Renewable Energy and Energy Efficiency in CABO VERDE CERMI Praia, 13 October 2015 Anildo Costa DG Energy Cabo Verde
Energy Systems in Cabo Verde: Power Sector Installed Capacity Population 2010 () 2015 Santo Antão 43.915 6,0 11 São Vicente 76.107 19,4 30 São Nicolau 12.817 2,2 3 Sal 25.765 16,9 20 Boavista 9.162 4,5 17 Potência 0-5 6-10 11-20 21-30 31-40 Tecnologia Eólica Rede Solar Outros projectos 1 20 kv 5,95 0,3 Santo Antão Eólico 1 1 São Vicente Eólico 6,25 São Nicolau Santiago Eólico 9,4 Solar 5 0,6 Sal Eólico 8,25 Solar 2,5 Maio 2,55 7,65 2,5 Boavista Eólico 2,55 Maio 6.952 1,4 1 Santiago 273.919 46,9 100 Fogo 37.051 3,8 3 Brava 5.995 1,1 1 1 Microgeração, iluminação pública fotolvoltaica, sistemas isolados fotovoltaicos e microhídrica Brava Eólico 0,15 0,15 Fogo 9,4 5 M W THE NUMBER: > 30 Cents per kwh + Taxes
Cabo Verde National Energy Targets ENERGY ACCESS 1. To achieve 100% Electricity Access by 2017 (from more than 90%)! Grid Extension Renewable micro-grids Individuals Energy Systems (Solar Homes Systems) 2. To achieve 100% Access to Sustainable Cooking Services ENERGY EFFICIENCY Eradicate Use of Three Stones + Universalization of Improved Stoves Promotion of Butane Gas 1. Efficient Electricity Distribution Grid: distribution losses reduced to 8% More than 30% of Distributed Electricity (15% technical+15% Commercial) 2. Petroleum Products (excepts Butane): 10% reduction/baseline 3. Final Electricity Consumption: 15% reduction/baseline RENEWABLE ENERGY Promoting Energy Efficient Building Energy Standards and Labelling for Appliance and Equipment's Promoting Energy Efficient Intensive Consumers (like Hotels) 1. 100% Electricity from Renewables in 2020! 2. New buildings: Mandatory use Solar Water Heaters (link to Energy Efficient Building)
The Energy Future: The Road Towards 100% Electricity from Renewables MARKET PULL LEARNING BY DOING PROCESS More than 30% grid penetration need Storage and Grid Control Storage: Few Mature Technologies Available Test and diversify Storage Technologies PUBLIC PUSH
The Energy Future: Creating a Dynamic and Innovative Market Legal and Institutional Framework: Complete and Transparent; Clear Responsibilities, Duties and Rights; Supporting Institutions and Agents : Promote and Strengthen the Necessary Institutions; Promoting Independent Power Producer and ESCO: private leadership Competitive Market for Independent Power Production Competitive Market for Micro-Grids Competitive Market for Microgeneration Competitive Market for Energy Efficiency Competitive Storage Market; Build Trust in MARKET Create Confidence in the Energy Market Simplified Procedures for Licensing (one stop shop); Public and competitive Auction based on least cost offer; Standard Power Purchase Agreement; Creation of a National Certification System for Buildings, Appliances and Equipment's; Certification of Technicians and Installers;
The Energy Future: Vision WE ALL ARE PRODUCERS NOTHING IS LOST, EVERYTHING IS STORED Buildings are Consumers and Producers SMART GRID for Transmission but also to STORE Energy Copyright: INECS Porto
Challenges and Opportunities INSTITUTIONAL MARKET STORAGE TECHNOLOGIES - Batteries - Synthetic Fuels - Biodiesel - Flywheels Diversification SMART-GRID DEVELOPMENT with state-of-the-art Power Conditioning, Production Control; Distributed Generation; Distribution Control; Consumption Control; Automatic and intelligent Communication and Information flow.
RE Legal Framework Framework Law on Electricity (Decree Law 54/99, of 30 August, amended in 2006 and 2013) General rules: Production: license Transport: concession Distribution: concession (license in case of remote areas not comprised in concessions) New Capacity on a competitive Tender base Legal Regime on Independent Production and Self-Production of Electricity based in Renewable Sources (Decree-Law 1/2011, of 3 January, amended in 2013 and 2014) 3 regimes, all open to private initiative and to the accumulation of licenses: General regime: independent production and self-production License granted by the Energy General Directorate, upon opinion of the Economic Regulation Agency Microgeneration: self production with connection power up to 100kVA Registration of the producer in the Self-Production Registry System Rural Micro Grid Electrification License granted by the Ministry in charge of Energy
Benefits Corporate Income Tax credit 50% on relevant investments made in renewable energy production and manufacture and installation of renewable energy equipment Tax credit cannot exceed 50% of the tax due per year and the excess may be carried forward for 10 years Customs duties Exemption on the import of certain assets linked to the primary object of the investment project (excludes equipment and vehicles over 5 years old) Exemption on materials incorporated or used in the production of goods and services for the production of electricity with renewable sources, if the company is registered in the Industrial Registry
Market Legal, Regulatory and Administrative Framework for Independent power Producer Tender process: Request for Proposal (RfP); Evaluation criteria and Score Card for EoI and RfP bid; Under Development with GIZ Support Evaluation sheet of Engineering, Procuring and Construction (EPC) contract; Power Purchasing agreement (PPA); Tender based on a Power Sector Master Plan for 5 years Development of a Isolated Micro-Grid Management Model Technical, Economical, Financial Quality Criteria; Tender procedure and Evaluation criteria; Contact Performance; Power Purchasing agreement(ppa); Under Development with ECREE Support/ITC Improvement of Microgeneration Legal and Regulatory Framework Better Model (feed-in, tariff??) Technical Regulation; Implement Registration Website Under Development with ECREE/GIZ Support
Market COST and TARIFF What is the real cost PER ISLANDS of Production Distribution (transport and) Commercialization and Services Need to introduce the real costs - Cost of Fossil Fuel back up Need a Dynamic Market - Introduce Variability of Electricity Prices For Independent power Producer (IPP) and Technology Independent Power Storage (IPS) For final consumers
Energy Systems in Cabo Verde: Power Sector Installed Capacity Population 2010 () 2015 Santo Antão 43.915 6,0 11 São Vicente 76.107 19,4 30 São Nicolau 12.817 2,2 3 Sal 25.765 16,9 20 Boavista 9.162 4,5 17 Potência 0-5 6-10 11-20 21-30 31-40 Tecnologia Eólica Rede Solar Outros projectos 1 20 kv 5,95 0,3 Santo Antão Eólico 1 1 São Vicente Eólico 6,25 São Nicolau Santiago Eólico 9,4 Solar 5 0,6 Sal Eólico 8,25 Solar 2,5 Maio 2,55 7,65 2,5 Boavista Eólico 2,55 Maio 6.952 1,4 1 Santiago 273.919 46,9 100 Fogo 37.051 3,8 3 Brava 5.995 1,1 1 1 Microgeração, iluminação pública fotolvoltaica, sistemas isolados fotovoltaicos e microhídrica Brava Eólico 0,15 0,15 Fogo 9,4 5 M W THE NUMBER: > 30 Cents per kwh + Taxes
The Energy Future: Renewable Energy Cluster Supporting Framework Centre for Training and Certification Energy Agency Clean Energy Business Incubator Renewable Energy and Energy Efficiency Technological Park Advanced Studies and Research & Development RENEWABLE ENERGY CLUSTER Private leadership CABO VERDE: Show Room Export Services
Competitive Advantages: Geostrategic Position DAILY REGULAR FLY TO EUROPE WEST AFRICA, BRAZIL AND EUROPE WITHIN 4 HOUR FLY
Competitive Advantages: Infrastructures 1.- Educated Population 15% Active Population with Medium/Higher Education 2.- Democracy and Political Stability 4 Prime Minister in 40 years 3.- Special Partnership wit European Union EU Market entry facilitate 4.- AGOA: African Growth and Opportunity Act Offers incentives and benefits for African countries to export to USA. 5.- Part of the West Africa Common Market ECOWAS 6.- Infrastructures 4 International Airport 2 International Port Very good telecommunication infrastructure
Competitive Advantages for Industries INTERNATIONAL BUSINESS CENTRE IN SÃO VICENTE ISLANDS Tax Benefits (Corporate Tax) 5.0% applicable to entities that create 5 (five) jobs; 3.5% applicable to entities that create 20 (twenty) jobs; 2.5% applicable to entities that create 50 (fifty) jobs. Customs Duties Exemption VAT Exemption
OBRIGADO!! ANILDO.COSTA@MTIDE.GOV.CV