Biomass electric generation lacks impulse for sale

Although there is interest and capacity, business is not profitable

March 28th,2015

The generators of electricity with biomass such as agribusiness and farming-producers have no incentive to sell their renewable ICE kilowatt hours (kWh).

Before placing their production to unattractive prices of $ 0.08 or less, these generators prefer to take advantage of in their own plants, as a form of consumption.

This biomass is the result of the use of organic waste to produce energy. In Costa Rica is allowed since 1990 by Act No. 7200, and is mainly derived from agricultural waste such as sugar cane, palm, rice, coffee and pineapple.

However, the Regulatory Authority for Public Services (Aresep) has just set the price per kWh generated with cane bagasse ($ 0.08), in force since 2010.

At present, the Instituto Costarricense de Electricidad (ICE) buys two mills energy produced from bagasse during the harvest season.

The installed capacity between generators is 37.8 megawatts and last year won 83.6 gigawatt hours. This contribution represented 1% of total energy production of Costa Rica.

The energy sources other than bagasse biomásicas not own fee, so it should fit the price range of new hydroelectric plants: between $ 0.09 and $ 0.12 kWh.

Why not attract? According to Irene Cañas, Deputy Minister of Energy, Ministry of Environment and Energy (Minae) that governs a single, inflexible price (for bagasse) makes it an unattractive business.

He also indicated that the price is not competitive.

"In most projects biomass (bagasse), agribusiness prefer to use it for consumption. It is more profitable use, not that the pay (...) should seek a competitive price "said Cañas.

To promote this production, Cañas ask the Regulatory Authority for Public Services (Aresep) establish a price band.

On this, the spokeswoman for the company, Carolina Mora, considered it possible to modify the methodology and update it regularly is also positive.

Meanwhile, the ICE would be willing to buy the entire generation that the mills are interested in offering; at least so said the manager of Electricity, Luis Pacheco.

"ICE can receive requests from biomass-eligibility of any source at any time, it has procedures and there is room for it (...) The ICE has always been interested in acquiring this power; in particular generated in the dry season, "said the manager Pacheco.

Promoting biomass-generation during the summer and at better prices than at present, is seeking to boost the libertarian congressman Otto Guevara, a bill introduced this month.

"We want to encourage the purchase of biomass during the summer months, but improving the current selling price and recognizing more costs. This will serve to reduce pollution, lower oil bill and electricity tariffs, "said Guevara.

Option. The biomass not only can be used in power generation to commercialization or own use, can also be used as a form of energy.

Ie generators can use it to replace in their industrial processes, fossil fuels (diesel and others) that require boilers.

This, Cañas, is more efficient than electricity production, so the Minae encourages industries to assess their needs and define which alternative is most useful to them.

The biomásicas sources, unlike the hydro, wind and solar have an owner who is normally the agroindustrial, so the generation and sales business depend merely their will.

Source: "La Nación"