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DISPERSED RURAL POPULATION DISPERSED RURAL POPULATION ELECTRICITY SUPPLY PROGRAM ELECTRICITY SUPPLY PROGRAM OF ARGENTINA OF ARGENTINA Lic. Aldo FABRIS Coordinator for R&D Energy Secretariat Ministry of Economy and Public Works and Services Finansol 98 - ALBUQUERQUE

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Page 1: DISPERSED RURAL POPULATION ELECTRICITY SUPPLY PROGRAM OF ARGENTINA Lic. Aldo FABRIS Coordinator for R&D Energy Secretariat Ministry of Economy and Public

DISPERSED RURAL DISPERSED RURAL POPULATION ELECTRICITY POPULATION ELECTRICITY

SUPPLY PROGRAM SUPPLY PROGRAM OF ARGENTINAOF ARGENTINA

Lic. Aldo FABRIS

Coordinator for R&D

Energy Secretariat

Ministry of Economy and Public Works and Services

Finansol 98 - ALBUQUERQUE

Page 2: DISPERSED RURAL POPULATION ELECTRICITY SUPPLY PROGRAM OF ARGENTINA Lic. Aldo FABRIS Coordinator for R&D Energy Secretariat Ministry of Economy and Public

ELECTRICITY SERVICES IN SOUTH ELECTRICITY SERVICES IN SOUTH CONE OF LATIN AMERICACONE OF LATIN AMERICA

1960 1970 1980 19901

10

100

1000

10000

HOGARES RURALES

SIN ENERGIA(MILES)

1960 1970 1980 1990

ARGENTINA BRASIL CHILE PARAGUAY URUGUAY

Page 3: DISPERSED RURAL POPULATION ELECTRICITY SUPPLY PROGRAM OF ARGENTINA Lic. Aldo FABRIS Coordinator for R&D Energy Secretariat Ministry of Economy and Public

THE PROBLEM/ARGENTINA

Between 2.5 y 3 million people with no electricity services.

Relatively high number of public services with no electricity supply (schools, first aid medical centers, water services, etc.).

Electricity supply by grid extension not possible due to high extension costs by new incorporated user.

Page 4: DISPERSED RURAL POPULATION ELECTRICITY SUPPLY PROGRAM OF ARGENTINA Lic. Aldo FABRIS Coordinator for R&D Energy Secretariat Ministry of Economy and Public

DISPERSED RURAL POPULATION WITHOUT ELECTRICITY SERVICES BY STATE

(THOUSAND OF INHABITANTS)

0

50

100

150

200

250

300

Page 5: DISPERSED RURAL POPULATION ELECTRICITY SUPPLY PROGRAM OF ARGENTINA Lic. Aldo FABRIS Coordinator for R&D Energy Secretariat Ministry of Economy and Public

PREVIOUS ELECTRICITY SUPPLY EXPERIENCE WITH RENEWABLES

SEVERAL STATES INSTALLED DIESEL GEN-SETS, MICRO-HYDRO, PV SYSTEMS AND WIND SYSTEMS.

IN ALL CASES SYSTEM MAINTENANCE WAS CARRIED ON BY THE USERS AND/OR THE STATE OWNED ELECTRICITY UTILITIES.

FACTORS FOR FAILURE:

– LOW TECHNOLOGY KNOWLEDGE.

– LOW PRIORITY OF THE USERS WITHIN COMPANY PROGRAM.

– NO SYSTEM MAINTENANCE. FINAL RESULT:

– PEOPLE CHARACTERIZED RENEWABLES TECHNOLOGY AS UNRELIABLE.

Page 6: DISPERSED RURAL POPULATION ELECTRICITY SUPPLY PROGRAM OF ARGENTINA Lic. Aldo FABRIS Coordinator for R&D Energy Secretariat Ministry of Economy and Public

DIAGNOSIS

RENEWABLE ENERGY (SOME OF IT, TYPICALLY SHS) TECHNOLOGIES ARE ELECTRICITY SUPPLY READY BECAUSE THEY ARE:

– TECHNOLOGICALLY MATURE.

– ECONOMICALLY COMPETITIVE.

– SOCIALLY ACCEPTED. THE MAIN DETECTED PROBLEM IS SUSTAINABILITY DUE TO

PROGRAMS WITH A STRONG EMPHASIS IN SOCIAL WELFARE NOT LOOKING FOR MEDIUM/LONG TERM ISSUES THAT DO NOT CARE OF:

– LONG TERM MAINTENANCE AND PARTS REPLACEMENT.

– PEOPLE TECHNICAL TRAINING.

– ECONOMIC SUSTAINABILITY OF SUPPLY.

Page 7: DISPERSED RURAL POPULATION ELECTRICITY SUPPLY PROGRAM OF ARGENTINA Lic. Aldo FABRIS Coordinator for R&D Energy Secretariat Ministry of Economy and Public

ELECTRICITY SUPPLY PROGRAMGOAL AND PREMISES

PROVIDE MINIMUM ELECTRICITY SERVICES TO DISPERSED RURAL INHABITANTS AND RURAL SERVICES (LIGHTS AND SOCIAL COMMUNICATIONS) USING THE MOST ECONOMIC TECHNOLOGY.

SHARED RESPONSIBILITY:

– USERS (THE PAY A TARIFF IN ALL CASES) – STATE GOVERNMENTS (THEY USE THEIR ELECTRICITY

PROMOTION FUND PARTIALLY FOR THE PROGRAM) – FEDERAL GOVERNMENT (ASSIST THOSE STATE IN WHICH

THE LOCAL AVAILABLE FUND ARE NOT SUFFICIENT ELECTRICITY SERVICES PROVIDED BY PRIVATE

CONCESSIONAIRES WHOSE INCOME IS ENOUGH TO RUN THE BUSINESS UNDER PREVAILING ECONOMIC CONDITIONS IN THE PRIVATE SECTOR.

Page 8: DISPERSED RURAL POPULATION ELECTRICITY SUPPLY PROGRAM OF ARGENTINA Lic. Aldo FABRIS Coordinator for R&D Energy Secretariat Ministry of Economy and Public

ELECTRICITY SUPPLY PROGRAMELECTRICITY SUPPLY PROGRAMGOALSGOALS

REACH WITH ELECTRICITY SERVICES TO 1.400.000 INHABITANTS (315.000 users) and 6000 PUBLIC SERVICES WITH SEVERAL TECHNOLOGIES. MOST OF THESE SERVICES RENEWABLE ENERGY TECHNOLOGIES WILL BE USED.

MINIMUM TARIFF TO USERS OF ABOUT $15 A MONTH.

MINIMUM SERVICES QUALITY IS OF ABOUT 4 KWh/MONTH.

WORKING POSITIONS IN THE PRIVATE SECTOR ARE CREATED.

Page 9: DISPERSED RURAL POPULATION ELECTRICITY SUPPLY PROGRAM OF ARGENTINA Lic. Aldo FABRIS Coordinator for R&D Energy Secretariat Ministry of Economy and Public

FINANCINGFINANCING

FIVE YEARS PROGRAM TARIFAS A USUARIOS(1) $147.000.000 FONDOS ESPECIALES (2) $113.000.000

FONDOS ADICIONALES $ 54.000.000

TOTAL $314.000.000

(1)VALOR PRESENTE NETO DE BALANCE DE TARIFAS (TARIFAS - COSTOS DE O&M ) 10% - 20 AÑOS

(2)FONDOS EXISTENTES SECTOR ELECTRICO (FCT)

Page 10: DISPERSED RURAL POPULATION ELECTRICITY SUPPLY PROGRAM OF ARGENTINA Lic. Aldo FABRIS Coordinator for R&D Energy Secretariat Ministry of Economy and Public

WORLD BANK RESPONSEWORLD BANK RESPONSE

RENEWABLE ENERGY PROJECT IN RURAL MARKET (PERMER)

– FIRST PHASE UP TO 10 STATES

– WB LENDING TO THE ARGENTINIAN GOVERNMENT OF ABOUT U$ 40 MILLIONS.

– GEF SUBSIDY (CO2 MITIGATION) OF AROUND U$ 13 MILLIONS.

VERY IMPORTANT TECHNICAL ASSISTANCE PROGRAM TO OVERCOME THE BARRIERS FOR THE INTRODUCTION OF RENEWABLES.

WB PARTICIPATION GIVES TO THE GOA INITIATIVE CREDIBILITY WORLD WIDE.

CREDIT NEGOTIATION IS IN THE FINAL PHASE.

Page 11: DISPERSED RURAL POPULATION ELECTRICITY SUPPLY PROGRAM OF ARGENTINA Lic. Aldo FABRIS Coordinator for R&D Energy Secretariat Ministry of Economy and Public

PRESENT SITUATION/ 1PRESENT SITUATION/ 1

DISPERSED MARKET OF SALTA PROVINCE.

– PRIVATE CONCESSIONAIRE SINCE SEPTEMBER/96.

– 18000 POTENTIAL PRIVATE USERS.

– 500 PUBLIC SERVICES TO BE SUPPLIED WITHIN FIRST 3 YEARS.

– MAXIMUN TARIFF STRUCTURE FIXED.

– BIDDING IN COMBINATION WITH THE CONCENTRATED MARKET WITH CROSS DEFAULT PUNISHMENT.

– WINNER UNION FENOSA & EXCEL GROUP.

– AROUND 200 SCHOOLS UNDER CONSTRUCTION.

Page 12: DISPERSED RURAL POPULATION ELECTRICITY SUPPLY PROGRAM OF ARGENTINA Lic. Aldo FABRIS Coordinator for R&D Energy Secretariat Ministry of Economy and Public

PRESENT SITUATION/ 2PRESENT SITUATION/ 2 DISPERSED MARKET OF JUJUY PROVINCE.

– PRIVATE CONCESSIONAIRE STARTING IN DEC/96.

– INVESTMENT GROUP

– JOINT OFFER WITH CONCENTRATED MARKET ALTHOUGH CLEARLY IDENTIFIED.

– CROSS DEFAULT STATEMENT

– 6500 POTENTIAL PRIVATE USERS.

– 300 PUBLIC SERVICES.

– 14 SOLAR VILLAGES

– 100 SCHOOLS REPOWERED

– NOW BUYING 600 SHS FOR PRIVATE USERS.

– AUTOMATION OF 5 EXISTING MICRO HYDRO.

Page 13: DISPERSED RURAL POPULATION ELECTRICITY SUPPLY PROGRAM OF ARGENTINA Lic. Aldo FABRIS Coordinator for R&D Energy Secretariat Ministry of Economy and Public

PRESENT SITUATION/ 3PRESENT SITUATION/ 3

RIO NEGRO MARKET– 8000 PRIVATE POTENTIAL USERS.– PRIVATE CONCESSIONAIRE OF GRID MARKETS USE

AN OPTION TO PROPOSE A CONTRACT AND TARIFF STRUCTURE TO ATTEND THE DISPERSED RURAL MARKET.

– THE STATE GOVERNMENT IS BEING ASSESSED BY CONSULTANTS OF THE WB PROGRAM FOR PRIVATE COMPANY PROPOSAL EVALUATION.

LA RIOJA MARKET– IS UNDER NATIONAL AND INTERNATIONAL TENDER

FOR THE ELECTRICITY AND WATER RURAL MARKETS.

Page 14: DISPERSED RURAL POPULATION ELECTRICITY SUPPLY PROGRAM OF ARGENTINA Lic. Aldo FABRIS Coordinator for R&D Energy Secretariat Ministry of Economy and Public

RESUMERESUME MOVE FROM EQUIPMENT SUPPLY TO ELECTRICITY SERVICE

CONCEPT.

MOVE FROM PROGRAM OR PROJECTS THINKING TO LONG TERM BUSINESS THINKING.

BUILD UP GOVERNMENTAL SUPPORT FOR THE IDEA. LOOK FOR GOVERNMENT PRIORITIES.

WORK WITH THE ENERGY SECTOR.

FINANCING INSTITUTION PARTICIPATION ADDS VALUE TO THE INITIATIVES.

IF YOU HAVE A BUSINESS, FINANCING IS NOT A HEAVY PROBLEMS. MAY TAKE SOME TIME, BUT IT IS POSSIBLE.

Page 15: DISPERSED RURAL POPULATION ELECTRICITY SUPPLY PROGRAM OF ARGENTINA Lic. Aldo FABRIS Coordinator for R&D Energy Secretariat Ministry of Economy and Public

FOR MORE INFORMATION

INTERNET

http://www.mecon.ar/energia/energia.htm

[email protected].

Page 16: DISPERSED RURAL POPULATION ELECTRICITY SUPPLY PROGRAM OF ARGENTINA Lic. Aldo FABRIS Coordinator for R&D Energy Secretariat Ministry of Economy and Public

MUCHAS GRACIAS POR SU ATENCION

FIN