Renewable and Sustainable Energy Reviews 51 (2015) 125137

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Renewable and Sustainable Energy Reviews

journal homepage: www.elsevier.com/locate/rser

Rural microgrids and its potential application in Colombia

E.E. Gaona n, C.L. Trujillo, J.A. Guacaneme
Laboratory for Alternative Energy Sources Research, Department of Electronic Engineering, Universidad Distrital Francisco Jos de Caldas,
Carrera 7 No. 40B-53 Piso 5, Bogot, Colombia

art ic l e i nf o a b s t r a c t

Article history: This paper presents a review about microgrids around the world, particularly analyzing cases installed in
Received 11 October 2014 rural areas as a solution to the energy access problem in isolated areas. On the one hand, the Colombian
Received in revised form case is presented with the aim to describe and analyze the two main problems affecting the electric
22 March 2015
system in the country: the coverage of electric infrastructure and the energy supply due to El Nio
Accepted 30 April 2015
phenomenon. On the other hand, the paper includes the solutions implemented by the national
Available online 20 June 2015
government installing microgrids. Finally, the subsidies offered in Colombia and other countries are
Keywords: shown, giving a comprehensive description of the productive potential of renewable energy, the current
Distributed generation legislation and regulations in the country for FNCE promotion (Non-Conventional Energy Sources), and
Microgrids
the incorporation to the SIN (National Interconnected System), proposing that there should be focus on
Renewable energy sources
training, research and implementation of microgrids in order to allow their deployment in Colombia.
& 2015 Elsevier Ltd. All rights reserved.

Contents

1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
2. General topics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
2.1. Microgrid concept . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
2.2. Types of microgrids . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
3. Microgrids worldwide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
3.1. Rural electrication: Isolated rural microgrids around the world . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
4. Energy problem in Colombia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
5. Rural microgrids installed in Colombia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
5.1. Technical standards for the construction and maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
5.2. Experiences of installing microgrids in ZNI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
5.3. Cost analyses of installation and operation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132
6. Microgrids prospects in Colombia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
6.1. Policy scenario in Colombia: Subsidies and incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
6.2. Productive potential of renewable energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
6.2.1. Solar potential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
6.2.2. Wind potential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
6.2.3. SHPs potential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
6.2.4. Biomass potential. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
6.3. Storage and management as key aspects of microgrids. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
6.4. Alternatives for starting the deployment of microgrids in Colombia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136
7. Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136
Acknowledgement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136

n
Corresponding author. Tel.: 57 300 345 9899.
E-mail addresses: egaona@udistrital.edu.co (E.E. Gaona), cltrujillo@udistrital.edu.co (C.L. Trujillo), jguacaneme@udistrital.edu.co (J.A. Guacaneme).

http://dx.doi.org/10.1016/j.rser.2015.04.176
1364-0321/& 2015 Elsevier Ltd. All rights reserved.
126 E.E. Gaona et al. / Renewable and Sustainable Energy Reviews 51 (2015) 125137
1. Introduction
More than 1.3 billion people in the world have no access to
electricity, and over 84% of them live in rural areas of developing
countries. According to Shyu [1], electricity access has a positive
correlation with the human development index (HDI) and elec-
tricity consumption per capita, being such access critical to human
development in emerging countries.
In Colombia, the monthly national demand of electrical energy
has increased substantially in recent decades, being at an average
of 5.166,89 GW h with a real generation capacity of 5.310 GW h [2].
In addition, costs associated with generation, transmission and
distribution of electricity have made that the provision of electric
service in the ZNI (non-interconnected zones) of the country is
mainly performed by means of diesel generation plants, solar
panels and small hydro power plants. These areas correspond to
52% of the country, covering 17 regions [3].
The Law 697, issued in 2001 states that the rational and
efcient energy use is a matter of social, public and national
interest. Under this law, PROURE (Program for Rational and
Efcient Energy Use and Non-Conventional Energy Sources) [4]
was established and another program such as FAZNI (Financial
Support Fund for the Electrication of Non-Interconnected Zones)
developed the Financing of plans, programs and/or projects for
the construction and installation of the new electric infrastructure
and for the replacement or rehabilitation of the existing, in order
to expand coverage and ensure energy demand satisfaction in the
ZNI [5]. Because of this, Distributed Generation (DG) appeared as
a technological alternative which allows electricity to be generated
as close as possible to the place of consumption [6], without being
part of independent systems [7] and, therefore, the use of the so-
called microgrids has seen as a feasible solution.
A microgrid can be dened as a system characterized by a set of
loads, storage systems and small-scale generation sources [8].
Power sources can generally be of various types (renewable
sources like photovoltaic or wind generators, and/or generators
from fossil fuels), which fulll local requirements for heating and
power generation (Cogeneration) [9]. Microgrids are able to
operate interconnected to the power grid in order to exchange
energy, meaning that they can serve as either generator or load.
PV Panels
Wind Turbine
DC DC AC
DC DC DC
DC
DC Loads
Point of
Common
Coupling (PCC)
Grid
MICROGRID
Breaker
Fig. 1. DC microgrid.
Additionally, they can operate isolated, and under such situation,
they are responsible for fullling the needs of their customers,
ensuring quality of supply and possibly the control of some non-
critical loads [10].
This paper presents an overview about rural microgrids around
the world and particularly in Colombia. The article is divided as
follows: Section 2 presents general aspects and types of micro-
grids, Section 3 shows studies about current status of microgrids
established around the world from the research context and also
as a solution to energy access problem in isolated locations.
Section 4 describes the energy generation problem in Colombia,
Section 5 presents the technical standards of installation, experi-
ences and cost analysis of rural microgrids installed in the ZNI.
Section 6 shows microgrids perspectives in Colombia such as
subsidies, incentives and potential use of renewable energy and
nally the paper comes to the conclusions about the most imp-
ortant issues which were covered.
2. General topics
In recent years, one of the main priorities on a global scale is
the development of alternative sources for power generation,
especially renewable sources producing little environmental pol-
lution. While fossil fuels will continue to supply a considerable
fraction of energy consumption, energy supply will tend to dive-
rsication. Options such as wind and solar energy, renewable
biomass and hydrogen will play an important role in the long term
and will produce substantial changes in the technological prole
for both, the environment and organization of the global energy
system [11].
It is clear that from a lack of energy in isolated locations point-
of-view, as well as the fact of starting dynamics to employ energy
cogeneration using renewable energy, it is feasible to implement
interfaces which are able to connect to the power grid in order to
transfer energy from renewable sources, as well as to supply loads
in case of lack of energy. Taking that into consideration, such
interfaces are therefore known as microgrids [12].
2.1. Microgrid concept
A microgrid comprises a portion of the electric distribution
system in a medium and low voltage. It includes a variety of
Fuel Cells
Distributed Energy Resources (DER) such as distributed generators
and energy storage units, and different types of end users (electric
and/or thermal loads), as well as the necessary communication
equipment for energy operation and management on real time
[13]. The microgrid supplies a range of customers, such as resid-
ential buildings, commercial entities, industrial parks and non-
interconnected zones [14].
DC
The microgrid has the ability to import and export energy in a
DC
exible way from and towards the power grid from different types
of DER. This is mainly achieved in order to control the active and
reactive power ow fullling the quality requirements demanded
DC Bus by the users it supports, and to manage energy storage [14,15].
A microgrid can be either DC [16]; AC [17] or even a high
frequency AC power grid [18]. Additionally, It can work intercon-
AC
nected to the power grid or isolated, from which needs and control
schemes are different for each operation mode. When the micro-
grid is connected to the distribution power grid, there is a backup,
and therefore it is possible to feed local loads and deliver energy to
AC Load the power grid. However, the innovative feature of a microgrid lies
in its ability to operate autonomously when there is a power
outage in the distribution power grid. This operation mode is
called isolated operation, and the microgrid can be considered an
island with local generators and loads. In this way, users can get
 E.E. Gaona et al. / Renewable and Sustainable Energy Reviews 51 (2015) 125137 127

a continuous service even when power outages occur in the power
grid due to breakdown or maintenance.
On the other hand, if there are sags, frequency variations, or
failures in the main power grid, the microgrid can be easily
disconnected, which means that it can operate isolated from the
rest of the power grid avoiding affectations to local loads by such
problems. This can be achieved if local energy resources are
available, or in other words, if there is energy autonomy. Thus,
microgrids not only help continuity of service but also contribute
to maintaining its quality [19].
2.2. Types of microgrids
Bearing in mind the denition of a microgrid, there are
different classication possibilities, depending on certain factors
such as the type of generation, loads to supply, physical layout,
among others. However, the most evident classication can be
done based on electric characteristics, so as to know whether the
microgrid uses direct current (DC) or alternating current (AC).
A number of different authors such as Shenai et al. [20], Jiang
and Zhang [21], Kwasinski and Krein [22] explore the use of DC
microgrids. Based on their contributions, it can be established that
several generators systems, storage systems and loads are con-
nected to a common DC bus through a converter, where there are
loads and storage systems. In the case of AC loads, there is an
inverter which ensures adequate power quality conditions. Fig. 1
shows the scheme of a basic DC microgrid:
Another classication, depending on the operation voltage
level, can be given to DC microgrids. It is possible to work either
with voltages resulting from the rectication of a single phase, or
PV Panels
Wind Turbine
Fuel Cells
AC
DC
Point of
Common
DC DC DC
Coupling (PCC)
AC AC AC
Grid
Breaker
AC
AC Loads
MICROGRID
DC Load
Fig. 2. AC microgrid.
three phase AC systems, or to work with typical DC voltages such
as 48 V, used in many schemes and works [22].
Similarly, there are alternating current or AC microgrids. In this
type, generation systems and loads are connected through con-
verters to an AC bus. Storage systems and DC loads require
converters which are able to adjust the power of the AC bus to
their particular characteristics. The bus is connected in a single
point to the power grid. To exemplify this, Fig. 2 shows the AC
microgrid conguration:
Among the AC microgrids there are several classication
possibilities depending on the operation voltage, as well as the
type of system (single or three phase). Although it is common to
nd many studies of low voltage systems, it is also possible to nd
them in medium voltage level, such as the one undertaken by
Huang and Yang [23].
3. Microgrids worldwide
Microgrids implemented around the world are developed from
mainly focused on a research context conducted by countries
covering large geographic areas. For example, The United States
has done so through projects designed by CERTS (the Consortium
for Electric Reliability Technology Solutions) in cooperation with
AEP, TECOGEN, Northern Power Systems, S&C Electric Co., Sandia
National Laboratories and the University of Wisconsin [24]. In
Australia, it has been done through CSIRO Energy Centre in
Newcastle [25], and in China through the Chinese National Energy
Administrator (NEA) which plans to build 30 microgrid projects
during the period of the 12th Five-Year Plan [26], as power grid
problems occur due to long transmission distances. However,
research on microgrids is not only conducted because of grid
problems, but it is also done so as to show the ability to
incorporate DERs into it.
In a similar way, there have been research studies conducted by
countries of the European Union with projects such as the
Microgrids Project, which was led by the National Technical
University of Athens (NTUA) [27] and whose continuation was
called More Microgrids Project, led again by NTUA [28]. In Japan,
DC
AC
the country with more research projects oriented to microgrids
[29], such projects have been mostly funded by New Energy and
Industrial Technology Development Organization (NEDO). It must
AC Bus be highlighted that these research studies are oriented to max-
imize the use of the available energy resource when there are
DC electric or thermal loads, as well as to support loads which must
be energized at all times (hospitals, data centers, etc.), under high
power quality conditions and with the support of DERs.
In addition to this, it is necessary to present another perspec-
tive about microgrids development since they are the only option
for bringing energy to isolated places such as islands or difcult-

Table 1
Examples of microgrids around the world.
Source: Based on Planas et al. [32].

Site Project manager Type Structure

Place Country Real Test-bed AC DC

Columbus USA Dolan Technology Center X X

Twenty-nine palms, California USA General Electric (GE) X X
Hefei China Hefei University of Technology (HFUT) X X
Tianjin China Tianjin university X X
Newcastle Australia CSIRO Energy Center X X
Agria pig farm Macedonia More microgrids Project X X
Mannheim Wallstadt Germany More microgrids Project X X
Hachinoche Japan NEDO X X
Kyoto Eco-energy Japan NEDO X X
128 E.E. Gaona et al. / Renewable and Sustainable Energy Reviews 51 (2015) 125137
to-access areas, which are non-covered by the interconnected
system due to cost reasons, topography or security problems
[25,30,31].
Different authors have developed studies focused on present-
ing a review of the current state of microgrids in the world [19,32].
Table 1 presents a summary of some of those executed projects:
Based on data shown in Fig. 3, it can be clearly seen that, in
terms of the microgrids installed capacity in the world market, in
Navigant Research [33] has identied that for the second period of
2014 there was a total of 4.393 MW, having North America as the
market leader with a strong participation of 66%.
Only 53% of this capacity is currently in operation, and an
additional 2 GW of microgrids are at the proposal stage. Moreover,
the majority of microgrids in the United States run on gas.
3.1. Rural electrication: Isolated rural microgrids around the world
In the world, although energy generation fullls the demand in
large populations, it leaves the most remote regions of the
electrical interconnection system without energy service, this
due to costs associated with interconnection, low demand by
population density or complicated access to the site. However,
government policies in different nations have generated various
strategies to fulll energy needs in these zones, allowing the
inclusion of microgrids in order to generate energy.
For rural zones of India, in Bhoyar and Bharatkar [34] have
identied that DG contributes to the reduction of energy losses
and improves power quality, despite the fact that the govern-
ment policies have established unrealistic goals with regard to
the fullment of objectives and energy lack reduction [35]. For
Africa, in Blyden and Lee [36] and Blyden et al. have made
Fig. 3. Total microgrids capacity in the world market by region [33].
Table 2
Examples of microgrids installed in Rural Zones.
Source: Based on Schnitzer et al. [39].
Generation source Capacity (kW) Site
Town
PV 120 Koyalapada
Biomass 32 Samstipur
50 Bhadhi
150 Galyari
43 Bhebra
32 Bara
Biomassdiesel 35 Baharbari
Hydro 14 Buayan
recommendations [37] focused on evaluating the changes to the
concept of autonomous and non-autonomous microgrids in order
to provide electricity to local residents, which act as basic units for
the system expansion plans. In Vietnam, [38] microgrids topolo-
gies are dened for various purposes, showing the case study of a
rural area.
For rural zones off-grid, Table 2 illustrates microgrids in
operation which make use of renewable sources for power
generation.
As a result of cooperation, renewable energy deployment in
isolated microgrids is growing steadily in both developed and
developing countries. For example, China and the United States
have some small-scale turbines in use, with an estimated capacity
of 274 MW and 216 MW by the end of 2012. At least 806,000
small-scale turbines were operating at the end of 2012, exceeding
678 MW (up 18% over 2011) [11]. During 2013, small-scale wind
turbines were being used predominantly for battery charging,
telecommunications, irrigation and water pumping.
On the other hand, the solar PV market had a record year,
adding more than 39 GW in 2013 for a total exceeding 139 GW.
Even when global investment in solar PV had declined nearly 22%
compared to 2012, new capacity installations increased by more
than 32% [11]. China increased its capacity nearly one-third of
global capacity added, followed by Japan and the United States.
In rural areas and islands, hybrid systems such as wind, solar
PV, biomass gasication and small hydropower with diesel con-
stitute an attractive option due to declining costs for solar PV and
wind, together with reduced costs for battery storage [40].
4. Energy problem in Colombia
There are two major problems affecting the electric power
system in Colombia: the rst one refers to the fact that the electric
infrastructure does not cover the entire territory and the second
one corresponds to the changes in the precipitations produced by
the climatological phenomenon called El Nio. In the case of
Colombia, the country needs to provide the necessary electric
service to more than two million people, bearing in mind that in
the rest of the world, efcient electricity transmission and dis-
tribution is a fundamental requirement for providing citizens,
societies and economies with essential energy resources, all this
happening in a growing demand for electricity.
The SIN design has evolved through economies of scale. In
large, centralized generation of electrical power and the geogra-
phical distribution of generation resources (locations near coal-
elds and hydro resources). Although the SIN covers the major
cities in the country, there are geographical areas which are not
connected to the system. Therefore, the ZNI would be those areas
in Colombia without grid services of the SIN.
Installation year Hours
Country
India 2005 6 pmmidnight
India 2012 5 pm11 pm (winter)/6 pm12 am (summer)
India 2010 5 pm11 pm (winter)/6 pm-12 am (summer)
India 2006 6 pmmidnight
India 2006 6 pmmidnight
India 2012 6 pmmidnight
India 2002 6 pmmidnight
Malaysia 2009 24 h (except for dry season, then nighttime only) 24)
 E.E. Gaona et al. / Renewable and Sustainable Energy Reviews 51 (2015) 125137 129

Fig. 4. ZNI Coverage in Colombia. Source: CNM IPSE 2013.

Fig. 4 shows the coverage of the ZNI in Colombia. Nowadays,
such zones cover an extension of about 600,000 km2 (52% of the
total area of the country) [41], and this comprises about two
million people, of which 1.2 million have no access to electricity
[11]. Besides this, the percentage of unsatised basic needs (NBI) is
71%, whereas for the rest of the country is 28%. This corresponds to
more than 544 indigenous reservations, with approximately
840,000 indigenous people of different ethnic groups distributed
in the regions of Vaups, Guaina, Amazonas, Vichada, Putumayo,
Guajira, Cauca and Choc. Similarly, there are 950,000 Afro-
Colombians, mainly in the regions of Choc, Archipelago of San
Andrs, Providencia and Santa Catalina, Valle, Bolvar and Cauca.
The national government, through the IPSE (Institute of Plan-
ning and Promotion of Energy Solutions for Non-Interconnected
130 E.E. Gaona et al. / Renewable and Sustainable Energy Reviews 51 (2015) 125137
Composition of SIN Generation
5,70%
Hydraulic
41,835.94
Termic
27,10% 16,838.63
Lowers and
67,30%
cogenerators
3,522.01
Fig. 5. Composition of SIN generation in Colombia (2013). Source: XM 2014.
Fig. 6. Effective SIN Capacity (December, 2013) [3].
Fig. 7. Projected power demand and installed capacity [2].
Zones), has installed hybrid microgrids in ZNI as a solution to the
electricity supply problem in rural zones, developing pilot projects
in innovation centers with the objective of evaluating technologies
for energy generation, acquisition of knowledge and experience in
the implementation and adoption of these technologies [42].
Since most of the SIN energy generation in Colombia comes
from hydroelctric generation (67%), this is annually affected by
climate variability in the country, especially with El Nio phenom-
enon. Therefore, the reservoirs level decreases and the use of fossil
fuels increases to compensate the hydro generation decit.
Fig. 8. Power reserve margin of the Colombian system [2].
Additionally, the remaining 33% is obtained from thermal power
plants, with some limited participation of PCHs (Small Hydro
Power Plants), Photovoltaic and Wind Power Systems. On the
other hand, and considering the ZNI, energy generation is mainly
derived from diesel power plants, solar panels and PCHs [3],
consequently, it can be seen that shared generation with FNCE
improves microgrids autonomy. Fig. 5 compares, the proportion of
energy generated in Colombia in 2013.
Colombias total installed power capacity accounted for
14.558 MW by the end of 2013, comprising 64% of hydric
resources, 31% thermal and 5% of minor resources and cogenera-
tion [43]. In the ZNI in particular, 92% of power generation
corresponds to diesel plants and the remaining 8% to FNCE such
as photovoltaic systems and biomass [3]. Additionally, although
the capacity in this zone composed only 165 MW, FNCE were able
to provide 192.4 MW to the SIN, accounting for 1.4% of the total
installed capacity in 2008. Fig. 6 compares effective capacity of SIN
in 2013.
The UPME (Mining and Energy Planning Unit) conducted a
projection of the possible evolution of the country peak demand in
2013, taking into account the current available capacity and future
capacity of the generation system [2]. Fig. 7 shows that the
installed capacity was higher than the power requirements the
system demanded in all scenarios, by means of keeping availability
indicators of existing plants. However, the annual energy demand
reached 60,890 GW h [43].
Although the capacity in projections in Fig. 7 was considerably
high, Fig. 8 clearly reveals a reduction in the reserve margin of the
electric system, which will decrease by about 18% in 2021 (high
scenario). From 2022 onwards, the reduction would be even more
signicant, if new generation projects in the country are not taken
into consideration.
In order to counteract the effects of reduction in the reserve
margin and the country energy requirements for the year 2022,
the UPME formulates different expansion scenarios of the electric
system including autonomous supply options, FNCE incorpora-
tion, different demand scenarios and future interconnection with
neighboring countries.
One of the proposed scenarios for FNCE incorporates three
wind parks, which will be located in the Guajira region, generating
100 MW each, two 50 MW geothermal plants in the central region
of the country and minor solar energy plants. The commissioning
of these projects is expected to be established in the years 2020,
2021 and 2023, respectively, with a surplus sale potential to the
SIN of 140 MW from cogeneration plants. As a result, the solution
will strengthen the microgrids infrastructure as an alternative
generation scheme to SIN in difcult-to-access areas.
 E.E. Gaona et al. / Renewable and Sustainable Energy Reviews 51 (2015) 125137 131

5. Rural microgrids installed in Colombia 5.2. Experiences of installing microgrids in ZNI

5.1. Technical standards for the construction and maintenance
Currently, no technical or legal denition of a microgrid can be
found in the Colombian energy regulations, neither technical
standards for its construction and maintenance. However, there
are technical requirements for photovoltaic panel installations,
which must follow the Colombian Electrical Code NTC 2050,
particularly section 690, and the RETIE (Technical Regulations of
Electrical Installations) for maintenance and operation. Moreover,
there are several technical guides such as: NTC (Colombian
Technical Standards) NTC 2775 (Photovoltaic Energy, Terms and
denitions); NTC 2883 (Photovoltaic Energy, Photovoltaic Mod-
ules); NTC 2959 (Photovoltaic Energy; Guidelines for characteriza-
tion of batteries for storage energy in photovoltaic systems) and
NTC 4405 (Photovoltaic Energy, Energy efciency, Evaluation of
the efciency of photovoltaic solar systems and components). The
energy generation installed by IPSE in ZNI is mainly composed by
Solar Photovoltaic (PV), Wind Turbines (WT) and Diesel power
plants in order to supply energy to four groups of loads. The rst
one relates to street lighting; the second corresponds to medical
equipment in healthcare centers, the third one concerns schools
with the use of computers, lighting and audiovisual equipment,
and nally in coastal zones with refrigeration systems for food
storage. Table 3 shows the list of microgrids installed by the IPSE
currently operating in ZNI.
The most successful cases of microgrids installed in ZNI in
Colombia are: Titumate in Choc and el Cardn in Guajira.
Titumate has 70% of power generation based on FNCE (Solar PV)
and 30% based on Diesel. Furthermore, the average time of
operation with FNCE is of about 18 h, whereas with Diesel it is of
approximately 6 h. Moreover, in La Guajira, the microgrid located
at the Cardn is becoming part of the SIN instead of continuing
being a ZNI microgrid. The system interconnects the Cardn
(WindSolar PV) and Cabo de la vela (WindSolar PV) through a
13.2 kV circuit from the output of the substation Puerto Bolvar
(Cabo de la Vela) and Meera (El Cardn) beneting a population of
about 3000 residents. On the other hand, there are several zones
in the ZNI without electric service supply or zones in which the
electric service is provided intermittently due to different reasons,
such as the deciencies in infrastructure for the distribution
of energy, no enough resources allocated for power generation
and problems of public order which may prevent or hinder the
service.
The productive potential of microgrids for supplying energy to
the external power grid have been developed in academic contexts
by Hernandez [44], based on PV power source. Such system was
tested at the Universidad Nacional de Colombia locations. The
design was based on traditional, residential energy consumption
(315 kW h). Apart from that, Hernndez et al. has tested another
PV grid-connected system in [45].

Table 3
Examples of microgrids installed in ZNI of Colombia.
Source: Based on IPSE [3].

Generation source Capacity (kW) Site Installation year Average monthly delivery service

Town Department

Solar PVWindDiesel 425 Nazareth Guajira 2010 13 h, 15 min

Solar PVDiesel 545 Isla Fuerte Bolivar 2008 8 h, 55 min
165 Titumate Choc 2011 10 h, 14 min
4.32 Pueblo Nuevo Guaina 2011
36 Barrancominas Guaina 2011 6 h, 41 min
3.6 La chorrera Amazonas 2011 5 h, 17 min
Solar PVWind 2.95 Cerro la Teta Guajira 2011
Flor del paraso Guajira 2011 7 h, 21 min
PCH 2780 Baha Solano Choc 1999 23 h, 57 min
1875 El salado Antioquia 2000 22 h, 22 min
55 La encarnacin Antioquia 2007 23 h, 11 min

Table 4
Rural microgrid cost in ZNI.Source: Base on CORPOEMA [46].

Capital expense PV Wind

Capacity Units Price (USD$/kW) % Capacity Units Price (USD$/kW) %

Equipment Renewable source 110 Wp 2318 14 400 W 3815 27

Regulator 10 A 552 3 25 A 655 5
Battery bank 1440 Wh 3298 20 5400 Wh 3067 21
Inverter 300 W 404 2 500 W 191 1
Spare parts (5%) 569 3 513 4
Installation 4800 30 2527 18
Transport 1829 11 1431 10
Project Management 1652 10 1464 10
Contingency 826 5 732 5
Total 16,248 100 14,393 100
Operation Annually Annually
Maintenance Annually 90,909 Annually 25,000

Currency was converted according to the month specied below.

US$ 1 1800 Colombian Peso (December 2012).
132 E.E. Gaona et al. / Renewable and Sustainable Energy Reviews 51 (2015) 125137

On the other hand, the rural microgrid project installed in
Nazareth (Guajira) did not prove successful due to technical
problems with the mechanical malfunction of the Wind Turbine
and the wrong calculation of the batteries bank capacity, as well
the lack of training of indigenous communities in equipment
operation. However, the system is currently working with Solar
PV and diesel sources.
5.3. Cost analyses of installation and operation
Rural Microgrids, installed in ZNI areas are more sensitive to
cost variations due to the unique nature of most projects, which
results on less standardized design processes and special deploy-
ment conditions. Consequently, results with regard to price have
increased from 1.5 to 1.7 times, compared to similar microgrid
projects which were located in an easily accessible site. Table 4
shows approximated cost analysis for two inaccessible populations
in ZNI area. In such areas, installation costs are classied by
equipment, installation, project management, operation and main-
tenance. However, due to the site remoteness, additional costs
need to be considered such as remote equipment transportation,
remote crane operation and spare parts which may be available
on site.
In these zones, the distributed sources are hybrid systems such
as PVDiesel, WindPV also PVWindDiesel systems. In all these
cases, the systems elements are WT DC/AC, battery bank and
converters. The microgrid supplies electricity needs such as light-
ing, radio and TV to rural families.
The wind system (400 W) installed at Nazareth (Guajira) is
located in the northern part of the country. The wind energy

Table 5
Rural microgrid cost around the world.
Source: Base on Li et al. [47], Bhattacharjee [48], Ramli [49], Fazelpour [50] and Arriaga [51].

Region Cost/ Diesel Solar PV Small WT Flywheel Converter Battery Bank Total Cost ($ %
Technology ($/kW) ($/kW) ($/kW) ($/kW) ($/kW) ($/kW h) /kW)

Urumqui (China) Capacity 5 kW 2.5 kW 1 kW 6.94 kW h

Equipment 5000 5000 700 1100 11,800 58.8
O&M ($/kW/ 3 50 10 10 73 0.4
yr)
Replacement 2500 4000 700 1000 8200 40.9
20073 100
Tripura (India) Capacity 1.5 kW 1 kW 1.5 kW 1394 kWh
Equipment 2800 4000 700 310 7810 52.7
O&M ($/kW/ 0 0 0 5 5 0.0
yr)
Replacement 2800 3200 700 310 7010 47.3
14,825 100
Makkah (Saudi Arabia) Capacity 500 kW 10,569 kWh
Equipment 1521 1800 800 400 1200 5721 53.2
Installation 0 0.0
O&M ($/kW/ 10 16 20 46 0.4
yr)
Replacement 1521 1500 400 375 1200 4996 46.4
10763 100.0
Kish Island (Iran) Capacity 620 kW 1 kW 20 kW 55 kW 9645 kW h
Equipment 1000 3500 750 900 1100 7250 46.8
Installation 0 0.0
O&M ($/kW/ 1590 25 25 0 10 1650 10.6
yr)
Replacement 900 3200 600 800 1100 6600 42.6
15500 100
Kasabonika Lake Firs Nation Capacity 200 kWp 50 kW 4.42 kW h
(Canada) Equipment 3700 7289 348 11,337 62.8
Installation 1840 1709 48 3597 19.9
O&M ($/kW/ 42 335 13 390 2.2
yr)
Contingency 1019 1632 80 2731 15.1
18,055 100.0

Table 6
Current Policy context.Source: Based on [5357] and [58].

Name Regulator Description

Public Law 697 of 2001 Colombian Congress (Rational and efcient use of energy Law of the rational and efcient use of energy (URE)
(URE) URE)
CREG Resolution No. Ministry of Mines and Energy It denes the compensation methodology for the reliability charge in the
071 issued in 2006. wholesale energy market and includes small hydro plants
CONPES 3453 (6-Dec- National Council for Economic and Social Policy (Consejo Whose objective is focused on power generation replacement based on fossil
07) Nacional de Poltica Econmica y Social)Conpes fuels for renewable energy technologies, wherever possible
CREG Resolution No. CREG It denes the methodology for determining how the rm wind energy plants
148 issued in 2011 can participate in the compensation scheme of reliability charge
MME Resolution No. CREG It refers to the Implementation of the program for the rational energy use
180919 issued in
2001
Public Law 1715 of 2014 Colombian Congress It promotes the development and use of FNCE in the SIN
 E.E. Gaona et al. / Renewable and Sustainable Energy Reviews 51 (2015) 125137
conversion system used for cost analysis is the WT S/W Air X
400 W, battery AGM (Trojan T105), 6 V, 225 A h, inverter and
MPPT converter. The total installation cost would be approxi-
mately $ 2527 US$/kW. Additionally, remote transportation costs
are estimated at $ US 2.05/kg from Barranquilla (Atlntico) to
Rioacha (Guajira). Spare parts are considered to be 5% of the
equipment and installation cost ($ 513/kW). Hence, the total
estimated cost for a turnkey Wind installation at Nazareth is $
14,393/kW.
On the other hand, the Photovoltaic (PV) system (100 Wp)
installed at Cravo Norte (Arauca), which is located in the north-
west part of the country, has lower installation costs per kW in
comparison with small turbines. As a reference, the estimated PV
equipment cost is $ 6572/kW, which accounts for the Si mono
panels, the MPPT converter, battery and inverters, and nally the
connection equipment. The installation cost is calculated using the
service rates set at $ 210/day of an electric engineer and $ 50.6/day
of an assistant electrician apprentice ($ 2369/kW). Remote trans-
portation cost is estimated at $ 2.22/kg. As a result, the estimated
cost for a turnkey PV installation at Cravo Norte is $ 16248/kW.
The maintenance cost is estimated taking into account the rate
salaries of an electrical engineer, a two technical operators ($
10,000/year), which in both cases is equal. However, the WT has
lower maintenance cost per kW when compared to PV system due
to the power delivered. Finally, both cases do not involve operating
cost since the customer is trained.
Table 5 shows the cost for some examples of rural microgrids
projects around the world, taking into consideration technology,
installation, M&O and replacement. Such data was collected for
techno-economic analysis as well as for the design of a case study
involving different hybrid microgrid projects in rural and remote
communities.
6. Microgrids prospects in Colombia
The Colombian power system has been developed under the
mature and traditional centralized generation scheme. Such sys-
tem is based on large generating stations and centralized control,
which is technically optimized for regional power adequacy. Its
limited cross-border interconnections and differing regulatory and
commercial frameworks are barriers for the introduction of new
technologies for renewable energy sources (RES) and new pro-
posed distribution structures such as microgrids.
Current power grids serving Colombian consumers have
evolved over more than a hundred years as consumers have
grown all around the world. Currently, social problems and
infrastructure costs in Colombia have limited the provision of
electric service to only 97% of the population [11]. The Colombian
market liberalization, which began with Law No. 142 issued in
1994, has allowed supplying electric service to more users. Thus,
until 1993 the cost of electric investment had had a large
percentage of the Colombian debt and the big hydro power
dependence of the electricity market had led to rationing and a
delay in the development of the Colombian power system [52].
Currently, the electric market has been liberalized, and plans
include reducing the hydro power dependence.
6.1. Policy scenario in Colombia: Subsidies and incentives
The microgrids implementation is only possible in ZNIs under
the energy policies in Colombia. The access for generation plants
of less than 20 MW is not allowed, this due to the regulated
electricity market. Besides this, the electricity in ZNI is consider-
ably expensive because of the inherent conditions in such areas
and a low ability to pay for the service. Therefore, the National
133
Government provides subsidies for lower rates, and that can be
seen, for instance, in the Resolution 180961, issued in 2004, in
which the MME (Ministry of Mine and Energy) denes the factor
subsidy granted to users by reducing the charging rate. Addition-
ally, the Law 732 issued in 2002, established that the indigenous
settlements in vast rural areas will receive special treatment in
terms of grants and contributions of public services, and the Law
633 issued in 2000 provided the sources and destination of
resources by the FAZNI. The Fund has been and maintained
primarily through the contributions made by the ASIC (Exchange
System Manager Commercial) in the Wholesale electric market.
Table 6 shows the main policies and laws in the context of the
Colombian energy context, in relation to the ZNI and FNCE. First of
all, the Law 697 (2001) or the Law of Rational and Efcient Energy
Use (URE), give the guidelines for implementing FNCE sources in
electricity generation with incentives for ZNI rural areas. More-
over, the Law 788 (2002) provides tax exemptions for projects
which can contribute to energy efciency, activities or assets that
generate certied greenhouse gas reductions. Furthermore, it
ensures income tax reduction from the sale of electricity generated
from biomass, wind and agricultural waste, as well as exemption
from the value added tax on imports of equipment and machinery.
Apart from that, by means of Commission of Regulation of Energy
and Gas (CREG) Resolution 091 issued in 2007, an incentive to the
implementation of renewable energy technologies in ZNI was
granted, recognizing a risk premium equivalent to 3.5 points
technology cost per capita.
As established by resolution 180919, the MME determined the
implementation of the PROURE. This resolution establishes parti-
cipation goals for both the national grid and for ZNI, as well as
other targets for energy efciency in different demand sectors.
The National Energy Plan (20102030) presented by the UPME,
promotes the use of renewable energy sources RES, especially for
ZNI and electricity customers in isolated electricity networks.
Considering the aforementioned, microgrids are presented as a
solution to include those sources in the grid. With that I mind, the
feasible energy sources for microgrids in Colombia can include
photovoltaic, wind, biomass, small hydro plants (PCH), micro
turbines and internal combustion engines ICE.
The law 1715 (2014) has been enacted with the aim to establish
the legal framework and instruments for the promotion and use of
FNCE, especially those from renewable sources, although its
integration in the SIN and participation in the ZNI modied the
electricity market. In addition, this law has been created to
encourage investment, research and development for the produc-
tion and use of energy from FNCE. What is more, it has provided
some incentives for investors such as income tax reduction of
about 50%; exemptions in the value added tax in equipment and
national services, tariff exemptions in import equipment and
materials, annual depreciation rate of about 20% for FNCE projects.
By contrast, Table 7 shows a comparative group of policies
oriented to microgrid projects all over the world.
The overriding objectives of the National State energy policy
are mainly aimed at ensuring sustainability, competitiveness and
security of supply, requiring a coherent and consistent set of
policies and measures to achieve them. The existing conditions
of the electricity market in Colombia have achieved market
liberalization and growth and, in a similar way as in Japan, the
market has shown an increasing number of participants, as well as
private nancial participation. It is important to incorporate the
development of new energy sources, cleaner technologies and
technological progress (power electronics and telecommunica-
tions). In the second place, quality standards and appropriate
levels of coverage are also needed.
Although technology has been developing fast and has there-
fore evolved rapidly as well as the international policies in
134 E.E. Gaona et al. / Renewable and Sustainable Energy Reviews 51 (2015) 125137

Table 7
Microgrid International Policies. Source: Based on IPSE [3], Romankiewicz [59] and KPMG International [60].

Country Renewable energy/microgrid policies Other policies, incentives and subsidies Agencies involved

Japan RPS (2002), feed-in tariff (2012) Interconnection Guidelines Highly dependent on fossil fuel imports, partially liberalized NEDO; METI
(1995); electric law amendments allowing IPP sand partial electricity market, unofcial nuclear phase out (Fukushima),
liberalization (1995, 1999, 2003); New Energy Basic Plan(2010) 25% reduction in greenhouse gas emissions by 2020
The Feed-in Tariff (FIT) rate for the period from 1 April 2014
to 31 March 2015 is:
 Solar: 34.56 Japanese yen (JPY)/1 kW
 Wind: 23.76(JPY)/1 kW
30% special depreciation in addition to ordinary depreciation
Tax credit (7% of acquisition costs)
Singapore Singapore Initiative in New Energy Technology (SINERGY) Nearly entirely dependent on fossil fuel imports, 16% below Energy Market Authority,
(2007) BAU greenhouse gas target for 2020 An STAR Inst. of Chemical
and Engineering Sciences
China 15% non-fossil target for 2020 (2009). Renewable energy law 50 GW CHP target, natural gas targets, feed-in tariffs for NEA; Chinese Academy of
(2006), 100 New Energy cities, 30 microgrid pilots (2011) Draft renewable energy, 4045% carbon intensity reduction target Sciences: Inst. of Electrical
management methods for distributed energy (2011) for 2020 (below 2005 levels) Engineering
50% refund of value added tax (VAT) is paid on the sale of
wind power
50% refund of VAT is paid on the sale of self-produced
photovoltaic power from 1 October 2013 to 31 December
2015
Canada Green Energy and Green Economy Act of Ontario, Ontario feed- Western Climate Initiative,17% reduction in greenhouse gas Natural Resources Canada,
in tariff, British Columbia Clean Energy Act (2010), Renewable emissions by 2020 off 2005 levels for participating provinces; NSERC Smart Microgrid
Energy Standard Offer Program (2006) national clean energy standard90% from hydro, nuclear, Network
wind, solar, or CCS by 2020 (from current 77%)
There are no feed-in tariffs or quota obligations at the federal
level but they are implemented in some provinces
US 30 states with RPS, 44 states with interconnection policy, 44 Development of CERTS technology, DERCAM and microgrid DOE, CEC, DOD, NREL
states with net metering policy software, IEEE 1547 standard development, proposed 80%
clean energy goal by 2035, 17% reduction in greenhouse gas
emissions by 2020, off 2005 levels
Product Tax Credit: Wind, biomass and geothermal: USD
cents (ct) 2.3/kW h
Other: ct1.1/kW h
Mexico Law for the Development of Renewable Energy and Energy (2013) increase non-fossil fuel based power generation to 35%. ERC,SENER
Transition Financing (LAERFTE). (2008) 100% deduction incentive for taxpayers who carry out
investments in renewable energy equipment, cogeneration
systems of efcient electricity.
Chile Law 20,257. Non-Conventional Renewable Energy (NCRE) Strong renewable resources (solar, geothermal, wind), 20% CNE
RPS of 10% by 2024 below BAU greenhouse gas target for 2020
Colombia Law 1715 (2014) Integration of FNCER in the SIN Incentives for investors such as income tax reduction of about MME, IPSE, FAZNI
Law 788 (2002) 50%; exemptions in sale taxes equipment and national
services; tariff exemptions in import equipment and materials;
annual depreciation rate of about 20% for FNCE projects.
Argentina Law 26,190 National Promotion Regime Power Generation Anticipated (VAT) refunds for the new depreciable property CAMMESA, EPSE
from Renewable Sources (2009). RPS of 8% by 2016 (except for automobiles) included in the project.
Accelerated income tax depreciation
Subsidies at national level:
 Wind:0.015 Argentine peso (ARS)/kW h
 Solar: 0.9 ARS/kW h
 Hydro for less than 30 MW installed capacity: 0.015 ARS/
kW h
 Other: 0.015 ARS/kW h

renewable energy they have not progressed in the same way in the
Colombian context. Despite the fact that the recent Law 1715 has
laid down the pathway for the use of renewable source in
microgrids, the customers who are not covered and the great area
without electricity in Colombia represent a major challenge and a
crucial factor which need to be considered as the ideal scenario for
the development of strategies for managing the power generation
and its rational use. It is essential that such trends take place in a
coherent way addressing technical, commercial and regulatory
factors, so as to minimize the risk and allow business decisions to
be made by companies in a stable environment.
Future grids must provide all consumers with a highly reliable,
cost-effective power supply, fully exploiting the use of both
large centralized generators and smaller distributed power
sources. In order to achieve these objectives, customers, providers,
researchers and lawmakers must all get involved in the develop-
ment of electricity policies, technologies and solutions. It is clear
that the current power system needs to be adapted so that it can
manage new connections of multiple generators and user demand
without affecting the power quality service [61].
Advances in simulation tools will greatly assist the transfer of
innovative technologies to practical application for the benet of
both, customers and utilities. Developments in communications,
metering and business systems will open up new opportunities at
every level of the system and they will enable market signals to
drive technical and commercial efciency. Furthermore, as new
technologies allow interacting with the present networks and any
of the actual generators, the main change in the grid must
be focused on a bidirectional power ow. At present, it works in
a unidirectional way, taken from the big power sources to the
 E.E. Gaona et al. / Renewable and Sustainable Energy Reviews 51 (2015) 125137
2.5
2 South America. The coastal regions of Colombia have been classi-
1.5
1
0.5
0
Guajira Costa Orinoqua Amazona
Atlntica
Kilowatt per hour per square meter per year (KWh/m2/yr)
Fig. 9. Areas with the highest potential for solar energy in Colombia [65].
3500
3000
2500
2000
1500
1000
500
0
Cabo de la San Andrs Providencia Rioacha Soledad
Vela
Kilowatt per hour per square meter per
year (KWh/m2/yr)
Fig. 10. Power wind potential in regions of the Atlantic coast of Colombia [66].
consumer centers. Taking that into account, the proposed micro-
grids might evolve into a bidirectional user in the specied
scenario.
6.2. Productive potential of renewable energy
Colombia has different kinds of renewable resources such as
solar, wind, PCH and biomass, which can be used in the ZNI for
building a microgrid. The Institute of Hydrology Metering and
Environmental Studies (IDEAM) and UPME published the Solar
Radiation Atlas [62] and Wind Atlas [63] in 2006. In addition, there
have been advances in the development of Atlas about hydro-
power [64] and biomass potential for electric energy generation.
6.2.1. Solar potential
The Guajira is the region with the highest solar radiation levels
and one of the sunniest regions in the country. However, not only
that state but also the whole country shows untapped solar energy
potential, which reaches a multiyear daily average close to
4.5 kW h/m2 [62]. The installed solar capacity in the country is of
about 6 MW, in which 57% is used in rural areas and 43% in road
lighting, respectively [65]. Fig. 9 presents the average of solar
energy availability by region in Colombia.
The application of solar systems is more suitable in rural areas,
where isolated areas can be found and their interconnection to the
power grid is rather expensive. Since 2012, the project for the solar
energy plant AWARALA has been registered, having a capacity of
19.5 MW [66]. Similarly, the Renewable Energy Colombian Asso-
ciation (HACER) estimates nearly 1 MW of photovoltaic power
which is currently installed and interconnected to the power grid
in pilot projects developed by self-generators [67].
135
6.2.2. Wind potential
Wind regime in Colombia is considered among the best in
ed under class 7 winds, which means they can reach 10 m/s [68].
The annual wind energy density varies between 1 kW/m2 and
1.331 kW/m2 at 20 m high, whereas it goes between 2.197 kW/m2
and 2.744 kW/m2 at 50 m high [63].
Fig. 10 shows the potential of wind energy in regions of the
Atlantic coast of Colombia. If only the estimated wind potential in
the Guajira region is considered, that would indeed represent an
Andina Costa important gure of 24.8 GW. Nowadays, the country has an
Pacfica installed capacity of 19.5 MW of wind energy in the Jepirachi
park, located in the Guajira region. Since 2012, the JEMEIWAA KAI
SAS wind project, situated in the north of the country, has been
registered and operates with a capacity of 100 MW [67].
6.2.3. SHPs potential
Currently, Colombia has a total of 197 PCHs, with an installed
capacity of approximately 168.2 MW [67]. With regard to hydric
resources in Colombia, the average ow of the 5 main watersheds
of the country is 66,440 m3/s, which represents a potential of
93,085 MW, from which 25,000 MW has been estimated as
potential for small hydro power plants.
6.2.4. Biomass potential
Regarding biomass, Colombia has the potential for using it as
the basis for producing alternative energies from bananas, coffee
Cartagena Valledupar pulp and animal waste. In addition, it has been suggested that
biogas can be obtained from anaerobic treatment in banana-
producing areas. Moreover, and in relation to coffee and its
potential, this generally comes from the waste, which is nearly
40% of the total wet weight. Taking into account the aforemen-
tioned factors, it is estimated that about 85,000 TOE/year would
produce 190 million m3/year of biogass generated from coffee
plantations, equivalent to 995,000 MW h.
The annual potential of biomass energy in Colombia is of
approximately 16,260 MW h per year and it is distributed as
follows: 658 MW h/year of biodiesel, 2640 MW h/year of bioetha-
nol, 11,828 MW h/year of agriculture residues, 442 MW h/year of
forestry plantations residues and 698 MW h/year of natural forest
residues [69]. However, due to the low energy density and
transportation costs involved in carrying them to processing
plants, it is not an economically viable alternative [67].
6.3. Storage and management as key aspects of microgrids
Electricity storage is the most important challenge the electric
power system faces nowadays. The development of power systems
has generally been established in alternating current (AC). Never-
theless, it is necessary to convert AC into DC as the latter one
provides the most viable storage capacity. According to Liserre
et al. [70], the development of storage technologies allows greater
storage capacity of electric power in DC, and power electronics
therefore permit its use in the current distribution systems
Recent studies in Lpez [71], with concerning the effect of
storage over the SIN in Colombia, show the signicant impacts of
energy storage on the overall system. However, since the micro-
grid concept was introduced, storage can now be dened as the
management reference inside the microgrid which allows it to be
perceived as an operator within the system, which decouples
effects of variations in RES or small energy sources. This may be
proposed as a distributed storage model to the power system, or a
managed storage inside the microgrids in a sub-level management
within the SIN.
136 E.E. Gaona et al. / Renewable and Sustainable Energy Reviews 51 (2015) 125137
According to Prodromidis [72], there are a number of improved
combinations of storage technologies with important capital cost
and limited efciency. It is worth pointing out that the energy
storage system is still evolving, and its autonomy and maturity
have not yet been fully achieved. The most promissory technolo-
gies for energy storage in Colombia are hydro-pumping, being
followed by battery technology. With coordinated communication,
the storage system may allow local energy management and full
integration of DG and RES, with large-scale central power
generation.
6.4. Alternatives for starting the deployment of microgrids in
Colombia
Microgrids implementation should be a gradual process for
which it is necessary to work in the three following areas:
Training: Which means new technologies, economic chal-
lenges, increased energy and service quality requirements, as well
as enough information to meet the challenges in the context of
sustainable development and social knowledge.
Research: It is important to note that the particular geographi-
cal characteristics of Colombia and its signicant diversity require
a substantial study and analysis of user needs and possible
solutions which involve technological adaptation and innovative
solutions.
Implementation: The current power system and the market
legislation should be changed gradually. Initially, microgrids could
be installed in ZNIs and isolated areas. Thus, the implementation
of new technologies should offer energy security and especially
storage systems which can reduce the dependence of great hydro
power plants, which are generally affected during the dry season.
7. Conclusions
This paper describes the most important cases of microgrids in
two contexts, research works developed in laboratories and
microgrids used as an alternative way of energy generation in
difcult-to-access areas. Having analyzed the Colombian case in
the introductory part, the paper has also discussed the generation
composition and the installed capacity of the country for the year
2013, as well as the infrastructure stock with special emphasis to
areas of difcult access or with no electricity in the country.
Furthermore, it has presented solutions incorporating renewable
resources, which has been implemented by the government
through the IPSE.
Hydropower is the largest electricity generation source of SIN
in Colombia. However, a signicant reduction of 18% is shown on
projected power reserve margins for 2022. In order to solve this,
the government proposes to incorporate FNCE in its expansion
plans. Additionally, this would be a viable option for the genera-
tion in ZNI.
The successful development of microgrids in Colombia depends
on the regulations and the conuence of state and private invest-
ment. The (SIN) must be adapted to new technologies, especially
in automation and communication, as well as the standards for
their construction and maintenance.
Microgrids deployment should be achieved gradually, for
which it is necessary to work in three areas: Training, Research
and Implementation. In addition, it is essential to formulate a
program for the development of renewable energy sources, which
may allow the diversication of the national energy market by
having more supply options for the future, as well as anticipating
the depleting of fossil fuels reserves. By adopting an energy policy
which promotes renewable energy as established by the Law 1715
issued in 2014, Colombia may therefore strengthen the image of a
green country. Nevertheless, this law should be regulated as well
in terms of incentives for renewable energy production and the
sale of surplus power to the grid.
Acknowledgement
This work was supported by the CIDC (Centro de Investigacin
y Desarrollo Cientco) Universidad Distrital Francisco Jos de
Caldas in Bogot D.C.Colombia. Project number 2-195-405-1
and LIFAE Research Group.
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