericas.com/company-profile/en/General_Electric_Company-GE/169884035
* Ministério de Minas e Energia
http://www.bnamericas.com/company-profile/en/Ministerio_de_Minas_e_Energia-MME/169884035
* Gamesa Corporación Tecnológica, S.A.
http://www.bnamericas.com/company-profile/en/Gamesa_Corporacion_Tecnologica,_S,A,-Gamesa/169884035
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