RENEWABLE ENERGY NEWS LATIN AMERICA FOCUS 2012

3
Price of success rises in Brazil
Record 2012 tally still well behind target and
industry must overcome expanding list of hurdles.

Coming Brazilian wind pipeline

Local conent help on offer

Transmission snafu strands 620MW

8
Argentina nance tough sell
State-dominated power sector makes wind a risky
proposition, slowing 754MW of Genren portfolio.

Credit turbulence knocks Genren 2

auction off stride

Argentina wind project upside

10
Panama backing local hero
Auction winner UEP brings leap in scale to
Central American wind development.

Central America project surge

Capacity jump on cards for 2013

Mexico search for easier life
Rowdy neighbors in Tehuantepec persuade wind
developers to look further afeld for new sites.

5GW bid rush in second open season

Mexico on the move projects rundown

Developer leads pack of municipalities

to the power deal table

Caribbean takes step up in class

17
Uruguay stuck on blocks

Steep wind farm learning curve

Turbine stitch in time...

11
RENEWABLE POWER
IN THE US, CANADA
AND BEYOND
re
Mist
descends
Latin American wind farm construction set
new records this year and total capacity could
be within touching distance of 5GW inside
the next fve months, writes Sebastian
Kennedy. The pace of progress is under threat,
however, as delays mount at Brazils auction projects
while the familiar pressures of securing power deals
and project fnance open a window of opportunity for
the Chinese elsewhere in the region. See page 2
Chinese connection: the rst
Goldwind turbines in South
America are going up at
Enersurs 16.5MW Villonaco
wind farm in Ecuador
Photo courtesy of Facebook:
FotoStock Loja
www.frisa.com
Seamless rolled ring supplier for
the wind industry
14
Muddy permit waters in Peru
Contrasting fortunes for developers looking
to scale heights in northeastern Andes region.

Andes growth struggle

Mystery gremlins at PDVSA project

High ridges beckon in Ecuador

Chile decks stacked against green power

Energy
is here
www.juwi.com
Bumps ahead for wind juggernaut
Predicted multi-gigawatt construction bonanza has failed to materialize as complications pile
up in Brazil and struggle for long-term power deals and project fnance hobbles rest of region
latin america
reNewsAmericas 9 August 2012
2
W
ind energy has
continued its upward
trajectory in Latin
America this year with the
installation of 1800MW of new
capacity.
Figures compiled exclusively
by reNews reveal the sector has
maintained the construction
momentum achieved in 2011 to
hit a new 12-month regional build
record.
Strong growth was registered in
market leaders Brazil and Mexico,
where a total of 1300MW is due
for completion before the New
Year. Construction also hit an all-
time high in the Caribbean where
256MW is coming on-stream.
The progress should push Latin
America to a cumulative installed
capacity total of almost 5GW
within the next fve months.
This years installation fgures
fell well short of the multi-
gigawatt bonanza predicted by
some developers and offcials in
2011, however.
Large swaths of capacity
failed to materialize as predicted
and project timeframes have
slipped across Central and South
America. As a result the 2013
forecast appears hard to believe at
5900MW.
Widespread delays to the 1.8GW
of wind commercialized through
Brazils eye-catching auction
framework set an unwelcome
tone ahead of plans for a major
expansion of federally-contracted
capacity.
An unhappy mixture of
transmission, supply chain and
planning constraints has seen
developers request extensions
en masse for wind farms due to
deliver power from July.
The fact that each postponed
project ran into its own unique
raft of setbacks suggests there may
be no quick solution to the evident
problems implementing wind in
Brazil.
The countrys understandable
efforts to protect national industry
by excluding major turbine
suppliers that have fallen foul of
local content rules are only likely
to add further complications to the
next wave of auction wind farms
due to break ground shortly.
Elsewhere in Latin America, the
perennial issues of access to long-
term power purchase agreements
and availability of project fnance
remain the chief stumbling blocks.
Proponents argue signifcant
debt will only be channelled into
the sector when unwavering state
support is exhibited through the
provision of a stable regulatory
framework for the sale of
INSTALLED WIND RUNNING TALLY
Country/region
Capacity in MW E
n
d
-
2
0
1
0
2
0
1
1

b
u
i
l
d
E
n
d
-
2
0
1
1

2
0
1
2

b
u
i
l
d
E
n
d
-
2
0
1
2
2
0
1
3

b
u
i
l
d
E
n
d
-
2
0
1
3
2
0
1
4

b
u
i
l
d
E
n
d
-
2
0
1
4

2
0
1
5

b
u
i
l
d
E
n
d
-
2
0
1
5

Argentina 58 55 113 37 150 520 670 269 939 300 1239
Andes* 23 0 23 74 97 142 239 264 503 120 623
Brazil 882 448 1330 902 2232 3285 5517 2411 7928 1377 9305
Caribbean 106 34 140 256 396 110 506 165 671 40 711
Central America 186 115 301 40 341 172 513 220 733 116 849
Chile 171 30 201 90 291 246 537 463 1000 170 1170
Mexico 519 459 978 399 1377 1030 2407 2671 5078 1538 6616
Uruguay 43 10 53 2 55 394 449 618 1067 403 1470
TOTAL (MW) 1988 1151 3139 1800 4939 5899 10,838 7081 17,919 4064 21,983
* Andes = Bolivia, Colombia, Ecuador, Peru, Venezuela
www.reNewsAmericas.com www.reNews.biz
renewable power. The number
of unbuilt wind farms looking
for power supply deals over the
long term is growing across Chile,
Argentina, Mexico and elsewhere.
These can prove elusive in
markets where utilities and large
consumers can meet their needs
buying low marginal cost base-
load power in the spot market.
Similarly, wind developers note
that low interest infrastructure
loans amortized over 15 or 20
years are not a speciality of Latin
banks, which are more interested
in generating quick returns on
relatively modest sums.
This situation has created
a window of opportunity for
Chinese consortia offering turnkey
fnancing and turbine solutions.
These structural issues will
continue to exert a downward
force on wind energy expansion in
Latin America but the region can
still capitalize on macro-economic
factors.
Major suppliers are keen to
nurture new markets to prop
up their fagging order books in
Europe, the US and parts of Asia.
If supportive governments and
investors hold their nerve, the
desire for growth should soon
reach critical mass and propel
Latin America into the global wind
limelight.
Rivas ows: Blue Power & Energys
39.6MW La F San Martin wind
farm in southwest Nicaragua went
live in June Photo: Blue Power & Energy
B
razil has managed to crank
up its wind energy program
but blockages in the supply
chain, transmission and planning
system are threatening to stall the
sector.
Figures compiled exclusively
by reNews show the nation is
on course to connect as much as
900MW of new wind to the grid
in 2012, a signifcant increase on
previous years.
Much of this is expected in the
fnal quarter so a sizeable chunk
may well fall into 2013, but either
way this years tally promises to
break records and push Brazil over
the 2GW operational threshold.
The frst wave of wind
farms from the governments
contentious power auctions are
up and running, demonstrating
that wind is viable, under certain
conditions, at R$131 per MWh.
Despite these achievements,
Brazilian wind is lagging well
behind offcial forecasts. The
1450MW majority of the 1.8GW
contracted at the frst 2009 federal
tender is severely delayed and will
miss the 1

July 2012 deadline by
many months.
Wind projects have been held
up by a variety of bottlenecks
including administrative
foot-dragging in processing
environmental licenses, supply
chain under-capacity, fnancing
defcits and transmission delays.
Brazilian regulators have
demonstrated they will not accept
project hold-ups.
Retroactive changes imposed
on wind farms delivered years
after deadlines stipulated under
the previous Proinfa framework
left some investors facing a
shortfall on projected revenues.
Power watchdog Aneel shortened
the term of power purchase
agreements to refect the delays
and claw back above-market rate
payments promised under Proinfa.
Other Proinfa parks that have
failed to deliver contracted
quantities of power are being
punished by a downgrading
in their so-called physical
guarantees.
Industry proponents said this
discrepancy must be addressed
if wind is to participate fully
in Brazils unregulated power
market. The physical guarantee
is said to be a crucial metric for
demonstrating project viability
to private off-takers more used to
buying base-load capacity.
Mass commercialization of wind
outside Brazils federally regulated
auction framework remains a
distant dream and the enduring
reliance on state tenders leaves the
sector subject to a large degree of
political risk.
The repeat postponement of
this years A-3 and A-5 auctions
and the lack of readily-accessible
private PPAs left several gigawatts
of wind stranded without a route
to market.
The deferral until October will
only intensify competition and
drive down already-low auction
PPAs to even more challenging
rates, analysts warned. The
fantastically low prices, 2011
tenders dipped to R$98/MWh,
place huge pressure on the
stretched Brazilian supply chain
to meet demand while remaining
competitive.
This issue was brought to the
fore by development bank BNDES
suspension of fve major
turbine suppliers, including
latin america
3
reNewsAmericas 9 August 2012
Price of success rises in Brazil
Record 2012 installation tally still
well behind target and industry must
overcome expanding list of hurdles
www.reNewsAmericas.com www.reNews.biz
Up to the challenge: Impsas
operational 100MW Cear I
wind cluster is being
boosted by 211MW
Photo: Impsa
5
latin america
reNewsAmericas 9 August 2012
4
COMING BRAZILIAN PIPELINE
Due 2013 3284.5MW
Project State MW Developer/owner Turbines
Contracted at Dec 2009 wind auction
Alto Serto I BA 294 Renova Energa GE
Areia Branca, Embuaca, Mar e Terra, Icarai RN, CE 89.9 Martifer / Santander Suzlon
Faisa I-V CE 136.5 Votorantim Energia Sustentvel/Enerplan Suzlon
Miassaba III, Rei dos Ventos I & III RN 186 Brasventos Alstom
Morro dos Ventos I, III, IV, VI, IX RN 145 Dobreve Energia GE
Santa Clara I-VI, Eurus VI RN, CE 188 CPFL Wobben
Contracted at LER 2010 auction
Campo dos Ventos II RN 30 CPFL Wobben
Cristal, Primavera, Sao Judas BA 90 Enel Brasil Siemens
Da Prata, Dos Aracas, Morrao, Seraima, Tanque, Ventos do Nordeste BA 163 Renova Energa GE
Eurus I & III RN 60 Dobreve Energia GE
Eurus II, Renascena V RN 60 Atlantic Energias Renovaveis Vestas
Fazenda Rosario II RS 20 Elecnor / Enerfn Wobben
Serra Santana I-III RN 77.4 Gestamp Vestas
Contracted at LFA 2010 auction
Aratua III RN 28.8 Bioenergy GE
Arizona, Caetite, Calango, Mel RN, BA 258 Iberdrola, Neoenergia Gamesa
Asa Branca I-III, Eurus IV RN 120 Energimp (Impsa) Impsa
Asa Branca IV-VIII RN 160 ContourGlobal Brasil GE
Atlantica I, II, IV & V RS 120 CPFL TBC
Costa Branca, Juremas, Macacos, Pedra Petra RN 78.2 CPFL (previously ERSA) Siemens
Osorio III RS 26 Elecnor/Enerfn Wobben
Pedra Branca, Sao Pedro do Lago, Sete Gameleiras BA 86.4 Brennand Energa, CHESF Vestas
Pontal 2B RS 10.8 Oleoplan/Oleos Vegetais Planalto GE
REB Cassino I-III RS 69 Santander TBC
Renascena I-IV, Ventos de Sao Miguel RN 150 Energisa Vestas
So Bento do Norte RN 94 Dreen Energia (Galvo Energia), COPEL Vestas
Vento Formoso, Ventos de Tiangua, Tiangua Norte, Parazinho, Morro do Chapeu CE 150 Energimp (Impsa) Impsa
Contracted at A-3 2011 auction
Livramento: Cerro Chato IV, V & VI, Ibirapuit, Trindade RS 78 Eletrosul/Rio Bravo Investimentos/Elos Impsa
Contracted on free market
Fleixeiras I, Munda, Guajir, Trairi, Porto da Delta CE, PI 145.5 Tractebel Energia Siemens
Uniao dos Ventos RN 170 Grupo Serveng GE
Expected 2014 2411.3MW
Contracted at LFA 2010 auction
Casa Nova BA 180 CHESF Impsa
Contracted at A-3 2011 auction
Cataventos CE 30 Tecneira/Grupo ACS Gamesa
Chui I, II, IV & V, Minuano I & II RS 144 Eletrosul/FIP Rio Bravo Energia I Impsa
Delta do Parnaba, Porto das Barcas, Porto Salgado PI 75.6 Omega Energia Renovvel Gamesa
Santa A Pdua, Sao Cristovao, Sao Jorge CE 73.6 Abengoa/Banco Santander Gamesa
Fontes dos Ventos, Curva dos Ventos, Modelo BA, RN, PE 197.4 Enel Green Power Siemens
Various BA 212.8 Renova GE
Verace I-X / Geribatu RS 258 Eletrosul/FIP Rio Bravo Energia I Gamesa
Contracted at Reserve 2011 auction
Caicara RN 57.6 Bioenergy GE
Carcar, Carnabas, Reduto, Santo Cristo, Sao Joao RN 142.4 Voltalia TBC
Corredor do Senandes II-IV, Vento Aragano I RS 116 Odebrecht Energias Alternativas, MML Energia Alstom
Dos Indios II RS 28 Elecnor/Enerfn Wobben
Famosa I, Pau Brasil, Rosada, Sao Paulo RN, CE 85 Furnas/Grupo BMG/Ventos Tecnologia Fuhrlnder
Lanchinha, Pelado RN 48 Gestamp Vestas
Malhadinha CE 24 Servtec Suzlon
Santa Helena, Santa Maria RN 60 Casa dos Ventos/Copel GE
Various BA 148.8 Brazil Energy (Nova Investimentos / Man B&W) GE
Ventos de Santo Uriel RN 16.1 Dobreve Energia GE
Ventos de Sebastiao / Geraldo / Santa Rosa / Inacio CE 120 Energimp (Impsa) Impsa
Contracted on free market
Campo dos Ventos, So Benedito RN 254 CPFL Vestas
Various RN 140 Pacifc Hydro, Vale TBC
Due 2015 and 2016 1377.3MW
Contracted on free market
TBC BA 400 Renova Energia / Light TBC
Contracted at A-5 2011 auction
Goiabera, Ventos de Horizonte, Jandaia, Sao Januario, Ubatuba, Jandaia I, Nossa
Senhora de Fatima, Pitombeira, Santa Catarina, Sao Clemente
CE 204.4 Furnas/Alupar Investimento Fuhrlnder
Jericoacoara CE 110 Voltalia/CHESF TBC
Areia Branca RN 60 Voltalia TBC
Ventos da Andorinha BA 29.9 Casa dos Ventos TBC
Marco dos Ventos I & II MA 57.6 Bioenergy TBC
Baixa do Feijao I-IV RN 120 EDP Vestas?
Forca I-III, Dos ndios RS 94 Enerfn TBC
Cataventos Embuaca CE 12 Tecneira TBC
Ventos de Campo Formoso I & II BA 59.8 Casa dos Ventos TBC
Macambira I & II, Cabeco Preto II, VI & VI RN 115.4 Gestamp TBD
Ventos de Morrinhos BA 29.9 Casa dos Ventos TBC
Pontal 3b RS 25.6 Oleoplan TBC
Ventos do Sertao & Morro dos Ventos II BA 58.7 Dobreve Energia TBC
www.reNewsAmericas.com www.reNews.biz
latin america
5
reNewsAmericas 9 August 2012
www.reNewsAmericas.com www.reNews.biz
Vestas, from project
fnance due to their failure
to comply with national index
requirements.
BNDES paralyzed its cash
disbursements to projects using
the de-listed turbines, which
could cause knock-on delays to
wind farms due from 2013 and
associated late-delivery penalties.
Some believe the withdrawal
of BNDES fnance may also
prompt private investors to
offoad marginal projects that are
reliant on the development banks
preferential rates to deliver a
viable return.
Any retreat in private sector
involvement in Brazilian wind
would place greater pressure on
state-controlled entities, which
already hold a sizeable market
share, to pick up the slack.
The hidden subsidy offered by
utilities capable of absorbing a
lower internal rate of return is
believed to have shored up the
challenging economics of certain
Brazilian schemes.
One observer said unbuilt
projects in this category may end
up repeatedly changing hands
until the large public utilities are
coerced by the government into
building out the less attractive sites.
The federal wind program
cannot be seen to fail and building
the projects at any cost would help
to save face, a source said.
3
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Price of success
rises in Brazil
Brazilian
transmission
red faces:
Renova
Energias
294MW Alto
Serto wind
farm in Baha
will remain
ofine until
power lines
are installed
by CHESF
next year
Photo:
Renova Energia
latin america
reNewsAmericas 9 August 2012
6
www.reNewsAmericas.com www.reNews.biz
Help on offer to hit Brazils
local content benchmarks
T
he failure of fve big-name
turbine companies to meet
Brazils stringent national
index requirements has created
an opportunity for enterprising
supply chain companies.
Efforts by Vestas, Suzlon,
Clipper, Fuhrlnder and Acciona
to return to compliance with
fnancier BNDES are stoking
demand for locally-manufactured
components.
Spanish concrete tower specialist
Inneo Torres is increasing its
footprint in Brazil on the back of
claims its structures boast 95%
local content and superior economics
compared to steel alternatives.
Head of sales Jorge Jimeno said
he has received calls from de-
listed turbine suppliers seeking a
quick solution to boost their local
content.
We can offer comfort and
security to affected suppliers. The
tower accounts for one-ffth or
one-quarter of the total turbine
content, so if they switch from
a steel or imported turbine they
could increase their quota by
around 20%, he said.
The extra mass of concrete
compared to steel also weighs
in Inneos favour. Weight is
a contributing factor in the
calculation of the local content
percentage, he added.
Inneo has a very good
relationship with BNDES and
is in the process of being audited
for local-content purposes. The
company has supplied BNDES-
fnanced wind farms previously,
such as Impsas 125MW Agua
Doce site in Santa Catarina, which
came online earlier this year.
Inneo sets up a mobile tower
factory at the site of each project
it supplies, and uses local labor.
Upon completion the factory is
decommissioned and transported
to the next site.
The company currently has one
operative Brazilian production
line and a further two being
dismantled ahead of new projects.
The fve excluded suppliers can
go back on the list as long as
they show that they are acting
according to the local content and
manufacturing rules, a BNDES
spokesman said.
BNDES open to
turbine switch
B
NDES has opened the
door to a shake-up in
turbine supply deals to enable
projects using hardware
excluded from fnance
to meet their contracted
connection deadlines.
A spokesman said: The
bank is in talks with the
sector to ensure the ongoing
projects are implemented
according to the original
schedule, but at the same
time will favor manufacturers
that are abiding by the
banks national content
regulations.
The statement appears to
suggest some supply orders
may be transferred to the
compliant manufacturers:
GE, Impsa, Wobben, Gamesa,
Alstom and WEG.
FRISA is a world class leading manufacturer of seamless
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Mobile home: Inneo Torres decommissioned an onsite tower factory in Santa Catarina after wrapping up installation at Impsas 125MW
Agua Doce wind farm earlier this year Photo: Inneo Torres
latin america
7
reNewsAmericas 9 August 2012
Transmission chaos leaves
620MW hanging on the line
Spot prices
underscore
benefts of
free market
R
ecent spot price movements
could generate increasing
demand for wind farms in
the free market, according to
Renova Energia. The Bovespa-
listed developer, which is
commercializing 400MW through
a private deal with shareholder
partner Light, argues wind can
offer a long-term hedge against
rising wholesale power prices.
Until now the spot market
has been cheaper than long-term
power purchase agreements,
said chief fnancial offcer Pedro
Pileggi. But this year the spot
market has faced a very steep
increase and the expectation is
that this will remain high for quite
some time. As a result companies
are thinking about contracting
energy in the long term.
A minimum of 16 years is
needed to amortize fnance offered
from development bank BNDES,
Pileggi said, and only now is this
starting to look like an attractive
prospect for wholesale buyers.
A beneft of selling wind on the
free market is that contracts qualify
for a discount on transmission
charges levied against projects
sold at federal auctions. The fip-
side is that consumers tend to look
for small chunks of capacity that
do not offer economies of scale.
Renova gets the best of both
worlds by selling power privately
and in federal tenders, and its
successes at auction facilitated a
move into free-market wind.
If you have a 200MW auction
site coming online in 2015 it is
easier to add another 30MW in
the same year with a private off-
taker, the Renova executive said.
Large consumers such as mining
companies are beginning to show
more interest in Brazilian wind.
Miner Vales recent 140MW
power and equity tie-up with
Pacifc Hydro might... give the
comfort and confdence necessary
for consumers to take a long-term
position, Pileggi said.
B
razils failure to deliver
transmission capacity
in time for three major
wind projects has cast doubts
over the timeframes for future
developments.
The image of hundreds of
turbines in the northeast standing
idle for a year or more has
prompted regulators to assess
where things went wrong. It could
also embarrass politicians who
have staked their reputations
on the countrys laudable wind
ambitions.
Renova Energias 294MW Alto
Serto I site, Dobreve Energias
145MW Morro dos Ventos
complex and CPFLs 188MW
Santa Clara and Eurus projects are
all affected. The wind farms are
located in Baha, Rio Grande do
Norte and Cear states.
Operators will not be left out
of pocket as they will receive
payments in accordance
with federal power purchase
agreements, which in turn will
be covered by fnancial penalties
levied against liable network
companies.
The failures raise broader
concerns about Brazils ability
to harmonize project schedules
with grid infrastructure, which
is auctioned separately from the
generating facilities themselves.
The time lapse between the
two tenders, combined with
environmental licensing delays,
was blamed for the late delivery
of transmission capacity at these
sites.
Renova chief fnancial offcer
Pedro Pileggi called on system
operators to up their game to
keep pace with the rest of the
sector. The transmission lines
could be tendered (earlier), and
the environmental licenses could
be much faster to obtain, he told
reNews.
But no one can escape from
the responsibility that when you
participate in a tender you know
all of the variables. These are
experienced companies who all
know how long it takes to get a
license.
If you are willing to accept
the construction deadline to
participate, you must be ready to
commit to that.
Pileggi said he hopes measures
put in place by power regulator
Aneel to restrict culpable grid
companies participation in future
tenders will help prevent a repeat
occurrence.
Every stakeholder in
infrastructure and energy is aware
that this is not an isolated case.
The situation is known at the
energy ministry and in regulatory
agencies, and we expect it wont
happen again but it is not something
that is under our control.
It is a pity it happened because
the transmission line is a much
smaller investment than the wind
farm, Pileggi added.
www.reNewsAmericas.com www.reNews.biz
IN THE BACK OF THE NET
Commissioned 2011 447.7MW
Project State MW Developer/owner Turbines
Proinfa sites
Alegria I RN 51 New Energy Options (Multiner) Vestas
Alhandra I PB 6.3 Impel do Brasil Suzlon
Bom Jardn da Serra SC 90 Impsa Impsa
Tramanda / Elebrs Cidreira 1 RS 70 EDP Brasil/innoVent Wobben
Contracted at Dec 2009 wind auction
Coxilha Negra / Cerro Chato I - III RS 90 Eletrosul Wobben
Fazenda Rosario I & III RS 22 Inveravante/Elecnor/Enerfn Wobben
Mangue Seco RN 104 Petrobrs Wobben
Contracted on free market
Miassaba II RN 14.4 Bioenergy GE
Due 2012 902.3MW
Proinfa sites
Agua Doce SC 125.8 Impsa Impsa
Alegria II RN 101 New Energy Options (Multiner) Vestas
Contracted at Dec 2009 wind auction
Aratua I RN 14.4 Bioenergy GE
Barra dos Coqueiros SE 34.5 Energen (Desenvix) Sinovel
Cabeco Preto RN 19.8 Gestamp Vestas
Ceara II CE 211.2 Energimp (Impsa) Impsa
Colonia, Icarai I & II, Taiba Aguia, Taiba Andorinha CE 121.8 Energio Suzlon
Dunas de Paracuru CE 42 Inveravante Gamesa
Macaubas, Novo Horizonte, Seabra (Brotas) BA 90 Desenvix Alstom
Osorio II, Sangradouro II & III RS 74 Inveravante/Elecnor/Enerfn Wobben
Pedra do Reino BA 30 Gestamp Vestas
Contracted at LER 2010 auction
Cabeco Preto IV & Pedra do Reino III RN, BA 37.8 Gestamp Vestas
END-2012 TOTAL 2231MW
A
rgentina is inching toward
bringing online its frst
wave of large-scale wind
farms but the sector is stuck in the
slow lane due to an acute fnancial
bottleneck.
Developers are fghting to
progress their projects against
a backdrop of Buenos Aires
spiraling external debt crisis and
the sovereign risk associated
with a state-dominated electricity
sector.
International fnanciers
unwillingness to put money into
infrastructure developments in
Argentina has presented a major
obstacle to the 754MW of wind
contracted by state utility Enarsa
through renewables program
Genren.
Some Genren projects are
starting to show signs of progress
after many months of stagnation,
however. Developer Sogesic said
it remains hopeful of bringing its
100MW Tres Picos I & II schemes
in Buenos Aires province online
in 2013 but is yet to seal a deal for
turbine supply.
Commercial manager Agustn
Marcenac said: We are in the
process of closing fnance and
once that is resolved we will start
construction. At the moment it is
slated for October but we dont
have any certainty.
Marcenac said funding
Argentine wind is still seen as a
risky proposition, even though the
few operational Genren sites are
not known to have experienced
any payment or cash fow issues.
We have been searching in
the US, Europe, India, China
and even Brazil for fnance for
turbines. The hundreds of millions
of dollars required and the
timeframes involved are beyond
the capabilities of local Argentine
banks, hence the need to look
internationally, he said.
Global infrastructure company
Isolux Corsan managed to fnance
the frst 50MW of its Loma Blanca
complex by way of an issuance of
debt securities. Construction is
now underway at Loma Blanca
IV, where Alstom is lined up to
provide turbine hardware next
year, its frst frm Argentine order.
The same fnancing and supply
arrangements are in the pipeline
for the second 50MW tranche of
Loma Blanca.
Isolux is turning to a Chinese
consortium to fnance and build
the remaining 100MW at the
Patagonian site. Hydrochina
will procure turbines and China
Development Bank will pick up
the tab.
By tapping Argentine and
Chinese capital Isolux has
apparently sidestepped the tricky
issue of securing long-term
fnance from lenders wary of the
creditworthiness of Argentine
state off-takers.
Only one small Genren wind
farm, Impsas 25MW Koluel Kayke
II in Santa Cruz, is known to have
secured debt since power purchase
agreements were awarded in 2010.
Impsa said a similar multilateral
debt deal is imminent at its 50MW
Malaspina I project in Chubut.
The only operational Genren
wind farms, utility Emgasuds
77.4MW Rawson I and II sites in
Chubut, were built off the balance
sheet.
Emgasud is still progressing
with civil and electrical works at
its Puerto Madryn development
while it seeks fnance for turbines.
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State-dominated power sector makes
wind a risky proposition, slowing
754MW portfolio of Genren projects
Argentina fnance a tough sell
U
ncertainty and delays
surrounding Genren wind
farms has spread into a second
Argentine renewables tender.
Genren 2 has been paralyzed since
late 2010 while offcials wait for
the frst round to deliver results.
State utility Enarsa has
refrained from assessing bids for
up to 1200MW of wind but nor
has it declared the tender void.
The impasse has prompted
companies hoping to secure
sovereign power purchase
agreements to search for
alternative arrangements in the
private sector.
German developer ABO Wind
said a private PPA would be
considered more creditworthy
than one with state off-taker
CAMMESA but legal obstacles are
preventing a fnal deal.
ABO Wind Argentina managing
director Vanesa Revelli said a
few minor tweaks to existing
laws would pave the way to a
bankable private power deal for
the companys 50MW Vientos del
Secano wind farm in Buenos Aires
province.
The project has four years
wind measurements and all the
permits needed to break ground,
but a bankable PPA is proving
stubbornly elusive.
Revelli said variable power
sources such as wind remain
excluded from Energy Plus, an
initiative launched in 2006 to
encourage self-supply generation
in industrial sectors. Energy
Plus provides rates above the spot
market and would be a perfect
framework for us to achieve
fnance but the law says you have
to guarantee an exact quota of
energy, minute by minute, she
said.
Another potential route to
market through Argentinas
distributed generation system is
effectively blocked to large wind
farms. The distributed model
allows for direct power sales with
private consumers but the law
prevents companies from pooling
their demand to buy from one
large generator.
A further contracting
mechanism known as Resolution
(SE) 108/11, which offers 15-
year power deals with electrical
wholesalers, has proven
unworkable for wind energy due
to the need to amortize debt over
15 years with double-digit interest
rates.
We need to amortize over 20
years with a two-year grace period
for construction, Revelli said.
The ABO Wind boss praised
offcials for developing innovative
private sector contracting
frameworks but called for
immediate action to remove the
fnal barriers.
We are asking for small
modifcations in the law but are
told this is not a time for change
and to wait. I would like the
government to produce a solution.
These wind farms need to be built
out, she said.
One option would be for projects
to be fnanced, built and owned by
state and provincial governments.
A successful example is the
Arauco wind farm in La Rioja,
which will be doubled in size to
50MW by early next year using
Impsa hardware.
Plans are afoot to expand the
site to 400MW over fve years
backed by public funds.
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reNewsAmericas 9 August 2012
Credit turbulence
knocks Genren 2
auction off stride
Public nance solution: La Rioja provincial government is doubling
capacity at its 25.2MW Arauco wind farm Photo: Impsa
www.reNewsAmericas.com
www.reNews.biz
ARGENTINA WIND PROJECT UPSIDE
Due 2012 37.2MW
Project State MW Developer Turbines
El Jume Santiago del Estero 8.4 Sociedad ENERSE SAPEM Impsa
Genren projects
Rawson II Chubut 28.8 Emgasud Renovables Vestas
Expected 2013 520.2MW
Arauco II La Rioja 25.2 La Rioja government Impsa
Vientos del Secano Buenos Aires 50 ABO Wind TBC
Genren projects
Koluel Kayke II Santa Cruz 25 Impsa Impsa
Loma Blanca IV Chubut 50 Isolux Alstom
Malaspina I Chubut 50 Impsa Impsa
Puerto Madryn I & II Chubut 100 Emgasud Renovables Vestas
Puerto Madryn Norte Chubut 50 International New Energies (Emgasud) Vestas
Puerto Madryn Oeste Chubut 20 Energas Sustentables (Emgasud) Vestas
Puerto Madryn Sur Chubut 50 Patagonia Wind Energy (Emgasud) Vestas
Tres Picos I & II Buenos Aires 100 Sogesic TBC
Due from 2014 269MW
Puerto Deseado Santa Cruz 39 Sowitec TBC
Genren projects
Koluel Kayke I Santa Cruz 50 Impsa Impsa
Loma Blanca I & III Chubut 100 Isolux Hydrochina
Loma Blanca II Chubut 50 Isolux Alstom
Malaspina II Chubut 30 Impsa Impsa
Expected from 2015 300MW
Picn Leuf Neuqun 100 WPD/Sadesa TBC
La Americana Neuqun 50 WPD/Sadesa TBC
Gastre I Chubut 150 Generadora Elica Argentina (GEASSA) TBC
Two wind farms added 55MW to the national tally last year and installed capacity at end-2012 is expected to reach 150MW
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Panama putting its
faith in local hero
A
single wind farm will come
online in Central America this
year but frm plans are in place for
a regional growth spurt of 172MW
in 2013.
The region saw 115MW added
last year and total installed
capacity at end-2012 is expected
to be 340MW. Blue Power &
Energys 39.6MW La F San
Martin development went live in
June after powering up 22 Vestas
V90 1.8MW turbines at the site in
Rivas, southwest Nicaragua.
An almost identical array of 22
V100s will follow at Albanisas
nearby Alba Rivas project on the
shores of Lake Nicaragua early in
the New Year.
Globeleq Mesoamerica Energys
44MW Eolo de Nicaragua scheme,
the ffth to date in Rivas, is
scheduled for later in 2013. GME
will also deliver the 22MW Cerro
de Hula II project in Honduras
next year.
Costa Rica will host a further
63MW of wind capacity in 2013
courtesy of Acciona and Juwi. A
pending wind tender will see Costa
Ricas state utility ICE buy in more
megawatts later in the decade.
P
anama will become the
latest Central American
country to join the wind
club next year with the installation
of a sizeable project in the central
province of Cocl.
Union Elica Panamea (UEP),
a local renewables developer
backed by Spanish capital,
is preparing to kick off civil
engineering works at its 220MW
Penonom 1 wind farm.
The development, by far the
largest in the region in its frst
phase alone, will draw a line under
the fruitless speculation that has
characterized developer interest
in the country wind resource in
recent years.
When I frst came to Panama
four years ago there were
4000MW of provisional licenses
approved for wind farms and
not a single meteorological
mast installed, said UEP chief
executive Rafael Prez Pire.
A government initiative to
tender for wind projects sorted
the wheat from the chaff and
CENTRAL AMERICA SURGE
Due 2012 39.6MW
Project Country MW Developer/owner Turbines
La F - San Martin Nicaragua 39.6 Blue Power & Energy Vestas
Expected 2013 172.4MW
Alba Rivas Nicaragua 39.6 Albanisa Vestas
Cerro de Hula II Honduras 24 Globeleq Mesoamerica Energy Gamesa
Chiripa Costa Rica 49.5 Acciona/Grupo Ecoenerga Acciona
Eolo de Nicaragua Nicaragua 44 Globeleq Mesoamerica Energy Gamesa
Valle Central Costa Rica 15.3 Juwi Enercon
Due 2014 220MW
Penonom Panama 220 Unin Elica Panamea Vestas?
Due 2015 116MW
Penonom II Panama 116 Unin Elica Panamea TBC
Auction
winner UEP
brings leap
in scale to
Central American
wind development
UEP swept the board at the
auction to secure power purchase
agreements for 158MW with local
distributors. A further 62MW
private supply deal was inked with
GDF Suez subsidiary Altenergy to
bring Penonom up to 220MW.
The developers boss said the
key to its success at last years
auction, aside from competitive
bids in the region of $100 per
MWh, was its localized approach.
We have had an offce here
in Panama for more than two
years and employ local staff who
monitor progress on a daily basis.
Some of our competitors work on
their sites from abroad and fy in
for only brief visits, he said. UEP
secured $340m project fnance
for Penonoms frst phase from
Banco Internacional de Costa
Rica and a group of local banks,
leveraged by $110m of equity.
Foundation excavations will
begin in September. Tents and
water pumps will be used to allow
work to progress during Panamas
rainy season.
Turbines are expected to
arrive at a local port next March.
Installation is slated for May at the
end of the dry season when a drop
in wind speeds makes working at
height possible.
A segment of the park may
become operational before end-
2013 and full power is scheduled
no later than January 2014.
Further expansion is on the
cards and UEP will future-proof
the wind farm by installing
a substation and electrical
infrastructure capable of exporting
the sites full 336MW capacity.
Once turbine installation is
underway at phase one, UEP will
look to close out power deals for
the remaining output.
The large substation allows us
to dilute the cost per megawatt
and gives us fexibility to build
out smaller phases of 10MW
quickly and easily. We could sell
the power in a subsequent tender
or through the SIEPAC regional
interconnector, Prez Pire said.
Capacity jump on
cards for 2013
Nicaragua hotspot: the 39.6MW
La F San Martin wind farm
is the latest in a string of new
projects coming forward in the
department of Rivas
Photo: Blue Power & Energy
Renovalias Piedra Larga and
Recursos Elicos de Mexicos
Oaxaca I, have seen repeated
altercations.
Both companies declined to
comment on their wind farms,
which were originally scheduled to
begin operating in 2011.
The international consortium
behind Marea Renovables
396MW project is also reported to
have suffered setbacks early in the
build-out.
Macquarie Group, which owns
a third of Marea, said the wind
farm will come online in 2013 as
planned but would not comment
on reported local disputes.
The ongoing issues in Oaxaca
undermine the deliverability of
large-scale ambitions in the region
and developers are starting to
progress opportunities in other
parts of the country.
The state of Chiapas joined the
wind club this year and a second
project is scheduled nearby in
around 12 months time.
Nuevo Len, Jalisco and
Tamaulipas could follow suit with
modest-sized maiden projects in
2013.
Ambitious gigawatt-scale plans
in Baja California may also begin
to bear fruit next year.
These and other developments
will have to contend with issues
common to all Mexican
wind farms contracted
M
exican developers have
reserved more than 5GW
of capacity on new transmission
infrastructure to be built in three
states.
Energy regulator CRE is
concluding the latest open season
to gauge the companies appetite
for new wind projects.
The greatest demand was found
in Oaxaca, as expected, but the
3GW total fell slightly short of the
3200MW on offer.
Elica Unin Hidalgo and
Marea Renovables each bagged
400MW while EDF took 300MW.
State utility CFE reserved at least
400MW for the Sureste wind
tender.
Clipper Wind Power made
the largest request in Oaxaca of
500MW only to walk away from
the allocation later.
In Baja California, demand of
987MW outstripped expectations
of 500MW. The largest slice of
362MW was taken by holding
company Quadrant Dos de
Baja California. The opposite
transpired in Tamaulipas, where
requests for 1212MW fell well
short of CREs anticipation of up
to 4GW.
Grupo Energia Mexico GEMEX,
part-owned by Spanish company
Fersa, scooped 254MW across fve
Tamaulipas wind farms.
Under the Mexican system, CRE
estimates the level of developer
demand for transmission and
invites companies to respond with
specifc project proposals. The
regulator then allocates capacity
accordingly and levies holding
fees.
W
ind development has
achieved a momentum
of sorts in Mexico
despite ongoing diffculties for
projects located in the countrys
Tehuantepec hot-spot.
The sector is aiming to build
more than 350MW by end-2012
for the third year running with
total installed capacity currently
standing at 1377MW.
Four Oaxaca wind farms
representing more than 200MW
are already online, courtesy of
Grupo Dragn, Enel, Peoles and
Gamesa.
However, progress at other key
projects is signifcantly hampered
by ongoing conficts with
indigenous communities.
The pace in Oaxacas windy
Tehuantepec Isthmus is still
largely dictated by developers
ability to negotiate land use
agreements in a way that avoids
generating confrontations
with neighboring tenants and
landowners.
Recent history shows
disagreements over rents and
access payments can easily lead
to prolonged road blockades and
even boil over into violence.
Two projects running
signifcantly behind schedule,
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11
reNewsAmericas 9 August 2012
Mexican search on for easier life
Bidders ante up 5GW in second open season
www.reNewsAmericas.com www.reNews.biz
Rowdy neighbors in Tehuantepec
persuade wind developers to look
further afeld for new project sites
12
Joining the club: the rst
wind farm in Chiapas state
became a reality this year
with the commissioning of
Grupo Dragons 28.8MW
Arriaga facility
Photo: Chiapas govt.
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reNewsAmericas 9 August 2012
12
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A
n independent developer in
Chiapas state is exploiting a
largely overlooked route to market
for wind energy in Mexico by
selling electricity to a grouping of
local municipal consumers.
Wind farms in the country
typically sell power straight to the
Federal Electricity Commission
(CFE) or through a private supply
contract with a large industrial
consumer.
The only known examples of
successful municipal farms are a
10MW site in La Rumurosa, Baja
California, built in 2009, and
Grupo Dragons 28.8MW Arriaga
in Chiapas, delivered this year.
Other larger initiatives, such as
the ill-fated 160MW Los Vergeles
project in Tamaulipas, have fallen
by the wayside.
The task of securing project
fnance against local off-takers
deemed to be uncreditworthy is
seen as the primary obstacle.
However, Generadores Elicos
de Mexico, or Geomex, has
overcome the obstacles and
closed a complex power purchase
agreement with a large number
of municipal entities for a 20MW
pilot wind farm in Arriaga.
The deal required the approval
of Mexicos Congress to free
up federal funds to serve as a
payment guarantee.
Geomex managing director
Ricardo Lebrija said: There are
very few municipalities in all
of Mexico to which banks are
prepared to lend.
To get around this, the state
government is setting up a trust in
order to guarantee payment from
the municipalities for their street
lighting and public buildings.
We will charge for electricity
generated by the wind farm from
the trust, which is backed up by a
federal budget in the eventuality of
non-payment, he added.
The very diffcult task of
explaining the concept to local
leaders, some of whom had never
heard of wind energy, getting
them on board and seeking
Congressional approval is set
to pay off soon. Municipalities
in Mexico can pay a very high
rate per MWh, Lebrija said, well
above those available to industrial
consumers through private power
purchase deals.
The payoff for local
communities is a potentially
signifcant saving on energy
bills and the opportunity of
employment during construction
of the wind farm.
Use of local labor is part of the
agreement. Technical specialists
will have to come from further
afeld, but security and heavy
lift work can be sourced locally,
Lebrija said.
Geomex hopes to break ground
as soon as September and deliver
the wind farm in August 2013.
The project is set out on a
100-hectare plot owned by
Geomex. The company has
installed meteorological masts
across a nearby 1000-hectare
plot that it has rented from local
owners.
It hopes to begin planning work
at the end of the year for a second
phase that could top 250MW,
depending on local transmission
arrangements.
Elsewhere, the developer is
in the early stages of designing
a phased 860MW wind farm in
Baja California. The frst 100MW
or 200MW element could enter
planning later this year.
Geomex, like others in the state,
is examining options for exporting
power to the US state of California
or for local consumption.
Developer leads pack of municipalities to the power deal table
MEXICO ON THE MOVE
Due 2012 398.8MW
Project State MW Developer Turbines
Arriaga Chiapas 28.8 REM Generacin Electrica Mexicana/Grupo Dragn Vestas
Bi Nee Stipa II Oaxaca 74 Enel Gamesa
Fuerza Eolica del Istmo II Oaxaca 30 Peoles Clipper
Oaxaca I Oaxaca 102 Recursos Elicos de Mexico Vestas
Piedra Larga I Oaxaca 90 Desarrollos Eolicos Mexicanos (Renovalia) Gamesa
Stipa Nayaa Oaxaca 74 CISA/Gamesa Gamesa
Expected 2013 1030.4MW
Aubanel phase 1 Baja California 72 Cannon Power/Mexico Power Group Gamesa
Chiapas I Chiapas 20 Geomex TBC
El Porvenir I Tamaulipas 54 Enhol Vestas?
Energa Elica Marea & Alterna Istmea Oaxaca 396 Marea Renovables (Macquarie, Mitsubishi, PGGM) Vestas
Energa Sierra Jurez phase 1 Baja California 156 Sempra Generation TBC
Los Altos Jalisco 50.4 REM Generacin Electrica Mexicana / Grupo Dragn Vestas
Santa Catarina Nuevo Len 22 Comexhidro/Next Energy Mxico GE
Santo Domingo Ingenio
(previously Eoliatec del Pacifco)
Oaxaca 160 EDF-EN Gamesa
Sureste I Oaxaca 100 TBC (CFE tender) TBC
Due 2014 2670.5MW
Bi Stinu (prev. Eoliatec del Istmo) Oaxaca 164 EDF-EN Gamesa
Carabina I & II Coahuila 400 Sowitec, Santander TBC
Comondu/Loreto Baja California Sur 22 Next Energy de Mexico TBC
Cozumel I Quintana Roo 60 Mexico Power Group Gamesa?
Fuerza Eolica del Istmo III Oaxaca 100 Peoles TBC
Mezquite Nuevo Len 160 Sowitec, Santander TBC
Piedra Larga II Oaxaca 137.5 Desarrollos Eolicos Mexicanos (Renovalia) Gamesa
Sureste II, III & IV Oaxaca 1,100 TBC (CFE tender) TBC
Tepetate San Luis Potos 160 Sowitec, Santander TBC
Virgen de los Zacatecas Zacatecas 153 Grupo Preneal TBC
Zopiloapan, Dos Arbolitos, El Retiro Oaxaca 214 CISA/Gamesa Gamesa
Coming around 2015 1537.5MW
Bi Hioxo Oaxaca 227.5 Unin Fenosa Generacin Mexico TBC
Chiapas II Chiapas 250 Geomex TBC
Fuerza Elica de Baja California Baja California 300 Fuerza Eolica TBC
Fuerza Eolica del Istmo IV Oaxaca 80 Peoles TBC
La Bufa Zacatecas 180 Mexico Power Group Gamesa?
Mexico Wind (power export) Baja California 500 Gas Natural Fenosa/Geobat TBC
Search is on for an
easier life in Mexico
11
outside of the federal
tenders: structuring
a bankable long-term power
purchase agreement with a
creditworthy off-taker and
securing amortized fnance.
Numerous signifcant proposals
originally mooted under Mexicos
frst dual wind project and
transmission open season have
failed to get off the drawing board
due largely to these hurdles.
The open season delays raise
inevitable questions over the
likelihood that Mexico will deliver
the 5GW of projects that featured
in the second call (see page 11).
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reNewsAmericas 9 August 2012
Caribbean takes
step up in class
T
he wind sector is enjoying
a relatively bountiful year
in the Caribbean where
256MW of additional capacity
is due online by December at six
sites spread across three islands.
Dutch outft NuCapital
inaugurated its twin 15MW
repowering projects on Curacao
last month and Gestamps
23.4MW Punta Lima wind farm is
making construction headway in
Puerto Rico.
Gamesa could also fre up its
50MW El Guanillo site in the
Dominican Republic before
year-end, when installed capacity
across the region as a whole is
expected to reach 396MW.
By far the largest Caribbean
wind farm to date, Pattern
Energys 101MW Santa Isabel
in Puerto Rico, is said to be
advancing exceptionally well
towards full power.
Project manager Collie Powell
said at least half of the projects
44 Siemens 2.3MW turbines will
be physically complete this month
when the substation is due to be
brought into service.
The frst array in the eastern
portion of Santa Isabel will be
energized by early September,
followed by the remaining western
section at the end of that month.
Full power is slated for early
October and the project will be
wrapped up by November. Pattern
will own and operate the facility
thereafter. The Puerto Rico
Electric Power Authority holds
a power purchase agreement for
75MW with output above that
amount subject to curtailment.
We have defned the number of
hours per year when output would
consistently peak above 75MW
and there is a strong likelihood
that the utility will be able to plan
for and accept the power, Powell
told reNews.
All of this was taken into
account in the planning, execution
and fnancing of the wind farm,
so anything above and beyond the
Local giant: Patterns 101MW Santa Isabel wind farm in Puerto Rico
will be the largest Caribbean wind farm by a wide margin when it
powers up in October Photo: Pattern Energy
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101MW Santa Isabel wind farm in
Puerto Rico set to give big boost to
regional capacity by the year-end
CARIBBEAN HIGH JUMP
Due 2012 256.4MW
Project State MW Developer Turbines
El Guanillo Dominican Republic 50 PECASA (Gamesa) Gamesa
Los Cocos II Dominican Republic 52 EGE Haina Gamesa
Playa Kanoa repowering Curacao 15 NuCapital Vestas
Punta Lima Puerto Rico 23.4 Gestamp Wind Vestas
Santa Isabel Puerto Rico 101 Pattern Energy Siemens
Tera Kora repowering Curacao 15 NuCapital Vestas
Expected 2013 110.15MW
Belle Vue St. Kitts 5.4 North Star Development TBC
Granadillos Dominican Republic 50 InverAvante Vestas
Guayanilla Puerto Rico 24.75 WindMar Renewable Energy Vestas
Matafongo Dominican Republic 30 InverAvante Vestas
Due 2014 165MW
Puerto Plata-Imbert Dominican Republic 115 Jasper Caribbean Windpower TBC
Lupern Dominican Republic 50 Los 4 Vientos Nordex?
Likely 2015 409MW
Los Cocos III Dominican Republic 40 EGE Haina TBC
utility accepting the 75MW will be
an upside for the project and the
island.
Pattern will look to increase the
capacity of the PPA eventually to
rule out curtailment altogether but
this is expected to take time. In
the interim there is a mechanism
for minimising those instances,
the project manager said.
Powell said curtailment should
not hinder further renewables
development in Puerto Rico
because output tends to coincide
with periods of peak demand.
Over time the utilities will
improve their understanding
of the generating pattern of
renewables facilities to power
down greater chunks of the
islands diesel and bunker oil
burners during high winds and
sunshine.
I dont think that we will see a
complete displacement of fossil
fuels for some time, there is a
natural apprehension (to shutting
down plant). They will more
fully power down when they can
reliably count on wind and solar,
he said.
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reNewsAmericas 9 August 2012
14
Level playing feld suits wind
in the Dominican Republic
Permits and
grid muddy
water in Peru
Contrasting fortunes for developers looking
to scale heights in northeastern Andes area
A
handful of wind farms
are starting to come
online in the northeastern
Andean region of South
America but growth is limited
by administrative delays and
unhelpful regulation.
This years addition of 73MW
in the area will fall more than
100MW short of predictions 12
months ago for developments
across Bolivia, Peru, Ecuador,
Colombia and Venezuela.
Delivery of Perus frst wind
farms is running signifcantly
behind schedule and projects
contracted at renewables auctions
are seeking extensions to
connection deadlines.
Construction has barely started
at three projects frst tabled for
operation in June and December
this year. Completion of the
combined 142MW is now looking
more likely toward end-2013 or
even later.
Juan Coronado, VP at Peruvian
renewables association APEGER,
said the wind farms are still
advancing toward completion
despite the inevitable permitting
issues experienced by maiden
schemes.
These frst projects are
pioneers in Peru so there is a
lack of understanding among
the authorities that infuence the
issuance of permits and licenses.
This is refected in delays to the
execution of some projects, he
explained
Coronado said such diffculties
should dissipate as regulators
become familiar with the new
technology but more substantial
barriers lie in wait for the wind
sector.
A condition for projects
connecting to the Peruvian grid
is that they must be developed
near existing substations as the
system operator will not build
new transmission capacity for
renewables.
A wind farm without nearby
transmission would have to
cover the costs of new
infrastructure. An 80MW
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ANDES GROWTH STRUGGLE
Due 2012 73.7MW
Project Country MW Developer Turbines
La Guajira 1a Venezuela 25.2 MPPEE/Corpoelec Impsa
Paraguan I Venezuela 32 PDVSA Gamesa
Villonaco I Ecuador 16.5 Enersur/Celec Goldwind
Expected 2013 142MW
Cupisnique Peru 80 Energa Elica/Montealto Vestas?
Talara Peru 30 Energa Elica/Montealto Vestas?
Marcona Peru 32 Cobra Energa Gamesa?
Due 2014 264.4MW
Ducal-Membrillo Ecuador 55 Enersur/Celec TBC
La Guajira 1b Venezuela 50.4 MPPEE/Corpoelec Impsa
Paraguan II Venezuela 69 PDVSA Gamesa?
Tres Hermanas Peru 90 Cobra Energia Gamesa?
Andes = Bolivia, Peru, Ecuador, Colombia and Venezuela
W
ind energy has reached grid
parity in the Dominican
Republic, thanks mainly to the
high cost of imported fossil fuel-
fred generation.
Power company EGE Haina is
selling output from its 25MW Los
Cocos wind farm in Pedernales
straight into the spot market and
is planning to do the same for
future phases at the project.
Advantages including the sites
high capacity factor and EGE
Hainas mixed portfolio of plant
allowed the company to get the
scheme away without a long-term
power purchase agreement.
Business development manager
Larissa Paniagua said the wind
farm attracts the same revenue as
a fossil fuel plant.
The spot price in our system
is so high that wind energy
doesnt really need the support
of subsidies. The foor price is
around $0.14 per kWh and we sell
at $0.18.
Paniagua said EGE Haina can
afford to treat the wind farm as a
complement to its existing pool of
assets but recognizes the challenge
faced by independent generators.
If you dont have the backbone
to support your project if you
have no PPA, no customers
and no leverage then it gets
complicated, she said.
EGE Haina is currently pouring
foundations and progressing civil
engineering works at its 52MW
Los Cocos II, which will likely
retail in the same fashion as phase
one.
Delivery of the expansions 23
Gamesa G97 turbines and three
G90s is complete, bar the fnal
consignment of blades.
Nacelles, gearboxes and tower
sections are in storage on-site and
at a dockside yard at the port of
Cabo Rojo in Pedernales.
Paniagua said she is confdent
the project will at least hit its
target commissioning date of
December. We are optimistic and
everything is working out fne,
she said.
The company is also pouring
foundations for a meteorological
mast to measure wind speeds at
a third instalment of the farm,
conditionally pegged in the range
of 30MW or 40MW.
Los Cocos III is coming but it
is very early days. I would look at
2015 (for construction).
We shouldnt assume it is going
to be as easy (as previous phases)
because it is up in the mountains,
Paniagua said.
Expansion phase: the last batch of blades is making its way to EGE
Hainas 52MW Los Cocos II wind farm in the Dominican Republic
Photo: EGE Haina
15
E
cuador is racing to bring its
maiden wind farm online in
the mountainous southern region
of Loja.
Installation of 11 Goldwind
1.5MW turbines at the Villonaco
project is well underway and it is
expected to be wrapped up in the
coming weeks. Completion of this
phase has slipped slightly from the
original plan of April, when strong
winds impede working at heights.
A June commissioning target
came and went but the wind farm
should be online well before year-
end.
Local developer Enersur and
Ecuadorian state power company
CELEC are progressing further
sites along the same high-altitude
Andean ridges around Villonaco.
The most advanced is at Ducal-
Membrillo, where a 36-month
wind measurement campaign and
micro-siting exercise confrmed
potential for up to 55MW.
The development is pegged for
delivery in 2014.
latin america
15
reNewsAmericas 9 August 2012
High ridges beckon in Ecuador
U
nexplained delays have
prevented the completion
of commissioning at Venezuelan
state oil company PDVSAs
32MW Paraguan I wind farm
in Falcn state. All 24 Gamesa
MADE AE61 1.32MW turbines
were fully installed in 2011 but will
remain inoperative until at least
September this year.
A local engineering source said
heavy rains have hit the area but
there is no known explanation
for the prolonged stoppage.
Further wind developments in
Falcn, Nueva Esparta and Sucre
states were cast into doubt by the
recent abandonment of plans for
a factory to produce the outdated
MADE turbine range locally.
Government offcials
reportedly cited a host of external
complications and confrmed
alternative supply options are
under consideration.
Argentinas Impsa is a likely
choice for most future Venezuelan
wind farms. The company views
Venezuela as a strategic priority
and is advancing plans for a
component assembly hub to
supply a 225MW expansion in La
Guajira, where turbines are going
up at a frst phase of 25.2MW.
Impsa said the Venezuelan
facility will provide a stepping
stone to break into the Caribbean
market.
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project in a high resource
area might be rendered
unviable by the cost of building
a 60km high-voltage cable and
the losses incurred over such a
distance.
This is a major limitation to the
growth prospects of wind energy
in Peru. Unfortunately there are
some myths and opposing ideas
from the system operator towards
wind energy, Coronado said.
National energy policy is still
geared frmly toward hydro and
gas reserves despite seasonal
despatch issues with the former
and a dwindling supply of the
latter.
Periodic bouts of power
rationing have not brought an
end to the era of cheap gas, which
depresses the marginal electricity
spot price and leaves renewables
dependant on government
auctions.
The auction prices are not
very high but they are better than
competing in the spot market. The
problem here is low visibility.
It depends on a political
decision to call an auction, the VP
said.
A new renewables tender is
expected at some point in mid-
2013, which should contract a
signifcant amount to keep Peru on
course to meet its target of 5% of
national supply.
APEGER is pushing to raise
awareness among offcials of
the seasonal benefts of wind
and hydro and to improve the
regulatory system for renewables.
We hope the government will
take a rational approach to the
entire system, and assign capacity
to (projects which can) ensure
security of supply for the whole
country, otherwise we are going
to be facing rationing every year,
Coronado added.
Mystery gremlins
at PDVSA project
Wide horizons: Enersur is targeting the hills around
Villonaco for a series of future wind projects in Ecuador
Photo courtesy of Facebook: FotoStock Loja
Permits and grid muddy water in Peru
14
C
hile has so far failed to
deliver on promises of wide-
ranging reforms to allow
renewables to compete in the
countrys power sector.
Commentators said the
government in Santiago has been
at pains to water down mooted
plans for technology-specifc
auctions that would open the
foodgates to new
capacity.
President
Sebastian Pieras
administration
appears to be
playing for time by progressing
with only modest initiatives such
as a single solar auction and
leasing out government land to
developers.
Other new measures including
an electric highway to connect
Chiles high-resource Patagonian
territory with load centers in the
middle and north of the country
will take many years to deliver
results.
An opposition-led attempt to
set a target of 20% renewables by
2020 has meanwhile reached a
political stalemate.
The upshot is a de-facto return
to business as usual, where
renewables struggle to tie down
long-term power purchase
agreements despite rising
wholesale energy prices and the
prospect of supply shortages.
Despite the diffculties, the
wind industry built out 30MW at
two projects last year and total
installed capacity at end-2012 is
expected to reach 291MW.
A few wind projects are now
coming forward and a spate of
turbine deals in recent months will
see installation rates pick up over
the next few years.
Utilities are buying in some
capacity to meet a renewables
portfolio standard that recently
came into effect, and mining
companies are also providing
a route to market. A notable
latin america
reNewsAmericas 9 August 2012
16
Deck stacked
against green
power in Chile
Government dragging
feet on auctions that
would open foodgates
to more generation
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BEATING THE CHILL
Due 2012 90MW
Project State MW Developer Turbines
Talinay East Coquimbo (IV) 90 Vestas Vestas
Expected 2013 246MW
Negrete Cuel Biobo (VIII) 34.5 Mainstream Renewable Power Goldwind
Punta Chome Biobo (VIII) 9 Seawind Vestas
Punta Palmeras Coquimbo (IV) 103.5 Acciona Acciona
Raki Biobo (VIII) 9 Seawind Vestas
Valle de los Vientos Antofagasta (II) 90 Sowitec/Enel Vestas
Due 2014 463MW
Cabo Leones Atacama (III) 170 Grupo Iberelica Gamesa
Ckani phase 1 Antofagasta (II) 70 Mainstream Renewable Power Goldwind
El Arrayn Coquimbo (IV) 115 Pattern Energy Siemens
Lebu Sur Biobo (VIII) 108 Inversiones Bosquemar/
Consorcio Elico
TBC
Due 2015 170MW
Ckani phase 2 Antofagasta (II) 170 Mainstream Renewable Power Goldwind
Empty words: Chilean energy minister Jorge Bunster (right) voiced
support for renewables, despite delays to reforms, during a visit to
Vestas Talinay East wind farm last month Photo: Chile Ministry of Energy
example is Pattern Energys
115MW El Arrayn project in
Coquimbo, which will sell power
to a subsidiary of Antofagasta
Minerals from 2014.
The scope for such deals is
limited, though, and major
changes are needed to clear
a multi-gigawatt backlog of
wind farms with environmental
consents or in the planning
system.
A local industry source said
the uncertain future of electricity
provision in Chile is placing
independent developers under
enormous strain.
You have around 70 companies
fghting over the sites that are left
but as long as there is no incentive
or signal from the government
that this is actually going to
happen then a large percentage is
going to pull out.
We see cash fow issues and
this is reducing the number
of companies interested in
developing further, he said.
New development activity is
beginning to slow as companies
concentrate on getting their
existing pipelines off the drawing
board.
Others are looking to cut their
losses by offoading projects to
utilities and shutting down their
Chilean operations altogether, the
source said.
U
ruguay will have to wait
another year before its
ambitions to host more
than a gigawatt of wind start to
bear fruit.
Projects contracted under the
countrys frst tender failed to
materialize as planned in 2012
amid reports of transmission and
supply chain constraints.
State utility UTE is at the heart
of Uruguays diversifcation
into wind and the company is
using a variety of procurement
mechanisms to operate, lease or
buy power from up to 1500MW of
new farms.
The lengthy gestation of UTEs
plans has led to warnings in some
quarters of the practicality of
sourcing enough local components
and labor, and of the grids
capability to
absorb the power.
Plans are
beginning to
come together,
albeit more slowly
than anticipated, at the frst
wave of three private wind farms
contracted to supply 165MW to
UTE.
The most advanced is Impsas
65MW Libertador, which is
under construction and due for
completion midway through 2013.
Impsa said the project will help
kick-start Montevideos industrial
plan, modeled around Brazils
national content requirement
for turbine manufacturers, by
sourcing an important part of
equipment locally.
This has allowed the supplier-
developer to secure a signifcant
part of the funding for Libertador
from the main Uruguayan banks.
Impsa is also training local
technicians and professionals to
run a service center in the country
to carry out operations and
maintenance work.
Projects contracted in UTEs
second wind tender are also
now coming forward. German
developer Sowitecs 42MW
Generacin Elica Minas in
Lavalleja is scheduled to deliver
power in 2013.
The companys 49.2MW Vientos
de Pastorale wind farm in Flores
will follow suit in 2014. It is one
of nine developments with frm
grid offers and a second chance
power purchase agreement of
$63.50 per MWh with UTE.
Four of the remaining fve
second chance bids Compania
Darinel, Enerfn, Estrellada,
Infeval and Ladaner are being
relocated to sites with spare export
capacity before power deals with
UTE can be fnalized.
latin america
17
reNewsAmericas 9 August 2012
Uruguay stuck on starting blocks
Gigawatt-plus wind
ambitions now look
set to begin paying
dividends in 2013
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T
urbine installations are
set to dip to a four-year
low in Uruguay this year
with a sole 1.8MW Vestas
V100 unit (above) being
commissioned at wool
exporter Engraws premises
near the town of Fray Marcos,
Florida. The machine is
powering production at the
factory under the Windmade
international initiative
to promote industrial
applications of wind energy.
Local consultancy Ventus
was brought on-board at
project inception to oversee
economic modeling, wind
measurements, permitting
and civil and electrical
engineering designs.
Ventus also negotiated the
supply and operations and
maintenance contract with
Vestas and managed the
construction phase.
Total installed capacity in
Uruguay at end-2012 will be
55MW. Just 10MW was added
last year by Kentilux at its
Magdalena project in San
Jos. Photo: Ventus
A stitch
in time...
latin america
reNewsAmericas 9 August 2012
18
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CANADA
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URUGUAYS STEEP LEARNING CURVE
Due 2012 1.8MW
Project Department MW Developer Turbines
Engraw Florida 1.8 Engraw Export & Import Co. S.A Vestas
Expected 2013 393.7MW
Arbolito / Fortuny I & II Cerro Largo 18.7 Grupo Fortuny Gamesa
Luz de Mar-Caracoles Maldonado 18 Luz de Mar TBC
UTE frst 150MW tender
Libertador I-III Lavalleja & Maldonado 65 Consorcio Venti (Impsa) Impsa
Carap Maldonado 50 Fingano (Grupo Sanjose, Corporacin America,
Contreras Hermanos), Statoil
Vestas?
Peralta Tacuaremb 50 Palmatir (Teyma Abengoa, Inabensa) Gamesa
UTE second 150MW tender
Peralta GCEE Tacuaremb 100 Aguas Leguas (EAB New Energy,
SEG Ingeniera, Enercon)
Wobben
Generacin Elica Minas Lavalleja 42 Sowitec TBC
Santa Catalina Florida 50 Ensol TBC
Due 2014 617.8MW
UTE leasing San Jos, Colonia & Flores 180 TBC TBC
UTE second chance power purchase agreement awards
Astidey Flores 50 Astidey SA TBC
Florida I Florida 50 Polesine SA (Akuo Energy) Nordex
Libertador IV Lavalleja & Maldonado 50 Noukar SA (Impsa) Impsa
Melowind Cerro Largo 50 Estrellada (Ferrostaal & juwi) Nordex
Molino de Rosas Maldonado 50 Molino de Rosas SA / PTZ Energy Nordex?
R del Sur Maldonado 50 R del Sur SA TBC
Tulifox San Jos 48.6 Grupo ACS Gamesa?
Vengano Maldonado 40 Vengano (Grupo Sanjose, Corporacin America,
Contreras Hermanos)
TBC
Vientos de Pastorale Flores 49.2 Sowitec TBC
Possible in 2015 402.95MW
UTE second chance offers, awards to be confrmed
Compania Darinel Inc. SA Maldonado 82.5 Compania Darinel Inc. SA TBC
Consorcio Enerfn Montelecnor Canelones 80 Consorcio Enerfn Montelecnor TBC
Estrellada SA Cerro Largo 68.5 Estrellada SA TBC
Infeval SA Maldonado 76.95 Infeval SA TBC
Ladaner Tacuarembo 95 Ladaner SA TBC