The Cauchari Solar Plant in Jujuy, Argentina, located 4,000 meters above sea level with over one million panels, was built with Chinese capital, engineering, and materials. Credit: Casa Rosada

By Humberto Márquez
CARACAS, Jul 18 2025 (IPS)

China, with its investments, products, technology, and innovation focused on solar and wind farms in Latin America and the Caribbean, as well as on electricity networks and services, stands out as a driving force for the region’s shift toward energy less reliant on fossil fuels and increasingly cleaner and greener. 

Between 2010 and 2024, China invested US$33.69 billion in renewables in the region, with 70 transactions for as many projects, 54 of which were in non-hydroelectric energy, totaling US$13.138 billion.

These figures alone “highlight China’s importance in supporting the region’s energy transition, both through investments and infrastructure projects,” Enrique Dussel Peters, coordinator of the Latin America and the Caribbean Academic Network on China (RedALC-China), told IPS from Mexico City.“For China, Latin America as a whole is a market that geographically presents many opportunities; first, due to the availability of natural resources, which include critical minerals, and features such as access to water and natural and renewable energy sources”: Ana Lía Rojas.

Beyond money, China “has the capacity to develop technology, implement it, and scale it at the required speed,” said Ana Lia Rojas, executive director of the Chilean Association of Renewable Energies and Storage (Acera).

In a dialogue with IPS in Santiago, Chile, Rojas cited American economist Jeffrey Sachs, director of the Center for Sustainable Development at Columbia University and a United Nations advisor, who has argued that, in short, “the energy transition is Chinese.”

Sachs views China as a “leader in key technologies that will be essential over the next 25 years: photovoltaics, wind, modular nuclear, long-distance energy transmission, 5G (now 5.5G), batteries, electric vehicles, and others.”

The movement toward Latin America has been relentless. While there were no Chinese investments in renewable energy in the region between 2000 and 2009, eight emerged from 2010 to 2014, totaling US$3.298 billion and generating 6,000 jobs, according to RedALC’s Investment Monitor.

Between 2015 and 2019, 25 projects with Chinese financing materialized, totaling US$19.568 billion and creating 9,300 jobs. In the 2020-2024 period, 37 transactions were completed, amounting to US$10.824 billion and generating 15,000 jobs.

Investment volumes dipped in 2020 amid the COVID-19 pandemic. However, a revealing contrast emerged: 35 of the 37 renewable energy transactions during this five-year period went to non-hydroelectric projects.

The Lagoinha Solar Complex, inaugurated in July this year and owned by the Brazilian subsidiary of Chinese group CGN. Spanning 304 hectares in Ceará state, northeastern Brazil, it features 337,000 panels that will provide electricity to 240,000 households. Credit: Government of Ceará

Interests and challenges converge

The International Energy Agency (IEA, representing major industrialized consumers) reports a “soaring increase in Chinese clean energy investments globally, particularly in renewables,” surpassing US$625 billion in 2024—nearly double 2015 levels and accounting for 30% of the world’s total, cementing China’s leadership.

Traditionally dominated by state-owned enterprises backed by public funding, China’s energy investment landscape is shifting, with the government increasingly encouraging private sector participation.

Meanwhile, Latin America and the Caribbean saw roughly US$70 billion invested in renewables from 2015 to 2024, of which over US$30.3 billion (43%) came from China, according to the IEA.

Yet the agency notes that despite steady growth in renewable investments, the region represents just 5% of global privately funded clean energy investment—a reflection of high interest rates, scarce long-term financing, and costly public debt.

This highlights the intersection between the region’s needs and challenges and what Dussel Peters describes as China’s strategic focus on technological development and disruptive innovations, from nanomanufacturing to aerospace, including new energy sources.

Chinese investment in renewables “delivers multiple benefits by advancing energy sustainability, supporting the transition to a low-carbon grid, providing critical technology, and creating skilled jobs,” Chilean academic Rodrigo Cáceres told IPS in Santiago.

A researcher at  Diego Portales University’s Center for Energy and Sustainable Development, Cáceres observes China’s “sustained commitment” in areas like energy storage, smart grids, and green hydrogen, framing the China-Latin America relationship as “strategic and long-term.”

A key factor enabling this enduring partnership is the vast territorial, demographic, and resource potential Latin America and the Caribbean offers China. “If we look at the per capita income we have in the region and compare it with China’s, we have more or less the same. But Latin America has half the population of China and twice the territory of China,” observed Rojas.

Twice the territory “means that projects can be deployed differently than in the rest of the world,” noted the director of Acera.

According to Rojas, “it is evident that, for China, Latin America as a whole is a market that geographically presents many opportunities; first, due to the availability of natural resources, which include critical minerals, and features such as access to water and natural and renewable energy sources.”

“Second, because it is clearly a less densely populated region, which provides a certain degree of flexibility or freedom to develop projects in the territory that will aid the energy transition, not only for local or national economies but for the world,”she said.

The Tanque Novo Wind Complex in Bahia, Brazil, developed by Chinese group CGN. It consists of seven parks with 40 wind turbines, an installed capacity of 180 MW, and can serve 430,000 residents. Credit: Tanque Novo

Brazil, a leading hub 

In Brazil, China’s presence in the electricity sector “is deep and strategic, the result of more than a decade of investments by large state-owned companies such as State Grid and China Three Gorges (CTG),” said Tulio Cariello, research director at the Brazil-China Business Council.

“In fact, it has become the main destination for these companies’ assets outside China. Both State Grid and CTG have the majority of their international investments in Brazil, reflecting the country’s structural importance in their global projection,” Cariello told IPS in Rio de Janeiro.

State Grid is now a major electricity transmission operator in Brazil, and its massive entry into that market was solidified with the acquisition in 2016-2018 of CPFL Energia (formerly Companhia Paulista de Força e Luz), one of the country’s leading power distribution companies.

Another flagship project led by State Grid was the construction of ultra-high-voltage transmission systems, connecting the Belo Monte hydroelectric plant in the Amazon (11,200 MW) with the Southeast region, which has the highest electricity demand.

Combined, solar and wind energy sources account for a quarter of Brazil’s electricity matrix, according to its National Energy Balance.

By the end of 2024, Brazil’s installed wind power capacity—over 16% of the national electricity matrix—reached 33.7 gigawatts, with 1,103 wind farms and 11,720 wind turbines. By 2032, cumulative new installed capacity is projected to reach 56 GW.

Chinese wind turbine manufacturer Goldwind established its first factory outside China last year in Bahia, in Brazil’s Northeast, with an investment of over US$20 million to produce 150 turbines annually, ranging from 5.3 MW to 7.5 MW. This decision demonstrates strong confidence in the Brazilian market.

The volume of Chinese investment in Brazil between 2007 and 2023 reached US$73.3 billion—US$33.2 billion in the electricity sector—with 264 confirmed projects, and is on track to reach US$123.2 billion with 342 projects.

Regarding the impact of investments in renewable energy, “it can be seen on several fronts: increased generation and transmission capacity, modernization of critical infrastructure, greater stability in power supply, and job creation and technology transfer,” said Cariello.

The Los Cururos Wind Farm in Ovalle, Chile, is one of dozens of installations generating electricity in Chile thanks to the constant winds in this Pacific-facing region. Credit: Orlando Milesi / IPS

Advancing Across the Regional Map 

In Argentina, with initial financing of US$390 million from the China Export-Import Bank (Chexim), construction began in 2018 on the Cauchari solar park—one of the largest in Latin America—in the northwestern province of Jujuy.

Some 4,000 meters above sea level and equipped with 1.2 million panels, Cauchari has an installed capacity of 315 MW (with an expansion planned to add another 200 MWh) and reduces carbon emissions by 325,000 tons.

There are other solar developments with Chinese involvement, while Goldwind has acquired wind farms in the central province of Buenos Aires and the southern province of Chubut.

Researcher Juliana González Jáuregui from the Latin American Faculty of Social Sciences (Flacso) has highlighted Beijing’s participation in Argentina’s renewable energy projects, focusing on its provinces—even before the country joined China’s Belt and Road Initiative in 2022.

In contrast, “Europe and the United States have yet to grasp the importance of engaging at the subnational level in Argentina, something China achieved quickly and significantly. The provinces hold natural resources, so the subnational component is essential,” González told Dialogue Earth.

Meanwhile, in Chile, “what has happened in the last two years is that Chinese companies have bet on the country as a gateway to Latin America and have set up several companies that create jobs,” said Rojas.

“They are interested in showcasing the quality and technological advancements they’ve achieved in these sectors, focusing on storage, inverter systems, and everything that helps stabilize power grid flows,” she stated.

In this way, China “has increasingly strengthened its presence in the electricity sector, where we have decarbonization efforts and which represents 22% of the country’s energy consumption,” particularly in the distribution segment through the acquisition of key companies to supply the population, explained Rojas.

A notable example is the Chinese group State Grid, which in 2020 acquired Chile’s Compañía General de Electricidad (CGE) from Spain’s Naturgy for US$3 billion and purchased Chilquinta, another electricity distributor in Chile, from the American company Sempra Energy for US$2.23 billion.

Additionally, it holds a stake in Transelec, the largest distributor, giving it a dominant majority position in Chile’s electricity distribution market.

Areas of Lima illuminated by the growing integration of renewable energy into electricity generation. The former Enel Perú, now Pluz Perú, was acquired by China’s CSG and serves over 1.5 million subscribers in the metropolitan area. Credit: Perú Inkas Tours

In Peru, China Southern Power Grid (CSG) acquired Enel Peru from Italy’s Enel Group in 2024 for US$3.1 billion. The company, now called Pluz Peru, operates in the market with 1,590 MW of generation from various sources and also participates in distribution.

The Peruvian firm includes a solar complex in the southern municipality of Moquegua, with 560,000 panels spread over 400 hectares, capable of generating 440 GWh annually, and a wind farm in the southwestern province of Nazca, with 42 turbines producing up to 600 GWh per year.

In Colombia, another Chinese giant, CTG, promoted the construction of the Baranoa solar plant in the northern department of Atlantico. With an investment of US$20 million and 36,000 modules, it can add 20 MW to the grid.

Though a small project far from major economic and urban centers, it reflects shared interests with Colombia, where President Gustavo Petro champions renewable energy and the decarbonization of the economy and society.

In Nicaragua, it was announced that China Communications Construction Company will build a 70 MW solar plant in the municipality of Nindirí, south of Managua, with 112,700 panels at a cost of US$80 million.

The Managua government—which recently restored relations with China in 2021 after cutting ties with Taiwan—hopes the project will not only feed into the power grid but also support drinking water supply and sanitation in the country.

In a leap across the Caribbean, China’s International Development Cooperation Agency delivered a batch of donated supplies to Cuba last March to support a photovoltaic park project with Chinese assistance in Guanajay, about 50 kilometers west of Havana.

According to data gathered by IPS in Havana, the project includes seven solar parks and will contribute 35 MW to the island’s electricity system. The remaining parks, to be developed by China’s Shanghái Electric and Cuba’s Unión Eléctrica, will add another 85 MW. Cuba’s power demand stands at 3,500 MW, with a deficit sometimes exceeding 1,500 MW.

“We hope to leverage this project as an opportunity to contribute China’s strength in ensuring energy security and promoting sustainable social development in Cuba,” said Hua Xin, China’s ambassador in Havana.

A production gondola at the new wind turbine factory in Camaçari, northeastern Brazil, installed by Chinese firm Goldwind. Wind energy is the second-largest renewable source in Brazil’s electricity supply, after hydropower. Credit: Goldwind

The Ball on the Roof 

Chilean expert Rojas noted that Chinese companies obviously aim to promote their own brands but also establish research centers or technology transfer hubs to help countries accelerate their energy transition.

“They have cutting-edge technologies that we currently see in PowerPoint presentations—but they’re already implementing them in their own cities,” she pointed out.

Experts agree that, alongside territorial potential, population, and resources, the regulatory framework of the electricity business—which varies across borders—is a key investment attraction.

This becomes even more relevant as major investors like China shift from merely selling products and technology to acquiring more assets, immersing themselves in the complexities of service networks, costs, and pricing.

For many countries in the region, the observation Jorge Arbache, an economics professor at the University of Brasilia, makes about Brazil may resonate. He analyzes how the advantages and resources enabling the energy transition are being mobilized.

He argues that “while China has used the energy transition as a pillar of its national development policy,” Brazil still treats its advantages “mainly as primary, short-term, and predatory assets—with low added value, institutional fragmentation, and a lack of coordinated strategy.”

“What China shows us is that the energy transition and natural capital, when well-coordinated, are more than just a shift in the energy matrix: they are a development strategy, a tool for sovereignty, and a source of geopolitical power,” concluded Arbache.

With reporting by Mario Osava (Brazil), Orlando Milesi (Chile) and Dariel Pradas (Cuba).

A digital meeting by Brazil’s Ministry of Science and Technology to discuss the use of artificial intelligence in the public sector. Remote work and debates have also increased the demand for digital infrastructure by boosting long-distance communication. Credit: Rodrigo Cabral / Ascom MCTI

By Mario Osava
RIO DE JANEIRO, May 30 2025 (IPS)

Brazil hopes to soon reap benefits of its largely renewable energy matrix. Data centers, whose demand is growing with the strides made by artificial intelligence, are the new frontier for these still-uncertain investments."The most serious issue in the government's program is that it aims to subsidize data centers for big tech companies... they propose bringing in data centers for Google, Facebook, Microsoft, and others, with all the benefits." — Carlos Afonso.

This is even a matter of “digital sovereignty,” not just for Brazil, according to Dora Kaufman, a professor in the program on intelligent technologies and digital design at the Pontifical Catholic University of Sao Paulo.

Nearly 60% of all Brazilian data processing currently takes place in the United States—and the figure continues to rise—posing a serious risk, as a natural disaster or government blockade could paralyze the country, she warned. “The probability of it happening is low, but the impact would be huge,” she told IPS by phone from São Paulo.

The National Data Center Policy is expected to change this scenario, according to the Brazilian government, which has promised to soon unveil the program. Its potential could attract two trillion reais (around US$350 billion) over the next 10 years, claims Finance Minister Fernando Haddad.

Exemptions from federal taxes and reduced import duties on equipment are among the incentives the government will offer investors. These measures anticipate policies already outlined in the recently approved tax reform, which will fully take effect by 2033.

The abundance of renewable energy, water, and land could also serve as a major draw in a world increasingly demanding sustainability in new projects.

Engineering and computer science students in Rio de Janeiro will form an essential workforce for the expanding digital economy, fueled by the government’s policy to encourage the proliferation of data centers in Brazil. Credit: Tomaz Silva / Agência Brasil

High Costs in Brazil 

Processing data in Brazil is 25% more expensive than abroad, primarily due to the tax burden, noted Kaufman. Removing this obstacle would pave the way for a surge in data centers, as “we have more than enough renewable energy and water,” she argued.

“Brazil has everything it takes to host many data centers, and the challenges are solvable. We need them not just to develop artificial intelligence but also for the growing digitalization of government and businesses,” she emphasized.

However, the voracious energy and water demands of digital infrastructure—especially for AI—are raising concerns among environmentalists and experts in energy and communications.

“Brazil first needs to implement a real energy transition. So far, we’ve only added renewable sources alongside fossil fuels. A just transition remains a huge challenge, requiring the electrification of transport—a priority due to the climate crisis,” said Alexandre Costa, a professor at the Federal University of Ceará in northeastern Brazil.

TikTok plans to set up a data center in Caucaia, a city of 355,000 residents in Ceará. Just 35 kilometers away, the Pecém port—which includes an industrial zone—has plans for a green hydrogen production hub, another major consumer of water and electricity.

Pecém already hosts a thermoelectric plant and a steel mill, both of which are highly water-intensive.

In the industrial zone of the Pecém port, in Ceará, wind turbine blades are manufactured. Nearby, there are plans to produce green hydrogen for export to Europe. The high consumption of electricity and water worries environmentalists in this and other regions of Brazil where large data centers are planned. Credit: Mario Osava / IPS

 Fossil Fuels Still Dominate

The Northeast, Brazil’s poorest region, has become an attractive location for projects claiming to be sustainable, as it is already the country’s largest wind power producer and holds vast potential for solar energy.

However, the exploitation of strong, steady winds and abundant sunlight has already sparked criticism and protests from local communities. The expansion of these projects is encroaching on increasing amounts of land, creating conflicts with local populations and small-scale farming, noted Costa, a physicist specializing in meteorology and climate change.

Nationally, renewable sources accounted for 86.1% of electricity consumption in 2022, according to the government’s Energy Research Company. However, fossil fuels still made up 52.7% of Brazil’s total energy matrix, dominated by oil and natural gas, while coal held a small 4.4% share.

This means Brazil, where freight transport is still heavily reliant on diesel trucks, still has a long way to go in reducing fossil fuel consumption. This transition will require even more electricity.

Data centers will bring additional energy demand to an economy already anticipating a surge in consumption—driven by green hydrogen projects, artificial intelligence, and vehicle electrification, Costa warned IPS in a phone interview from Fortaleza, Ceará’s capital.

The same applies to water resources. “There’s no way to meet an infinite demand for these inputs,” he stressed. In his view, Brazil lacks an energy model that balances new demands, priorities, and the need for an increasingly clean energy matrix.

The electrification of vehicles is increasing electricity demand. Data centers create additional pressure on power generation from renewable sources to meet Brazil’s goals of reducing greenhouse gas emissions. Credit: Marcelo Camargo / Agência Brasil

Dependence 

“The most serious issue in the government’s program is that it aims to subsidize data centers for Big Techs. We need them for our national networks, yet they’re proposing to bring in data centers for Google, Facebook, Microsoft, etc., with all the benefits,” criticized Carlos Afonso, a communications technology expert and one of the pioneers of the internet in Brazil.

He pointed to the lack of such infrastructure for public entities like Serpro (Data Processing Service) and Dataprev (social security database), which are vital for government operations, as well as the National Research Network that connects universities and other scientific and innovation institutions.

“Will they have to rely on data centers from these Big Techs in Brazil?” he questioned in a conversation with IPS.

It appears that both the government’s program for this sector and its green hydrogen initiative are primarily designed to meet external demands, with the goal of creating exportable goods and services.

This is why Kaufman argues for imposing conditions on data centers established in Brazil, such as sustainability based on renewable energy and zero greenhouse gas emissions, energy efficiency, and  allocating at least 10% of installed capacity to the domestic market.

The expert believes that the large data centers to be installed in Brazil will primarily serve AI training, which minimizes latency, the milliseconds of delay in long-distance communication from origin to destination.

But the reality—both in Brazil and globally—in the digital economy is one of deep dependence on the United States, a situation exacerbated by the policies of President Donald Trump, who prioritized the interests of the United States above all else, even international treaties.

“Three Big Tech companies from the United States—AWS/Amazon, Microsoft, and Google—control 63% of global data processing, forming a true oligopoly,” emphasized Kaufman. That dominance is expected to grow to 80%, she added.

According to the global statistics portal Statista, as of March 2025, the United States had 5,426 data centers—more than 10 times the number in Germany (529), the UK (523), or China (449).

The imbalance is even starker in hyperscale data centers, those occupying more than 930 square meters and housing over 5,000 servers. By the end of 2024, the United States accounted for 54% of global processing capacity, compared to 16% for China and 15% for Europe, according to Synergy Research Group.

In 2024 alone, 137 new data centers were built—a 13.7% growth rate—in a trend expected to continue, driven largely by advancements in artificial intelligence, notes the analytics and consulting firm based in the United States.

The infrastructure powering the digital economy, already connecting two-thirds of humanity and expanding rapidly with innovations like cloud computing and AI, remains largely unseen.

While cables, including intercontinental submarine lines, satellites, and telecom networks are well-known, data centers—the “brains” that store, process, and distribute information—operate in relative obscurity. Yet, they have become massive and strategically critical as global data traffic surges exponentially.

Félix Morfis, next to photovoltaic panels installed on his house in Regla municipality, Havana. Credit: Jorge Luis Baños /IPS

By Dariel Pradas
HAVANA, Dec 12 2024 (IPS)

With Decree 110, published on 26 November, Cuba made it mandatory for major consumers, whether they are state or private entities, to invest in the use of renewable energy sources, while the energy crisis facing the country worsens.

According to the decree, state and private economic actors, representations of foreign institutions and associations must guarantee in new investments regarded as “major consumers of energy carriers” that half of the electricity they consume during daylight hours comes from renewable energy sources.

If they cannot install solar panels, due to the infrastructure of their premises, these entities must enter into contracts with the state-owned Unión Eléctrica – the guarantor of the generation, transmission and commercialisation of electricity – and connect to photovoltaic parks.

Breaking these provisions can lead to fines, interruption of electricity service for up to 72 hours and other sanctions.

“The measure reflects a failure in the policy of incentives for investment in renewable energy sources. It may favour the general population, but it doesn’t change the fact that the change in the energy matrix is being imposed with an iron fist,” Daniel López, a self-employed Havana resident, told IPS.

Entities considered major consumers – those that, in the last 12 months, have an average consumption of 30,000 kilowatts (KW) or 50,000 litres of fuel – will have three years to make investments to cover the 50% daytime use requirement.

Reactions on social media immediately followed the news: many internet users celebrated the decree, some were sceptical about its implementation, and a significant number feared for the impact it could have on the private sector.

“Is it viable providing a better service or increasing my production to have to pay more (by investing in solar panels), and not just in taxes? How many businesses are we going to lose because of this decree? Investment in Cuba is increasingly difficult,” commented user Horus in an article on the subject, published in Cubadebate, the most widely read state-run news website in the country.

Indeed, the law could discourage entrepreneurship in mini-industries or productive areas that normally consume a lot of electricity, or even cause businesses to raise the prices of some products and services to recoup investment costs.

Since 2020, this Caribbean island nation with 10 million people has been facing great difficulties in meeting its domestic electricity demand with its production plants.

The instability of the electro-energy system has been so evident that, in less than two months, Cuba has suffered three general power cuts – the latest on Wednesday 4 December – that have left hundreds of thousands of people without electricity for days.

Workers inside a private lathe workshop in Havana’s Patio El Triunfo, whose electricity supply comes from renewable sources. Credit: Jorge Luis Baños / IPS

In the absence of incentives

The Patio El Triunfo project, located in the capital’s Regla municipality, is an example of a private business that is self-sufficient in renewable energy sources. It has installed photovoltaic panels with a generation of 10 kilowatts (KW), as well as solar heaters and dryers, and a 0.5 KW wind turbine.

This “clean” energy covers the daytime demand of the house and four businesses that are leased on the premises, including an auto mechanic’s workshop and a lathe shop.

Although the workshops have been in existence since 2010, in 2018 the project began the autonomous production of electricity, the surplus of which it sells to Unión Eléctrica.

The leader of the project, Félix Morfis, who is also the Regla representative of Cubasolar, a non-governmental organisation that has been promoting the use of renewable energy sources in Cuba since 1994 to replace polluting ones, criticises the prices of solar panels and the bureaucratic obstacles to accessing credit and buying them.

“It seems that the Cuban government has no interest whatsoever in people putting up solar panels. They advertise it, they hype it a lot, but actually there is nothing in hand,” he told IPS.

In the retail markets of the state-owned company Copextel, a basic one-kW generation module costs 2,551 MLC, the freely convertible currency, which is virtual and whose reference value is the dollar.

The average wage in Cuba is 4,648 pesos, about US$38.7, according to the official exchange rate of 120 pesos to one dollar.

In 2021, the Ministry of Finance and Prices issued Resolution 359,, which set the price for energy – from renewable sources – delivered to the National Electricity System (SEN) by independent producers in the residential sector: 3 pesos per kilowatt hour (kWh), about 0.025 dollars at the official exchange rate.

In October 2023, the same ministry approved Resolution 238, which doubled that amount.

“They are paying us 6 pesos (US$ 0.05) per kWh, but what I spend, they charge me through the normal system. They sell it to me at a high price and pay me cheaply. There is no incentive,” Morfis added.

The “normal system” that Morfis mentions is a progressive tariff that applies to the residential sector, which after exceeding 450 KWh of accumulated consumption, starts to cost more than six pesos per KWh, until it reaches 20 pesos per KWh (about US$ 0.17).

In any case, it is a subsidised price, according to the authorities, so that the cost of paying for electricity through the national electricity system is only marginally lower than importing or buying solar panels in foreign currency. In the end, it is more profitable not to invest in renewable energy sources.

Even so, more and more people are investing in solar panels with batteries, and private businesses that commercialise these devices have multiplied due to recurrent power outages and fuel shortages.

With no new cards in hand, the government imposed investment in renewable energy sources through Decree 110.

“The most difficult thing is how to make it easier for all the companies to pay for these panels,” Néstor Pérez, a member of the Patio El Triunfo project, told IPS.

Basic module for the production of electricity from solar sources, inside a market in Havana, specialised in the sale of equipment for the use of renewable energy sources, belonging to the state-owned company Copextel. Credit: Jorge Luis Baños / IPS

Overview of renewable energy sources

In addition to decentralised energy generation and reducing the burden on the state, the new decree aims to reduce on imported-fuel dependency.

Since 2019, when the government issued Decree-Law 345 on the “development of renewable sources and the efficient use of energy”, this policy has been a priority.

Cuba aims for renewable energy sources to account for 24% of its energy matrix by 2030.

President Miguel Díaz-Canel announced on 27 November that more than 2,000 megawatts (MW) of photovoltaic energy, equivalent to two million KW, is planned for the next three years.

However, of the 19,825 gigawatt hours (GWh) produced in 2023, 46% came from thermoelectric plants and 12.6% from using thermal energy from oil-fired natural gas, according to data from the  National Statistics and Information Office (Onei).

Likewise, 13.8% was produced by gensets, electricity generators interconnected to the system that run on diesel and fuel oil, and 22.7% from the six floating plants contracted to the Turkish company Karpowership.

Only 0.5% came from hydroelectric plants and 1.2% from wind and photovoltaic power.

Wind power installation in the impoverished desert peninsula of La Guajira in northern Colombia. Credit: Giampaolo Contestabile / Pie de Página

By Humberto Márquez
CARACAS, Nov 13 2024 (IPS)

The Latin American and Caribbean region is a student with good grades in renewable energy, but not in energy efficiency, and has a long way to go in contributing to global climate action and overcoming the vulnerability of its population and economies.

The recent energy crises in Ecuador and Cuba, with power outages ranging from 14 hours a day to days at a time, and the threats posed by droughts – which this year hit Bogotá and the Brazilian Amazon, for example – to the hydroelectric systems that power the region, are proof of this.

Among the 660 million Latin Americans and Caribbeans enduring the various impacts of climate change, there are at least 17 million people, some four million households, who still lack access to electricity.“Countries in the region are very much affected by barriers in their investment ecosystems, access to financing, whether due to institutional problems, policies or legal security”: Alfonso Blanco.

That scenario comes under new scrutiny at the 29th Conference of the Parties (COP29) to the United Nations Framework Convention on Climate Change (UNFCCC), which began its two-week run on Monday 11 in Baku, capital of oil-rich Azerbaijan.

The annual conference of 196 states parties has climate action financing as its main theme and will also review the global commitment made a year ago to triple renewable energy capacity and double energy efficiency.

The COP28 in Dubai proposed a global installed capacity of 11,000 gigawatts (Gw, equivalent to 1,000 megawatts, Mw) of energy from renewable sources by 2030, 7,000 Gw more than today. This is unlikely, judging by the Nationally Determined Contributions (NDCs).

The NDCs serve as commitments by states to adopt measures to reduce greenhouse gas emissions so that global warming does not exceed 1.5 degrees Celsius above pre-industrial averages, as stated in the 2015 Paris Agreement, which concluded the COP21.

Large solar power plant in the Sertao region, in the arid northeast of Brazil, installed by the Spanish company Naturgy. Credit: Naturgy

In the case of Latin America and the Caribbean, “the installed capacity for electricity generation is already 58% renewable energy, and in 11 countries it exceeds 80%,” Uruguayan expert Alfonso Blanco, director of energy transition and climate at the Washington-based think tank Inter-American Dialogue, told IPS.

According to the Latin American Energy Organisation (Olade), the region’s installed electricity generation capacity was 480,605 megawatts (MW) in 2022, with about 300,000 MW produced from renewable sources – 200,000 MW from dams – and the rest from non-renewable sources, mainly fossil fuels.

The International Renewable Energy Agency (Irena) put the region’s installed electricity generation capacity at 342,000 MW last year, with advances in solar energy installations, with a capacity of 64,513 MW, and wind power, which reached 49,337 MW, as the hydroelectric source remains stable at 202,000 MW.

The Latin American and Caribbean region “can increase its capacity to generate electricity from sources such as solar or wind, but it can’t triple its hydroelectric capacity,” said Blanco, who was executive secretary of Olade in the period 2017-2023.

Diana Barba, coordinator of energy diplomacy at the Colombian think tank Transforma, also believes that “tripling renewable energy capacity by 2030 does not apply to Latin America and the Caribbean”.

“The next step is to maintain the proportion… until 2040, and in general to reduce the trend towards the use of fossil fuels,” Barba told IPS.

An auto parts factory in the Mexican state of Coahuila. Credit: México Industry

Elusive efficiency

Green energy capacity figures are improving every year in the region, but energy efficiency figures are not keeping pace. Experts from the Economic Commission for Latin America and the Caribbean (ECLAC) have shown that only the Caribbean sub-region has made significant progress compared to the first decade of this century.

Measured in kilograms of oil equivalent (kgoe) per 1,000 dollars of gross domestic product (GDP), the Caribbean consumed 110 kgoe during the 2001-2010 decade and decreased that expenditure to 67 units in 2022, while the region as a whole fell from 95 to 87 kgoe.

In that period, the Andean sub-region was able to fall from 108 kgoe to 90, Central America and Mexico from 85 to 70, and the Southern Cone remained at 90, although the figure is 80 kgoe if Brazil is excluded.

Efficiency, in which the region shows more modest results, is fundamental for the triple purpose of saving resources, reducing costs and, a primary objective at climate COPs, reducing the carbon emissions that pollute the environment and heat the atmosphere, precipitating climate change.

In this regard, the World Economic Forum, which each year gathers political and economic leaders, advocates electrifying transport, and above all stresses that NDCs should focus on demand and supply to improve industrial energy efficiency, only mentioned in 30% of the world’s NDCs.

In transport, an Olade study highlights that the fleet of electrified light-duty vehicles multiplied more than 14 times in the region in 2020-2024, with a total of 249,079 units in circulation by the first half of 2024.

This market – which entails greater energy efficiency and drastic reductions in carbon emissions – is led by Brazil with 152,493 vehicles, followed by Mexico, Costa Rica, Colombia and Chile, but Costa Rica has the best per capita figure, with 34 electrified cars per 10,000 inhabitants, followed by Uruguay with 17.

However, as far as manufacturing industry is concerned, with an annual GDP of 874 billion dollars (14% of regional GDP), ECLAC records that it consumes more renewable energy each year and less fossil fuels such as residual fuel oil.

But its energy intensity – an indicator that measures the ratio of energy consumed to GDP – went from 232 tonnes of oil equivalent per million dollars of value added in the 1990s to 238 TOE in 2022, suggesting that the region’s industrial sector has not improved its energy efficiency.

Rows of solar panels on the roofs of Metrobús stations in Buenos Aires, Argentina. Credit: Caba

Four South Americans

To assess the necessary and possible efforts of each country to contribute to global renewable energy capacity targets, Transforma studied four cases, those of Argentina, Brazil, Chile and Colombia.

Barba explained that Argentina and Brazil were considered for their membership of the G20 (Group of 20 industrialised and emerging economies), Colombia for its capacity for action and Chile for its decision to accelerate the end of the operation of thermal power plants, while insufficient information was received from Mexico.

Argentina could take advantage of its onshore wind energy potential and large-scale solar energy, but Barba argues that “it would be super-difficult” to triple its energy matrix in a few years, which is only 37% covered by renewables, and that its current president, Javier Milei, “is betting on fossil fuels”.

Brazil can take advantage of its large-scale renewable energy potential, but Barba notes “contradictory signals” regarding its NDCs, by favouring hydrocarbon exploration and exploitation in the Amazon “instead of sending a very clear signal to close these projects in strategic ecosystems”.

Chile could reach 96% renewable generation in its electricity matrix by 2030, taking advantage of sources such as solar, wind, thermal and geothermal, and Colombia could reach 80% renewables in installed electricity capacity if it continues to multiply its solar and wind energy installations.

Of the countries analysed, Chile is the only one with a specific target of 10% reduction in its energy intensity, established in its national energy efficiency plan 2022-2026, and Transforma suggests that the other countries adopt similar targets in their plans for 2030.

On the other hand, there are calls for savings, considering that energy efficiency is “the first fuel”, the most cost-effective source or, in other words, that the cleanest energy is the one that is not used.

Oil exploitation in the Brazilian Amazon at the Urucu base in the Coari area along the Amazon River. Credit: Petrobras

A question of finance

Giovanni Pabón, Director of Energy at Transforma, has stated that “the issue of financing covers everything. If we don’t have secure financing, we can talk about a lot of things, but in the end it is very difficult to achieve the goals we require” in the Paris Agreement.

Blanco highlights that, in order to tackle their transition to green energy, countries in the region “are very much affected by the existing barriers in their investment ecosystems, access to financing, whether due to institutional problems, policies or legal security”.

“Overcoming that barrier is not impossible, but it requires work and political will, which is often lacking,” he added.

He recalled that countries with strong extractive industries, which are more oriented towards fossil fuels and allocate subsidies to them, stand out in that scenario.

Finally, Blanco considered that COP29, the second consecutive one in an oil-producing country, is “a transitional summit”, preparatory to COP30, which will be held in 2025 in the Amazonian city of Belém do Pará, with Brazil as host and leader, and could produce clearer and firmer results and commitments in terms of renewable energies and energy efficiency.

The so-called "Green Zone" at COP28, which brings together pavilions of non-governmental organizations and companies that are not officially accredited by the Secretariat of the United Nations Framework Convention on Climate Change, features a clean energy area showcasing progress made on the ground, at the climate summit in Dubai. CREDIT: Emilio Godoy / IPS

By Emilio Godoy
DUBAI, Dec 8 2023 (IPS)

One of the world’s largest solar power plants, the Mohammed bin Rashid al Maktoum Park, captures solar rays in the south of this United Arab Emirates city, with an installed capacity of 1,527 megawatts (Mw) to supply electricity to some 300,000 homes in the Arab nation’s economic capital.

However, it is difficult to find solar panels on the many buildings that populate this city of nearly three million inhabitants, host to the 28th Conference of the Parties (COP28) to the United Nations Framework Convention on Climate Change (UNFCCC) – an unlikely venue for a climate summit at a site built on oil industry wealth and at the same time highly vulnerable to the effects of the climate crisis."Financing is the number one priority. The transition must be fully funded, with access to affordable long-term funds. Technology transfer is vital. Renewables are the most recognized and affordable solution for climate mitigation and adaptation." -- Rana Adib

But it is not unusual considering that this Gulf country, made up of seven emirates, is one of the world’s largest producers of oil and gas, which it is trying to compensate for by hosting the annual climate summit, which began on Nov. 30 and is due to conclude on Tuesday, Dec. 12, with the Dubai Declaration.

That is why the Dec. 2 launch of the Global Renewables and Energy Efficiency Pledge, endorsed by 123 countries and consisting of tripling by 2030 the alternative installed capacity to 11 terawatts (11 trillion watts) and doubling the energy efficiency rate to four percent per year, along with other announcements, comes as a surprise in a scenario designed by and for crude oil.

Governments, international organizations and companies have already pledged five billion dollars for the development of renewable energy in the coming years at the Expo City Dubiai, the summit venue.

For Latin America, a region that has made progress in the transition to alternative energy, although with varying levels of success depending on the country, these voluntary goals involve financial, regulatory, social and technological challenges to make real progress in that direction.

Peri Días, communications manager for Latin America of the non-governmental organization 350.org, said the existence of a declaration on renewables at COP28 is essential for the phasing out of fossil fuels, the burning of which is the main cause of global warming.

“It is fundamental that the energy transition be fair, include affected communities and the most vulnerable. We have to ask ourselves why generate more electricity and for whom. What we see today is a complementary growth that does not replace fossil fuels, it is not what we need,” the activist told IPS in the summit’s Green Zone, which hosts civil society in its various expressions.

The Jebel Ali power plant, the world’s largest gas-fired power plant, includes a seawater desalination plant to supply water to Dubai in the United Arab Emirates. The plant is visible on the outskirts of the city, where the climate summit is being held in the Expo City this December. A reminder that renewable energy is still far from replacing fossil fuels, the main cause of global warming. CREDIT: Emilio Godoy / IPS

In the Latin American region, Brazil has emerged as the undisputed leader, developing an installed capacity of 196,379 MW, 53 percent of which comes from hydroelectric plants, 13 percent from wind energy and 5 percent from solar power.

In Chile, solar energy contributes 24 percent of energy, wind 13 percent and hydroelectric 21 percent, although thermoelectric plants still account for 36.9 percent.

Despite the lag since 2018 due to the current government’s outright support for hydrocarbons, which has halted the transition to low-carbon energy sources, Mexico is next in line, with 7000 Mw of solar power capacity and 7312 Mw of wind power, although its energy mix still depends 70 percent on fossil fuels.

Meanwhile, in Argentina, 73 percent of renewable energy comes from wind, 15 percent from the sun, 6 percent from bioenergy and 5 percent from mini-hydroelectric plants.

The Climatescope 2023 report, produced by the private consulting firm BloombergNEF, found that Brazil, Chile and Colombia are the most attractive countries in the region for investment in renewables, while Mexico is one of the least attractive.

Limitations

While it is true that most Latin American nations have set renewable generation targets, they also face hurdles to reaching them. Around the world, this segment suffers from high interest rates for financing, a bottleneck in the manufacture of wind turbines that affects producers, and slow delivery of environmental permits.

Ricardo Baitelo, project manager of the non-governmental Brazilian Institute of Energy and Environment, said the maintenance of policies plays a central role in the evolution of renewables, which require higher generation speed, integration in the electric grid and the reduction of energy losses by moving them from one point to another.

“In recent years, Brazil has intensified the regimentation of renewables, expansion has been steady, but planning is important. And it is necessary to improve processes and build infrastructure, which costs more money,” he told IPS.

The deployment of renewable energies involves concerns about respect for the rights of indigenous peoples and communities, water use, deforestation risks and the impacts of mining for elements such as copper, tin, cobalt, graphite and lithium.

Several reports warn of both the demand for these materials and the consequences.

An electric vehicle recharges at a hotel in northeast Dubai, the second largest city in the United Arab Emirates and host of COP28. In this city built on oil wealth, the Dubai climate summit includes messages of promotion and commitment to renewable energies. CREDIT: Emilio Godoy / IPS

The demand for copper and nickel would grow by two to three times to meet the needs of electric vehicles and clean electricity grids by 2050. The extraction of minerals, such as graphite, lithium and cobalt, could rise by 500 percent by 2050 to meet the requirements of energy technologies, according to the World Bank Group.

Chile and Mexico produce copper; Argentina, Bolivia and Chile, lithium; and Brazil, iron – all of which are necessary for the energy transition, which is not innocuous because it leaves environmental legacies, such as mining waste or water use and pollution.

In this regard, Rana Adib, executive secretary of the non-governmental Renewable Energy Policy Network for the 21st Century (REN21), said the evolution of renewables depends on the conditions of each nation.

The declaration “must clearly include routes for implementation and for a just and equitable transition. Financing is the number one priority. The transition must be fully funded, with access to affordable long-term funds. Technology transfer is vital. Renewables are the most recognized and affordable solution for climate mitigation and adaptation,” she told IPS.

The Dubai commitment implies a greater effort than Latin American countries had in mind.

By 2031, renewables are to account for 48 percent of primary energy and 84 percent of electricity generation, which means wind and solar would double in Brazil.

Argentina, meanwhile, plans to add 2,600 gigawatts (Gw) of renewables by 2030 and Chile has set targets of 25 percent renewable generation by 2025, 80 percent by 2035 and 100 percent by 2050.

Under its 2015 Energy Transition Law, Mexico is to generate 35 percent clean energy by 2024 and 43 percent by 2030, although these goals are in doubt due to stagnant supply of renewables.

Jorge Villarreal, climate policy director of the non-governmental Mexico Climate Initiative, said Dubai’s commitment is feasible, but argued that there must be a radical change in the country’s energy policy.

“It is not oriented towards renewables. On the contrary, we have invested in gas. Permits (for renewable plants) are at a standstill. Mexico has the potential to expand the penetration of renewables. That is where new investment in energy should be directed,” he told IPS.

Mexico committed at COP27, held in Egypt a year ago, to add 30 Gw of renewable energy and hydropower by 2030, although there is still no clear pathway towards that goal.

While governments, NGOs and academia make their calculations, it is not yet certain that the commitment made on day 2 at Expo City Dubai will translate into a clear message in the final COP28 declaration.

Artist and farmer Chavely Casimiro and her daughter Leah Amanda Díaz feed one of the biodigesters at Finca del Medio, a farm in central Cuba. The biodigester produces about seven meters of biogas per day, enough energy for cooking, baking and dehydrating food. CREDIT: Jorge Luis Baños / IPS

By Luis Brizuela
TAGUASCO, Cuba, Oct 2 2023 (IPS)

Combining technologies and innovations to take advantage of solar, wind, hydro and biomass potential has made the Finca del Medio farm an example in Cuba in the use of clean energies, which are the basis of its agroecological and environmental sanitation practices.

Renewable energy sources are used in many everyday processes such as electricity generation, lighting, water supply, irrigation and water heating, as well as in cooking, dehydrating, drying, baking and refrigeration of foodstuffs.

“We started out with windmills on artesian wells and hydraulic rams to pump water. That gave us an awareness of the amount of energy we needed and of how to expand its use,” said farmer José Antonio Casimiro, 65, owner of this agroecological family farm located in the center of this long Caribbean island nation."More incentives, better policies and financial support are needed so that farming families have sufficient energy for their work and can improve the comfort of their homes and quality of life." -- José Antonio Casimiro

The farmer expressed his appreciation of the help of his son, 41, also named Antonio Casimiro, in the installation of the two mills at Finca del Medio, during the days in which IPS visited the farm and shared in activities with the family.

“There was no one to assemble or repair them. We both had to study a great deal, and we learned to do a lot of construction things as we went along and perfected the techniques,” said Casimiro junior, referring to the equipment that is now inactive, but is capable of extracting some 4,000 liters of water daily from the water table.

When rainfall is abundant and the volume of the 55,000-cubic-meter-capacity reservoir rises, the hydraulic ram comes to life. The device diverts about 20,000 liters of water to a 45,000-liter tank, 400 meters away and 18 meters above the level of the reservoir.

“The only energy the rams use is the water pressure itself. Placing it on the highest part of the land makes it easier to use the slope for gravity irrigation, or to fill the animals’ water troughs,” explained Chavely Casimiro, 28, the youngest daughter of José Antonio and Mileidy Rodríguez, also 65.

An artist who also inherited the family’s “farming gene”, Chavely highlighted some twenty innovations made by her father to the hydraulic ram, in order to optimize water collection.

Other inventions speed up the assembly and disassembly of the windmills for maintenance, or in the event of tropical cyclones.

“We have been replacing the water supply with solar panels, which are more efficient. They can be removed faster (than the windmill blades) if a hurricane is coming. You can incorporate batteries and store the energy,” said Casimiro.

“Let’s say a windmill costs about 2,000 dollars. With that amount you can buy four 350-watt panels. That would be more than a kilowatt hour (kWh) of power. You buy a couple of batteries for 250 dollars each, and with that amount of kWh you can pump the equivalent of the water of about 10 windmills,” he said.

But the farmer said the windmills are more important than the energy they generate. “It would be nice if every farm had at least one windmill. For me it is very symbolic to see them pumping up water,” he said.

Lorenzo Díaz, the husband of Chavely Casimiro, uses a solar oven to cook food. In the background can be seen a windmill and a solar heater, other technologies that take advantage of the potential for renewable energies on the Finca del Medio farm in central Cuba. CREDIT: Jorge Luis Baños / IPS

Innovations

Located in the municipality of Taguasco, in the central province of Sancti Spíritus, some 350 kilometers east of Havana, Finca del Medio follows a family farm model including permaculture, agroecology and agricultural production based on the use of clean energy.

In 1993, Casimiro and Rodríguez with their children Leidy and José Antonio – a year later, Chavely was born – decided to settle on the 13-hectare farm of their paternal grandparents, with the aim of reversing its deterioration and soil erosion and installing perimeter fences.

The erosion of the land was due to the fact that in the past the farm was dedicated to the cultivation of tobacco, which depleted the soil, and later it had fallen into abandonment, as well as the house.

The older daughter is the only one who does not live and work on the farm, although she does spend time there, and a total of ten family members live there, including four grandchildren. All the adults either work on the farm or help out with different tasks.

With the help of technological innovations adapted to the local ecosystem, and empirical and scientific knowledge, the family has become self-sufficient in rice, beans, tubers, vegetables, milk, eggs, honey, meat, fish and more than 30 varieties of fruit. The only basic foodstuffs not produced on the farm are sugar and salt.

They sell all surplus production, including cow’s milk, for which they have specific contracts, and they are also promoting agrotourism, for which they are making further improvements to the facilities.

At Finca del Medio, a system of channels and ditches allows the infiltration of rainwater, reduces erosion of the topsoil and conserves as much water as possible for subsequent irrigation.

These innovations also benefit neighboring communities by mitigating flooding and replenishing the water table, which has brought water back to formerly dry wells.

The construction of the house is also an offshoot of technological solutions to the scarcity of resources such as steel, which led to the design of dome-shaped roofs made of mud bricks and cement.

The design aids in rainwater harvesting, improves hurricane protection, and boosts ventilation, creating cooler spaces, which reduces the need for air conditioning equipment and bolsters savings.

Along with food production, the new generations and members of the Casimiro-Rodriguez family engage in educational activities to raise awareness about good agricultural and environmental practices.

Students from nearby schools come to the farm to learn about these practices, as well as specialists in agroecology and people from different parts of the world, interested in sharing the experience. Meanwhile, several members of the family have traveled abroad to give workshops on agroecology and permaculture.

Farmers José Antonio Casimiro (R) and his son of the same name talk in the mechanical workshop at their Finca del Medio farm. Both have come up with innovations for the use of windmills, the hydraulic ram and biodigesters, as well as agricultural tools. CREDIT: Jorge Luis Baños / IPS

Solar and biogas potential

On one of the side roofs of the house are 28 photovoltaic panels that provide about eight kWh, connected to batteries. The stored energy covers the household’s needs during power outages that affect the island due to fuel shortages and breakdowns and problems in maintenance of its aging thermoelectric plants.

In addition, the household has three solar water heaters with a capacity of 380 liters.

Next to the kitchen, two fixed-dome biodigesters produce another renewable fuel, biogas, composed mainly of methane and carbon dioxide from the anaerobic decomposition of animal manure, crop waste and “even sewage from the house, which we channel so that the waste does not contaminate the environment,” said Casimiro.

Due to the current shortage of manure as the number of cows has been reduced, only one of the biodigesters is now operational, producing about seven meters of biogas per day, sufficient for cooking, baking and dehydration of foodstuffs.

The innovative family devised a mechanism to extract – without emptying the pond of water or stopping biogas production – from the bottom the solids used as biofertilizers, as well as hundreds of liters of effluent for fertigation (a combination of organic fertilizers and water) of the crops, by gravity.

The installation of the biodigesters, the solar panels and one of the solar heaters was supported by the Swiss Agency for Development and Cooperation (Cosude) and the Indio Hatuey Experimental Station of Pastures and Forages through its Biomass-Cuba project, Casimiro said.

He also expressed gratitude for the link with other scientific institutions such as the Integrated Center for Appropriate Technologies, based in the central province of Camagüey, which is focused on offering solutions to the needs of water supply and environmental sanitation, and played an essential role in the installation of the hydraulic ram.

The farmer said the farm produces the equivalent of about 20 kWh from the combination of renewable energies, and if only conventional electricity were used, the cost would be around 83 dollars a month.

Lorenzo Díaz feeds firewood into an innovative stove that allows the Finca del Medio farm to efficiently cook food, dehydrate or dry fruits and spices, heat water and preserve meat, among other functions. CREDIT: Jorge Luis Baños / IPS

Efficient stove

In the large, functional kitchen, the stove covered with white tiles and a chimney has been remodeled 16 times to make it more efficient and turn it into another source of pride at the farm.

Fueled by firewood, coconut shells and other waste, “the stove makes it possible to cook food, dehydrate fruits and spices, heat water and preserve meat, among other tasks,” Rodríguez told IPS as she listed some of the advantages of this other offshoot of the family’s ingenuity that helps her as a skilled cook and pastry chef.

She pointed out that by extracting all the smoke, “the design makes better use of the heat, which will be used in a sauna” being built next to the kitchen, for the enjoyment of the family and potential tourists.

Casimiro is in favor of incorporating clean energy into agricultural processes, but he said that “more incentives, better policies and financial support are needed so that farming families have sufficient energy for their work and can improve the comfort of their homes and quality of life.”

Since 2014, Cuba has had a policy for the development of renewable energy sources and their efficient use.

A substantial modification of the national energy mix, which is highly dependent on the import of fossil fuels and hit by cyclical energy deficits, is a matter of national security

However, regulations with certain customs exemptions and other incentives to increase the production of solar, wind, biomass and hydroelectric energies in this Caribbean island nation still seem insufficient in view of the high prices of these technologies, the domestic economic crisis and the meager purchasing power of most Cuban families.

Clean sources account for only five percent of the island’s electricity generation, a scenario that the government wants to radically transform, with an ambitious goal of a 37 percent proportion by 2030, which is increasingly difficult to achieve.

A view of the Canoas Wind Farm, owned by Neoenergia, the Brazilian subsidiary of Spain's Iberdrola. Several wind farms with hundreds of turbines have already been built in the mountains of the Seridó mountain range, which vertically cross the state of Paraíba, in the Northeast region of Brazil, and are continuing to expand. CREDIT: Mario Osava / IPS

By Mario Osava
SANTA LUZIA, Brazil , Jul 7 2023 (IPS)

“Anxiety, insomnia and depression have become widespread. We don’t sleep well, I wake up three, four times a night,” complained Brazilian farmer Roselma de Melo Oliveira, 35, who has lived 160 meters from a wind turbine for eight years.

Her story illustrates the ordeal of at least 80 families who decided to hire a lawyer to demand compensation from the company that owns the Ventos de Santa Brigida wind farm complex in Caetés, a municipality of 28,000 inhabitants in the state of Pernambuco, in the Northeast region of Brazil."We are not against wind energy, but against the way these large projects are implemented, without studying or avoiding their impacts." -- Roselma de Melo Oliveira

Dozens of other families affected by the proximity of the wind towers have not joined the legal action, largely because they fear losing the rental income from part of their land where one or more wind turbines have been erected.

The company pays them about 290 dollars for each wind tower, which represents 1.5 percent of the electricity generated and sold, according to Oliveira. Those who were not offered or did not accept the lease are left with the damage and no profits.

Built in 2015 by the national company Casa dos Ventos and sold the following year to the British corporation Cubico Sustainable Investments, the set of seven wind farms, consisting of 107 wind turbines 80 meters high, has a total installed capacity of 182 megawatts, enough to supply 350,000 homes.

The wind energy boom has intensified in recent years in Brazil’s Northeast region, which accounts for more than 80 percent of the wind electricity generated in the whole country.

Severino Olegario, a small farmer impoverished by a plague that destroyed the local cotton crop, took advantage of the arrival of the wind towers on his family’s mountainous land to become the owner of an open-air restaurant, now a tourist attraction in the municipality of Santa Luzia, in the Northeastern Brazilian state of Paraíba. CREDIT: Mario Osava / IPS

Wind power boom

This expansion will be accelerated by plans to produce green hydrogen, which requires a large amount of renewable energy for electrolysis, the technology of choice. The region’s enormous wind and solar potential, in addition to its relative proximity to Europe, the great consumer market of green hydrogen, puts the Northeast in a strong position as a supplier of the so-called fuel of the future.

As a result, large energy projects are proliferating in the region, which is mostly semiarid and almost always sunny. The giant parks have triggered local resistance, due to the social and environmental impacts, which are felt more intensely in the Northeast, where small rural properties are the norm.

Brazil currently has 191,702 megawatts of installed capacity, including 53.3 percent hydroelectric, 13.2 percent wind and 4.4 percent solar. The goal is for wind, solar and biomass to contribute 23 percent of the total by 2030, with the Northeast as the epicenter of the production of renewable sources.

“We are not against wind energy, but against the way these large projects are implemented, without studying or avoiding their impacts,” Oliveira said. Renewable sources are not always clean and sustainable, say activists, especially movements led by women in the Northeast.

“Because they are considered low-impact, wind and solar farms obtain permits for implementation and operation more quickly and at a low cost, without in-depth studies,” said José Aderivaldo, a sociologist and secondary school teacher in Santa Luzia, a municipality of 15,000 inhabitants in the semiarid zone of the Northeastern state of Paraíba.

The Neoenergia company’s Renewable Complex; in the background can be seen a small part of the solar panels and the wind farm. The synergy between the daytime sunshine and nighttime winds generates enough electricity for 1.3 million homes in the Northeast region of Brazil. CREDIT: Mario Osava / IPS

“But solar energy has a greater impact, it is more invasive. A wind farm has little impact on livestock, which do lose a lot of space to solar, more extensive in terms of the land it occupies,” he told IPS.

His field of observation is the Neoenergía company’s Renewable Complex, a project that combines wind power, with 136 wind turbines in the Chafariz complex in the mountains, and 228,000 photovoltaic panels in the Luzia Park on the plains. The former generates more electricity at night, the latter during the day.

In total, they cover 8,700 hectares in Santa Luzia and three other neighboring municipalities and can generate up to 620.4 megawatts, most of it – 471.2 megawatts – coming from the wind in the mountains. They can supply electricity to 1.3 million housing units and avoid the emission of 100,000 tons of carbon dioxide gas, according to the company, a subsidiary of Spain’s Iberdrola.

One of the impacts was a reduction in the local capacity for the production of cheap protein from livestock farming adapted for centuries to the local ecosystem, in addition to extracting rocks for the construction of wind towers and damaging local roads with trucks for their transport, lamented João Telésforo, an engineer and retired professor from the public Federal University of Rio Grande do Norte.

“Neoenergía carried out all the socio-environmental impact studies rigorously in accordance with the country’s current legislation and global best practices. The distance between the homes and the wind turbines is in compliance with the law,” the company responded to IPS in writing, in response to questions about criticism of its activities.

Marizelda Duarte da Silva, vice-president of the Esperança Rural Workers Union, is one of the leaders of the women’s resistance to the installation of wind farms in the mountains of the Borborema Plateau, coveted for its strong, regular winds, in the state of Paraíba, in Brazil’s Northeast region. CREDIT: Mario Osava / IPS

“In addition, it only leases the land, without purchasing it, which means people stay in their homes and in the countryside, and owners receive payments according to the contracts, with transparency, contributing to income distribution and local quality of life,” it added.

Local complaints

But Pedro Olegario, 73, laments that the remuneration has declined, explained by the company as a result of a drop in the energy generated. “The wind is still blowing the same,” he protested.

His wife, Maria José Gomes, 57, complains about the noise, even though the nearest wind turbine is about 500 meters away from their house. “Sometimes I can only fall asleep in the wee hours of the morning with the window tightly closed,” she said.

The couple lives on their share of a 265-hectare property, inherited and divided between the widow and 17 children of the previous owner, on one of the mountains of the Seridó range, part of Santa Luzia.

The 18 family members split the income from four wind towers installed on their land.

Not everyone is unhappy

On the other hand, Pedro’s brother Severino Olegario, 50, has a positive view of the Canoas Wind Farm, which also belongs to Neoenergia. The 2019 construction made it possible for him to open a restaurant to feed 40 technicians of the company who installed the mechanical components.

On the horizon can be seen one of the hills of the Borborema Plateua, whose occupation by wind turbines faces resistance from the Women’s Movement, which began holding annual marches for agroecology and in defense of the land in 2010. Nearly 5,000 women mobilized this year in opposition to wind farms in the Northeast region of Brazil. CREDIT: Mario Osava / IPS

“I sleep despite the noise and the remuneration is low because we had to divide it among a very large family,” he said. He also improved the road, which brings tourists to his restaurant on Sundays, after the construction work ended, and slowed the local exodus of people from the region.

About 1,000 families used to live in the three communities up in the mountains, due to the high level of production of cotton. But the cotton boll weevil (Anthonomus grandis) plague in the 1990s destroyed the crop and the value of the land.

“Today there are less than a hundred families left,” said Severino, who continues to grow some of the food that he uses to serve meals at his restaurant.

His perspective differs from the picture described by Oliveira to IPS by telephone from her rural community, Sobradinho, in Caetés, the result of a wind farm authorized before the government’s Brazilian Environmental Institute issued new rules in 2014.

The state government’s wind map points out mountain ranges favorable for wind energy. In red are the areas of greatest potential. The longest is the Seridó mountain range, to the west, already covered by dozens of wind farms. About 100 kilometers to the east, the second largest area, Borborema, has a women’s movement that aims to keep it free of wind farms. CREDIT: Government of Paraíba

Damage and unfavorable contracts

“There are cases of allergies that we believe are caused by the dust from the wind turbine blades, which also contaminates the water we drink, as it falls on our roofs where we collect rainwater in tanks,” Oliveira complained.

The alternative would be to buy water from tanker trucks which “costs 300 reais (62 dollars ) – too expensive for a family with two children who only harvest beans and corn once a year,” she explained, adding that growing vegetables and medicinal herbs is impossible because of the polluted water.

In addition to the audible sound, vibrations, infrasound (considered inaudible), shadow flicker (the effect of rotating turbine blades causing varying brightness levels and blocking the sun’s rays) and microparticles cause symptoms of “wind turbine syndrome,” according to Wanessa Gomes, a professor at the public University of Pernambuco, who is researching the subject with colleagues from the Oswaldo Cruz Foundation, Brazil’s leading academic public health institution.

Local families have also been living in fear since a blade broke and fell with a loud bang. Many take medication for sleep and mental illness, according to Oliveira, whose testimony aims to alert other communities to the risks posed by wind energy enterprises.

On Mar. 16, she took her complaints to the Women’s March for Life and Agroecology, organized by the Polo de Borborema in Montadas, a municipality of 5,800 people, about 280 kilometers north of Caetés.

The Polo is a group of rural workers’ unions in 13 municipalities in the Borborema highlands in the state of Paraíba, whose windy mountains are coveted by companies.

The women’s movement, with the support of the non-governmental Consultancy and Services for Alternative Agriculture Projects, mobilized 5,000 women this year, in its fourteenth edition, the second one focused on opposition to wind farms.

“Our struggle is to prevent these parks from being installed here. If many families refuse to sign the contracts with the companies, there will be no parks,” Marizelda Duarte da Silva, 50, vice-president of the Rural Workers Union of Esperança, a municipality of 31,000 inhabitants in the center of Borborema territory, told IPS.

“The contracts are draconian, up to 49 years and renewable by unilateral decision of the company,” said Claudionor Vital Pereira, a lawyer for the Polo union. “They demand unjustifiable confidentiality, charge fines for withdrawing and make variable payments for the lease depending on the amount and prices of energy generated, imposing on the lessor a risk that should only be assumed by the company.”

A picture of photovoltaic panels in the solar park in the small town of Armstrong, in the Pampa region, the heart of Argentina’s agricultural production. The park belongs to an electric cooperative, which until 2017 only bought energy to distribute, but now generates electricity as well. CREDIT: FARN

By Daniel Gutman
BUENOS AIRES, May 26 2023 (IPS)

When the residents of Armstrong, a town of 15,000 in western Argentina, began to meet to discuss a renewable energy project, they agreed that there could be many positive effects and that it was not just a question of doing their bit in the global effort to mitigate climate change.

“The proposal was to use the rooftops and yards of our houses to install solar panels. And I accepted the idea basically because I was excited by the prospect that one day we would become independent in generating our own electricity,” Adrián Marozzi, who today has six solar panels in the back of the house where he lives in Armstrong with his wife and two children, told IPS.“Community-based projects, which are feasible, have several advantages: they improve local autonomy in the generation of electricity, they allow money to be saved from the energy that is not purchased, which can be reinvested in the city, and they promote the decentralization of decision-making in the energy system.” -- Pablo Bertinat

His home is one of about 50 in Armstrong with solar panels generating power for the community, added to the 880-panel solar farm installed in the town’s industrial park. Together they have contributed part of the electricity consumed by the inhabitants of this town in the western province of Santa Fe since 2017.

This is a pioneering project in Argentina, built with public technical organizations and community participation through a cooperative where decisions are made democratically, which has since been replicated in various parts of the country.

With an extensive area of ​​almost 2.8 million square kilometers, Argentina is a country where most of the electricity generation has been concentrated geographically, which raises the need for large power transmission infrastructure and poses a hurdle for the development of the system.

In this context, and despite the financing obstacles in a country with a severe long-lasting economic crisis, renewable energies are increasingly seen as an alternative for clean electricity generation in power-consuming areas.

Marozzi is a biologist by profession, but is dedicated to agricultural production in Armstrong, almost 400 kilometers northwest of Buenos Aires. The town is located in the pampas grasslands in the productive heart of Argentina, and is surrounded by fields of soybeans, corn and cattle.

How to bring electric power to widely scattered rural residents was the great challenge that the Armstrong Public Works and Services Provision Cooperative, made up of 5,000 members representing the town’s 5,000 households, grappled with for years.

The institution was born in 1958 and in 1966 it marked a milestone, when it created the first rural electrification system in this South American country, with a 70-kilometer medium voltage line that brought the service to numerous farms.

Once again, in 2016, the Armstrong cooperative pointed the way, when it began to discuss in assemblies with community participation the advantages and disadvantages of venturing into renewable energy production by means of solar energy panels.

“Those of us who accepted the installation of panels in our homes today receive no direct benefit, but we are betting on a future in which we can generate all of the electricity we consume. In addition, of course, we care about environmental issues,” Marozzi said in a conversation from his town.

The 880-panel solar park with 200 kW of installed power is currently being expanded to 275 kW thanks to the money that Armstrong saved from energy that was not purchased in recent years from the national grid. The local residents who make up the cooperative decided that the savings from what was generated with solar energy should be invested in the park.

Two workers carry out maintenance tasks at the solar park in Monte Caseros, a town in the Argentine province of Corrientes, in the northeast of the country. The park was inaugurated in 2021 by the local cooperative, which provides electricity to the residents and is also involved in agricultural activity. CREDIT: Monte Caseros Agricultural and Electricity Cooperative

A replicated model

In Argentina there are about 600 electrical cooperatives in small cities and towns in the interior of the country, which were born in the mid-20th century, when the national grid was still quite limited and access to electric power was a problem.

These cooperatives usually buy and distribute energy in towns. But the members of dozens of them realized that they too could generate clean electricity, after visiting Armstrong’s project, and launched their own renewable energy initiatives.

One of the cooperatives that also has a solar park is the Agricultural and Electricity Cooperative of Monte Caseros, a city of about 25,000 inhabitants in the northeastern province of Corrientes.

“The cooperative was born in 1977 out of the need to bring energy to rural residents,” engineer Germán Judiche, the association’s technical manager, told IPS. “Today we have a honey packaging plant and a cluster of silos for rice, the main crop in the area. Since 2018 we have also distributed internet service and in 2020 we partnered with the province’s public electricity company to venture into renewable energy.”

The Monte Caseros solar park has 400 kW of installed capacity thanks to 936 solar panels. It was inaugurated in September 2021 and has provided such good results that a second park, with similar characteristics, is about to begin to be built by the 650-member cooperative, because it supplies only rural residents of the municipality.

“We have done everything with the cooperative’s own labor and the design by engineers from the National University of the Northeast (UNNE), from our province,” said Judiche. “It is definitely a model that can be replicated. Renewable energy is our future,” he added from his town, some 700 kilometers north of Buenos Aires.

Solar panels can be seen in the backyard of Adrián Marozzi, a resident of the town of Armstrong. Neither he nor the other residents who agreed to give up part of their yards or rooftops receive direct advantages, since the energy savings are capitalized by the cooperative, which thus has to buy less electricity from the national grid. CREDIT: FARN

A slow and bumpy road

According to official figures, the distributed or decentralized generation of renewable energy for self-consumption, which allows the surplus to be injected into the grid, has 1,167 generators registered in 13 of Argentina’s 23 provinces, with more than 20 megawatts of installed power.

Electricity cooperatives that have their own renewable energy generation projects operate under this system.

In total, in this country of 44 million people, renewable energies covered almost 14 percent of the demand for electricity in 2022 and have more than 5,000 MW of installed capacity, although there are practically no major new projects to expand their proportion of the energy mix.

Most of the electricity demand is covered by thermal generation, which contributes more than 25,000 MW, mainly from oil but also from natural gas. Hydropower is the next largest source, with more than 10,000 MW from large dams greater than 50 MW, which are not considered renewable.

Pablo Bertinat, director of the Energy and Sustainability Observatory of the National Technological University (UTN) based in the city of Rosario, also in Santa Fe, explained that in a country like Argentina it is impossible to follow a model like Germany’s widespread residential generation of renewable energy, because it requires investments that are not viable.

“Community-based projects, which are feasible, have several advantages: they improve local autonomy in the generation of electricity, they allow money to be saved from the energy that is not purchased, which can be reinvested in the city, and they promote the decentralization of decision-making in the energy system,” added Bertinat, speaking from Rosario.

The UTN Observatory was in charge of the Armstrong project, in a public-private consortium, together with the cooperative and the National Institute of Industrial Technology (Inti).

The expert said that the cooperatives’ renewable energy projects are advancing slowly in Argentina, despite the fact that there is no credit nor favorable policies – an indication that they could have a very strong impact on the entire electrical system and even on the generation of employment, if there were tools to promote renewables.

“Our aim is to demonstrate that not only large companies can advance the agenda of promoting renewable energy and the replacement of fossil fuels. In Argentina, cooperatives are also an important actor on this path,” Bertinat said.

The case of Armstrong also sparked interest from the environmental movement, which is helping to drive the growth of renewable energy in the country.

Jazmín Rocco Predassi, head of Climate Policy at the Environment and Natural Resources Foundation (FARN), told IPS that this is “an illustration that the energy transition does not always come from top-down initiatives, but that communities can organize themselves, together with cooperatives, municipal governments or science and technology institutes, to generate the transformations that the energy system needs.”

A group of drivers push a car at the end of a long line to refuel in Havana. The Cuban authorities say the fundamental cause of the shortage of diesel and gasoline has to do with breaches of contracts by suppliers. CREDIT: Jorge Luis Baños/IPS

By Luis Brizuela
HAVANA, Apr 27 2023 (IPS)

Long lines of vehicles outside of gas stations reflect the acute shortage of diesel and gasoline in Cuba, which has had negative impacts on an economy that is highly dependent on fuel imports and has only a small proportion of renewable sources in its energy mix.

“They don’t sell you enough fuel at the gas stations and the line barely creeps forward because there are also many irregularities and corruption. It’s exhausting,” said engineer Rolando Estupiñán, who was driving an old Soviet Union-made Lada. When he spoke to IPS in Havana, he was still a long way from the pumps at the station and had given up hope of working that day.

Lisbet Brito, an accountant living in the Cuban capital, lamented in a conversation with IPS that “the public buses take a long time. Private cars (that act as taxis) are making shorter trips and charging more. Nobody can afford this. It’s very difficult to get to work or school, or to a medical or any other kind of appointment.”

Brito said another fear “is that food prices will rise further or supplies will decrease, if the shortage of oil makes it difficult to supply the markets.”

External and internal factors, including the fuel shortage, contribute to low levels of agricultural production, which is insufficient to meet the demand of the 11.1 million inhabitants of this Caribbean island nation.

The outlook is made even more complex by the macroeconomic imbalances, marked by partial dollarization, high inflation and depreciation of wages, salaries and pensions which have strangled household budgets.

Asiel Ramos, who uses his vehicle as a private taxi in this city of 2.2 million people, justified the increase in his rates “because the cost of a liter of diesel skyrocketed” on the black market, where it ranges from a little more than a dollar to three dollars, in sharp contrast to the average monthly salary of around 35 dollars.

“I pay taxes and I have to keep the car running so my children and wife can eat. I can’t spend days stocking up on fuel, and when it’s over, go back again. If I buy ‘on the left‘ (a euphemism for buying on the black market) I have to raise my prices,” Ramos told IPS.

To get around, most Cubans depend on the public transport system, based mainly on buses, which are less expensive than private taxis. But the chronic deficit of equipment, spare parts, lubricants and other inputs, added to the fuel shortage, means service is irregular, the most visible expression of which is the packed bus stops.

A group of people try to board a minibus on a central avenue in Havana. Public transport in Cuba faces a chronic deficit of equipment, spare parts, lubricants and other inputs, which, added to fuel shortages, means service is irregular and bus stops are crowded. CREDIT: Jorge Luis Baños/IPS

Measures

The fuel shortage drove the authorities to announce on the night of Apr. 25 the cancellation of the traditional parades for May 1, International Workers’ Day, and other activities such as political rallies or workplace, community or municipal events, as a rationing and austerity measure, and to declare that only essential transportation would be available.

In the capital, instead of the workers’ march through the José Marti Plaza de la Revolución, a rally was called for May 1 along the Havana Malecón or seaside boulevard, which expects some 120,000 people coming on foot from five of the 15 Havana municipalities.

On Apr. 17, the Minister of Energy and Mines Vicente de la O Levy said on television that the fundamental cause of the shortage of diesel and gasoline is related to breaches of contracts by suppliers.

He said the U.S. embargo “makes it very difficult to obtain ships to transport the fuel, to seek financing and to meet the normal requirements of these contracts.”

In November, during President Miguel Díaz-Canel’s tour of Algeria, Russia, Turkey and China, agreements were signed with some of these countries for the stable supply of hydrocarbons, power generation and the modernization of thermoelectric plants.

Venezuela and Russia appear to be the country’s main energy suppliers.

On Apr. 23, the general director of the state company Unión Cuba Petróleo (Cupet), Néstor Pérez, told national media outlets that “one of the closest suppliers despite having innumerable production limitations… has guaranteed the supply of some products (refinable crude and derivatives) that somewhat alleviate the existing situation, but do not cover all the demands of the economy and the population.”

Presumably Pérez was referring to Venezuela, although he did not specifically say so, because that country has been the largest supplier of hydrocarbons this century, although due to its own internal crisis its exports to Cuba have clearly declined.

De la O Levy noted that, based on negotiations with international suppliers, an improvement is expected in May, although the availability of fuel will not reach the levels seen in 2017 or 2018, when the country was in a more favorable situation.

The priorities in the use of the reserves are the health and funeral services, public transportation and transport of merchandise, as well as the potato harvest, the official said.

The government of Havana, which as a province encompasses the 15 municipalities that make up the capital, limited the sale of diesel to 100 liters per vehicle and 40 liters of gasoline. In the remaining 14 provinces, rationing measures were also ordered.

Several universities postponed the entry of scholarship students until the first week of May, and announced online classes and consultations.

Sales of liquefied petroleum gas (LPG) are also affected, used by more than 1.7 million consumers, although the next arrival of a ship with the product should bring back stability to the service, according to officials.

Two men shine a mobile phone flashlight while fixing a car during a blackout in Havana. Breakages and repairs in some of the country’s thermoelectric plants lead to power shortages that trigger blackouts that last several hours in some parts of the country. CREDIT: Jorge Luis Baños/IPS

Electricity generation deficit

This situation coincides with breaks and repairs in some of the 20 thermoelectric generation plants, which have operated for an average of more than 30 years.

These plants process, for the most part, heavy national crude oil, with a sulfur content between seven and 18 degrees API, which requires more frequent repair cycles that are sometimes postponed due to a lack of financing.

Around 95 percent of the electricity generated in Cuba comes from fossil sources.

This country consumes some 8.3 million tons of fuel per year, of which almost 40 percent is nationally produced.

President Díaz-Canel explained on Apr. 14 that due to the number of thermoelectric blocks under repair “we have had to depend more on distributed generation that basically consumes diesel” in the country’s 168 municipalities.

The generation deficits cause blackouts, although of a lesser magnitude than the 10 to 12-hour a day cuts that for a large part of 2022 affected different parts of the country and sparked demonstrations and pot-banging protests in poor neighborhoods of several municipalities.

The rest of the electricity generation comes from gas accompanying national oil, and floating units rented to Turkey, while renewable energy sources account for only five percent of the total.

The current energy situation is occurring as summer looms, when temperatures above 35 degrees Celsius increase the use of fans and air conditioners, while a majority of the 3.9 million homes in Cuba depend on electricity for cooking food.

Members of the Electric Motorcycle Club gather in Havana for recreational activities. Customs measures have facilitated the importation of electric vehicles which reduce carbon emissions. CREDIT: Jorge Luis Baños/IPS

Promoting renewable sources

“We must further promote renewable sources and stimulate a change from fuel-guzzling, polluting vehicles that are more than half a century old to more modern and efficient ones,” computer scientist Alexis Rodríguez told IPS from the eastern city of Holguin, where he lives.

The transformation of the national energy mix is ​​considered by the government a matter of national security, and as part of its plans it aims for 37 percent of electricity to come from clean energy by 2030.

Since 2014, Cuba has had a policy for the prospective development of renewable energy sources and their efficient use, and in 2019 Decree Law 345 established regulations to increase the proportion of renewables in electricity generation and gradually decrease the share of fossil fuels.

Such a significant transformation will require investments of some six billion dollars, authorities in the sector estimate, which constitutes a challenge for a country whose main sources of revenue are dwindling, and which has pending a restart of interest payments on its debt to international creditors.

“It is also important to encourage the use of bicycles and electric vehicles, but they must be sold at reasonable prices, on credit as well, with guarantees of spare parts and the improvement of infrastructure,” Rodríguez added.

In addition to hybrid buses, a hundred light electric vehicles have been added to the capital’s public transport system that contribute to citizen micromobility and to reducing carbon emissions.

In recent years, the customs agency made provisions more flexible for citizens and companies to import solar panels. Although official data are not available, the measure has not had a significant influence.

Measures for the import and assembly on the island of bicycles, motorcycles and three and four-wheel electric vehicles – more than half a million of which circulate in Cuba – also bolster the mobility of people and families.

However, the high prices and sales only in hard currencies curb the expansion and use of more environmentally-friendly vehicles. Another hurdle is the dependence on the national power grid to recharge the batteries and the absence of service stations for electric vehicles.

View of the solar park in the municipality of Escobar, located an hour's drive from Buenos Aires. Inaugurated this month, it is the first municipally financed and managed solar energy project, at a time when private investment has withdrawn from large clean energy projects in Argentina. CREDIT: Daniel Gutman/IPS

By Daniel Gutman
ESCOBAR, Argentina, Jul 18 2022 (IPS)

The multitude of solar panels stands out along a dirt road in an unpopulated area. Although located just an hour’s drive from Buenos Aires, the new solar park in the municipality of Escobar is in a place of silence and solitude, symbolic of the difficulties faced by renewable energies in making inroads in Argentina.

The Escobar plant, inaugurated this month, is the first solar energy park with municipal investment and management, at a time when private initiative has practically withdrawn from clean energy projects in this South American country of 47 million people, which has been in the grip of a deep economic and financial crisis for years.

“There are 3,700 photovoltaic solar panels that produce electricity to be sold to one of the electric cooperatives that distributes power in the area. With this plant, we seek to position ourselves as a sustainable municipality and access financing for new projects,” Victoria Bandín, director of Innovation in the Municipality of Escobar, told IPS during a tour of the grounds of the six-hectare park.

Located 50 kilometers from the Argentine capital, to which it is connected by a freeway, Escobar is a municipality on the northern edge of Greater Buenos Aires, a gigantic metropolitan area of 15 million inhabitants where the country’s greatest wealth and poverty live side by side.

Escobar’s extensive green areas have attracted thousands of families in recent years seeking to get away from the cement and noise of Buenos Aires, which has fuelled the construction of dozens of upscale high-security private housing developments.

Escobar is also home to a large community of Bolivian immigrants, who play a key role in the production of fruits and vegetables. In fact, the fresh food market that supplies the stores of several municipalities in the area bears the name “Bolivian Community”.

Next to the market, which is very close to the solar park, the white, inflated tarp of a biodigester, in which the market’s organic waste is processed, stands out.

Eliseo Acchura is about to send spoiled food discarded by stallholders to the biodigester at Escobar’s fruit and vegetable market. The biodigester, operating since last year, produces biogas that is then converted into electricity used in the market. CREDIT: Daniel Gutman/IPS

“I pick up almost a ton of fruit and vegetables per day that the stallholders discard, and after 40 to 60 days of decomposition in the biodigester, we have biogas,” Eliseo Acchura, who works on the project inaugurated last year with support from the United Nations Development Program (UNDP), told IPS.

The biogas is used to generate electricity to supply part of the market.

“We have rural areas and we seek to preserve ourselves as a green place on the edge of the great gray blob that is the greater metropolitan area,” Guillermo Bochatón, coordinator of the Sustainable Escobar program, which is carrying out several environmental initiatives, told IPS.

The rise and fall of renewables

Clean energies experienced a boom in Argentina starting in 2016, thanks to the Renovar Program, which managed to attract domestic and foreign private investors.

Through this program, the national government guaranteed the purchase of electricity for 20 years at a fixed rate in dollars and created a guaranty fund with the participation of international credit institutions to guarantee payment.

The share of renewable sources in the total electricity mix, almost non-existent in 2015, grew significantly since 2016, reaching a record high of 13 percent on average in 2021.

Today, Argentina’s electricity system has an installed capacity of almost 43,000 MW, of which 5,175 MW are renewable. The main source of generation is thermal (powered by natural gas and, to a lesser extent, oil) making up 59 percent of the total, followed by large hydroelectric projects, which make up 25 percent (only hydroelectric projects of less than 50 MW are considered renewable).

Among renewables, the largest share last year came from wind (74 percent), followed by solar (13 percent), small hydro (7 percent) and bioenergies, according to official data

Of the 189 renewable energy projects in operation, 133 were commissioned over the last four years.

The biodigester at Escobar’s wholesale fruit market was inaugurated last year and is part of the environmentally friendly initiatives launched in this municipality near the Argentine capital. CREDIT: Daniel Gutman/IPS

Clean energies today face two major problems in this country, according to Marcelo Alvarez, a member of the board of directors of the Argentine Chamber of Renewable Energies (CADER).

One has to do with infrastructure due to the saturation of the electricity transmission networks that deliver electric power to large cities. Another is the lack of financing, as a result of the macroeconomic conditions in the country.

“Even private ventures in distributed generation today are practically reserved only for environmental activists, because the lack of financing and extremely low electricity rates make them unprofitable,” Alvarez explained.

He said that the way things are going, the country is not likely to meet the goal set by law in 2015, for 20 percent of the national electricity mix to come from domestic sources by 2025.

“From a technical point of view, Argentina’s potential for renewable energies is enormous, because it has the necessary natural resources. And economically too, because in the medium term the costs of electricity production will fall,” Gabriel Blanco, a specialist in renewable energies from the National University of the Center of the Province of Buenos Aires (UNICEN), told Ecoamericas.

“The main obstacle is that there is no political will, because the decision is to bet on the energy business of fossil fuels, large hydroelectric and nuclear power plants,” he added.

The Escobar solar park has an installed capacity of 2.3 MW and required an investment of some two million dollars, which will be recovered with the sale of electricity within seven years, said the mayor of Escobar, Ariel Sujarchuk. “Between 23 and 53 more years of useful life of pure profit will be left after that,” he added.

The inauguration was also attended by Environment Minister Juan Cabandié, who pledged more than 1.7 million dollars in government funds for the expansion of the solar park, which has a large piece of land available for the installation of more panels.

In his speech in Escobar, Cabandié criticized industrialized countries for failing to comply with the financing needed to transform the economies of developing countries, as pledged under the Paris Agreement on climate change, adopted in the French capital in 2015.

The minister said that “the sector responsible for damaging the planet is in the Northern, not the Southern, hemisphere,” and argued that it is the countries of the North that must assume “the responsibility of financing the transition to sustainability of the countries of the South.”

Wind turbines at the Gibara 1 wind farm generate electricity in the municipality of the same name in Holguín province, eastern Cuba. The aim is for at least 37 percent of Cuba’s electricity to come from clean energies by 2030; this is a first step towards a much more ambitious goal that envisions an energy mix made up 100 percent of domestic sources. CREDIT: Jorge Luis Baños / IPS

By Luis Brizuela
HAVANA, Feb 28 2022 (IPS)

Cuba has readjusted its plans to achieve at least 37 percent of electricity from clean energy by 2030, a promising but risky challenge for a nation that is a heavy consumer of fossil fuels and has persistent financial problems.

This is a first step towards a much more ambitious goal: an energy mix made up of 100 percent domestic sources, in order to achieve sovereignty.

Approved in 2014, the Policy for the Prospective Development of Renewable Energy Sources (RES) and their Efficient Use projected that solar, wind, biomass and hydroelectric power would account for 24 percent of electricity generation by 2030.

Currently, 95 percent of the electricity produced in this Caribbean island nation comes from burning fossil fuels, including natural gas.

Based on government indications and research by the Electric Union and Cuban universities, “it was determined that we can reach 37 percent (by 2030) with RES,” said Rosell Guerra, director of Renewable Energies at the Ministry of Energy and Mines, in an interview with IPS.

The official pointed out that since it is an island nation, “Cuba is not interconnected with any major power system,” which means that as the use of RES gradually expands, “it is important to ensure the stability of the electric system and the quality of the service, voltage and frequency, as well as the storage of electric power for the night time.”

This archipelago consumes just over eight million tons of fuel annually, of which 4.4 million tons are used for electricity.

Nearly 40 percent of the fuel must be imported, mainly fuel oil and diesel, which have higher prices on the international market.

The country spends some 2.8 billion dollars annually on the electricity sector, including the purchase of fuel, the operation and maintenance of aging thermoelectric plants and the purchase of energy from independent producers.

“We have no alternative, the country cannot continue to pay such large energy bills, which together with food purchases (estimated at some two billion dollars annually), are our largest,” Guerra stressed.

Cuba’s carbon dioxide (CO2) emissions decreased in the last five years, to 22.9 million tons in 2020, according to international data, but energy generating activities are still the main domestic sources of polluting gases.

Achieving 37 percent generation with sustainable energies “will mean the emission of nine million fewer tons of carbon dioxide per year,” added the official.

A floating power plant arrives at Havana port from Turkey in November 2021. In Cuba, 95 percent of the electricity produced comes from the burning of oil and oil derivatives, together with natural gas. CREDIT: Jorge Luis Baños / IPS

Picking up the pace

The largest island nation in the Caribbean will have to step on the gas if it wishes, within eight years, to have 3954 megawatts per hour (MW/h) of installed capacity in renewable energies, as outlined in the government’s plan.

“The implementation of the RES Policy is behind schedule; by the end of 2021 we should have had 649 MW/h in operation, but today only 47 percent of what was planned, 304 MW/h, has been achieved,” Guerra acknowledged.

He attributed the delay to the country’s three-decade-long economic crisis, with its main sources of income impacted by the COVID-19 pandemic, which led the authorities to request a moratorium on debt interest payments to international creditors.

Guerra also referred to the effects of the U.S. government’s embargo against Cuba, in force since 1962, which hinders access to credit and technology, increases the cost of freight for transporting fuel and keeps investors away.

However, he clarified, since 2014 “500 million dollars were invested in RES,” which provide energy for some 300,000 households at noon, in a country of more than 3.8 million homes and 11.2 million inhabitants.

The shift in the energy mix by 2030 will require an investment of some six billion dollars “that will have to be sought from external sources, whether through credits or foreign direct investment,” since the country is not in a position to assume the cost alone, said the official.

He pointed out that “in addition to the economic and environmental analysis, the vision in this matter is based on the need to move towards energy independence.”

Ongoing projects

Cuba has eight thermal plants with an average operating life of more than 30 years.

Most of these plants process heavy domestic crude oil, with a sulfur content between seven and 18 degrees API, which makes more frequent repairs necessary, that are sometimes postponed due to lack of financing.

Malfunctions in the facilities have caused generation crises in recent years, the most recent from April to July 2021, affecting industrial production and Cuban families, most of whom use electricity to cook food, among other uses.

Distributed in Cuba’s 168 municipalities, fuel engines and diesel generators, also suffering from a lack of parts, complement the electric power system.

The rest of the electricity is generated by the natural gas produced along with domestic oil, floating units (patanas), together with five percent renewable energies.

The solar program appears to be the most advanced and with the best growth opportunities in a nation whose solar radiation averages more than five kilowatts per square meter per day, which is considered high.

Solar parks contribute 238 MW/h, a little more than 78 percent of the renewable energy in the country, according to the statistics.

Guerra said that “Cuban universities are very proactive with RES and energy efficiency, with several innovative and applied science projects, and with funding, both nationally and in collaboration with the European Union.”

Marlenis Águila, an expert with the Renewable Energy Directorate, told IPS that “some of these programs or projects are based on national technologies, applied on farms, and with results in the field of agro-energy, which are worth replicating widely.”

Both experts referred to the installation, especially in rural areas, of more than 1,000 pumping systems with solar panels that save energy and provide water to livestock and farming families, while a 4,000 cubic meter biogas plant is planned to generate electricity.

“There are seven biogas plants in the country. They are small, the largest has a capacity of 250 kW/h, but they contribute during peak hours, when they are most needed,” said Guerra.

In addition, two new bioelectric plants with a capacity of 40 MW/h, three wind farms (151 MW/h) and two small hydroelectric plants (3.4 MW/h) are under construction, among other projects in different phases with foreign investment and credit management.

A store specializing in household appliances sells equipment to obtain electricity from renewable sources in the municipality of Playa, Havana. In recent years, Cuba approved regulations with tariff and tax benefits for foreign investors who participate in the expansion of renewable energies, and began selling solar panels and heaters to promote their use by the public. CREDIT: Jorge Luis Baños / IPS

Opportunities

The second edition of the Renewable Energy Fair, scheduled to take place in Havana Jun. 22-24, will seek to attract foreign investors for the transition to renewable energies in Cuba.

“The first fair, in January 2018, was modest in size but very useful,” Guerra said. “Prestigious international agencies came and transferred knowledge to us. This time we intend to emphasize solar energy – both photovoltaic and thermal – and biomass.”

Representatives of international agencies, projects and companies such as the International Renewable Energy Agency, the World Wind Energy Association, the International Solar Alliance, the Green Climate Fund, the Belt and Road Energy Partnership, the French Development Agency and the Japan International Cooperation Agency (JICA) are expected to attend.

In recent years, Cuba approved regulations to encourage the presence of foreign investors in the development of sustainable energy, both in large and small local projects.

Resolution 223 of the Ministry of Finance and Prices, published in June 2021, exempts wholly foreign-owned companies implementing electricity generation projects with RES from paying taxes on profits for eight years, from the start of their commercial operations.

Other regulations, such as Decree-Law No. 345 of 2019, contain incentives to promote self-supply, the sale of surpluses to the National Electric System, as well as tariff and tax benefits for individuals and legal entities that use them.

The government strategy also proposes the installation of the more efficient LED bulbs in public lighting and the sale of solar water heaters and efficient equipment, which despite their high prices are aimed at expanding the use of renewable energies among the public.

Aida Valdez stands outside her home in the Guaraní indigenous community of Yariguarenda, in northern Argentina, in front of the wood-burning oven she uses to cook - an example of energy poverty in vulnerable rural communities in Latin America. CREDIT: Daniel Gutman/IPS

By Emilio Godoy
MEXICO CITY, Dec 15 2021 (IPS)

The effects of the covid-19 pandemic and high energy prices have had an impact on the consumption of polluting fuels in Latin America and the Caribbean, exacerbating energy poverty in the region.

In some countries there is evidence of an increase in the use of charcoal and firewood. But there have been few studies to reflect this, because it is a recent development and there has been a tardy focus on the behavior of vulnerable sectors in response to the new realities they face.

Macarena San Martín, a researcher at the non-governmental Energy Poverty Network (RedPE) in Chile, said the phenomenon goes beyond the notion of access to electric power, and includes aspects such as the quality and affordability of energy.

“In all Latin American countries, the problem is considered one-dimensional, but multiple factors must be considered,” she told IPS from Santiago. “Access has been seen as a question of: can you plug something in? If you can, it’s solved. While today they have access, that does not necessarily guarantee that energy poverty has been eliminated. There are also problems of efficiency.”

In central Chile, many people use kerosene, a hydrocarbon derivative, and natural gas for household use and heating.

Due to the pandemic, a Basic Services Law has been in force since May, by means of which vulnerable electricity and gas users may defer payments, without the risk of being cut off. But this benefit expires on Dec. 31, so the beneficiaries will have to start paying off what they owe next February, up to a maximum of 48 monthly installments.

The Economic Commission for Latin America and the Caribbean (ECLAC) establishes that a household suffers from energy poverty when it lacks equitable access to adequate, reliable, non-polluting and safe energy services to cover its basic needs and sustain the human and economic development of its members, and spends more than 10 percent of its income on energy costs.

Although access to electricity averages more than 90 percent in the region, in rural areas and urban peripheries more than 10 percent of households lack electric power in some cases, such as in Bolivia, Honduras, Haiti and Nicaragua, according to September data from ECLAC.

This charcoal factory in the state of Oaxaca in southern Mexico is an example of an ecological initiative that has not managed to curb the consumption of coal, despite rising prices, or the consumption of hydrocarbons. CREDIT: Emilio Godoy/IPS

Latin America and the Caribbean is the most unequal region in the world, according to international organizations, and this is reflected in the energy sector. While a minority can afford to install solar panels on their homes or drive an electric or hybrid gasoline-electric car, the majority depend on dirty energy or polluting transport.

When spending is highly unequal, as in this region, the resulting energy inequality tends to grow, concluded a 2020 report by three researchers from the School of Earth and Environment at the private University of Leeds in the UK.

Another report, entitled “Las luces son del pueblo (the lights belong to the people); Energy, access and energy poverty” and published in November by the non-governmental Observatorio Petrolero Sur, based in Argentina, puts the number of people lacking access to electricity in this region at almost 22 million, equivalent to 3.3 percent of the total population of 667 million people.

In addition, 12 percent of the region’s population use non-clean sources for energy services, as in Guatemala, Honduras, Jamaica, Nicaragua and Paraguay.

In the residential sector, the energy mix is based on kerosene, natural gas, firewood, electricity and liquefied gas.

The beauty of the snowy streets of Coyhaique, the capital of the southern Patagonian region of Aysén, belies the fact that it is the most polluted city in Chile, mainly due to the use of wet firewood to heat homes in an area where temperatures plunge in the wintertime. CREDIT: Marianela Jarroud/IPS

In Argentina, official figures indicate that more than one-fifth of the population lives in energy poverty, despite subsidized electric and gas rates.

In December 2019, shortly before the outbreak of the covid pandemic, the Social Solidarity and Productive Reactivation Law came into force in the Southern Cone country, which includes a revision of gas and electricity tariffs to avoid excessive increases, for the benefit of the economically vulnerable population.

Jonatan Núñez, a researcher at the Institute for Latin American and Caribbean Studies at the public University of Buenos Aires, links the lack of access to electric service in the region to income level.

There is a link “to formal employment, which not only guarantees access to a certain level of income, but also to renting housing in certain areas, and the possibility of gaining access to areas with better energy infrastructure. In poor neighborhoods, there is no access to electricity or gas networks. They are put in place manually and that generates blackouts or precarious conditions that can cause fires,” he told IPS from Buenos Aires.

In Mexico, poverty rose as a result of the pandemic, affecting up to 58.2 million people, or 43.5 percent of the total population, according to official data released in September. This meant a more than six percent increase in poverty compared to 2018, despite the millions of government social programs aimed at tackling chronic poverty in the country.

In urban areas, liquefied petroleum gas and gasoline experienced the largest price hikes, while in rural areas, coal and firewood reported the highest increases, perhaps as a substitute for fossil fuels.

Due to the rise in gas prices, driven by international prices, the Mexican government created the state-owned company Gas Bienestar, which sells natural gas at a subsidized price with a ceiling.

At most service stations in Brazil, consumers can choose between gasoline and ethanol at the pump. But consumers only use the biofuel when its price is favorable compared to gasoline. CREDIT: Mario Osava/IPS

Brazil, where poverty was already on the rise before the pandemic, is also facing higher domestic gas prices and the consequent increase in firewood consumption.

Brazil is a pioneer of the energy transition because of its promotion of clean energy and the low level of polluting fuels burnt in households. But in the region’s largest economy the burning of firewood has overtaken bottled gas since 2018, a trend that has been exacerbated since then, according to figures from the government’s Energy Research Company (EPE).

The existence of subsidies and frozen rates makes it more difficult to estimate energy inequality, as they do not reflect real costs, according to the experts consulted.

Energy poverty is a hurdle in the way of achieving the goals of the international Sustainable Energy for All Initiative, the program to be implemented during the United Nations Decade of Sustainable Energy for All, from 2014 to 2024.

This initiative seeks to ensure universal access to modern energy services and to double the global rate of energy efficiency improvements and the share of renewable energies in the global energy mix.

In addition, energy poverty stands in the way of reaching goal seven of the 17 Sustainable Development Goals (SDGs), which aims to ” Ensure access to affordable, reliable, sustainable and modern energy for all” as part of the 2030 Agenda, adopted in 2015 by the members of the United Nations.

San Martín, the Chilean expert, said governments face a “complex problem” because there are many demands and difficulties.

“The planet is not infinite. The challenge must be adapted to the situation of each society and to territorial and cultural conditions. We have to work on how we use energy. The energy transition must consider access, quality and equality and it must be taken into account that we cannot continue spending beyond the planet’s capacity,” she said.

Núñez from Argentina said the solution is to consider energy as a right rather than a commodity.

“The response has been quite weak. Most of the energy consumed comes from gas-fired thermal power plants and hydroelectric plants, which are granted in concession to private companies. Services are still in the hands of private companies,” he stressed.

A worker walks through the facilities of the Carlos Manuel de Céspedes thermoelectric plant in the central province of Cienfuegos. Most of Cuba's thermoelectric plants, almost all of which were built with technology from the now defunct Soviet Union and Eastern European socialist bloc, have a lifespan of 30 to 35 years, and it would take 40 to 80 million dollars to repair and upgrade each one, according to industry executives. CREDIT: Jorge Luis Baños/IPS

By Luis Brizuela
HAVANA, Oct 14 2021 (IPS)

With aging infrastructure and problems with fuel supplies, Cuba is facing a crisis in its electric power generation system, which could accelerate plans to increase the share of renewable sources in the energy mix.

In recent weeks, blackouts have been widespread in the 15 provinces of this Caribbean island nation.

Breakdowns in several of the eight thermoelectric plants and delayed maintenance in 18 of its 20 generating blocks are the cause of the generation deficits, according to the authorities.

In addition, there are malfunctions in the distribution systems – lines, substations, transformers – due to the lack of spare parts.

Cuba produces half of the fuel burned in several of its thermoelectric plants, but a significant portion depends on imports.

Under bilateral agreements, Cuba should receive some 53,000 barrels per day of oil and derivatives from Venezuela. But the collapse of that South American country under the weight of its lingering crisis means that shipments are irregular, according to media reports, although the local government does not provide precise figures."The operating reserves in the power system are low and at times have been below what is required to meet consumer energy demand, which means the power supply is necessarily and inevitably affected.” -- Liván Arronte

There is also a reported decrease in the volumes of natural gas associated with oil, used in facilities on the northwest coast, a deficit that can only be overcome by means of new oil wells, according to industry executives.

“The operating reserves in the power system are low and at times have been below what is required to meet consumer energy demand, which means the power supply is necessarily and inevitably affected,” Minister of Energy and Mines Liván Arronte said on television on Sept. 14.

For Cuban families, the current crisis is reminiscent of the prolonged power outages of the early 1990s, when after the collapse of the then Soviet Union, the island lost its main fuel supplier.

In September 2019, another energy crisis occurred when the administration of then President Donald Trump (2017-Jan 2021) took steps to prevent the arrival of tankers to the island, as part of measures to stiffen the economic and financial embargo that the United States has had in place against Cuba since 1962.

“The U.S. government has dedicated itself to threatening and blackmailing companies that supply fuel to Cuba, and this is a qualitative leap in the intensification and application of unconventional measures against those involved in international transportation, without any legal or moral authority,” stated the 2020 annual report on the embargo.

Authorities in Cuba argue that the sanctions hinder access to credit to purchase parts and other inputs, which delays the necessary maintenance of the thermal plants.

Cuba’s dwindling coffers are in no condition to take on extra expenses, given the effects of three decades of economic crisis and the impact of the covid-19 pandemic that has made it necessary to prioritise imports of medical supplies and food.

The power grid is in critical condition and the still high level of dependence on fuel imports is a factor of vulnerability and undermines the country’s projected energy sovereignty and independence, analysts warn.

A wind farm located near the city of Gibara, in the eastern province of Holguín. Cuba has set a goal of steadily reducing the use of fossil fuels and increasing the use of renewable sources in electricity generation to 24 percent, by 2030. CREDIT: Jorge Luis Baños/IPS

Aging infrastructure

Cuba has an installed potential of more than 6500 MW/h, but the real generation capacity is only half of that, and when several generator units are disconnected from the National Electric System (SEN), it is impossible to meet peak demand of 3300 to 3500 MW/h.

The country has eight thermal power plants with 20 generation blocks and a total capacity of some 2600 MW/h, equivalent to 40 percent of the electricity that can potentially be generated in this island nation of 11.2 million people.

Several of them are able to handle Cuba’s extra-heavy crude (between seven and 18 degrees API), whose sulphur content of seven to eight percent increases corrosion in the boilers, making it necessary to reduce the time between routine maintenance, to 50 to 70 days a year.

Cuba has an oil and accompanying gas production equivalent to 3.5 million tons per year (22 million barrels), from which 2.6 million tons (16.3 million barrels) of crude oil and approximately one billion cubic meters of natural gas are obtained, according to 2020 data released by the official media.

The network of power plants forms the backbone of a system that is complemented in the 15 provinces with fuel oil engines and diesel generators, which have also been hit by the shortage in spare parts and which use part of the 150 to 200 million dollars a month in fuel imports, according to official reports.

The rest of Cuba’s electricity comes from local liquefied petroleum gas (nearly eight percent), renewable sources (five percent) and three percent from floating units (patanas), which also use fossil fuels, in Mariel Bay, 45 km west of Havana.

With one exception, the thermoelectric plants, mainly built with technology from the defunct Soviet Union and Eastern European socialist bloc, have passed their 30 to 35 year lifespan, and 40 to 80 million dollars are needed to repair each plant, according to industry leaders.

To alleviate the current crisis, the government announced an investment scheme aimed at reactivating currently unused generation potential and prioritising the staggered maintenance programme.

“The strategy’s projects include four thermal generation blocks of 200 MW/h each, which will use national crude oil and … today there are projects in different stages to produce 3500 MW/h from renewable sources, which have been affected by the current crisis,” said Arronte.

The Belgian company BDC-Log Servicios Logísticos y Transporte is optimising its operation through the use of solar panels installed on the roofs of its warehouses in the Mariel Special Development Zone, in the western province of Artemisa. The policy for the development of renewable sources in Cuba, approved in 2014, aims to encourage foreign investment in large and small projects, in order to boost energy efficiency and self-sufficiency. CREDIT: Jorge Luis Baños/IPS

Renewable energies: ups and downs

In 2014, the Cuban government approved a “Policy for the development of renewable energy sources and efficient energy use by 2030”, which aims to gradually reduce the use of fossil fuels and sets a target for 24 percent of energy to come from clean sources by that year.

The policy is also geared towards fomenting foreign investment, in both large and small local projects, with the objective of improving energy efficiency and self-sufficiency, with installations mainly connected to the national grid.

According to some estimates, more than three billion dollars in financing will be needed in order to develop more than 2000 MW/h of new capacity in renewable sources over the next nine years.

Decree-Law No. 345 passed in 2019 on the development of renewable sources contains incentives to promote self-supply from clean energy, the sale of surplus energy to the national grid, as well as tariff and tax benefits for individuals and legal entities that use these sources.

The law also proposes the installation of the most efficient LED bulbs in public streetlights, the sale of solar water heaters and efficient appliances, as well as public education campaigns on the need to save energy.

Cuba ended 2020 with an installed capacity of almost 300 MW/h from renewable sources, some of whose installations were supported by international projects and institutions.

Studies indicate that the expansion of renewable sources could reduce the use of fossil fuels in electricity generation by 2.3 million tons a year and could cut carbon dioxide emissions by eight million tons.

However, these projections clash with the high cost of technologies to obtain energy from sunlight, wind, water and biomass.

In Cuba, which aims to develop all of these sources, the solar energy programme is the most advanced, in a country with average solar radiation of more than five kilowatts per square meter per day, which is considered high.

In late July, resolutions were published allowing people to import solar power systems, free of customs duties and without commercial purposes, as well as equipment, parts and components that generate or operate as renewable energy sources.

Some chain stores also sell solar panels for more than 1,500 dollars per unit, compared to the monthly salaries of Cubans that range from 87 to 400 dollars.

Although the state can buy surplus energy from private consumers, people consulted by IPS said it was not worth the cost of purchasing and setting up a photovoltaic system and the several years needed to recover the initial investment.

Another pending issue is the technology to accumulate solar energy for use at night.

Solar panels cover the rooftop of a hotel in the southern state of Santa Catarina - an example of the distributed generation of electricity that has been expanding widely in Brazil in the last decade, thanks to a resolution by the regulatory agency that encourages consumers to generate their own electricity, as part of the changes in the country's energy mix. CREDIT: Mario Osava/IPS

By Mario Osava
RÍO DE JANEIRO, Sep 8 2021 (IPS)

As most of the world seeks to modify its energy mix to mitigate climate change, Brazil has also been forced to do so to adapt to the climate crisis whose effects are being felt in the country due to the scarcity of rainfall.

It will be hard to avoid blackouts, or even perhaps electricity rationing, by October or November of this year as a result of the declining water level in reservoirs in the southeast and midwest regions, which account for 70 percent of the country’s hydroelectric generation capacity.

“The crisis did not start this year, it has dragged on for almost a decade,” said Luiz Barata, former director general of the National Electric System Operator (ONS) and current consultant for the Institute for Climate and Society. “The climate has changed the rainfall regime, which will not go back to what it used to be. Droughts are no longer periodic and spread widely apart; they have to do with deforestation.”

The ONS is an association of generation, transmission and distribution companies, together with consumers and the government, which coordinates and oversees the entire structure that ensures electricity in this South American country of 214 million people.

In Brazil, hydroelectric power now accounts for 62 percent of the total generating capacity, currently 174,883 MW, according to the National Electric Energy Agency (ANEEL), the sector’s regulatory body.

As a result, what happens to the rainfall has a strong impact on national life, because of the environmental, climatic and energy effects.

The regions hardest hit today suffered severe droughts in 1999-2002 and 2013-2015, and the phenomenon could be repeated in 2021, said Barata, an engineer who worked in three state-owned companies in the sector and since 1998 has served in various management posts, including as ONS director general from 2016 to 2020.

The southeast and midwest of Brazil are the main recipients of the moisture carried in by the winds – the so-called “flying rivers” that originate in the Amazon rainforest, according to climatologists. The current drought is reportedly a consequence of deforestation, which already affects nearly 20 percent of the Amazon jungle.

But water shortages are affecting almost the entire country. The northeast, which is semi-arid for the most part, experienced its longest drought since 2012, six years all together and even longer in some areas.

View of the Itaipú hydroelectric plant shared by Brazil and Paraguay on the Paraná River, which forms part of the border between the two countries. In years of abundant rainfall it is the largest power plant in the world. With an installed capacity of 14,000 MW, it is much smaller than China’s Three Gorges, with a capacity of 22,400 MW. But this year the Itaipu dam’s generation will fall sharply due to drought. CREDIT: Mario Osava/IPS

Brazil lost 15.7 percent of its territory covered by water, the equivalent of 3.1 million hectares, between 1991 and 2020, according to a satellite imagery study by the Brazilian Annual Land Use and Land Cover Mapping Project known as Mapbiomas, a network of non-governmental organisations, universities and technology companies.

The minister of mines and energy, retired admiral Bento Albuquerque, acknowledged that global warming was a factor in the gravity of the water crisis that is threatening the power supply. But the minister forms part of a government that denies climate change, as well as the need to preserve forests and the environment overall.

Brazil is experiencing “the worst drought in its history,” he said in a message to the nation on Aug. 31 to announce incentives to reduce consumption during the peak demand period – between 17:00 and 21:00 hours – by means of discounts on the electricity bill.

But the real push for savings is a gradual rise in the electricity bill by the government since May, when dry season began with reservoirs at critical levels, similar to those of 2001, when Brazil had to resort to heavy rationing to avoid an energy collapse.

At that time, hydropower was overwhelmingly predominant, accounting for more than 85 percent of the electricity consumed in the country.

Angra 1 and 2, the two nuclear power plants currently in operation in Brazil, in a coastal locality 150 km south of Rio de Janeiro, have a capacity of 640 and 1,350 MW, respectively. Angra 3, under construction intermittently since the 1980s next to the first two, will have the same capacity as Angra 2. CREDIT: Mario Osava/IPS

There were very few thermal power plants. Since then, various administrations have fomented construction of thermal plants, boosting energy security to the detriment of the environment by increasing the use of fossil fuels, and of consumers, by raising the cost of electricity.

The increase is due to the greater use of thermal power plants and also to the importation of electricity from Argentina and Uruguay, the minister said. The cost is sometimes ten times that of cheaper sources, such as hydro, wind and solar.

To reduce consumption, and thus avoid blackouts and the use of more expensive power plants, the regulator ANEEL slapped an additional charge for each 100 kilowatt-hours of consumption, which gradually increased to 14.20 reals (2.75 dollars) as of Sept. 1, up from 4.17 reals (0.77 cents of a dollar) in May.

Brazil’s electricity mix has recently been diversified with the expansion of new renewable sources. Wind power now accounts for 10 percent of the total installed capacity and solar power makes up 1.87 percent, while thermal power, mostly from oil derivatives, rose to 25 percent.

There will probably be enough supply to weather the current drought and water shortage, thanks to this increase in diversified generation, the measures to curb consumption, and an economy that is not taking off as expected after a large part of the population received anti-COVID vaccines.

The authorities rule out the possibility of rationing because the total extension of transmission lines has doubled since 2001, which allows electricity to be delivered where it is needed, and negotiations are underway with large consumers, mainly industrial, to reduce consumption during peak hours.

Hydroelectricity is no longer the overwhelmingly predominant source of energy in Brazil, as sources such as wind and solar gain ground. All that remains of some mega-projects are old signs, like this one in Cachuela Esperanza, a Bolivian town where former presidents Evo Morales of Bolivia and Luiz Inácio Lula da Silva of Brazil announced the construction of a large binational hydroelectric plant on the Beni River, which never materialised. CREDIT: Mario Osava/IPS

But the damage, both social and economic, has already been done. “Expensive energy aggravates poverty, hits businesses hard, and drives up insolvency, inflation and unemployment,” Barata told IPS by telephone from Rio de Janeiro.

Moreover, this process is not neutral. Costly energy is a burden for distribution companies that are already facing the negative effects of the pandemic and the evolution of the electricity sector.

“They will probably ask for tariff corrections next year, but since it will be an election year, the government will reject the anti-popular measure,” said Roberto Kishinami, energy coordinator at the non-governmental Institute for Climate and Society.

The administration of far-right President Jair Bolsonaro is not interested in rationing either. “Rationing energy involves planning rational measures, something alien to this government, which has shown little concern for preventing the nearly 600,000 deaths from COVID-19,” he told IPS during a telephone interview, also from Rio de Janeiro.

Given the complexity of Brazil’s electric system and of crisis management, blackouts are likely to occur in limited areas, for which blame can be attributed to specific actors, Kishinami said.

According to Barata: “It is more serious than rationing, because blackouts create chaos in the economy and everyone’s life.”

To avoid this risk and other damage, the expert believes it is necessary to “obligatorily reduce residential and commercial consumption” and thus take pressure off the system.

The medium- to long-term solution would be to “help the water reservoirs recover by means of the expansion of new renewable sources and hydrogen” – that is, with wind, solar and other energy sources meeting a large part of the demand, so that water can be saved, for other purposes as well, such as human consumption, agriculture and river transport, he said.

Barata predicts that wind and solar will lead electricity generation in Brazil in the next decade. Hydropower will become merely complementary, providing security of supply, a role currently played by fossil fuels.

“The world is moving towards renewables; thermal power plants do not solve anything,” he said.

The biodigester of the Monje Agricultural and Livestock Cooperative, which brings together 550 small farmers in this town in northeastern Argentina on the banks of the Paraná River, produces biogas that feeds electricity to its oil plant and biofertilisers used on the crops. CREDIT: Courtesy of CopMonje

By Daniel Gutman
BUENOS AIRES, May 11 2021 (IPS)

“Until five years ago, we didn’t know about the circular economy, but today our waste generates environmentally neutral products that also offer a return,” says José Luis Barrinat, manager of a cooperative that brings together some 550 small farmers in Monje, Argentina.

Their story reflects a reality that has begun to spread in recent years in the rural areas of this South American country, a traditional powerhouse in food production. Today both small farmers and large agribusiness companies generate energy and other products from what was once considered waste and was solely an environmental problem.

The Monje Agricultural and Livestock Cooperative is located 370 km north of Buenos Aires, in the northeastern province of Santa Fe, and has a pig farm of some 200 sows which sells some 90 animals each week, Barrinat told IPS by telephone from his home town.“Farmers are beginning to realise that livestock production effluent is not a waste product but a raw material that can generate value, and that an environmental problem can become a profitable solution." -- Diego Barreiro

Until recently, the manure was collected in large open ponds, which were a major emitter of methane, one of the main greenhouse gases (GHG) contributing to global warming, into the atmosphere.

Everything changed, however, with the 2018 inauguration of a biodigester, where effluent from the pig farm are now treated together with other organic waste, such as decomposing grains.

The biodigester replicates nature by converting organic matter into energy using bacteria that carry out an anaerobic degradation process.

The biodigester in Monje is made up of a large tank with waterproofed walls covered by a canvas reinforced with rubber that seals it hermetically, into which the effluent from agricultural activities runs through channels.

Barrinat explained that the resulting biogas has two uses: “We use it as fuel for an electric generator, which covers part of the consumption of our oil plant, and also for a grain dryer that we use when the harvest is wet. We also extract biofertilisers, which we use on our 35-hectare field.”

Building the biodigester cost nearly 100,000 dollars and was made possible thanks to a grant from the United Nations Food and Agriculture Organisation (FAO) and advice from Argentina’s governmental National Institute of Agricultural Technology (INTA).

“The use of biogas has grown enormously since 2015 in this country, alongside research and the creation of knowledge,” said Jorge Hilbert, an international advisor at INTA. “Unfortunately, this came to a halt in the last two years, due to the financing difficulties that Argentina is experiencing,” he added, speaking to IPS in the capital.

In Cristophersen, a town in northeastern Argentina, biodigesters were built by Adecoagro, an agroindustrial company that invested six million dollars to produce biogas from the manure of 12,000 cows. Adecoagro has been selling renewable energy to the national electricity grid for more than three years. CREDIT: Courtesy of Adecoagro

Hilbert coordinates the Global Digital Biogas Cooperation project in the country, which last year investigated market conditions in Argentina, Ethiopia, Ghana, Indonesia and South Africa. The initiative was financed by the European Union, which is interested in exporting its biogas technology to emerging countries.

In the case of Argentina, the study noted that there are 100 biogas plants in operation and that the main potential for this renewable energy lies in the effluent from pork and beef production and the dairy industry.

Biogas generation received a boost in 2015, when the Law for the Promotion of Renewable Energies was passed. The following year the government launched the RenovAr Programme, by which the State guarantees the purchase of electricity generated with non-fossil fuel sources.

Environmental engineer Mariano Butti, an INTA researcher in the city of Pergamino, told IPS that thanks to RenovAr, 36 large-scale biogas plants have been built or are under construction, which inject energy into the national power grid.

However, Butti said by telephone from that city, located some 220 km from the capital, that there is still a long way to go, especially for medium and small farmers.

“The benefit of biodigesters is twofold, because they generate biofertilisers that replace chemical, fossil-based fertilisers, and because they cut GHG emissions from untreated effluent,” he said.

“Today in Argentina we are wasting a resource,” added Butti, who cited concrete examples, such as Navarro, an agricultural municipality located 120 km from Buenos Aires.

The expert explained that “Navarro has 20,000 inhabitants and 180 cattle farms, with a total of 38,000 cows. Today, they generate local electricity with two diesel engines and dump the effluent from livestock into a river, instead of making use of it.”

However, developing the potential of agricultural waste in Argentina is not an easy task.

In 2018, INTA developed a project for Chañar Ladeado, a town of 6,000 people, also in the northeastern province of Santa Fe, where the main activity is pig farming. Thanks to the effluent, biogas would have been supplied to the whole community, which currently uses bottled gas, but the plan collapsed because the financing fell through.

Faced with the failure of the initiative, a local pig farmer, Gabriel Nicolino, installed a biodigester on his own farm, which has 200 sows. “I did it with the help of INTA, a bit by trial and error, because in this country it is very difficult to get credit,” Nicolino told IPS by telephone from that town.

“I am starting to use the biogas as a fuel to generate electricity for the breeding barn, which includes heating the pigs in their first few weeks of life. I hope to recoup the investment in the long term,” he added.

José Luis Barrinat, manager of the Monje Agricultural and Livestock Cooperative, stands by the biodigester, next to the gas filter and the facilities where the gas is cooled before being sent to the electricity generator. The biodigester works with effluent from the pig farm and other organic waste. CREDIT: Courtesy of CopMonje

Who pays the environmental costs?

Ignacio Huerga, an INTA specialist from the city of Venado Tuerto, notes that the outlook for the generation of biogas from agricultural waste is very different depending on the scale of the farms.

“Large farmers have to think about investments of millions of dollars with technology imported from countries like Germany and Italy. Smaller producers are left with developments from universities or national companies that provide technology,” he told IPS from that city.

He added that “the problem of economic viability has to do with the fact that in Argentina nobody pays the cost of the environmental impact of their activity. If they had to pay it, things would be different. In any case, biogas is sure to grow over the next few years in this country.”

One of the large Argentine agribusiness companies that chose biogas is Adecoagro, which produces milk, grains, rice, sugar and ethanol in Argentina and also does businesses in Brazil and Uruguay. Adecoagro describes itself as a “producer of food and renewable energy under a sustainable model.”

The company has four dairy farms in the town of Cristophersen, Santa Fe, with 12,000 dairy cows.

“In 2004 we began to investigate how we could take advantage of cow manure. Back then we applied it on our fields as fertiliser, because our first natural biodigester is the cows’ stomachs, but we saw that there was more potential,” Lisandro Ferrer, head of Industrial Projects at Adecoagro, told IPS.

Thanks to the RenovAr plan, and using Italian technology, Adecoagro invested six million dollars in a biodigester and has been injecting electricity into the national grid since November 2017. “We have 1.4 MW in installed power. We could cover the energy needs of a town of between 500 and 1,000 residents,” Ferrer said by phone from Cristophersen.

“The biodigester is fed with 200 tons of cow manure per day, which is sent to three 5,000-cubic-metre concrete tanks. The way we see it is the cows transform the corn they eat into milk, and what is left over we transform into biogas to generate electricity,” he explained.

However, promoters of biogas still have to work to spark the interest of agricultural producers. Fourteen years ago Diego Barreiro founded the Argentine company Biomax, dedicated to the manufacture and commercialisation of biodigesters, and since then he has been touring the country explaining the benefits of the system.

“We are working hard to lower costs. Today we have 54 biodigesters installed and interest is growing. We have a farmer who, thanks to the biofertiliser made from pig manure, managed to increase the yield of his soybean field so much that in one year he recovered the investment,” Barreiro told IPS in Buenos Aires.

He said “Farmers are beginning to realise that livestock production effluent is not a waste product but a raw material that can generate value, and that an environmental problem can become a profitable solution.”

Mexico's state-run oil giant Pemex faces a difficult outlook due to the fall in international oil prices and the crisis resulting from the coronavirus pandemic, which threatens its production and finances, in a situation analysed during the 29th La Jolla Energy Conference, organised online by the Institute of the Americas. CREDIT: Emilio Godoy/IPS

By Emilio Godoy
MEXICO CITY, May 22 2020 (IPS)

While it attempts to cushion the effects of the coronavirus pandemic, the Latin American and Caribbean region also faces concerns about the future of the energy transition and state-owned oil companies.

These questions were discussed at the 29th La Jolla Energy Conference, organised by the Institute of the Americas. It was held online May 18-22, rather than bringing together more than 50 speakers at the institute’s headquarters in the coastal district of San Diego, in the U.S. state of California, in the midst of the COVID-19 pandemic.

Alfonso Blanco of Uruguay, executive secretary of the Latin American Energy Organisation (OLADE), said during a session on global trends and the regional energy industry that the changes seen during the pandemic will spread after the crisis and will be long-lasting.

“There will be structural transformations and we are convinced that most consumer behaviors will change after the pandemic. Demand will vary due to changes in the main areas of transportation and other energy areas. The effects on fossil fuel consumption will be strong and there will be a greater impact on renewable energies,” he said.

OLADE, a 27-member regional intergovernmental organisation for energy coordination, estimates that electricity demand has fallen by 29 percent in Bolivia compared to 2019, as a result of the severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2), which causes COVID-19, and by 26 percent in Argentina, 22 percent in Brazil and 11 percent in Chile."There will be structural transformations and we are convinced that most consumer behaviors will change after the pandemic. Demand will vary due to changes in the main areas of transportation and other energy areas. The effects on fossil fuel consumption will be strong and there will be a greater impact on renewable energies." -- Alfonso Blanco

Likewise, final energy demand plummeted 14 percent in Brazil compared to 2019, 11 percent in both the Andean and Southern Cone regions, nine percent in Mexico, seven percent in Central America and five percent in the Caribbean.

As countries went into lockdown to curb the spread of COVID-19, electricity consumption by businesses and factories declined, due to the suspension of activities.

Leonardo Sempertegui, legal advisor to the Organisation of Petroleum Exporting Countries (OPEC), said the pandemic may be a wake-up call for countries lagging behind in the energy transition.

“This may be the new normal. The structure and governance of the energy architecture to cope with the next phase are changing dramatically. Energy poverty and the energy transition cannot be solved regardless of who controls a resource; these challenges cannot wait,” he said in the same session.

In Latin America, nations like Argentina, Bolivia, the Dominican Republic, Ecuador, Honduras and Uruguay have made progress in the energy transition since 2015, while Brazil has slid backwards and countries like Mexico are stuck in the same place, according to the World Economic Forum’s Energy Transition Index, released May 13.

As the region heads into the fourth month of the pandemic, countries are assessing their electricity markets, which have been shaken by the crisis.

Nations like Argentina, Chile, Colombia and Peru have resorted to long-term electricity auctions, which have generated low prices for renewables, while Mexico suspended such schemes in 2019.

In Argentina, as Andrés Chambouleyron, a non-resident fellow at the Institute of the Americas, explained, industrial consumption fell by 50 percent and electricity distributors have not been able to obtain sufficient revenues to cover fixed costs or electricity purchases.

The government has thus provided financing to Cammesa – the electricity wholesale market administration company – to pay the generators, since it is bound by contracts to buy the energy.

“There will be a permanent change in electricity consumption in Argentina. We have cheaper gas than before; the models say that you have to use more gas because it is cheaper than other sources. We won’t see much change in Argentina’s energy mix, and that could extend to all of Latin America,” said Chambouleyron, who warned of breach of and renegotiation of contracts for energy purchases.

Low oil prices threaten to slow down the energy transition in Latin America, although renewable energies already compete with the costs of fossil fuels, agreed experts at the 29th La Jolla Energy Conference, organised online by the Institute of the Americas. The photo shows solar panels on a house in Ajijic, in the western Mexican state of Jalisco. CREDIT: Emilio Godoy/IPS

While renewables are already competing in price with conventional sources, low oil and gas prices undermine their expansion, a predicament that alternative energy sources have been facing in recent years.

In addition, the rise in the cost of international credit and the fluctuations of the dollar against local currencies may make generation more expensive.

In another session on the outlook for state-owned oil companies, Marta Jara, former president of Uruguay’s public oil company ANCAP, said the current crisis could accelerate the transition, but called it a “major challenge”.

“The temptation is to be opportunistic and forget the roadmap of the energy transition. We must invest in sustainable energy systems, decarbonise transport. It is important to secure funding and create jobs. I hope the crisis opens the door to be more innovative,” she said.

Viable or not?

The plunge in fossil fuel prices is damaging the finances of the region’s oil producing countries, such as Argentina, Bolivia, Brazil, Colombia, Ecuador, Mexico, Peru and Venezuela, and state companies in the sector are facing problems with regard to planning and operations.

But it benefits net importers, like the countries of Central America or Chile, whose oil bills have shrunk, while for consumers in both oil producing and importing countries the cost of electricity could go down.

“The most competitive will be the countries with lower oil extraction costs. Some projects will not be economically viable. We will see greater economic problems than in 2019,” predicted Lisa Viscidi, director of the Energy, Climate Change and Extractive Industries Programme at the non-governmental Inter-American Dialogue, during a panel on the situation in several Caribbean nations.

The pandemic and a rise in Saudi production announced on Mar. 10 led to a collapse in oil prices and the consequent risk of bankruptcies in the industry. State-owned oil companies have fared better than others so far in the crisis.

In another session on the outlook for state-owned oil companies, John Padilla, managing director of the private consulting firm IPD Latin America, stated that “it will take time to get out of this situation, with effects for the region, and the need for great efficiency.

“Most nations have been exporters, efficiency will be the key. What has not been done is to cultivate domestic and regional markets, state enterprises are not going to play the same role as they always have,” he said.

Public companies such as Brazil’s Petrobras and Colombia’s Ecopetrol entered the crisis in a better position than Mexico’s Pemex, Venezuela’s PDVSA and Argentina’s YPF, according to experts.

“These are difficult times, even for the best prepared. We can hope that if the country and its company are in trouble, if governments need money, they can get more out of the companies,” said Francisco Monaldi, interim director of the Baker Institute for Public Policy’s Latin America Initiative at the private Rice University in the U.S. state of Texas.

In his view, “Mexico is in better fiscal conditions, it should not be a problem. But Pemex can drag Mexico down. If the government doesn’t change direction, it could become a serious problem,” he said as an example.

Although Pemex will increase its investment in 2020, the oil company reported losses of 20 billion dollars in the first quarter of this year. Due to the crisis, Petrobras limited its investment to 3.5 billion dollars and its daily production to 200,000 barrels, and postponed the sale of eight refineries.

For Lucas Aristizábal, a senior director in Fitch Ratings’ Latin American corporates group, some state-owned oil companies are viable and others are not.

“In 2021, the financial contribution of oil will be lower for governments. If they want the companies to play a key role, they will put more pressure on their financial structure. The current situation illustrates the economics of these corporations,” he said during the forum.

Pemex and YPF were already losing money per barrel in 2019, while Petrobras has more balanced production costs.

On the oil horizon, and in the midst of the COVID-19 crisis, Guyana has become the rising star, although there is still political uncertainty, as the result of the Mar. 2 presidential elections is still unclear.

“It’s hard to predict what will happen. There is a risk of U.S. sanctions that would not affect investment in the sector, but would pose a political risk to the country,” said Thomas Singh, in the Department of Economics at the public University of Guyana.

The country expects to extract 600,000 barrels per day by 2024 and take in revenues of five billion dollars, with reserves exceeding five billion barrels.

Claudinei Stein is a farmer who produces biogas using the manure of his 7,300 pigs, which he breeds and sells to a pork processing plant in southern Brazil when they reach 23 kilos of weight. To his right is the biofertiliser pond, with the manure used to produce biogas in a biodigester. At the far left are the pigsties. Credit: Mario Osava/IPS

By Mario Osava
ENTRE RIOS DO OESTE, Brazil, Aug 6 2019 (IPS)

Pigs, already the main source of income in this small municipality in southwestern Brazil, now have even more value as a source of electricity.

The mini-thermal power plant of Entre Rios do Oeste, inaugurated on Jul. 24, uses the biogas provided by 18 farms, in a pioneering technical-commercial agreement in Brazil involving pig farmers, the city government, the Paraná Energy Company (Copel), the Itaipu Technological Park (PTI) and the International Center for Renewable Energies-Biogas (CIBiogas).

The project was executed by PTI – the Brazilian-Paraguayan hydroelectric power plant Itaipu‘s centre for teaching and development research – and CIBiogás, a non-profit association of 27 international, national and local institutions, which operates at the PTI headquarters.

The Entre Rios city government will benefit by generating electricity with the biogas it buys from the pig farmers. The electricity is injected into Copel’s distribution network, reducing the energy costs paid by 72 municipal office buildings and schools.

“It will produce savings that we will invest in health and education,” said Mayor Jones Heiden.

His municipality, in the western part of the southern state of Paraná and on the shores of the Itaipú reservoir that separates Brazil from Paraguay, was a natural choice for the project, as there are some 155,000 pigs, or 35 animals for each of the 4,400 local inhabitants.

Rafael González, CIBiogás’ director of technological development, told IPS in his offices that the city government also took an interest in the project and offered the area for the plant to be installed, resources for its operation and support for the pig farmers.

Of the more than 100 pig farmers in the municipality, only 18 who are located where the 20-km network of gas pipelines was installed are participating, after accepting the conditions for financing the biodigester, which converts the waste into biofertiliser while extracting the biogas.

“Some didn’t want to because it would take them more than 10 years to pay off the loan. There were 19 who were going to take part, but one pulled out after deciding to build his own biodigester and generator” in an individual business, taking advantage of the abundant manure produced by his 4,000 pigs, one of the participants, Claudinei Stein, told IPS.

The Mini-Thermoelectric Plant of Entre Rios do Oeste will generate 250 megawatt-hours, 43 percent more than the top consumption of all municipal government facilities. The plant will reduce their energy bill to almost zero in this municipality in southern Brazil, on the border with Paraguay. Credit: Mario Osava/IPS

“That was the beginning, the second step will be public lighting,” opening up opportunities for other producers, said the mayor.

The mini-thermal power plant, with a capacity of 480 kilowatts, can generate 250 megawatts/hour per month, 43 percent more than the city government’s maximum consumption. It involves 215 tons of manure and 4,600 cubic metres of biogas produced daily by 39,000 pigs.

Stein has 7,300 feeder pigs which he receives from the Friella company when they weigh about seven kilos, fattens them, and returns them when they reach 22 or 23 kilos.

Friella is the main company in town, with three meat-packing plants where pork is processed and sold fresh or industrially processed, as well as an animal feed factory and its own hogpens.

But it outsources the breeding and fattening of most of the pigs. Stein explained that while it entails transportation costs, the company saves on installations, space and labour power.

Specialising in the second stage, in which each animal produces less than half of the manure from the entire fattening process, Stein estimates that he will earn an income of 1,800 to 2,000 reais (375 to 430 dollars) a month, enough to pay off the credit for the biodigester, which cost him 75,000 reais (19,800 dollars), in eight years.

The Mini-Thermoelectric Plant of Entre Rios do Oeste will generate 250 megawatt-hours, 43 percent more than the top consumption of all municipal government facilities. The plant will reduce their energy bill to almost zero in this municipality in southern Brazil, on the border with Paraguay. Credit: Mario Osava/IPS

But he joined the project for other reasons: to produce biofertiliser and improve the environment. Biodigestion eliminates odors, mosquitoes and contamination of groundwater on his 13-hectare property and improves manure as fertiliser for planting corn and soybeans.

“This way I save money on chemical fertilisers,” he explained. “I also like bold initiatives,” said the 39-year-old farmer, who learned about the benefits of biodigesters at a young age, because there was one on a cousin’s farm where he worked.

But the installation of the Entre Rios plant was plagued by delays, despite the recognised advantages of biogas and its potential for expansion in the western part of the state, due to the heavy presence of pig and poultry farming.

The idea emerged in 2008, Mayor Heiden told IPS.

But the opportunity to bring it to fruition arose in 2012, when the National Electric Energy Agency – the regulator of the sector – outlined strategies and criteria for biogas projects, calling for proposals to be presented.

The projects for Paraná depend on funds that the Copel distributor must allocate to research and development projects, equivalent to 0.5 percent of its turnover.

“We registered the Entre Rios do Oeste project,” but the contract with Copel was not signed until 2016, Gonzalez said.

Difficulties then arose with energy and tax regulations, which blocked the city government from purchasing the biogas, defined as a processed industrial good produced by farmers, the director of CIBiogas explained.

View of a row of gas holders, large containers for storing the biogas that will fuel the mini-thermal power plant of Entre Rios do Oeste, which generates electricity using the gas extracted from the manure of part of the 155,000 pigs raised in this municipality in the southern Brazilian state of Paraná, on the border with Paraguay. Credit: Mario Osava/IPS

New regulations were necessary, with a different interpretation, that recognises biogas as an unprocessed agricultural product, in order to design the business model for the mini-thermoelectric plant fueled by biogas, which is in the category of distributed generation by consumers.

The project then took on its definitive shape, with the city government buying biogas from the pig farmers who installed the biodigester.

But opening up credit lines to finance the equipment required more lengthy negotiations, to come up with a model replicable in other municipalities and regions and with different arrangements.

There was a precedent for the construction of a mini biogas power plant in the municipality of Marechal Cândido Rondon, 34 km northeast of Entre Rios. The Agroenergy Condominium for Family Farming of the Ajuricaba River Basin, later called Coperbiogas, emerged there in 2009.

In 2014 it began to generate electricity, as part of another CIBiogas project. But it didn’t last long. Today, only 15 of the 33 members remain in the cooperative, the mini thermoelectric plant was closed down, and the biogas is sold to a neighbouring poultry plant belonging to the Rondon Limited Mixed Agroindustrial Cooperative (Copagril).

“It was a successful project” and not a failure as some people saw it, according to González. “Its objective was not to become economically profitable, but to clean up the environment, clean up the river,” he argued.

In fact, it was part of Itaipu’s Cultivating Good Water Programme, which sought to prevent pollution of rivers from sewage that would end up in the reservoir created by the hydroelectric dam.

The project remains active: 250 cubic metres of biogas are transported daily through the 25-km network of pipelines to three gasometers, while a filtering system removes the hydrogen sulfide that causes corrosion.

The families continue to use gas in their homes and some use the gas for milking, thanks to which at least one of the farms has improved the quality of their milk, using biogas in the pasteurisation process, Daiana Martinez, a biogas information analyst at CIBiogás, told IPS.

In Ajuricaba, unlike Entre Rios, biogas is made from both cattle and pig manure. But the scale of production and the biodigesters are much smaller, which makes electricity generation economically unfeasible, said Pedro Kohler, owner of a local biodigester factory.

Kenyan farmer Veronicah Ngau shows off her young six-week old maize crops inside (left) and outside (right) of planting basins, an adaptation technique that conserves water. Credit: Ake Mamo/IPS

By Sam Otieno
NAIROBI, Kenya, May 17 2018 (IPS)

Promoting the widespread use of innovative technologies will be critical to combat the hostile effects of climate change and reduce greenhouse gas emissions, and many African countries are already leading the way with science-based solutions.

The Climate Technology Centre and Network (CTCN) and World Agroforestry Centre (ICRAF) provide support for countries in making sound policy, technology, and investment choices that lead to better approaches for mitigation, adaptation and resilience.A satellite program in Kenya measures the progressive impact of drought on loss of forage, triggering timely insurance payouts to help vulnerable pastoralists.

From biogas to solar installations and improved water conservation, success stories abound on the continent. The challenge now, experts say, is to scale them up. According to the International Renewable Energy Agency (IRENA), Africa’s renewable power installed capacity could increase by 290 percent between 2015 and 2030 — compared to 161 percent for Asia and 43 percent for Latin America.

The global Paris Accord is underpinned by its commitment to the reduction of greenhouse gas emissions, securing funding for alternative sources of energy and adaptation of technology in everyday activities that are geared towards shrinking humanity’s carbon footprint on the planet.

African countries have internalised and made considerable efforts towards these goals despite budgetary constraints, with the United Nations lauding the continent for embracing technology and innovation in its journey to fight climate change.

Jukka Uosukainen, CTCN’s director, spoke with IPS during the Climate Technology Centre and Network (CTCN) Africa Regional Forum held in Nairobi, Kenya April 9–10, stressing that technology is already changing the fortunes of people in the continent.

For instance, Mali has successfully applied field contouring technology in rural areas such as Koutiala, reducing the volume of water runoff from 20 percent to 50 percent depending on the soil type.

“This has improved the yield of crops in an area that experienced severe drought and bettered the quality of livelihoods owing to a rise in income,” he noted.

Uosukainen said that Senegal has launched massive biogas digester projects through the National Biogas Program by implementing biomethanisation technologies that facilitate faster access to cleaner energy within the republic. The country also utilises tri-generation and co-generation technologies that use waste as raw materials for energy production.

Furthermore, Mauritius has aptly integrated the use of boiler economizers, which capture the waste heat from boiler stack gases (called flue gas) and transfer it to the boiler feedwater.

This has reduced the country’s dependence on imported fossil fuels, cutting energy costs and boosting socioeconomic growth amongst its citizens.

Morocco has adopted photovoltaic technology that harnesses solar power for greater energy production. The Noor Ouarzazate IV power station spans 137 square kilometres and generates 582 megawatts of renewable energy for over 1 million people. This has helped increase the nation’s uptake of renewable energy sources to an impressive 42 percent, lessening the rate of air pollution and enhancing quality of life.

In Kenya, a 630 MW geothermal plant has come on line, providing electricity for 500,000 households and 300,000 small and medium-sized enterprises. Kenya alone has the potential to generate 10,000 megawatts from its geothermal resources, says an analysis by Bridges Africa.

Tony Simons, director general of the World Agroforestry Center (ICRAF), said that most African countries have chosen clean energy technologies as a part of their environmental solutions and ICRAF supports these efforts through its work in developing cleaner options for woody biomass-based energy, a key technology used across the continent.

According to ICRAF, Kenya is using water conservation technologies like sunken-bed kitchen gardens and terracing to successfully increase yield production and improve food security.

ICRAF has partnered with several eastern Africa countries such as Uganda, Ethiopia, Rwanda and Burundi in a project dubbed Trees for Food Security Project which conducts extensive research and development into special tree species for each nation.

This involves detecting the seedlings suitable for specific areas and ensuring modern agricultural techniques are employed during planting. The forest cover helps prevent desertification, reduces carbon dioxide emissions through photosynthesis and enhances of the aesthetic beauty of the lands.

And the Green Cooling Africa Initiative implemented in Ghana and Namibia encompasses modern air conditioning and refrigeration appliances that use minimal electricity and generate lower volumes of toxins into the atmosphere.

Simons called for gender equality in any strategies to address climate change because in all communities, knowledge of agricultural and natural resource management differs by gender, making it is essential to include women’s perspectives in addressing climate change at the farm and local level.

Rehabilitation of water projects is another field that’s getting attention, as African countries seek to reduce the overexploitation of such resources for the benefit of all stakeholders.

For instance, in Kenya, a policy of “green water” technology has been operationalized with the support of various local and international partners with the aim of curbing water shortages and channeling it to better uses.

This technology has enabled arid and semi-arid areas to have regular instances of water supply which is used for irrigation, animal husbandry and subsistence in homesteads. Therefore, it has limited the struggles that rural people undergo in search of water and pasture.

Also the government of Kenya, in partnership with the World Bank Group, the International Livestock Research Institute, and Financial Sector Deepening Kenya, implemented the Kenya Livestock Insurance program (KLIP) in the northern part of the county. KLIP, which is Africa’s large scale public-private partnership livestock insurance program, uses satellite imagery technology to provide early warning of drought.

The satellite measures the progressive impact of drought on loss of forage in the vulnerable pastoral regions of Kenya. It then triggers timely insurance payouts to help vulnerable pastoralists to purchase fodder and animal feed supplements to keep their core breeding alive until the drought has passed.

Acceptance of climate change technologies and innovations has resulted in better farming methods, higher crop yields, lower energy consumption and a reduction in carbon emissions throughout Africa.

Vehicle ownership in India is projected to hit 400 million by 2040 from the 170 million recorded in 2015, which could prompt a five-fold increase in poisonous gases emitted by cars and trucks. Credit: Neeta Lal/IPS

By Ranjit Devraj
NEW DELHI, Mar 20 2018 (IPS)

With India’s citizens clamouring for breathable air and efficient energy options, the country’s planners are more receptive than ever to explore sustainable development options, says Frank Rijsberman, Director-General of the Global Green Growth Institute (GGGI).

Rijsberman, who was in India to attend the first International Solar Alliance Summit on March 11, told IPS in an interview that the GGGI was prepared to support the Indian government to explore energy alternatives and improve the country’s growth model.

India is not yet a member country of the GGGI but is recognised as a partner, says Rijsberman. He points to the fact that GGGI has had small but successful projects running in India such as a collaboration to get India’s first electric buses running in Bangalore city.

“The electric buses are an example of how local level innovation can yield positive results in energy efficiency,” said Rijsberman. “The success of this project is in line with India’s Intended  Nationally Determined Contribution (INDC) commitments to reduce carbon emissions and improve energy efficiency.

GGGI’s recognition of the potential for expanding its activity in India can be seen in the fact that  the organization has been recruiting top managerial talent for its India country office.

Frank Rijsberman. Credit: GGGI

“For us, it is a bit of restart in India trying to position GGGI well at a time when the Indian government clearly wants to have more leadership internationally and project its own cleantech or green growth initiatives,” Rijsberman said.

So far, the successes have not been on the scale of what India is capable of, says Rijsberman. “In other countries we sit with ministries — the ministry of planning and investment in Vietnam and Laos for instance — and help with national green growth strategy or in the next five-year plan.

“Last year, said Rijsberman, “we helped member countries get 500 million dollars’ worth of green and climate finance – we’ve had no such breakthrough in India.”

Still, Rijsberman finds encouraging the “growing concern over deteriorating air quality and other things that is convincing citizens and politicians that the quality of growth really matters — we are looking at what GGGI can do to help the Indian government shift to a model of growth that is cleaner and more sustainable.”

India has experience in increasing the share of renewable energy in its overall energy mix and GGGI is keen to work with the government, particularly the Ministry of New and Renewable Energy (MNRE) and the International Solar Alliance (ISA), to share India’s expertise, and knowhow with other developing countries facing similar developmental challenges

“India has wonderful experiences that can be shared with countries like Cambodia, Laos and Vietnam and in other cases we could help share experiences from other countries that could support India’s green growth initiatives,” Rijsberman said.  

It has not all been smooth sailing though. Last year, Rijsberman said, GGGI had worked with the MNRE to find a combination of financing from the Green Climate Fund (GCF) the Indian Renewable Energy Development Agency and other sources to improve India’s small and medium industries. “In the end we could not get the seal of approval from the environment ministry — so it has got a bit stuck.”

An important international finance mechanism, the GCF is  mandated to support developing countries to access international climate finance by developing projects to achieve renewable energy targets.

India country representative for GGGI, Shantanu Gotmare, said the project has not actually been shelved and is still in process. “We haven’t given it up yet,” said Gotmare, a career bureaucrat who has taken a break from government work to lead the GGGI in India.

Gotmare explained that much of GGGI’s work, so far, has been with provincial governments like those of Karnataka, Himachal Pradesh and Punjab states. “We have developed comprehensive green growth strategies and supported these state governments in adopting integrated analytical approaches to assess green growth challenges and prioritise opportunities in energy, water, agriculture and forestry.

“We supported these three state governments in implementing specific green growth opportunities by formulating detailed project proposals, policy implementation roadmaps, and capacity building initiatives,” Gotmare said.

The plan for the immediate future is to scale up GGGI’s programmatic activities to launch green growth interventions at the national level.

“Our aim is to support the government to deliver on its Nationally Determined Contributions (NDCs) ambition by helping to develop policy frameworks, mobilising domestic and international climate finance and helping to introduce clean technologies and finally to create and share green growth knowledge and best practices,” Gotmare said.

There is an immediate opportunity to finance off-grid energy (OGE) access to millions of households in India that have limited or no access to electricity. GGGI is designing an innovative finance mechanism to support the government’s goal of ‘electricity for all’.

“This is a plan that is expected to simultaneously achieve social, economic and environmental  benefits,” Gotmare said.

According to Gotmare, as India’s citizens demand more power, it is a challenge for the government to make sure that there are energy options that are cleaner than the traditional coal or diesel-fired power plants. “This is precisely where GGGI comes in,” he said.

GGGI’s experience, says Rijsberman, allows it to work closely with the government to rapidly ramp up India’s electrification plans in a clean and sustainable way and use solar solutions to extend electrification services to India’s most marginalised households.

Solar panels installed on covered bus stops of the public transport system in the city of Buenos Aires, on the 9 de Julio Avenue, with the emblematic obelisk in the background. Clean and unconventional energies comprise a negligible share of Argentina's energy mix, but different government initiatives seek to change this. Credit: Courtesy of Sustentator

By Daniel Gutman
BUENOS AIRES, Feb 24 2018 (IPS)

The Argentine population can now generate their own energy through clean and unconventional sources and incorporate surpluses into the public grid, thanks to a new law. This is an important novelty in a country embarked on a slow and difficult process, with a still uncertain end, to replace fossil fuels.

The law, passed by Congress in November, was promulgated in December by President Mauricio Macri, who declared 2017 the “year of renewable energies”, in an initiative that as yet has no concrete results to show.

The new law was born with the aim of fomenting the generation and incorporation in the grid of clean and unconventional energy by many small nearby sources, citizens and other private actors, in what is known as distributed, dispersed or decentralised generation.

“There are still many unknowns about whether the distributed generation law will be effective. The essential thing is to see what decisions the government takes this year in terms of incentives,” industrial engineer Rodrigo Herrera Vegas told IPS, who in 2009 founded one of the pioneer clean energy companies in the country.“Distributed energy is a change of paradigm in energy production, which can be important for Argentina. The time of the passive user, who consumes and pays the energy bill, has ended, because that is no longer efficient." -- Juan Bosch

“Renewable energy equipment is not manufactured here and it pays very high import duties. So for someone who lives in Argentina it is too expensive today to buy solar panels, for example. It would take 12 or 13 years to recover the investment,” he added.

Argentina has had a hard time shifting to renewable power sources. They still represent a negligible share of the electric grid, which is made up of 64 percent thermal power plants fueled by oil or gas, 30 percent large hydroelectric plants, and four percent nuclear power plants, according to official data.

The good news is that, after the absolute failure of two laws creating incentives for renewable projects passed by the legislature in 2001 and 2006, for economic reasons, a third law approved in 2015 seems to be definitive.

Thanks to this law, between 2016 and 2017, the government held tenders and signed contracts with private investors for the construction of 147 renewable energy undertakings, with a total capacity of 4,466 megawatts (MW), in 22 of the country’s 23 provinces. The vast majority of these projects involve wind (2,466 MW) and solar (1,732 MW) power.

These facilities are expected to become operational in the next few years, which would be an important contribution to an electrical grid which today, with an installed capacity of around 30,000 MW, is already at its limit or does not meet demand, particularly on the hottest days of summer, when high consumption often causes power cuts in large cities.

According to the latest official data released, between March and August, months with relatively low electricity consumption, the inhabitants of Buenos Aires spent almost 16 hours without electricity on average.

Citizen-generated energy is added to the equation

“Distributed energy is a change of paradigm in energy production, which can be important for Argentina. The time of the passive user, who consumes and pays the energy bill, has ended, because that is no longer efficient,” said Juan Bosch, a lawyer who specialises in energy issues, who is also the president of SAESA, a company dedicated to unconventional energy and natural gas.

“Generation through large power plants in this country exceeds the transmission capacity at times of peak consumption, and that’s when production by private homes can make a difference, since energy is produced where it is consumed,” he told IPS.

The law aimed at “Fomenting Distributed Generation of Renewable Energy Integrated in the Public Power Grid” establishes the following goals: “energy efficiency, the reduction of losses in the grid, the potential reduction of costs for the electrical grid as a whole, environmental protection provided for in the National Constitution, and the protection of the rights of users in terms of equity and non-discrimination.”

It also requires that power companies “facilitate the injection” into the grid of surpluses that individual consumers may generate, and it prohibits companies from making any additional charge for doing so.

In any case, whoever adds energy to the grid will not obtain money for the energy they sell, but will be instead compensated by the company with discounts in subsequent billings.

Regarding the most critical issue in the implementation of the distributed energy system, which is how to make it economically attractive for users, the law creates a public fund to encourage its development, which the government is to set up with about 95 million dollars of its own funds.

For Juan Carlos Villalonga, a member of the lower house of Congress for the governing alliance Cambiemos who helped draft the law, “the first ones that are going to take advantage of this possibility in Argentina are productive undertakings, which have money to invest, and in many parts of the country today receive an electric service that is expensive and bad.”

Villalonga acknowledged to IPS that it will take a long time for residential users in Argentina to begin producing their own energy.

“They will do it when the prices of the necessary equipment are driven down, through different tools the State has to achieve this, such as increasing the price at which the energy generated by a user is purchased, or giving access to better financing,” he said.

The crisis affecting the energy sector has been recognised by the government.

According to data from the Ministry of Energy and Mining, on the coldest days of the Southern Cone winter, when residential heating systems drive up consumption of natural gas, up to 30 percent of the natural gas consumed is imported.

In the summer, when electricity consumption rises due to air conditioning, this South American country of 44 million people buys up to 10 percent of the energy used from its neighbours Brazil, Paraguay and Uruguay.

The government said it intends to raise the installed capacity of the electric system from the current 30,000 MW to 50,000 MW by 2025, of which 11,500 should come from renewable sources.

The goal for eight percent of electricity to come from renewable sources by December 31, 2017, as set by the law currently in force, was not met.

However, the second goal established by the law – to cover 25 percent of demand with renewables by 2025 – is expected to be achieved.

The figurehead of the dream of unconventional clean energy is the enormous Cauchari solar energy park which began to be built last year in the northwest province of Salta, and which will provide 300 MW.

China is playing a leading role in the project, financing more than 80 percent of a total budget of 390 million dollars. And the 1,200,000 solar panels that are being installed on 700 hectares of land were manufactured in the Asian giant.

The land on which the plant is being built belongs to an indigenous community, which was promised two percent of the profits.

The Maipo River, where the Alto Maipo hydroelectric project is being built, flows down from the Andes range to Santiago and is vital to supply drinking water to the Chilean capital, a city of seven million people. Credit: Orlando Milesi / IPS

By Orlando Milesi
SANTIAGO, Jan 9 2018 (IPS)

A 75 percent drop in electricity rates, thanks to a quadrupled clean generation capacity, is one of the legacies to be left in Chile by the administration of Michelle Bachelet, who steps down on Mar. 11.

In December 2013, the electricity supply tender for families, companies and small businesses was awarded at a price of 128 dollars per megawatt hour, compared to just 32.5 dollars in the last tender of 2017.

“An important regulatory change was carried out with the passage of seven laws on energy that gave a greater and more active role to the State as a planner. This generated the conditions for more competition in the market,” Energy Minister Andrés Rebolledo told IPS."According to the projections, from here to 2021 there is a portfolio of projects totaling 11 billion dollars in different tenders on energy, generation and electricity transmission. The interesting thing is that 80 percent are NCRE projects." -- Andrés Rebolledo

Four years ago, large companies were concerned over the rise in electricity rates in Chile, and several mining companies stated that due to the high price of energy they were considering moving their operations to other countries. Currently, big industrialists have access to lower prices because they renegotiate their contracts with the generating companies.

The new regulatory framework changed things and allowed many actors, Chilean or foreign, to enter the industry, thanks to bidding rules that gave more room to bids for generating electricity from non-conventional renewable energies (NCRE), mainly photovoltaic and wind, the most efficient sources in the country.

“This happened at a time when a very important technological shift regarding these very technologies was happening in the world. We carried out this change at the right time and we took advantage of the significant decline in cost of these technologies, especially in the case of solar and wind energy,” the minister said.

Eighty companies submitted to the tender for electricity supply and distribution in 2016, and 15 submitted to the next distribution tender, “in a phenomenon very different from what was typical in the Chilean energy sector, which was very concentrated, with only a few players,” he added.

Manuel Baquedano, president of the Chilean non-governmental Institute of Political Ecology, believes that there was “a turning point in the Chilean energy mix, with a shift towards renewable energy.”

This change occurred, Baquedano told IPS, “because people didn’t want more megaprojects like the Hydroaysén hydroelectric plant in the south, and Punta de Choros in the north (both widely rejected for environmental reasons), and that curbed the growth of the oligopolies.”

The Atacama desert in northern Chile has the highest solar radiation on the planet, one of this country’s advantages when it comes to developing solar energy. Credit: Marianela Jarroud / IPS

“Globally, solar and wind energy are much more competitive than even fossil fuels. Today solar energy is being produced at a lower cost than even coal. That has led to the creation of a new scenario, thanks to this new regulation policy,” he added.

In addition, said the expert in geopolitics of energy, “that change was approved by the community and environmentalists who have raised no objections to the wind and solar projects.”

“In the past four years, the government enjoyed a fairly free situation to develop projects (of those energy sources) that some have qualms about from an environmental perspective,” he said.

“It is not a process that any future government can stop. It is a global process into which Chile has already entered and is being rewarded for that choice. There is no longer a possibility of returning to fossil fuels, as is happening in the United States where there is an authoritarian government like that of Donald Trump,” Baquedano added.

The environmental leader warned that although “there is a margin for the rates and costs to decrease, it will not last forever.” For that reason, he proposed “continuing to raise public awareness of NCRE.”

The energy sector was a leader in investments in the last two years in Chile, surpassing mining, the pillar of the local economy.

Rebolledo said: “During the government of President Bachelet, 17 billion dollars have been invested (in the energy industry). In Chile today there are some 250 power generation plants, half of which were built under this government. And half of that half are solar plants.”

In May 2014, just two months after starting her second term, after governing the country between 2006 and 2010, Bachelet – a socialist – launched the “Energy Agenda, a challenge for the entire country, progress for all“.

“According to the projections, from here to 2021 there is a portfolio of projects totaling 11 billion dollars in different tenders on energy, generation and electricity transmission. The interesting thing is that 80 percent are NCRE projects,” he said.

Currently there are 40 electrical projects under construction, almost all of them involving NCRE.

Another result is that Chile now has a surplus in electricity and the large increase in solar power is expected to continue as the country takes advantage of the enormous possibilities presented by the north, which includes the Atacama desert, with its merciless sun.

Chile’s power grid, previously dependent on oil, coal and large hydroelectric dams, changed radically, which led to a drop of around 20 percent in fossil fuel imports between 2016 and 2017. In addition, it no longer depends on Argentine gas, which plunged the country into crisis when supply was abruptly cut off in 2007.

“In March 2014, when Bachelet’s term began, the installed capacity in Chile of NCRE, mainly solar and wind, was five percent. This changed significantly, and by November of this year it had reached 19 percent,” said Rebolledo.

The minister pointed out that if solar and wind generation is added to the large-scale hydropower plants, “almost 50 percent of everything we generate today is renewable energy. The rest is still thermal energy, which uses gas, diesel and coal.”

In the Energy Agenda, as in the nationally determined contribution (NDC), the commitment assumed under the Paris Agreement on climate change, Chile set goal for 20 percent of its energy to come from NCRE by 2025 – a target that the country already reached in October.

“We have set ourselves the goal that by 2050, 70 percent of all electricity generated will be renewable, and this no longer includes only the NCRE but also hydro,” Rebolledo said.

For the minister, a key aspect was that these goals were agreed by all the actors in the sector.

“Because this change happened so rapidly, that 70 percent could be 90 percent by 2050, and within that 90 percent, solar energy will probably be the most important,” he said.

Baquedano, for his part, argues that now “comes the second stage, which is to democratise the use of energy by allowing solar energy and renewables to reach citizens and small and medium industries directly, therefore modifying distribution.”

“”Democratisation means that we are going to demand that all NCRE projects have environmental impact studies and not just declarations (of environmental impact),” he said.

“Democratisation means that every person who has resources or who can acquire them, becomes a generator of energy for their own consumption and that of their neighbours. Let new actors come in, but also citizens. These new actors are the indigenous communities, the community sector and the municipalities, which are not after profits,” he asserted.

Workers at an electricity distribution company carry out maintenance work on the grid, on the outskirts of San Salvador. Central American countries, including El Salvador, are promoting an interconnected Clean Energy Corridor. Credit: Edgardo Ayala / IPS

By Edgardo Ayala
SAN SALVADOR , Dec 12 2017 (IPS)

Countries in Central America are working to strengthen their regional electricity infrastructure to boost their exchange of electricity generated from renewable sources, which are cheaper and more environmentally friendly.

With the Clean Energy Corridor, a project agreed in 2015 by the governments of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama, these countries seek to share their surplus electricity from renewable sources, including non-conventional sources, such as wind, geothermal and solar.

To achieve this they will have to gradually modify their energy mixes to depend less and less on thermal power, which is more expensive and has more negative impacts on the planet, since it is based on the burning of fossil fuels."The problem is the stability of the sources. The State can have a 60-MW photovoltaic plant, but if there is variability, it must have a backup in thermal, hydroelectric or other sources allowing it to meet the needs of the market.” -- Werner Vargas

The objective is to inject cleaner energy into the system that interconnects the electricity grids of the countries of the region, with economic and environmental benefits, experts and regional authorities told IPS.

“Each country is doing everything possible to generate energy with clean sources…and if there is surplus energy that is not consumed, it is illogical for it not to be used by other countries that are using thermal power: that’s where the Clean Energy Corridor comes into the picture,” Fernando Díaz, director of electricity at Panama’s Energy Ministry, told IPS.

About 60 percent of electricity in the region is produced from renewable sources, mostly hydroelectric plants.

But Central America is still highly dependent on fossil fuels, says a report by the International Renewable Energy Agency (IRENA).

This organisation, based in the United Arab Emirates, promotes the development of renewable energies in the world, and is the main driver of the Corridor project in Central America, following similar efforts in Africa and Southeast Asia.

The Corridor will use a platform already functioning in Central America: a 1,800-km power grid cutting across the isthmus, from Guatemala in the extreme northwest, to Panama in the southeast.

The grid was built to give life to the Regional Electricity Market, created in May 2000, as part of the Central American Integration System (SICA), a mechanism of political and economic complementation established by the presidents of the area in December 1991.

Over 50 percent of the energy traded is supplied by hydroelectric plants, 35 percent by thermal and 15 percent by geothermal, solar and wind, explained René González of Nicaragua, executive director of the Regional Operator Entity (EOR), which administers electricity sales.

It is estimated, he added in a dialogue with IPS in San Salvador, that the proportion of non-conventional renewables could grow to up to 20 percent by 2020.

The Providencia Solar company inaugurated this year the first photovoltaic power plant in El Salvador, in the central department of La Paz. With 320,000 solar panels, it is one of the largest solar installations in Central America, whose countries are making efforts to transition their energy mixes to renewable sources. Credit: Edgardo Ayala / IPS

The countries of the area as a whole will need an additional seven gigawatts that year, on top of the current level of production, according to a report published in July by IRENA.

The Corridor is in line with the goals set out in the Central American Sustainable Energy Strategy 2020, agreed by the governments of the region in 2007, which aims to overcome the dependence on fossil fuels and promote renewable sources, Werner Vargas, the executive director of the SICA General Secretariat, told IPS.

“The idea (of the Corridor) is to inject clean energies into the Central American electricity system, but guaranteeing that there is not too much variability,” explained Vargas, at the Secretariat’s headquarters in San Salvador.

Part of the challenge is to operate a system with higher flows of renewable electricity, which is more unstable, as is the case with solar and wind sources, which depend on climate variability.

“The problem is the stability of the sources. The State can have a 60-MW photovoltaic plant, but if there is variability, it must have a backup in thermal, hydroelectric or other sources allowing it to meet the needs of the market, ” added Vargas, who is also from Nicaragua.

The governments of Central America must also develop the necessary regulatory frameworks to adapt the technical processes and purchase and sale of energy from mainly renewable sources.

If national power grids are fed with clean sources, and surpluses reach the regional network, Central American consumers will be able to have cheaper electricity.

“The cost of electricity production is about 70 percent of its total cost, so if you want to reduce the cost of supply to the final consumer you have to reduce the cost of production,” said the EOR’s González.

He added that the corridor would affect production costs, and the regional market is a way to achieve that goal, since it can inject cheaper energy produced in other regions.

In the same vein, “the vision we have in Central and Latin America is to move towards renewable energies, towards corridors, and that is why interregional connections are important,” said Díaz, from Panama’s Energy Ministry.

He mentioned the case of the project of interconnection between Panama and Colombia, which would link the electricity market of that South American country not only with Panama, but by extension with all of Central America, while linking Central America with different parts of South America.

“This way we will have the capacity to capture solar power from the Atacama Desert, in Chile, hydropower from Brazil, and wind power from Uruguay; these are the things we are seeing as a region,” Díaz said.

Another economic benefit derived from greater energy integration in Central America is that the region is more attractive to international investors, seeing it as a bloc, rather than separate countries.

“It is more attractive to invest in larger projects than individually, that is another fundamental reason for the project: it generates conditions to attract investment,” said the EOR’s González.

But despite the economic and environmental advantages of further development of renewable energy sources, some environmentalists argue that the issue is being viewed too much from a technical and economic perspective, without considering some social costs that these projects may entail.

“There are projects where solar collectors are used on large extensions of land that could be devoted to agriculture or used to build houses…it seems that there is only interest in energy and making money quickly,” said Ricardo Navarro, director of the Salvadoran Centre for Appropriate Technology.

Navarro, who is also head of the Salvadoran branch of Friends of the Earth International, told IPS that it is important for the planet to seek to increase the use of renewable energies, but with that same emphasis the governments of the area should engage in energy saving policies.

“How about trying to reduce demand? For example, a tree prevents the sun beating down directly on a building, and thereby reduces the demand for air conditioning; there are also ways to cook food with less electricity,” he said.

A wind farm in Curacao. Credit: Desmond Brown/IPS

By Desmond Brown
BRIDGETOWN, Barbados, Apr 14 2017 (IPS)

Barbados and its Caribbean neighbours are continuing to press ahead with their climate change agenda and push the concept of renewable energy despite the new position taken by the United States.

This was made clear by the Minister of the Environment and Drainage in Barbados, Dr. Denis Lowe, against the background of the position taken by U.S. President Donald Trump that climate change is a “hoax”, and his subsequent push for the revitalisation of the coal industry, and the issuance of an Executive Order to restart the Dakota Access Pipeline.“We stand ready to do what needs to be done." --Dr. Denis Lowe

“The moment has come. The President of the United States of America has determined that climate change is really a hoax, and that any notion about climate change science is based on false belief, and that there is no clear justification that this phenomenon called climate change exists,” Lowe said.

However, the Environment Minister pointed out that while Trump was “decrying” the legitimacy of climate change, 2016 was already being labelled as the warmest ocean temperature year.

“The impact of that accelerated warmth of the earth, according to American environmentalists, is the Michigan coastline, Lake Michigan. Evidence has been produced to show that the impact of climate change has affected that whole seaboard area, including the erosion of beaches along the Illinois Coast. This is a fact as reported,” he said.

Dr. Lowe cautioned that the new US position spelled “bad news” for the Caribbean.

He warned that the new position could see a significant reduction in funding from the United States to the United Nations system, which was the primary driver of the climate change fight.

“Institutions like the United Nations Framework Convention on Climate Change and the Green Climate Fund will be impacted. The Adaptation Fund will be affected, and all of the other activities driven by US-donated funding will be impacted,” he pointed out.

But Lowe stressed that the region could not allow itself to be “hemmed in” by what might or might not occur relating to international funding.

He gave the assurance that his Ministry and Government would continue “to plough” ahead and look for unique ways to fund the island’s coastal rehabilitation and green energy programmes.

“We stand ready to do what needs to be done. Our Ministry continues to work with our stakeholders to look for ways to continue to press ahead with our climate change agenda,” Lowe said.

“We ask Barbadians from all walks of life to assist us in adopting and practising habits that would reduce the impacts of climate change on us as it relates to our water supply, our conservation effort, and our preservation efforts in terms of our spaces around the island that would be of importance,” he added.

Meanwhile, New York-based syndicated columnist Rebecca Theodore, who has written extensively on climate change and renewable energy in the Caribbean, said while President Trump seeks for a revitalisation of the coal industry in the United States, this will need more than government policy in Washington to be implemented.

“First, renewable energy sources like wind and solar are much more price-viable than coal. The demand for jobs in renewable energy is going up while for coal it’s rapidly going down,” Theodore told IPS.

“Secondly, the moral arguments and market forces in which the production of coal as an energy source are interlaced cannot be ignored. Carbon emissions from coal-fired power plants are the leading cause of death in many places and continue to be a hazard to public health.

“Thirdly, if the Clean Power Plan is to achieve its aims of cutting carbon dioxide emissions from power plants, then there must be a reduction in coal consumption,” Theodore added.

She also noted that carbon pollution from power plants is one of the major causes of climate change.

“It follows that if the United States must continue the fight in the global efforts to address climate change then the goal must be centered on cheap natural gas and the installation of renewable energy plants, Theodore told IPS.

“There must be options for investment in renewable energy, natural gas and shifting away from   coal-fired power.”

Earlier this year, the Inter-American Development Bank (IDB) said a significant portion of the 13 billion dollars it will be lending this year has been earmarked for agriculture, climate change and renewable energy projects.

IDB Executive Director Jerry Butler noted that the issue of renewable energy has been a constant focus for the institution.

“We are going to lend 13 billion dollars and of that amount we’ve carved out 30 percent of it for climate change, agriculture and renewable energy. In fact, 20 percent of that 13 billion in the Americas will be devoted to climate change and renewable energy,” Butler said.

“I think we are putting our money where our mouth is when it comes to us as a partner with the Caribbean Community (CARICOM) and us as a partner with the other entities that work with us.”

Highlighting the IDB’s commitment to the region, Butler noted that even though the Eastern Caribbean States are not members of the bank, through its lending to the Caribbean Development Bank (CDB), countries in the sub-region have not been left out.

“For example, the more than 80 million dollars that’s devoted to geothermal exploration, Grenada will be the first beneficiary in the Eastern Caribbean,” he said.

“And our focus on the Caribbean is not stopping – whether it be smart financing programmes in Barbados, whether it be programmes associated with renewable energy and energy efficiency in Jamaica, or whether it be programmes in Guyana off-grid or on-grid – we try to do everything that we can to bring resources, technology, intelligence and at the same time best practices to everything that we do when it comes to the topic of renewable energy.”

Butler said the IDB believes that the sustainability, the competitiveness and the job-creation potential of the Caribbean can be unlocked “if there is a considered focus on weaning ourselves off the dependence on foreign fuels for generation” and focusing on “producing its own indigenous type of energy”.

Panels at the Buin 1 Solar Plant, the first plant in Chile financed with shares sold to citizens, are ready to generate 10 KW, 75 per cent of which will be consumed by the participating households while the remainder will go into the national grid. Credit: Orlando Milesi/IPS

By Orlando Milesi
SANTIAGO, Jan 14 2017 (IPS)

Chile, Latin America’s leader in solar energy, is starting the new year with an innovative step: the development of the country´s first citizens solar power plant.

This South American country of nearly 18 million people has projects in non-conventional renewable energies (NCRE) for a combined total of nine billion dollars over the next four years, in the effort to reduce its heavy dependency on fossil fuels, which still generate more than 55 per cent of the country’s electricity.

Socialist President Michelle Bachelet’s 2014 Energy Agenda involves the participation of international investors, large power companies, the mining industry, agriculture, and academia.

Now ecologists have come up with the first project that incorporates citizens in the production and profits generated by NCRE, in particular solar power.

The small 10-KW photovoltaic plant will use solar power to generate electricity for the participating households and the surplus will go into the national power grid.

This will allow the “citizen shareholders“ taking part in the initiative to receive profits based on the annual inflation rate plus an additional two per cent.

“The objective is to create a way for citizens to participate in the benefits of solar power and the process of the democratisation of energy,“ said Manuel Baquedano, head of the Institute of Political Ecology, which is behind the initiative.

The Buin 1 Solar Plant will start operating commercially this month in Buin, a suburb on the south side of Santiago. Its main client is the Centre for Sustainable Technology, which from now on will be supplied with the power produced by the plant.

“In Chile we have experienced an important development of solar energy, as a consequence of the pressure from citizens who did not want more hydroelectric dams. This paved the way for developing NCREs,“ Baquedano told IPS.

“But solar power development has been concentrated in major undertakings, with solar plants that mainly supply the mining industry. And the possibility for all citizens to be able to benefit from this direct energy source had not been addressed yet.”

General map of the location of the Centre for Sustainable Technology, where future technicians in non-renewable energies study, and which is the main client of the Buin 1 Solar Plant, the first citizen solar power plant in Chile. Credit: Courtesy of Camino Solar

The environmentalist said “we decided to organise a business model to install these community solar power plants using citizen investments, since there was no support from the state or from private companies.”

The model consists of setting up a plant where there is a client who is willing to buy 75 per cent of the energy produced, and the remaining power is sold to the national grid.

The Buin 1 Solar Plant required an investment of about 18,500 dollars, divided in 240 shares of some 77 dollars each. The project will be followed by similar initiatives, possibly in San Pedro de Atacama, in the north of the country, Curicó in central Chile, or Coyhaique in Patagonia in the south.

The partners include engineers, journalists, psychologists, farmers, small business owners, and even indigenous communities from different municipalities, interested in replicating this model.

Dionisio Antiquera, a farmer from the Diaguita indigenous community from northern Chile, who lives in Cerrillos de Tamaya, in Ovalle, 400 km north of Santiago, bought a share because “I like renewable energy and because it gives participation to citizens, to the poor.“

“There are many ways of participating in a cooperative,” he told IPS by phone.

Jimena Jara, assistant secretary for the Ministry of Energy, underlined the progress made in the development of NCREs and estimated that “investment in this sector could reach about nine billion dollars between 2017 and 2020.“

“Considering the projects that are currently in the stage of testing in our power grids, more than 60 per cent of the new generation capacity between 2014 and the end of 2016 will be non-conventional renewable energies,” she told IPS.

”Chile has set itself the target for 70 per cent of power generation to come from renewable sources by 2050, and 60 per cent by 2035. We know that we are making good progress, and that we are going to reach our goal with an environmentally sustainable and economically efficient energy supply,” said Jara.

This boom in NCREs in Chile, particularly solar and wind power, is underpinned by numbers, such as the reduction of the cost of electricity.

As of November 2016, the annual average marginal cost of energy in Chile´s central power grid, SIC, which covers a large part of the national territory, was 61 dollars per mega-watt hour (MWh), a fall of more than 60 per cent with respect to 2013 prices.

SIC´s Power Dispatch Center said that this marginal cost, which sets the transfer value between generating companies, is the lowest in 10 years, and was lower than the 91.3 dollars per MWh in 2015 and the nearly 200 MWh in 2011 and 2012, caused by the intensive use of diesel.

David Watts, of the Pontifical Catholic University of Chile Electrical Engineering Department, told IPS that “solar and wind energy have offered competitive costs for quite some time,” and for this reason have permanently changed Chile´s energy mix.

“In the past, Chile did not even appear in the renewable energy rankings. Now it ranks first in solar power in Latin America and second in wind power,” he said.

The expert said “this energy is spreading and we expect it to continue to do so over the next couple of years, when the battery of projects that were awarded contracts in the last tendering process of regulated clients,” those which consume less than 500 KW, come onstream.

Once the economy recovers from the current weak growth levels, “we hope that a significant proportion of our supply contracts with our non-regulated clients (with a connected power of at least 500 KW) will also be carried out with competitive solar and wind power projects,“ said Watts.

“There is no turning back from this change. From now on, some conventional project may occasionally be installed if its costs are really competitive,“ he said.

Watts, who is also a consultant on renewable energies at the Ministry of Energy, pointed out that the growth in solar and wind power was also driven by changes in the country’s legislation, which enabled energy to be offered in blocks, and permitted the simultaneous connection of NCREs to the grid.

The report New Energy Finance Climatescope, by Bloomberg and the Inter-American Development Bank (IDB), ranked Chile as the country that invests the most in clean energies in Latin America, only surpassed by China in the index, which studies the world’s major emerging economies.

Commenting on the report, published on December 14, Bachelet said “we invested 3.2 billion dollars last year (2015), focusing on solar power, especially in solar photovoltaic installations, and we are also leading in other non-conventional renewable energies.”

“We said it three years ago, that Chile would change its energy mix, and now I say with pride that we have made progress towards cleaner and more sustainable energies,“ she said.

The ocean energy research team, including Dr Rafiuddin Ahmed, at the University of the South Pacific in Fiji have been using waverider buoys to conduct research into wave activity and its energy potential in the Pacific Islands region. Photo courtesy of Dr R Ahmed

By Catherine Wilson
CANBERRA, Australia, Sep 30 2016 (IPS)

Waves are ubiquitous in the more than 20 island states scattered across 165 million square kilometres of the Pacific Ocean. But only this year, following a ground-breaking study by oceanographic experts, are they now seen as an economically viable source of renewable energy in the region.

The significance of the wave energy cost analysis report recently released by the Pacific Community (SPC) is that it presents tangible costs of purchasing, installing, operating and maintaining wave energy devices in the region for the first time and concludes that “the costs of generating energy using waves are on par with other renewable energies, such as wind and solar.”Experts say that the reliability of ocean energy makes it a strong choice for supporting sustainable development.

Dr Rafiuddin Ahmed of the Renewable Energy Group, University of the South Pacific (USP) in Fiji, agrees that ocean energy is an important alternative given “the cost of electricity generation in Pacific Island countries is currently very high, considering that most are dependent on imported fossil fuels.”

In the Cook Islands and Tonga, for example, imported petroleum products account for an estimated 90 percent and 75 percent of the national energy supply respectively, while fossil fuel imports account for about 10 percent of the region’s Gross Domestic Product (GDP).

Yet today only 20 percent of households in the Pacific Islands region, home to more than 10 million people, have access to electricity. Hardship, including poor access to basic services, persists for many islanders with most of the 14 Pacific Island Forum countries not achieving Millennium Development Goal 1, the eradication of poverty.

Experts say that the reliability of ocean energy makes it a strong choice for supporting sustainable development.

“Wave energy is available 90 percent of the time at a given site compared to solar and wind energies, which are available 20-30 percent of the time. The power flow in waves is up to five times compared to the wind that generates waves, making wave energy more persistent than wind energy,” Dr Ahmed told IPS.

Waves are formed when wind, as it traverses the ocean, transfers energy to the water.

However, sea conditions vary across the Pacific and optimum sites for pursuing wave energy, according to the report, lie south of latitude 20 degrees South. Specifically French Polynesia, Tonga, Cook Islands and New Caledonia benefit from exposure to the larger southern ocean swells.

The SPC study analysed the costs of using a Pelamis wave energy converter, which is typically installed 2-10 kilometres offshore and capable of meeting the annual electricity demand of about 500 homes.

The cost of generating wave energy is estimated to be 209-467 dollars per MWh (megawatt hour) on Eua Island, Tonga, and 282-629 dollars per MWh in South Raratonga, Cook Islands, comparing well with the cost of solar and diesel generation which can reach a maximum 700 dollars per MWh and 500 dollars per MWh, respectively.

Given the large numbers of Pacific Islanders who live along coastlines and the need for standalone power generation in rural communities, where the power deficit is greatest, “wave energy is certainly one of the strong candidates for powering remote islands,” Dr Ahmed said. In New Caledonia and Fiji only 45.5 percent of the rural population is electrified, declining to 17.8 percent in Vanuatu and 12.6 percent in the Solomon Islands.

Yet Associate Professor Anirudh Singh of the USP’s School of Engineering and Physics, who is also involved in Project DIREKT, the Small Developing Island Renewable Energy Knowledge and Technology Transfer Network, remains cautious about the report’s findings.

“The energy density available in waves is generally quite low in the Pacific compared, for instance, with the Northern Hemisphere countries and, secondly, despite all assurances to the contrary, the technology has still not been adequately market-tested,” Singh commented.

He continued that wave energy would be appropriate for rural coastal communities “once the technology of the single wave energy device has been perfected, but that will take some time.”

Work on ocean energy technology began in the 1970s, but most devices are yet to achieve commercial application, even though prototypes are being tested around the world. The Pelamis, which can produce grid-connected electricity, is only one of two wave energy devices to have reached commercial readiness, the report claims.

New concepts are also being evolved by the USP’s ocean energy research team, including a rectangular Oscillating Water Column (OWC) which channels bi-directional wave flow onto the blades of a Savonius rotor (wind turbine).

“An Oscillating Water Column (OWC) device can be constructed locally with local materials, except for the turbine. Its operation and maintenance costs are also low and it has a very long life. It will certainly compete with other renewable energy sources in locations of good potential,” Dr Ahmed claimed.

Sites with significant wave energy potential include Tonga’s main island of Tongatapu, the country’s capital, Nuku’alofa, and nearby Eua Island. The Tonga Government’s strategy to reduce the country’s dependence on fossil fuels includes the renewable options of landfill gas, wind and solar PV without storage. But, according to the country’s Energy Roadmap (2010-2020), ocean energy ‘could provide energy throughout the Tongan archipelago when proven cost effective technology becomes available.’

Numerous challenges will have to be overcome before the potential of ocean energy is transformed into reality, including lack of local technical expertise in renewable energies and securing private sector investment for the commercial scale up of the technology. Building investor confidence, according to the World Bank, also requires clarity from governments in the region on investment options, incentive schemes and associated policy, governance, legal and regulatory frameworks.

The SPC report’s recommendations are yet to be acted upon. But it is now clear that wave energy could play a key role in increasing people’s access to health, education and economic opportunities, particularly in rural coastal communities, and reduce the financial strain of expensive fossil fuels on small Pacific Island economies.

In Germany, wind and solar energy coexist with energy generated by burning fossil fuels in the Western state of North Rhine-Westphalia. Climate experts say it’s crucial to narrow down the global emissions gap to keep global temperature rise within the safe 1.5 degree C warming goal. Credit: Emilio Godoy/IPS

By Emilio Godoy
COLOGNE, Germany, Jul 19 2016 (IPS)

Immerath, 90 km away from the German city of Cologne, has become a ghost town. The local church bells no longer ring and no children are seen in the streets riding their bicycles. Its former residents have even carried off their dead from its cemetery.

Expansion of Garzweiler, an open-pit lignite mine, has led to the town’s remaining residents being relocated to New Immerath, several kilometres away from the original town site, in North Rhine-Westphalia, whose biggest city is Cologne.

The fate of this small village, which in 2015 was home to 70 people, reflects the advances, retreats and contradictions of the world-renowned transition to renewable energy in Germany.

Since 2011, Germany has implemented a comprehensive energy transition policy, backed by a broad political consensus, seeking to make steps towards a low-carbon economy. This has encouraged the generation and consumption of alternative energy sources.

But so far these policies have not facilitated the release from the country’s industry based on coal and lignite, a highly polluting fossil fuel.

“The initial phases of the energy transition have been successful so far, with strong growth in renewables, broad public support for the idea of the transition and major medium and long term goals for government,” told IPS analyst Sascha Samadi of the non-governmental Wuppertal Institute, devoted to studies on energy transformation.

Renewable electricity generation accounted for 30 percent of the total of Germany’s electrical power in 2015, while lignite fuelled 24 percent, coal 18 percent, nuclear energy 14 percent, gas 8.8 percent and other sources the rest.

This European country is the third world power in renewable energies – excluding hydropower – and holds third place in wind power and biodiesel and fifth place in geothermal power.

Germany is also renowned for having the highest solar power capacity per capita in photovoltaic technology, even though its climate is not the most suitable for that purpose.

But the persistence of fossil fuels casts a shadow on this green energy matrix.

“The successful phasing out of fossil fuels entails a great deal of planning and organisation. If we do not promote renewables, we will have to import energy at some point,” Johannes Remmel, the minister for climate protection and the environment for North Rhine-Westphalia, told IPS.

Germany has nine lignite mines operating in three regions. Combined, the mines employ 16,000 people, produce 170 million tonnes of lignite a year and have combined reserves of three billion tonnes. China, Greece and Poland are other large world producers of lignite.

A part of the Garzweiler open-pit lignite mine, in North Rhine-Westphalia. One of the greatest challenges facing the energy transition in Germany is the future of this polluting fuel. Credit: Emilio Godoy/IPS

Garzweiler, which is owned by the private company RWE, produces 35 million tonnes of lignite a year. From a distance it is possible to see its cut-out terraces and blackened soil, waiting for giant steel jaws to devour it and start to separate the lignite.

Lignite from this mine fuels nearby electricity generators at Frimmersdorf, Neurath, Niederaussen and Weisweiller, some of the most polluting power plants in Germany.

RWE is one of the four main power generation companies in Germany, together with E.ON, EnBW and Swedish-based Vattenfall.

Coal has an expiry date

The fate of coal is different. The government has already decided that its demise will be in 2018, when the two mines that are still currently active will cease to operate.

The Rhine watershed, comprising North Rhine-Westphalia together with other states, has traditionally been the hub of Germany’s industry. Mining and its consumers are an aftermath of that world, whose rattling is interspersed with the emergence of a decarbonized economy.

A tour of the mine and the adjoining power plant of  Ibberbüren in North Rhine-Westphalia shows the struggle between two models that still coexist.

In the mine compound, underground mouths splutter the coal that feeds the hungry plant at a pace of 157 kilowatt-hour per tonne.

In 2015 the mine produced 6.2 million tonnes of extracted coal, an amount projected to be reduced to 3.6 million tonnes this year and next, and to further drop to 2.9 million in 2018.

The mine employs 1,600 people and has a 300,000 tonne inventory which needs to be sold by 2018.

“I am a miner, and I am very much attached to my job. I speak on behalf of my co-workers. It is hard to close it down. There is a feeling of sadness, we are attending our own funeral”, told IPS the manager of the mine operator, Hubert Hüls.

Before the energy transition policy was in place, laws that promoted renewable energies had been passed in 1991 and 2000, with measures such as a special royalty fee included in electricity tariffs paid to generators that are fuelled by renewable energy sources.

The renewable energy sector invests some 20 billion dollars yearly and employs around 370.000 people.

Another measure, adopted in 2015 by the government in Berlin, sets out an auction plan for the purchase of photovoltaic solar power, but opponents have argued that large generation companies are being favoured over small ones as the successful bidder will be the one offering the lowest price.

Energy transition and climate change

Energy transition also seeks to meet Germany’s global warming mitigation commitments.

Germany has undertaken to reduce its greenhouse gas emissions by 40 per cent in 2020 and by 95 per cent in 2015. Moreover, it has set itself the goal of increasing the share of renewable energies in the end-use power market from the current figure of 12 per cent to 60 per cent in 2050.

In the second half of the year, the German government will analyse the drafting of the 2050 Climate Action Plan, which envisages actions towards reducing by half the amount of emissions from the power sector and a fossil fuel phase-out programme.

In 2014, Germany reduced its emissions by 346 million tonnes of carbon dioxide, equivalent to 27.7 per cent of the 1990 total. However, the German Federal Agency for Environment warned that in 2015 emissions went up by six million tonnes, amounting to 0.7 per cent, reaching a total of 908 million tonnes.

Polluting gases are derived mainly from the generation and use of energy, transport and agriculture.

In 2019, the government will review the current incentives for the development of renewable energies and will seek to make adjustments aimed at fostering the sector.

Meanwhile, Germany’s last three nuclear power plants will cease operation in 2022. However, Garzweiler mine will continue to operate until 2045.

“There are technological, infrastructure, investment, political, social and innovation challenges to overcome. Recent decisions taken by the government are indicative of a lack of political will to undertake the tough decisions that are required for deep decarbonisation”, pointed out Samadi.

Companies “now try to mitigate the damage and leave the search for solutions in the hands of the (central) government. There will be fierce debate over how to expand renewable energies. The process may be slowed but not halted”, pointed out academic Heinz-J Bontrup, of the state University of Applied Sciences Gelsenkirchen.

Meanwhile, the regional government has opted to reduce the Garzweiler mine extension plan, leaving 400 million tonnes of lignite underground.

Since July 2014, Uruguay’s state power utility, UTE, has 30 100 percent electric vans. After the success of this initiative, it doubled that number in its fleet of vehicles, and incorporated two electric cars, in November 2015. Credit: Verónica Firme/IPS

By Veronica Firme
MONTEVIDEO, Nov 17 2015 (IPS)

Uruguay is modifying its energy mix with the aim of achieving carbon neutrality by 2030, by means of a strategy that bolsters non-conventional clean energy sources through public-private partnerships and new investment. A majority of this South American country’s energy already comes from renewable sources.

“By the end of 2014, this country’s energy mix was made up of 55 percent renewable sources, compared to a global average of just 12 percent,” said Ramón Méndez, the president of the National Climate Change Response System, during a meeting on renewable energy.

Furthermore, 94 percent of electric power comes from renewables, he said, in a country which is only responsible for 0.06 percent of all greenhouse gas emissions, which cause global warming.

The transformation of Uruguay’s energy mix began during the first term (2005-2010) of the current president, Tabaré Vázquez, although the country was not starting from zero in terms of renewable sources, Gonzalo Abal a physicist with the Solar Energy Laboratory of the University of the Republic of Uruguay, said in an interview with IPS.

Thanks to hydropower, a significant proportion of Uruguay’s energy already came from renewables. But hydroelectricity is vulnerable to the effects of climate change.

Traditionally, the country depended on four old hydroelectric dams, three of which were built on the Negro River between the 1930s and the 1970s. The fourth is on the Uruguay River, shared with neighbouring Argentina, and was built in the 1970s.

In addition, two ancient thermal plants powered by fuel oil have served as a back-up when the hydropower supply drops or collapses due to water shortages. The last time this happened was in 2004.

This Southern Cone country of 3.3 million people has fully exploited its large hydropower sources, and began to turn towards wind power and later biomass, the two clean energies around which the greatest progress has been made, according to data provided by the experts and documents consulted by IPS.

The transformation of the energy mix required a legal framework, which included authorisation for clients connected to the low voltage grid to generate electric power from renewable sources – wind, solar, biomass or mini-dams – with a potential of no more than 150 kilowatts.

Also approved were several initiatives like the 2005-2030 Energy Policy, or the 2015-2024 National Energy Efficiency Plan, adopted on Aug. 3.

The Energy Efficiency Plan is aimed at reducing energy consumption in all industries and sectors of the economy, but especially in residential areas and transportation, which will be responsible for 75 percent of the total accumulated reduction by 2024.

In addition, the Investment Promotion Law was modified to offer tax breaks so that at least five percent of the investment in any given project goes towards renewable energy, for the goal of cleaner production.

Uruguay has 16 medium-sized and large wind farms, like this one in the northern department of Tacuarembó. The country already has 670 MW in installed wind power capacity and a similar amount under construction, which means that 30 percent of demand for electric power will be covered by wind energy by late 2016. Credit: Ana Libisch/IPS

The state power utility, UTE, is responsible for the generation, transmission, distribution and sale of electricity to the 1.2 million clients distributed throughout Uruguay’s 176,215 square kilometres of territory.

UTE has a monopoly over energy distribution but not generation, which the private sector is also involved in, which made it difficult to include power generation in the government’s energy strategy goals.

As of late 2014, Uruguay had a total installed capacity of 3,719 MW, including generators connected to the national power grid as well as stand-alone power systems, according to the Ministry of Industry, Energy and Mining.

The supply consisted of 1,696 MW of thermal energy (from fossil fuels and biomass), 1,538 MW of hydropower, 481 MW of wind power and four MW of solar power, says the National Energy Balance 2014 report.

Breaking down the installed power capacity by source, 66 percent came from renewable sources (hydroelectricity, biomass, wind and solar), while the remaining 34 percent came from non-renewable sources (gasoil, fuel oil and natural gas).

In the economy, there was a structural shift in the energy consumption mix since 2008, which has remained unchanged for the past seven years. Industry is the biggest consumer (39 percent), followed by transportation (29 percent), residential (19 percent), commerce and services (eight percent), and lastly agriculture, fishing and mining (five percent).

From 2007 to 2014, industry overcame transportation, which was pushed to second place, driving up biomass consumption. Pulp mills played a decisive role in that, because thanks to biomass they became 90 percent self-sufficient in energy, as part of the transformation that began in 2005.

In this country, “the important change came in regard to wind power – that is where changes became necessary and challenges were addressed,” Gerardo Honty, an expert with the Latin American Centre for Social Ecology, told IPS.

Wind energy is in full expansion, “and we are nearing one gigawatt (1,000 MW) of installed capacity,” said Abal.

With respect to solar energy, “we have a 50-watt plant already in operation – that’s 100 hectares of solar panels – and a second 50-MW plant has begun to be built, with investment from Europe,” said the academic.

“The rest of the plants, around 15, are smaller, between one and five MW, and are distributed throughout the north of the country,” Abal added.

Connecting with the neighbours

Uruguay is diversifying its energy sources, but it can also “expand the grid in geographic terms; if you interconnect with Argentina and southern Brazil, the probability of having an atmospheric event that leaves you without wind power in the entire area of the pampas is very low,” said the physicist.

The national power grid has interconnections with Argentina (2,000 MW) and with Brazil (70 MW, currently being expanded to 500 MW). The latter has been delayed because the two countries’ power grids operate on different frequencies, and conversion capacity must be added to overcome the problem.

In Uruguay, “the problem isn’t the electric power industry but combustion engines that cannot run on the renewable sources mentioned,” said Honty.

Transportation, especially public transit, poses the big future challenges.

The Montevideo city government is studying the possibility of purchasing autonomous electric vehicles for the sake of energy efficiency and because they do not emit greenhouse gases while at the same time they reduce noise pollution, economist Gonzalo Márquez with the department of mobility said in a forum on energy.

But no timetable has been outlined yet, he told IPS, because there are difficulties to work out like the cost and maintenance of the vehicles, the driving range of the batteries, and the subsidy for public transport, “a hidden cost that society assumes.”

Uruguay projects that when the transformation of its energy industry is complete, greenhouse gas emissions will be 20 to 40 times lower than the global average, said Méndez, the top official in the government’s climate change response office.

This country also aims to be carbon neutral by 2030. That means “our target for that year is for the CO2 (carbon dioxide) that we absorb to be greater than what our entire economy emits,” he said.

Edited by Estrella Gutiérrez/Translated by Stephanie Wildes

The interconnection of Chile’s two major power grids will unite the country in terms of energy and bring down costs in one of the countries in the world with the most expensive electricity. Credit: Ministry of Energy

By Marianela Jarroud
SANTIAGO, May 7 2015 (IPS)

Chile expects to have a more efficient and stable electricity market, with a more steady – and above all, less expensive – supply, when the country’s two major power grids are interconnected over a distance of more than 3,000 km.

“It’s not sufficient simply to increase our electricity generating capacity, if we don’t strengthen our transmission capacity at the same time. If we want to be a developed country, we have to aim for diversity in our energy mix and stability in power transmission,” Energy Minister Máximo Pacheco told IPS.

This project “opens up enormous opportunities for progress and stability for Chileans, with cleaner and cheaper energy,” he added.

Chile’s long, thin territory has an installed capacity of approximately 17,000 MW to supply its 17.6 million people and its productive sectors.

In this country power generation and distribution are in the hands of private and mainly foreign corporations, and regulated by the government’s National Energy Commission, which is also coordinating the interconnection.

Of the country’s total installed capacity, the central grid, SIC, accounts for 74 percent and the northern grid, SING, accounts for 25 percent, while the smaller grids in the southern regions of Aysén and Magallanes produce less than one percent.

SING stretches from the region of Arica in the extreme north, bordering Peru and Bolivia, to Antofagasta, while SIC runs from the northern city of Taltal to the Big Island of Chiloé, in the south.

Together they total more than 3,000 km in this South American country, which is 4,270 km long.

The interconnection project, already under construction with a total projected investment of one billion dollars, is being carried out by the French company GDF Suez and involves installing an additional 580 km of transmission lines.

The new power lines will carry energy from the Mejillones power plant in Antofagasta, which forms part of the SING grid, to the Cardones substation in Copiapó, in the northern region of Atacama, which is part of the SIC grid.

Chile currently imports 97 percent of the oil, gas and coal it uses, and its energy mix is made up of 63 percent thermal power, 34 percent hydroelectricity and three percent non-conventional renewable energy (NCRE) sources.

The Italian-Spanish firm Endesa-Enel wants to build a large dam on Lake Neltume, in the town of the same name in the Los Ríos region in southern Chile – a plan that is staunchly opposed by local residents, especially indigenous communities, which defend it as sacred territory. Credit: Marianela Jarroud/IPS

This country’s shortage of energy sources has made the cost of electricity per megawatt/hour (MWh) for industry in Chile one of the highest in Latin America: over 150 dollars, according to the World Economic Forum’s Global Energy Architecture Performance Index Report 2014.

That is the 13th highest cost in the world, and in the region it is only surpassed by the Dominican Republic’s 210 dollars per MWh, and Brazil and El Salvador, where the cost is 160 dollars per MWh.

“Chile has the highest cost of electricity in Latin America, and the power bill went up 30 percent in the last five years,” said Pacheco. “This has a strong impact on our families and hurts the competitiveness of our companies.”

He said the interconnection project, postponed for decades due to technical and technocratic reasons, “is an historic milestone” because it not only makes supply more efficient, stable and steady but also guarantees lower costs and gives a boost to the economy.

According to the National Energy Commission, the interconnection will bring 1.1 billion dollars in benefits to the country because of the drop in power grid costs and prices, linked to greater competition and a reduction of risks in the market.

“This has an enormous value given that it is equivalent to building approximately 35,000 social housing units. That is the magnitude of the economic benefit of this project for the country,” the minister stressed.

In concrete terms, households supplied by the SING northern grid will notice a 13 dollar drop in the price of MWh, while homes covered by the southern grid, SIC will see a three dollar drop.

In the case of industry, there will be an estimated 17 dollar reduction in the price per MWh in the north and nine dollars in the central and southern parts of the country.

In addition, “investment in the energy sector will increase, which will definitely be good news for our country,” Pacheco said.

But the economic benefits are not the only attractive aspect of the project. The minister said “the aim of the connection between the country’s two major grids is that the clean, abundant energy in the north can reach the centre and south.”

This means environmentalists share the government’s optimism.

Manuel Baquedano, director of the non-governmental Political Ecology Institute, told IPS that this is “one of the most important projects for the country” because it entails greater flexibility in energy management and, as a result, lower costs.

The expert pointed out that “the north has a surplus during the daytime” due to the enormous solar power potential in the Atacama desert, the world’s driest, while in the centre and south of the country, served by the SIC, “there is a surplus at night” because of the great hydropower potential.

As a result, he said, “each system can contribute to the other, producing a more stable supply and bolstering the use of NCRE sources, which require back-up energy sources.”

“It’s a key project, because Chile’s problem today is not generation but transmission of energy,” Baquedano said.

In her second term, which began in March 2014, President Michelle Bachelet promised to increase the share of energy produced by NCRE sources to 20 percent by 2025.

“Several of the measures proposed on the government’s agenda are aimed at meeting that goal, such as expanding the power grid, improving competitiveness in energy generation, and making the operation of the power grids more flexible,” the minister said.

He added that the future development of the power grids “will play a central role in facilitating compliance with that target at lower costs, taking advantage of the coordinated use of the transmission corridors.”

“What we are seeing is a proliferation of wind and solar power projects in the north, more than the construction of hydropower dams in the south. The public no longer tolerates megaprojects,” Baquedano said.

Against that backdrop, “I’m not afraid of the interconnection. On the contrary, I believe it is a very important element for the development of NCRE sources,” he concluded.

Edited by Estrella Gutiérrez/Translated by Stephanie Wildes

Seven percent of Costa Rica’s electricity comes from wind power, thanks to wind farms such as the ones operating in the mountains of La Paz and Casamata, 50 km from San José. But the automotive industry remains a hurdle to the country’s dream of achieving a totally clean energy mix. Credit: Diego Arguedas Ortiz/IPS

By Diego Arguedas Ortiz
SAN JOSE, May 5 2015 (IPS)

Costa Rica has almost reached its goal of an energy mix based solely on renewable sources, harnessing solar, wind and geothermal power, as well as the energy of the country’s rivers.

In April, the state electricity company, ICE, announced that in 2015, 97 percent of the country’s energy supply would come from clean sources.

“The country as such, along with its energy and environmental policies, has decided that it wants its energy development to be based on renewable sources,” Javier Orozco, the head of ICE’s System Expansion Process, told Tierramérica.

But this Central American country of 4.5 million people still depends partially on fossil fuels. The official said “we use thermal energy generation as a complement because renewables depend on the climate and you can’t guarantee that there will always be wind or water.”

The country’s energy supply is based almost totally on clean sources. In March ICE announced that in the first 75 days of the year, not a single litre of oil nor kilo of coal were burnt to generate electricity in the country.

“In our country, we build thermal plants to keep them turned off. Our aim is to have thermal plants that are turned off most of the time,” Orozco said.

That objective is not always met, principally because hydroelectric power varies with seasonal stream flows. The year 2014 was dry and the country’s fossil fuel use hit a record level, generating 10.3 percent of the total electricity supply.

Since the mid-20th century, Costa Rica’s energy mix has been largely based on hydroelectricity. But the country has gradually reduced its dependence on that energy source, and in 2014 hydropower accounted for only 63 percent of the total demand of 2,800 MW, while geothermal energy supplied 15 percent and wind power seven percent.

Last year’s large petroleum bill was caused by the El Niño/Southern Oscillation, a cyclical climate phenomenon that affects weather patterns around the world, which hit Central America hard and triggered one of the worst droughts in over half a century.

Projections of the future impact of climate change play a double role: while the world has to seek cleaner sources of energy to curb global warming, Costa Rica must diversify its energy mix because of the changes in hydrological patterns.

The country is thus exploring the limits of renewable energies and the possibility of generating 100 percent clean energy is on the table, as part of a strategy based especially on geothermal power.

This source of energy is hidden under the volcanoes of northwest Costa Rica. Local scientists and engineers are perfecting the technique of using the earth’s heat to generate electricity.

“We are planning the construction of the new geothermal plant, Pailas II, and we are at the stage of feasibility studies for a new field. Geothermal power is important because it isn’t subject to climate change, but is constant,” Orozco explained.
The plant will have 50 MW of installed capacity and it will join the ones already in operation: Pailas (35 MW), and Miralles (165 MW). That means that only 23 percent of the country’s geothermal potential of 865 MW is being used, according to ICE figures.

But the problem with respect to developing this source of energy is that the rest of the potential lies in national parks, where exploiting it is banned by law.

That raises the question of what definition of green energy the country will accept.

Experts like former minister of environment and energy René Castro (2011-2014) see the development of geothermal energy as viable.

“It is possible,” Castro told Tierramérica. “Two changes are needed: ICE would need to expand geothermal energy production, and the extraction of this source of energy in national parks would need to be authorised, while paying royalties to the parks and replacing the land used, twice over: if 50 hectares are used (in a park), the equivalent of 100 percent of its ecological value would be replaced.”

The other measure proposed by Castro is “to authorise the private sector to generate electricity with biomass from pineapple or banana plant waste, or sawdust,” and later sell it to ICE, which administers the energy supply and is the biggest producer of electricity.

Private operators represent 14.5 percent of total energy generation and one-fourth of installed capacity. But they face legal restrictions when it comes to expanding their share.

The investment needed would be similar to what is projected by ICE, which is close to one percent of GDP, the former minister said. “What would change is that instead of one single investor, ICE, it would be the dominant one, accompanied by around 30 other companies and cooperatives,” he said.

The country is in urgent need of holding this debate.

In July 2014, the legislature approved a loan from the European Investment Bank and the Japan International Cooperation Agency to build the Pailas II geothermal project.

ICE is building plants that will expand its current installed capacity of 2,800 MW by an additional 800 MW.

At the same time, the government is holding a national dialogue on electrical energy, to discuss these issues, and a national dialogue on transportation and fuels, which will address the hurdle to Costa Rica’s dream of green energy: the fuel used in transportation.

Transport, the weakest link

“The transportation sector is the biggest energy consumer at a national level and is responsible for 67 percent of the country’s total greenhouse gas emissions,” said the current minister of environment and energy, Édgar Gutiérrez, at the start of the national dialogue talks.

That is why “addressing the challenges in this sector is a priority” for the government, he said.

No matter how clean Costa Rica’s energy mix becomes, the country will still produce emissions and will still have a “dirty” development model because of land transport.

One possible solution could come from Costa Rican-born scientist and former astronaut Franklin Chang, who is working on a hydrogen-based renewable energy system.

“The problem doesn’t lie in electricity but in transportation,” he told Tierramérica. “That’s where we have to distance ourselves from the use of petroleum, introduce our own fuel in our own country with hydrogen-based technologies.”

From his laboratory in Guancaste, in western Costa Rica on the Pacific Ocean, Chang has partnered with Costa Rica’s state oil refinery, RECOPE, to create a pilot plan with several hydrogen-fueled vehicles, and has reached the test stage. But a technicality has stalled the 2.3 million dollar project.

In October, his company, Ad Astra, announced that it was ready to launch the final phase.

“It was the final flourish – we were going to install and create a small ecosystem of hydrogen vehicles,” said Chang. But RECOPE was unable to overcome the legal obstacle to operate using that energy source. “In March I announced that I was totally fed up.”

The legislature is currently studying a solution to enable RECOPE to invest in clean energy sources, but until then the project will be stalled.

This story was originally published by Latin American newspapers that are part of the Tierramérica network.

Edited by Estrella Gutiérrez/Translated by Stephanie Wildes

By Roberto Savio
ROME, Dec 15 2014 (IPS)

It is now official: the current inter-governmental system is not able to act in the interest of humankind.

The U.N. Climate Change Conference in Lima – which ended on Dec. 14, two days after it was scheduled to close – was the last step before the next Climate Change Conference in Paris in December 2015, where a global agreement must be found.

Roberto Savio

In Lima, 196 countries with several thousand delegates negotiated for two weeks to find a common position on which to convene in Paris in one year’s time. Lima was preceded by an historical meeting between U.S. President Barack Obama and Chinese President Xi Jinping, in which the world’s two main polluters agreed on a course of action to reduce pollution.

Well, Lima has produced a draft climate pact, adopted by everybody, simply because it carries no obligation. It is a kind of global gentlemen’s agreement, where it is supposed that the world is inhabited only by gentlemen, including the energy corporations.

This is an act of colossal irresponsibility where, for the sake of an agreement, not one solution has been found. The “big idea” is to leave to every country the task of deciding its own cuts in pollution according to its own criteria.“Lima has produced a draft climate pact, adopted by everybody, simply because it carries no obligation. It is a kind of global gentlemen’s agreement, where it is supposed that the world is inhabited only by gentlemen”

And everybody is aware that this is most certainly a disaster for the planet. “It is a breakthrough, because it gives meaning to the idea that every country will make cuts,” said Yvo de Boer, the Dutch diplomat who is the former Executive Secretary of the United Nations Convention on Climate Change (UNFCCC). ”But the great hopes for the process are also gone.”

To make things clear, all delegates knew that without some binding treaty to reduce emissions, there is no way that this will happen. But they accepted what it is possible, even if it does not solve the problem. It is like a hospital where the key surgeon announces that the good news is that the patient will remain paralysed.

The agreement is based on the idea that every country will publicly commit itself to adopting its own plan for reducing emissions, based on criteria established by national governments on the basis of their domestic politics – not on what scientists have been indicating as absolutely necessary.

This, of course, is the kind of treat that no country in the world objects to. The real value of the treaty is not the issue. The issue is that the inter-governmental system is able to declare unity and common engagement. The interests of humankind are not part of the equation. Humankind is supposed to be parcelled among 196 countries, and so is the planet.

This act of irresponsibility is clear when you look at all the countries producing energy, like Saudi Arabia or Venezuela, Iran or Ecuador, Nigeria or Qatar, whose governments are interested in using oil exports to keep themselves in the saddle. And take a look at what the world’s third largest polluter, India, is doing in the spirit of the Lima treaty.

Under the motto: “We like clean India, but give us jobs”, the government under Prime Minister Narendra Modi is moving with remarkable speed to eliminate any regulatory burden for industry, mining, power projects, the armed forces, and so on.

According to the high-level committee assigned to rewrite India’s environmental law system, the country’s regulatory system ”served only the purpose of a venal administration”. So, what did it suggest? It presented a new paradigm: ”the concept of utmost good faith”, under which business owners themselves will monitor the pollution generated by their projects, and they will monitor their own compliance!

The newly-appointed Indian National Board for Wildlife which is responsible for protected area cleared 140 pending projects in just two days; small coal mines have a one-time permission to expand without any hearing; and there is no longer any need for the approval of tribal villages for forest projects.

Environment Minister Prakash Javadekar boasted: ”We have decided to decentralise decision making. Ninety percent of the files won’t come to me anymore”. And he said that he was not phasing out important environmental protections, just “those which, in the name of caring for nature, were stopping progress.” He also plans to devolve power to state regulators, which environmental expert say is akin to relinquishing any national integrated policy.

It is, of course, totally coincidental that Lima conference took place in the middle of the greatest decrease in oil prices in five years. The price of a barrel of oil is now hovering around the 60 dollar mark, down from over 100 two years ago. This price level has basically been decided by Saudi Arabia, which did not agree to cut production to increase the cost of a barrel.

The most espoused explanation was that the low cost would undercut schist gas exploitation which is making the United States energy self-sufficient again, and soon an exporter. But this will equally undercut renewable energies, like wind or solar power, which have higher costs and will be abandoned when cheap oil is available.

Again coincidentally, this is creating very serious problems for countries like Russia and Venezuela (U.S. irritants) and Iran (a direct enemy), which are now entering into serious deficit and serious political problems. And, again coincidentally, this is making use of fossil energy more tempting at a moment in which the world was finally accepting that there is a problem of climate change.

In March, countries will have to present their national plans and it will then become clear that governments are lacking on the very simple task of arresting climate change, and this will lead us to irreversible damage by our climate’s final deadline, which was identified as 2020.

Thus the exercise of irresponsibility in Lima will also become an exercise in futility.

Is there any doubt that if the people, and not governments, were responsible for saving the planet, their answer would have been swifter and more efficient?

Young people, all over the world, have very different priorities from corporations and industry … but they also have much less political clout.

(Edited by Phil Harris)

The views expressed in this article are those of the author and do not necessarily represent the views of, and should not be attributed to, IPS – Inter Press Service. 

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