Renewable Energy Internship 2011 - Renewable Portfolio Standards PART III: Compliances
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Renewable Energy Internship - 2011 Renewable Portfolio Standards PART III: Compliances Presented by: Riquel Mitma OSINERGMIN Regulatory Agency of Perú
Maine – Maine (Augusta) is a fantastic place. The lobster is delicious and the people are hospitable and very friendly.. 3
Renewable Portfolio Standards (RPS) • INTRODUCTION: – There are several mechanisms to promote renewable energy: Feed-in tariff, RPS, Auctions. – So, RPS is a regulation that requires the increased production of energy from renewable energy sources – Other common names for RPS is: • Renewable Electricity Standard (RES) at the United States federal level, and • Renewables Obligation in the UK – RPS-type mechanisms have been adopted in several countries, including Britain, Italy, Poland, Sweden, Belgium, and Chile 4
RPS of Maine – The Maine’s RPS define two class of renewable resources: • Class I: for new renewable energy development • Class II: for traditional (existing) renewable energy 5
RPS of Maine • Maine´s Class I: New renewable resource requirement – The eligible renewable resources are: • Fuel cells (This is related to energy efficiency) • Tidal power • Wind power • Geothermal • Hydro –meets fish passage requirements • Biomass/landfill gas – The maximum size is 100 MW, except wind power 6
RPS of Maine • Maine Class II: Renewable source requirement – The eligible renewable resources are: • Efficient Resource (cogeneration) • Renewable resource: – Fuel cells (This is related to energy efficiency) – Tidal power – Wind power – Geothermal – Hydro –meets fish passage requirements – Biomass/landfill gas – Municipal solid waste – The maximum size is 100 MW 7
RPS of Maine • Schedule: The schedule for both Class is as follow: Class I: increases 1% each year, reaching 10% by 2017 Class II: remains constante at 30% all time 8
RPS of Maine • Compliance: – Compliance is achieved through the acquisition of renewable energy certificates that are issued and tracked through the New England Generation Information System (NE-GIS) – In addition, the rule allows competitive electric providers to fulfill their annual requirements by making alternative compliance payments to a Renewable Resource Fund, which will be used to support new renewable energy development. More information: www.dsireusa.org 9
RPS of Maine • Penalties: – A competitive electricity provider that does not satisfy the RPS requirements is subject to one or more of the following sanctions by the PUC: • license revocation • monetary penalties, or • any other sanction authorized by law that the PUC determines appropriate, taking into account the facts and circumstances that resulted in the non-compliance. More information: www.dsireusa.org 10
Promotion of Renewable Energy in Perú • We don´t use RPS as a mechanism to promote Renewable Energy • Auctions is the type of mechanism adopted in Perú, for promotion of non conventional renewable energy (wind, Solar, Geothermal, Biomass) • Large Hydro is considered as conventional energy Peru is Hydrothermal •2010: Hyd: 60% ; Ther: 40% •2009: Hyd: 63% ; Ther : 37% •2008: Hyd: 61% ; Ther : 39% •2007: Hyd: 68% ; Ther : 32% •2006: Hyd: 75% ; Ther : 25% • : : : •2000: Hyd: 90% ; Ther : 10% in 2000, Hydro electricity was about 90% 11
Promotion of Renewable Energy in Perú • Unlike RPS, which generally places an obligation on electricity supply companies to supply a specified fraction of their electricity from renewable energy sources, the Auctions of a quantity of RE, if it is properly designed and there is competition, it can provide renewable energy to the grid, at the lowest possible cost. 12
1st Auction Results • Prices resulting from de auction: Reserve Average Minimum maximum Nº of Nº of price set by Price price price Projects projects OSINERGMI Offered offered offered Proposed Awarded N Biomass (Ctv US$/kWh) 6.35 5.20 11.00 12.00 2 2 Wind(Ctv US$/kWh) 8.04 6.55 87.00 11.00 6 3 Solar (Ctv US$/kWh) 22.11 21.50 22.50 26.90 6 4 Hydroelectric (Ctv US$/kWh) 6,03 5.50 7.00 7.40 17 17 Number of projects adjudicated : (27 projects) • 3 wind farms (142 MW) • 2 Biomass Power (27 MW) • 4 solar farms(80 MW) • 18 small hydro (180 MW) MW Total allocated: 429 Deadline for the operation of the RE projects: December, 2012 13
Promotion of Renewable Energy in Perú • Main objectives of the RE Auction – Promote the entry of large-scale RE generation in the energy matrix – Achieve efficiency of the auction process – Maximize benefits for electric users (they pay prices) • Specific objectives: – Avoid the possibility of collusion – Avoid possible barriers to entry – Maintain the credibility of the rules 14
Promotion of Renewable Energy in Perú • Main Incentives offered: 1. Stable prices to 20 years (set by auction)=Long term contract 2. Dispatch priority into the grid 3. Priority access to T & D networks 4. Simple rules for participating in the auction 15
Promotion of Renewable Energy in Perú • Penalties (defined in the Bid documentation of the auctions): – During the auction process: • Penalty: Execution of the Bid Guarantee (20 000 U.S. $ / MW installed) – During the construction process of the RER power plant: • Penalty: Execution of the Guarantee of compliance with the construction schedule (100 000 U.S. $ / MW installed) – During the operation of the RER power plant (20 years): • Penalty: Applying the correction factor for the price if it fails to deliver to the grid, the annual energy offered. 16
2nd Auction: In progress • Required energy: 1981 GWh/year (7% total energy consumption) • Deadline for the operation of the RER projects: December, 2014 • Starting the process: April 28, 2011 • Submission of bids: July 15, 2011 – All information and documentation are confidential • Day of the bid adjudication: August 23, 2011 – Opening of the offer and the maximum tariffs envelopes 17
Thank you for your attention rmitma@osinerg.gob.pe 18
1st Auction Requirements • Required energy = 4314 GWh/year (15% total energy consumption) • Deadline for the operation of the RE projects: December, 2012 • Starting the process: August 21, 2009 • Submission of bids: January 18, 2010 – All information and documentation are confidential • Day of the bid adjudication: February 12, 2010 – Opening of the offer and the maximum tariffs envelopes • Starting the process: April 28, 2011 19
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