Wind Power in Uruguay

Latin-American Forum: Wind Power in Argentina, Brazil and Uruguay - September 2014

Dr. Eng. Gonzalo Casaravilla UTE Company – Montevideo - Uruguay

República Oriental del URUGUAY

Area 176.215 km²

Population1 3.390.077 inhab

Pop. Density 19 inhab/km²

GPD2 55.700 USD millions

GPD/inhab3 15.400 USD/inhab

1 Census 20112 Gross National Product 20133 Year 2013

125.000 MW

installed

25.000 MW

installed

POWERFUL NEIGHBORS WITH THEIR OWN

PROBLEMS

WE HAVE LEARNED THAT WE MUST STAND ON OUR OWN

3.000 MW

installed

MUST STAND ON OUR OWN

THIS REALITY IMPOSED RISKS BUT ALSO OPPORTUNITIES

Energy Policy 2030

•Approved in 2008 by

the Executive Council

of Ministers

•Approved in 2010 by

State enterprise from year 1912:

Generation (in competence)

Transmission

Distribution

Commercialization

•Approved in 2010 by

all the political parties

at the parliament

2013 Numbers of the Electric SectorEnergy Generation & Imported 10.315 GWh/year

Energy Consumption / inhabitant 2.600 kWh/inhab/year

Electrification rate 99,5 %

Installed Power 3.000 MW

Peak demand (22/Julio/2013) 1.918 MW

Number of Clients and Services 1.350.000Number of Clients and Services 1.350.000

HYDRAULIC77%

THERMAL17%

BIOMASS5% WIND

1%

Quality of electricity supply

15

9 1016

2330 32 33 34 36

434363 65

73 7684

102

116 117

142

Source:

The Global Competitiveness Report

2013–2014 of the World Economic Forumhttp://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2013-14.pdf

Climate Vulnerability

6000

8000

10000

12000

AN

UA

L E

NE

RG

Y [

GW

h]

2011

20072010

2012

DEMAND 2015

DEMAND 2010

2013

3.5%per

YEAR

0

2000

4000

0% 50% 100%

AN

UA

L E

NE

RG

Y [

GW

h]

PROBABILITY

2006

20082009

2012

HYDRAULICGENERATION

Oil Vulnerability

Uruguay OptionsLEVELIZED

COSTPP(*) CV fd fc

SOURCE USD/MWhINTER

MITTENTPEAKING

LOAD

FOLLO

WING

BASE

LOAD

USD/

MWh

USD/

MWh% %

SOLAR PV 94 • • 16 0 100 17

BIOMASS 120 • • 60 60 85 85

ONSHORE WIND 69 • 30 0 100 44

GAS PEAKING 258 • • 14,5 135 85 10

DIESEL PEAKING 368 • • 14,5 245 85 10

COAL 183 • 60 70 85 45

DISPATCH

ALT

ER

NA

TIV

EC

ON

VE

NTI

ON

AL

Keys of Change: Economy, Strength, Sovereignty

and Environmental Care

Mayor Objective: MINIMUN GENERATION COST

COAL 183 • 60 70 85 45

GAS COMBINED CYCLE 155 • • 23 104 85 38

DIESEL COMBINED CYCLE 240 • • 23 188 85 38

CO

NV

EN

TIO

NA

L

CV + fd/fcPP = LCoE ∗(*) PPs include integration cost

Changing Energy Supply Matrix

•Fast grow of Wind Energy• 1300 MW ending 2016

•Build a Combined Cycle of 530 MW• TG+TG+TV (2x180+1x170 MW)

•Build a GNL Regasification unit•Build a GNL Regasification unit• 10 MM/m3/day (50% for Uruguay)

•Build a Strong Interconnection with Brazil• 500 MW/500kV (50/60 Hz Back-to-Back

connection)

•Increasing transmission capacity of the

system

100

120

140

160

180

USD

/MW

h

5% PROBABILITY

Expected Generation Costs

1000to

400:

0

20

40

60

80

100

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

USD

/MW

h

MEANS VALUE

If we had not radically changed the generation matrix, in 2016 the generation cost would be

40% more

Instaled Power 2016

1224 1404

1200

2500

3000

3500

4000

4500

POWER [MW]SOLAR

WIND

1538 1538 1538 1538

487870

1224 1404

0

500

1000

1500

2000

1992 2009 2013 2016

WIND

BIOMASS

THERMIC

HYDRAULIC

15%

20%

25%

30%

600

800

1000

1200

MW

eq

uiv

.

MW eq. Inst.

MW eq.

% EOL/DEM

Years of trucks on the road

0%

5%

10%

15%

0

200

400

600

01

/20

14

02

/20

14

03

/20

14

04

/20

14

05

/20

14

06

/20

14

07

/20

14

08

/20

14

09

/20

14

10

/20

14

11

/20

14

12

/20

14

01

/20

15

02

/20

15

03

/20

15

04

/20

15

05

/20

15

06

/20

15

07

/20

15

08

/20

15

09

/20

15

10

/20

15

11

/20

15

12

/20

15

MW

eq

uiv

.

12000

14000

16000

18000

AN

UA

L EN

ERG

Y [

MW

h]

EXP IMP HID GNL

FUEL + GOIL EOL BIO + SOL DEM

EXPORT

Matrix Generation ChangesMEAN YEAR

90% RENEWABLE45% HYD30% WIND15 % BIOMASS

0

2000

4000

6000

8000

10000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

AN

UA

L EN

ERG

Y [

MW

h]

HYDRAULIC

FUEL + GAS OIL

NATURAL GAS

WIND

BIOMAS + SOLAR PV

15 % BIOMASS

Windy spring days

Optimum Matrix assume SMALL PRICE of the EXPORTS and

all the WIND is going to be DISPATCHED and PAYED

Automatic Generation Control (AGC)on all the Hydro Generators and Gas Turbines

Uruguay has plenty of spinning reserve for the next 20 years

EÓLICA (93 MW)

BIOMASA NETA (264 MW)

GEN RENOVABLES PRIVADOS

EÓLICA 1ª. ETAPA (150 MW)

BIOMASA FUTURA (40 MW)

GEN EÓLICA K39607 Y EXT.

EÓLICA 2ª. ETAPA (192 MW)

CONCORDIA

SALTO GRANDE ARGENTINA

ARAPEY

TOMÁS GOMENSORO

ARTIGAS

RIVERA

TACUAREMBÓ

SALTO GRANDE URUGUAY

MANUEL DÍAZ

STEL

LIVRAMENTO

CONVERSORA DE FRECUENCIA

ALUR 5

PONLAR 7

BIOENER 11,5

LIDERDAT 4,85

Red Prevista 2023 – T1

GENERACIÓN EXISTENTE, CONTRATADA,

ADJUDICADA

COLONIA J.P. TERRA 67,2

PV 0,48

COLONIA RUBIO RENTNG 65

PALOMAS

ARERUNGUÁ 80

5

PV 5 PV 5

PV 50

PV 66

SALTO PV 10

AGUA LEGUAS_100

PV 40

PV 10

PV 5

CONVERSORA

SALTO 50

TACUAREMBÓ 150

CONV. MELO 100 BIOENERGY 40

FENIROL 10

WEYERHAEUSER 5

PAMPA 140

MELO

H H

TACUARÍ I 9.2

TACUARÍ II 6.6

Distributed Generation, Renewable, LNG, Networks and Interconnections

500 MW

70 MW

2000

MW

ZENDA (3,2 MW)

GEN PRIVADA CON GAS NATURAL

GEN EÓLICA UTE

EÓLICA EXISTENTE (20 MW)

Eólica 2 y 1/2 (437 MW)

UTE (137 MW)

2ª ETAPA: Eólica 2 y ½ (150 MW)

PV - Solar Fotovoltaica (257 MW)

UTE EN S.A. (390 MW)

UTE - ELETROBRÁS (199 MW)

UTE – EXPANSIÓN (500 MW)

Proyectos con dificultades

EÓLICA 2ª. ETAPA (192 MW)

H MINI HIDRÁULICAS (21 MW)

CASABLANCA

B A I

MONTEVIDEO

NEPTUNIA

LA FLORESTA

PAN DE AZÚCAR

SAN CARLOS

MALDONADO

PANDO

SUÁREZ

ROCHA

CASTILLOS

CHUY LASCANO

JOSÉ P.VARELA

ENRIQUE MARTÍNEZ

RÍO BRANCO

TERRA

LIBERTAD

RODRÍGUEZ A.CORRIENTES

CANELONES

CARDONA

NUEVA HELVECIA

CONCEPCIÓN

COLONIA ELÍA

MERCEDES

CONCHILLAS

ROSARIO

PALMAR VERGARA

SAN LUIS

ARROZAL 33

RINCÓN DE RAMÍREZ

CUCP

SOLYMAR

LAS TOSCAS

LAS PIEDRAS

C

EFICE

NUEVO MANANTIAL 11,8

PALMATIR 50

MONTES DEL PLATA 80

DOLORES

ESTRELLADA

Vientos de Pastorale_49,2

Ladaner_50

PINTADO

PAYSANDÚ

Cadonal_50

COLINIA ARIAS 70

ARBOLITO 50

PV 30

YOUNG

GALOFER 12,5

CONVERSORA MELO

TREINTA Y TRES

CUCHILLA PERALTA

116

VALENTINES

VALENTINES 70

125

TRINIDAD

ASTIDEY

NUEVA PALMIRA

COLONIA

KENTILUX 17,2

FLORIDA

Polesine_50

|

FINGANO 50

Vengano_40

LUZ DE LOMA 20

LUZ DE MAR 18

LUZ DE RÍO 50

PANDO 50

BIFURCACIÓN

JOSÉ IGNACIO

PUNTA DEL ESTE

SAN CARLOS 150

MINAS

PV 0,48

CENTRAL GEN. LIBERTADOR I 15

GEN. EOLICA MINAS 42

LAS ROSAS 1

CONTRATOS FUTUROS BIOMASA

40

F

CEBOLLATÍ

FRAY BENTOS

COLONIA

COLONIA JUAN LACAZE

Cobra ing. Uy_48,6

CENTRAL BATLLE

CTR

CENTRAL GEN. LIBERTADOR I 50

CARACOLES 20

UPM - UTE 18+19

UPM 40

DURAZNO Astidey_50

BAYGORRIA

CARDAL 500

PUNTA DEL TIGRE

S.VÁZQUEZ

SAN JAVIER 0

LAS PIEDRAS 0

ZENDA 3,2

SAN JAVIER

Darinel_50

R_Del_Sur_50

AGROLAND 0,25

Molino de Rosas_ 50

ANDRESITO 50

Estrellada_ 50

TOGLEY 7,75

L.LANAS BLENGIO

0,9

LUMIGANOR 9,9

ENGRAW 1,8

PV 10

PV 5

PV 5

PV 5

PV 10

Central Gen. Libertador II_50

H PASO SEVERINO 5

ARATIRÍ PUERTO 20 MW

ARATIRÍ MINERA 170 MW

MW

2010-2017 Electricity Sector Investment•State by UTE : 2.990 USD millions (Gen, Dist, Trans, etc.)(*100%)

•LNG Regasification: 450 USD millions

•20 years WIND PPA´s (Power Purchase Agreement)

– UTE – ELETROBRAS : 110 USD millions (*50%)

– UTE (Trust y S.A.) : 550 USD millions (*6%)

– 100% Private Sector: 1.700 USD millions

•Private Solar Photovoltaic: 400 USD millions

2360:

•Private Solar Photovoltaic: 400 USD millions

•Private Biomass (pulp and others): 550 USD millions

�6.750 USD millions in 8 years�1.6% of the mean GPD (Gross National Product)

ONLY in the Electric Sector�50% of the invests in Renewable

�45% of the total invest by the state (UTE*)

Why 2.3 billion dollars of non-state investment in wind energy was possible?

•Confidence in the country and UTE. Uruguay has Investmen Grade

•Availability of Legal, Regulatory and Commercial instruments– Investment Promotion Law

– Rural Renting Law

– Adjustments of Electricity Regulatory Framework

– Adequacy of Environmental Regulations– Adequacy of Environmental Regulations

– 20 Year Power Purchase Agreement (PPA)

– Bankable (due diligence & non-recourse project finance)

•Market conditions (cost of money & technology)

•Alignment of all related actors– Academy, Port&Custom, Transport, Business Organizations

•UTE playing as Active developer of Projects

Competitive

Procedure

P37637 K39123 K39607 K41938 K43037

Date 2/2009 7/2009 7/2010 8/2011 2/2012

USD/MWh 90,25 90,25 85,35 63,5 63,5

MW of de PPA 14.7 54 150 192 488

Evolution of the Purchase Price of Wind Energy

• UTE-ELETROBRAS (65 MW) at 63.5 USD/MWh

• Extensions of successful PPA´s (100 MW) at 61.46/60.53 USD/MWh

• UTE: Trust y SA (280 MW) at 63.5 USD/MWh

prices@january2012, 60% PPI and 40% currentINCLUDES NETWORK INTEGRATION COSTS

Other PPA’s assigned with same o less reference costs:

Expected summer daily profile

GOOD

GOODBAD

Expected winter daily profile

GOOD/POOR

BETTER

GOOD

0,8

1

1,2

1,4

ex

pe

cte

d e

ne

rgy /

ex

pe

cte

d a

nu

al a

ve

rag

e

Wind

Monthly correlation of sources

GOOD

GOOD

BAD

0

0,2

0,4

0,6

1 2 3 4 5 6 7 8 9 10 11 12

ex

pe

cte

d e

ne

rgy /

ex

pe

cte

d a

nu

al a

ve

rag

e

month

Wind

Hydro

Sun

Demand

WIND and DEMAND: GOOD

SOLAR and HID in SUMER: GOOD

SOLAR and DEMAND in WINTER: BAD

Pumping and Accumulation

¿2030

?

First 30 electric cars of UTE

The biggest fleet in South America

Year 2020: BSS until end of battery life

50004600

1250 2300

49505000

6000

7000

8000

9000

10000

MW

SOLAR

WIND

BIOMASS

THERMAL

HYDRAULIC

PEAK

SOLAR at94 USD/MWh

SOLAR at69 USD/MWh

WIND at69 USD/MWh

Optimum Instaled Power 2040

28.000 GWh/year10.300 GWh/year

1538 1538 1538 1538

1224 14041540 1540

1200

1800 2000

4950

0

1000

2000

3000

4000

5000

2013 2016 2040 2040

MW PEAK

890 CC650 TG

Next 15 years for the Electric Sector•State Policy

•Centralized State Planning

•Renewals (Hydro, Wind, Biomass, Solar FV)

•LNG Thermal units– Combined Cycle (TG+TG+TV) (in construction)– Combined Cycle (TG+TG+TV) (in construction)

– TG (current and future constructions)

•Regional integration (Interconnections)

•Smart Management of the Electric Grid– Demand Management (Optimization of Gen&Grid)

– Optimization of the Operation• Renewable Prediction, Optimum Dispatch and Automation

“The vertical integration of business models is a strength and an opportunity as it facilitates optimizing the variable

generation making demand management “

September 2014: 384 MW working

Wind Generation

Percentage of the demand

UTE: “We are friends of wind, water and sun”.

N° 1

150 kW

YEAR

2000

Juan Pablo Terra Wind Park

Agosto 2014

67.2 MW

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