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"

ICE: 'There will not be electricity increases in 18 months'

August 1st,2014

Following the controversy generated by his latest rate proposal, ICE said that during the next 18 months, do not ask a single increase more expensive electricity bills of their subscribers.

The Instituto Costarricense de Electricidad (ICE) had already made public that promise at the end of June, when he pledged to cut spending and stabilize its finances to lower the cost of light.

That's when the entity itself proposed that the increase of almost 16%, supported by prior ARESEP, were applied in three tracts of 5.32% each, over 18 months.

The ICE and the government joined in the public commitment to maintain stable electricity rates over the next year and a half.

Conflict. Two days ago, the Regulatory Authority for Public Services (Aresep) announced a new application "of rate hike" by ICE. A ARESEP found it "troubling" that ICE broke its commitment to ask for a 3.3% increase in receipts.

In your written request, on July 21, ICE explained that it requires an adjustment must cover (concrete and projected) by increasing energy imports, to which he turned down as long as the burning of fossil fuels.

That explained that this year is expected to import 240 gigawatts, which would imply the disbursement of ¢ 36,212,000. To do this, asked ARESEP recognition of additional income for ¢ 31,524,000.

But Elbert Duran, spokesman for the institute, said yesterday that there was a misunderstanding by ARESEP. He explained that the request was to amend the tariff composition, instead of devoting 3.3% to the purchase of fossil fuels, that percentage is intended for energy imports Regional Electricity Market (MER).

"The price will stay the same from now until December 31, 2015; what changes is the percentage of the items. The stability was a policy set forth by the Government to respect and implement the ICE. No contradiction, "he said.

Carolina Mora, spokesperson ARESEP, no more refer to the ICE proposal because "already entered public hearing process."

Source:'La Nación'

Costa Rica wasted solar energy for electricity generation

Absence of clear regulation slows growth of generation with solar panels

March 22nd,2015

With a privileged climate and sunlight, Costa Rica possesses the means to generate more electricity from that source that develops rapidly in the world conditions.

The country has modern hydroelectric plants that are, according to researchers, the ideal complement of solar energy.

The Costa Rican Association of Solar Energy (Acesolar) even consider that hydroelectric plants can store solar energy powered generators and motors to produce pumping water return.

Today, solar generation base, despite being still in its infancy, generating more than 1,000 jobs in 30 companies associated with the sector.

Privilege wasted

Data provided by Dr. Monica Morales Masis, Costa Rican who works at the École Polytechnique Fédérale de Lausanne (EPFL), Switzerland, indicate that if solar panels were installed on the roof of one in ten households in Costa Rica (1.2 million houses), could be covered with clean energy that 10% of the demand for electricity currently produced fuels.

The savings would be significant in that scenario.

According to the Public Services Regulatory Authority (ARESEP), in 2015 the Instituto Costarricense de Electricidad (ICE) ¢ 56,152,000 spent on purchase of fuel for the operation of its thermal plants.

These facilities generate 5.73% of the estimated electricity demand this year. During the dry season, that kind of generation would reach 8.95%.

More capacity on hold

Weather and national infrastructure conditions suggest Dr.. Morales still have more opportunity for improvement which would meet the growing demand for electricity with solar power.

Acesolar goes further. Based on the calculations of the organization, distributed generation with solar power injected into the national grid would, in a few years, able to cover almost the entire energy demand of the country. This when the price of storage systems that allow mitigating the variability of solar power and growth of small projects of this generation incentive is reduced because large have higher performance per watt installed.

However, the country does not fail more than a small part of the solar irradiation and generates only 10 megawatts maximum amount set by the ICE a pilot plan. The same that closed in February.

Read more: "El Financiero"

ICE requests increase in electricity

July 30th,2014

The Instituto Costarricense de Electricidad (ICE) filed a request for an increase of 3.3% in electricity tariff, which remains concerned about the ARESEP, it is not consistent with the policy outlined by the government, in terms of maintaining stability in electricity rates over the next 18 months.

However, the ICE justifies its request on the need to cover the costs of electricity imports, which was necessary due to weather conditions that caused a longer summer and less amount of rainfall recorded historically.

This option, import the regional energy market is preferable to produce thermal energy plants in the country. Only for the month of May, the country avoided about $ 7 million in additional use of fossil fuels.

Under the law, the Regulatory Authority shall submit to the public discussion of the proposal at a public hearing ICE.

The last time I went to the ICE ARESEP for a rate increase, it was rejected after failing with technical information required for the study.

Source: ARESEP Web Site