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RENEWABLE ENERGY NEWS • LATIN AMERICA FOCUS 2012

Price of success rises in Brazil Chinese connection: the first Record 2012 tally still well behind target and turbines in South industry must overcome expanding list of hurdles. America are going up at • Coming Brazilian wind pipeline Enersur’s 16.5MW Villonaco • Local conent help on offer in Ecuador • Transmission snafu strands 620MW Photo courtesy of Facebook: 3 FotoStock Loja Argentina finance tough sell State-dominated power sector makes wind a risky proposition, slowing 754MW of Genren portfolio. • Credit turbulence knocks Genren 2 auction off stride • Argentina wind project upside 8 Panama backing local hero Auction winner UEP brings leap in scale to Central American wind development. • Central America project surge • Capacity jump on cards for 2013 10 Mexico search for easier life Rowdy neighbors in Tehuantepec persuade wind developers to look further afield for new sites. • 5GW bid rush in second open season • Mexico on the move — projects rundown Mist • Developer leads pack of municipalities to the power deal table • Caribbean takes step up in class 11 Muddy permit waters in Peru descends Contrasting fortunes for developers looking Latin American wind farm construction set to scale heights in northeastern Andes region. new records this year and total capacity could • Andes growth struggle • Mystery gremlins at PDVSA project be within touching distance of 5GW inside • High ridges beckon in Ecuador the next five months, writes Sebastian • Chile decks stacked against green power 14 Kennedy. The pace of progress is under threat, however, as delays mount at Brazil’s auction projects Uruguay stuck on blocks while the familiar pressures of securing power deals • Steep wind farm learning curve • Turbine stitch in time... and project finance open a window of opportunity for 17 the Chinese elsewhere in the region. See page 2 latin america 2 reNewsAmericas 9 August 2012 Predicted multi-gigawatt construction bonanza has failed to materialize as complications pile up in Brazil and struggle for long-term power deals and project finance hobbles rest of region Bumps ahead for wind juggernaut ind energy has continued its upward INSTALLED WIND RUNNING TALLY Wtrajectory in Latin Country/region America this year with the installation of 1800MW of new Capacity in MW End- 2010 2011 build End- 2011 2012 build End- 2012 2013 build End- 2013 2014 build End- 2014 2015 build End- 2015 capacity. Argentina 58 55 113 37 150 520 670 269 939 300 1239 Figures compiled exclusively Andes* 23 0 23 74 97 142 239 264 503 120 623 by reNews reveal the sector has maintained the construction Brazil 882 448 1330 902 2232 3285 5517 2411 7928 1377 9305 momentum achieved in 2011 to Caribbean 106 34 140 256 396 110 506 165 671 40 711 hit a new 12-month regional build Central America 186 115 301 40 341 172 513 220 733 116 849 record. Chile 171 30 201 90 291 246 537 463 1000 170 1170 Strong growth was registered in market leaders Brazil and Mexico, Mexico 519 459 978 399 1377 1030 2407 2671 5078 1538 6616 where a total of 1300MW is due Uruguay 43 10 53 2 55 394 449 618 1067 403 1470 for completion before the New TOTAL (MW) 1988 1151 3139 1800 4939 5899 10,838 7081 17,919 4064 21,983 Year. Construction also hit an all- time high in the Caribbean where * Andes = Bolivia, Colombia, Ecuador, Peru, Venezuela 256MW is coming on-stream. The progress should push Latin Brazil’s eye-catching auction efforts to protect national industry renewable power. The number America to a cumulative installed framework set an unwelcome by excluding major turbine of unbuilt wind farms looking capacity total of almost 5GW tone ahead of plans for a major suppliers that have fallen foul of for power supply deals over the within the next five months. expansion of federally-contracted local content rules are only likely long term is growing across Chile, This year’s installation figures capacity. to add further complications to the Argentina, Mexico and elsewhere. fell well short of the multi- An unhappy mixture of next wave of auction wind farms These can prove elusive in gigawatt bonanza predicted by transmission, supply chain and due to break ground shortly. markets where utilities and large some developers and officials in planning constraints has seen Elsewhere in Latin America, the consumers can meet their needs 2011, however. developers request extensions perennial issues of access to long- buying low marginal cost base- Large swaths of capacity en masse for wind farms due to term power purchase agreements load power in the spot market. failed to materialize as predicted deliver power from July. and availability of project finance Similarly, wind developers note and project timeframes have The fact that each postponed remain the chief stumbling blocks. that low interest infrastructure slipped across Central and South project ran into its own unique Proponents argue significant loans amortized over 15 or 20 America. As a result the 2013 raft of setbacks suggests there may debt will only be channelled into years are not a speciality of Latin forecast appears hard to believe at be no quick solution to the evident the sector when unwavering state banks, which are more interested 5900MW. problems implementing wind in support is exhibited through the in generating quick returns on Widespread delays to the 1.8GW Brazil. provision of a stable regulatory relatively modest sums. of wind commercialized through The country’s understandable framework for the sale of This situation has created a window of opportunity for Chinese consortia offering turnkey Rivas flows: Blue Power & Energy’s financing and turbine solutions. 39.6MW La Fé – San Martin wind These structural issues will farm in southwest Nicaragua went continue to exert a downward live in June Photo: Blue Power & Energy force on wind energy expansion in Latin America but the region can still capitalize on macro-economic factors. Major suppliers are keen to nurture new markets to prop up their flagging order books in Europe, the US and parts of Asia. If supportive governments and investors hold their nerve, the desire for growth should soon reach critical mass and propel Latin America into the global wind limelight. www.reNewsAmericas.com • www.reNews.biz latin america reNewsAmericas 9 August 2012 3

Up to the challenge: Impsa’s operational 100MW Ceará I wind cluster is being boosted by 211MW Photo: Impsa

Price of success rises in Brazil razil has managed to crank outside Brazil’s federally regulated up its wind energy program Record 2012 installation tally still auction framework remains a Bbut blockages in the supply well behind target and industry must distant dream and the enduring chain, transmission and planning overcome expanding list of hurdles reliance on state tenders leaves the system are threatening to stall the sector subject to a large degree of sector. political risk. Figures compiled exclusively 1450MW majority of the 1.8GW Power watchdog Aneel shortened The repeat postponement of by reNews show the nation is contracted at the first 2009 federal the term of power purchase this year’s A-3 and A-5 auctions on course to connect as much as tender is severely delayed and will agreements to reflect the delays and the lack of readily-accessible 900MW of new wind to the grid miss the 1 July 2012 deadline by and claw back above-market rate private PPAs left several gigawatts in 2012, a significant increase on many months. payments promised under Proinfa. of wind stranded without a route previous years. Wind projects have been held Other Proinfa parks that have to market. Much of this is expected in the up by a variety of bottlenecks failed to deliver contracted The deferral until October will final quarter so a sizeable chunk including administrative quantities of power are being only intensify competition and may well fall into 2013, but either foot-dragging in processing punished by a downgrading drive down already-low auction way this year’s tally promises to environmental licenses, supply in their so-called ‘physical PPAs to even more challenging break records and push Brazil over chain under-capacity, financing guarantees’. rates, analysts warned. The the 2GW operational threshold. deficits and transmission delays. Industry proponents said this fantastically low prices, 2011 The first wave of wind Brazilian regulators have discrepancy must be addressed tenders dipped to R$98/MWh, farms from the government’s demonstrated they will not accept if wind is to participate fully place huge pressure on the contentious power auctions are project hold-ups. in Brazil’s unregulated power stretched Brazilian supply chain up and running, demonstrating Retroactive changes imposed market. The physical guarantee to meet demand while remaining that wind is viable, under certain on wind farms delivered years is said to be a crucial metric for competitive. conditions, at R$131 per MWh. after deadlines stipulated under demonstrating project viability This issue was brought to the Despite these achievements, the previous Proinfa framework to private off-takers more used to fore by development bank BNDES’ Brazilian wind is lagging well left some investors facing a buying base-load capacity. suspension of five major behind official forecasts. The shortfall on projected revenues. Mass commercialization of suppliers, including 5 www.reNewsAmericas.com • www.reNews.biz latin america 4 reNewsAmericas 9 August 2012

COMING BRAZILIAN PIPELINE Due 2013 3284.5MW Project State MW Developer/owner Turbines Contracted at Dec 2009 wind auction Alto Sertão I BA 294 Renova Energía GE Areia Branca, Embuaca, Mar e Terra, Icarai RN, CE 89.9 Martifer / Santander Faisa I-V CE 136.5 Votorantim Energia Sustentável/Enerplan Suzlon Miassaba III, Rei dos Ventos I & III RN 186 Brasventos Alstom Morro dos Ventos I, III, IV, VI, IX RN 145 Dobreve Energia GE Santa Clara I-VI, Eurus VI RN, CE 188 CPFL Wobben Contracted at LER 2010 auction Campo dos Ventos II RN 30 CPFL Wobben Cristal, Primavera, Sao Judas BA 90 Enel Brasil Siemens Da Prata, Dos Aracas, Morrao, Seraima, Tanque, Ventos do Nordeste BA 163 Renova Energía GE Eurus I & III RN 60 Dobreve Energia GE Eurus II, Renascença V RN 60 Atlantic Energias Renovaveis Fazenda Rosario II RS 20 Elecnor / Enerfin Wobben Serra Santana I-III RN 77.4 Gestamp Vestas Contracted at LFA 2010 auction Aratua III RN 28.8 Bioenergy GE Arizona, Caetite, Calango, Mel RN, BA 258 Iberdrola, Neoenergia Gamesa Asa Branca I-III, Eurus IV RN 120 Energimp (Impsa) Impsa Asa Branca IV-VIII RN 160 ContourGlobal Brasil GE Atlantica I, II, IV & V RS 120 CPFL TBC Costa Branca, Juremas, Macacos, Pedra Petra RN 78.2 CPFL (previously ERSA) Siemens Osorio III RS 26 Elecnor/Enerfin Wobben Pedra Branca, Sao Pedro do Lago, Sete Gameleiras BA 86.4 Brennand Energía, CHESF Vestas Pontal 2B RS 10.8 Oleoplan/Oleos Vegetais Planalto GE REB Cassino I-III RS 69 Santander TBC Renascença I-IV, Ventos de Sao Miguel RN 150 Energisa Vestas São Bento do Norte RN 94 Dreen Energia (Galvão Energia), COPEL Vestas Vento Formoso, Ventos de Tiangua, Tiangua Norte, Parazinho, Morro do Chapeu CE 150 Energimp (Impsa) Impsa Contracted at A-3 2011 auction Livramento: Cerro Chato IV, V & VI, Ibirapuitã, Trindade RS 78 Eletrosul/Rio Bravo Investimentos/Elos Impsa Contracted on free market Fleixeiras I, Mundaú, Guajirú, Trairi, Porto da Delta CE, PI 145.5 Tractebel Energia Siemens Uniao dos Ventos RN 170 Grupo Serveng GE Expected 2014 2411.3MW Contracted at LFA 2010 auction Casa Nova BA 180 CHESF Impsa Contracted at A-3 2011 auction Cataventos CE 30 Tecneira/Grupo ACS Gamesa Chui I, II, IV & V, Minuano I & II RS 144 Eletrosul/FIP Rio Bravo Energia I Impsa Delta do Parnaíba, Porto das Barcas, Porto Salgado PI 75.6 Omega Energia Renovável Gamesa Santa A Pádua, Sao Cristovao, Sao Jorge CE 73.6 Abengoa/Banco Santander Gamesa Fontes dos Ventos, Curva dos Ventos, Modelo BA, RN, PE 197.4 Enel Green Power Siemens Various BA 212.8 Renova GE Verace I-X / Geribatu RS 258 Eletrosul/FIP Rio Bravo Energia I Gamesa Contracted at Reserve 2011 auction Caicara RN 57.6 Bioenergy GE Carcará, Carnaúbas, Reduto, Santo Cristo, Sao Joao RN 142.4 Voltalia TBC Corredor do Senandes II-IV, Vento Aragano I RS 116 Odebrecht Energias Alternativas, MML Energia Alstom Dos Indios II RS 28 Elecnor/Enerfin Wobben Famosa I, Pau Brasil, Rosada, Sao Paulo RN, CE 85 Furnas/Grupo BMG/Ventos Tecnologia Fuhrländer Lanchinha, Pelado RN 48 Gestamp Vestas Malhadinha CE 24 Servtec Suzlon Santa Helena, Santa Maria RN 60 Casa dos Ventos/Copel GE Various BA 148.8 Brazil Energy (Nova Investimentos / Man B&W) GE Ventos de Santo Uriel RN 16.1 Dobreve Energia GE Ventos de Sebastiao / Geraldo / Santa Rosa / Inacio CE 120 Energimp (Impsa) Impsa Contracted on free market Campo dos Ventos, São Benedito RN 254 CPFL Vestas Various RN 140 Pacific Hydro, Vale TBC Due 2015 and 2016 1377.3MW Contracted on free market TBC BA 400 Renova Energia / Light TBC Contracted at A-5 2011 auction Goiabera, Ventos de Horizonte, Jandaia, Sao Januario, Ubatuba, Jandaia I, Nossa CE 204.4 Furnas/Alupar Investimento Fuhrländer Senhora de Fatima, Pitombeira, Santa Catarina, Sao Clemente Jericoacoara CE 110 Voltalia/CHESF TBC Areia Branca RN 60 Voltalia TBC Ventos da Andorinha BA 29.9 Casa dos Ventos TBC Marco dos Ventos I & II MA 57.6 Bioenergy TBC Baixa do Feijao I-IV RN 120 EDP Vestas? Forca I-III, Dos Índios RS 94 Enerfin TBC Cataventos Embuaca CE 12 Tecneira TBC Ventos de Campo Formoso I & II BA 59.8 Casa dos Ventos TBC Macambira I & II, Cabeco Preto II, VI & VI RN 115.4 Gestamp TBD Ventos de Morrinhos BA 29.9 Casa dos Ventos TBC Pontal 3b RS 25.6 Oleoplan TBC Ventos do Sertao & Morro dos Ventos II BA 58.7 Dobreve Energia TBC www.reNewsAmericas.com • www.reNews.biz latin america reNewsAmericas 9 August 2012 5

Brazilian transmission red faces: Renova Energia’s 294MW Alto Sertão wind farm in Bahía will remain offline until power lines are installed by CHESF next year

Photo: Renova Energia

Price of success rises in Brazil Vestas, from project 3 finance due to their failure to comply with national index requirements. BNDES paralyzed its cash disbursements to projects using the de-listed turbines, which could cause knock-on delays to Chile’s most progressive wind farms due from 2013 and associated late-delivery penalties. Some believe the withdrawal developer of BNDES finance may also prompt private investors to offload marginal projects that are reliant on the development bank’s Mainstream is a leading developer of wind and solar plant in Chile. The company preferential rates to deliver a is presently developing over 1,000MW. viable return. Any retreat in private sector involvement in Brazilian wind Mainstream’s core business is to develop and build superior quality onshore wind would place greater pressure on and solar plant and sell them to their natural owners – utilities, mines, energy state-controlled entities, which intensive corporations and pension funds. already hold a sizeable market share, to pick up the slack. Working together with local communities, landowners, supply chain partners, The hidden subsidy offered by government, municipal and provincial authorities, these projects will deliver utilities capable of absorbing a lower internal rate of return is signifi cant benefi ts and value to all stakeholders. They will stimulate local believed to have shored up the manufacturing, create jobs, contribute to Chile’s climate change mitigation challenging economics of certain objectives and provide energy security for Chile. Brazilian schemes. One observer said unbuilt projects in this category may end up repeatedly changing hands “until the large public utilities are For more information, please contact: coerced by the government into Apoquindo 4700, Proudly members of building out the less attractive sites”. Piso 10. Las Condes, Santiago, Chile. “The federal wind program Tel: +562 5923100 cannot be seen to fail and building Email: [email protected] the projects at any cost would help to save face,” a source said. www.reNewsAmericas.com • www.reNews.biz latin america 6 reNewsAmericas 9 August 2012

Mobile home: Inneo Torres decommissioned an onsite tower factory in Santa Catarina after wrapping up installation at Impsa’s 125MW Agua Doce wind farm earlier this year Photo: Inneo Torres

BNDES open to Help on offer to hit Brazil’s turbine switch NDES has opened the local content benchmarks Bdoor to a shake-up in he failure of five big-name quick solution to boost their local financed wind farms previously, turbine supply deals to enable turbine companies to meet content. such as Impsa’s 125MW Agua projects using hardware TBrazil’s stringent national “We can offer comfort and Doce site in Santa Catarina, which excluded from finance index requirements has created security to affected suppliers. The came online earlier this year. to meet their contracted an opportunity for enterprising tower accounts for one-fifth or Inneo sets up a mobile tower connection deadlines. supply chain companies. one-quarter of the total turbine factory at the site of each project A spokesman said: “The Efforts by Vestas, Suzlon, content, so if they switch from it supplies, and uses local labor. bank is in talks with the Clipper, Fuhrländer and Acciona a steel or imported turbine they Upon completion the factory is sector to ensure the ongoing to return to compliance with could increase their quota by decommissioned and transported projects are implemented financier BNDES are stoking around 20%,” he said. to the next site. according to the original demand for locally-manufactured The extra mass of concrete The company currently has one schedule, but at the same components. compared to steel also weighs operative Brazilian production time will favor manufacturers Spanish concrete tower specialist in Inneo’s favour. “Weight is line and a further two being that are abiding by the Inneo Torres is increasing its a contributing factor in the dismantled ahead of new projects. bank’s national content footprint in Brazil on the back of calculation of the local content regulations.” claims its structures boast 95% percentage,” he added. • The five excluded suppliers can The statement appears to local content and superior economics Inneo has a “very good go back on the list “as long as suggest some supply orders compared to steel alternatives. relationship with BNDES” and they show that they are acting may be transferred to the Head of sales Jorge Jimeno said is in the process of being audited according to the local content and compliant manufacturers: he has received calls from de- for local-content purposes. The manufacturing rules”, a BNDES GE, Impsa, Wobben, Gamesa, listed turbine suppliers seeking a company has supplied BNDES- spokesman said. Alstom and WEG.

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www.reNewsAmericas.com • www.reNews.biz latin america reNewsAmericas 9 August 2012 7 Transmission chaos leaves Spot prices 620MW hanging on the line underscore razil’s failure to deliver agreements, which in turn will participate in a tender you know benefits of transmission capacity be covered by financial penalties all of the variables. These are Bin time for three major levied against liable network experienced companies who all free market wind projects has cast doubts companies. know how long it takes to get a ecent spot price movements over the timeframes for future The failures raise broader license. Rcould generate increasing developments. concerns about Brazil’s ability “If you are willing to accept demand for wind farms in The image of hundreds of to harmonize project schedules the construction deadline to the free market, according to turbines in the northeast standing with grid infrastructure, which participate, you must be ready to Renova Energia. The Bovespa- idle for a year or more has is auctioned separately from the commit to that.” listed developer, which is prompted regulators to assess generating facilities themselves. Pileggi said he hopes measures commercializing 400MW through where things went wrong. It could The time lapse between the put in place by power regulator a private deal with shareholder also embarrass politicians who two tenders, combined with Aneel to restrict culpable grid partner Light, argues wind can have staked their reputations environmental licensing delays, companies’ participation in future offer a long-term hedge against on the country’s laudable wind was blamed for the late delivery tenders will help prevent a repeat rising wholesale power prices. ambitions. of transmission capacity at these occurrence. “Until now the spot market Renova Energia’s 294MW Alto sites. “Every stakeholder in has been cheaper than long-term Sertão I site, Dobreve Energia’s Renova chief financial officer infrastructure and energy is aware power purchase agreements,” 145MW Morro dos Ventos Pedro Pileggi called on system that this is not an isolated case. said chief financial officer Pedro complex and CPFL’s 188MW operators to up their game to The situation is known at the Pileggi. “But this year the spot Santa Clara and Eurus projects are keep pace with the rest of the energy ministry and in regulatory market has faced a very steep all affected. The wind farms are sector. “The transmission lines agencies, and we expect it won’t increase and the expectation is located in Bahía, Rio Grande do could be tendered (earlier), and happen again but it is not something that this will remain high for quite Norte and Ceará states. the environmental licenses could that is under our control. some time. As a result companies Operators will not be left out be much faster to obtain,” he told “It is a pity it happened because are thinking about contracting of pocket as they will receive reNews. the transmission line is a much energy in the long term.” payments in accordance “But no one can escape from smaller investment than the wind A minimum of 16 years is with federal power purchase the responsibility that when you farm,” Pileggi added. needed to amortize finance offered from development bank BNDES, IN THE BACK OF THE NET Pileggi said, and only now is this starting to look like an attractive Commissioned 2011 447.7MW Project State MW Developer/owner Turbines prospect for wholesale buyers. Proinfa sites A benefit of selling wind on the Alegria I RN 51 New Energy Options (Multiner) Vestas free market is that contracts qualify Alhandra I PB 6.3 Impel do Brasil Suzlon for a discount on transmission Bom Jardín da Serra SC 90 Impsa Impsa charges levied against projects Tramandaí / Elebrás Cidreira 1 RS 70 EDP Brasil/innoVent Wobben sold at federal auctions. The flip- Contracted at Dec 2009 wind auction side is that consumers tend to look Coxilha Negra / Cerro Chato I - III RS 90 Eletrosul Wobben for small chunks of capacity that Fazenda Rosario I & III RS 22 Inveravante/Elecnor/Enerfin Wobben do not offer economies of scale. Mangue Seco RN 104 Petrobrás Wobben Renova gets the best of both Contracted on free market worlds by selling power privately Miassaba II RN 14.4 Bioenergy GE and in federal tenders, and its Due 2012 902.3MW successes at auction facilitated a Proinfa sites move into free-market wind. Agua Doce SC 125.8 Impsa Impsa “If you have a 200MW auction Alegria II RN 101 New Energy Options (Multiner) Vestas site coming online in 2015 it is Contracted at Dec 2009 wind auction easier to add another 30MW in Aratua I RN 14.4 Bioenergy GE the same year with a private off- Barra dos Coqueiros SE 34.5 Energen (Desenvix) taker,” the Renova executive said. Cabeco Preto RN 19.8 Gestamp Vestas Large consumers such as mining Ceara II CE 211.2 Energimp (Impsa) Impsa companies are beginning to show Colonia, Icarai I & II, Taiba Aguia, Taiba Andorinha CE 121.8 Energio Suzlon more interest in Brazilian wind. Dunas de Paracuru CE 42 Inveravante Gamesa Macaubas, Novo Horizonte, Seabra (Brotas) BA 90 Desenvix Alstom Miner Vale’s recent 140MW Osorio II, Sangradouro II & III RS 74 Inveravante/Elecnor/Enerfin Wobben power and equity tie-up with Pedra do Reino BA 30 Gestamp Vestas Pacific Hydro “might... give the Contracted at LER 2010 auction comfort and confidence necessary Cabeco Preto IV & Pedra do Reino III RN, BA 37.8 Gestamp Vestas for consumers to take a long-term END-2012 TOTAL 2231MW position”, Pileggi said. www.reNewsAmericas.com • www.reNews.biz latin america 8 reNewsAmericas 9 August 2012 Argentina finance a tough sell rgentina is inching toward will procure turbines and China bringing online its first State-dominated power sector makes Development Bank will pick up A wave of large-scale wind wind a risky proposition, slowing the tab. farms but the sector is stuck in the 754MW portfolio of Genren projects By tapping Argentine and slow lane due to an acute financial Chinese capital Isolux has bottleneck. apparently sidestepped the tricky Developers are fighting to in Buenos Aires province online timeframes involved are beyond issue of securing long-term progress their projects against in 2013 but is yet to seal a deal for the capabilities of local Argentine finance from lenders wary of the a backdrop of Buenos Aires’ turbine supply. banks, hence the need to look creditworthiness of Argentine spiraling external debt crisis and Commercial manager Agustín internationally,” he said. state off-takers. the sovereign risk associated Marcenac said: “We are in the Global infrastructure company Only one small Genren wind with a state-dominated electricity process of closing finance and Isolux Corsan managed to finance farm, Impsa’s 25MW Koluel Kayke sector. once that is resolved we will start the first 50MW of its Loma Blanca II in Santa Cruz, is known to have International financiers’ construction. At the moment it is complex by way of an issuance of secured debt since power purchase unwillingness to put money into slated for October but we don’t debt securities. Construction is agreements were awarded in 2010. infrastructure developments in have any certainty.” now underway at Loma Blanca Impsa said a similar multilateral Argentina has presented a major Marcenac said funding IV, where Alstom is lined up to debt deal is imminent at its 50MW obstacle to the 754MW of wind Argentine wind is still seen as a provide turbine hardware next Malaspina I project in Chubut. contracted by state utility Enarsa risky proposition, even though the year, its first firm Argentine order. The only operational Genren through renewables program few operational Genren sites are The same financing and supply wind farms, utility Emgasud’s Genren. not known to have experienced arrangements are in the pipeline 77.4MW Rawson I and II sites in Some Genren projects are any payment or cash flow issues. for the second 50MW tranche of Chubut, were built off the balance starting to show signs of progress “We have been searching in Loma Blanca. sheet. after many months of stagnation, the US, Europe, India, China Isolux is turning to a Chinese Emgasud is still progressing however. Developer Sogesic said and even Brazil for finance for consortium to finance and build with civil and electrical works at it remains hopeful of bringing its turbines. The hundreds of millions the remaining 100MW at the its Puerto Madryn development 100MW Tres Picos I & II schemes of dollars required and the Patagonian site. Hydrochina while it seeks finance for turbines.

www.reNewsAmericas.com • www.reNews.biz latin america reNewsAmericas 9 August 2012 9 Credit turbulence knocks Genren 2 auction off stride ncertainty and delays allows for direct power sales with Usurrounding Genren wind private consumers but the law farms has spread into a second prevents companies from pooling Argentine renewables tender. their demand to buy from one Genren 2 has been paralyzed since large generator. late 2010 while officials wait for A further contracting the first round to deliver results. mechanism known as Resolution State utility Enarsa has (SE) 108/11, which offers 15- refrained from assessing bids for year power deals with electrical Public finance solution: La Rioja provincial government is doubling up to 1200MW of wind but nor wholesalers, has proven capacity at its 25.2MW Arauco wind farm Photo: Impsa has it declared the tender void. unworkable for wind energy due The impasse has prompted to the need to amortize debt over immediate action to remove the to be financed, built and owned by companies hoping to secure 15 years with double-digit interest final barriers. state and provincial governments. sovereign power purchase rates. “We are asking for small A successful example is the agreements to search for “We need to amortize over 20 modifications in the law but are Arauco wind farm in La Rioja, alternative arrangements in the years with a two-year grace period told this is not a time for change which will be doubled in size to private sector. for construction,” Revelli said. and to wait. I would like the 50MW by early next year using German developer ABO Wind The ABO Wind boss praised government to produce a solution. Impsa hardware. said a private PPA would be officials for developing innovative These wind farms need to be built Plans are afoot to expand the considered more creditworthy private sector contracting out,” she said. site to 400MW over five years than one with state off-taker frameworks but called for One option would be for projects backed by public funds. CAMMESA but legal obstacles are preventing a final deal. ARGENTINA WIND PROJECT UPSIDE ABO Wind Argentina managing Due 2012 37.2MW director Vanesa Revelli said a Project State MW Developer Turbines few minor tweaks to existing El Jume Santiago del Estero 8.4 Sociedad ENERSE SAPEM Impsa laws would pave the way to a Genren projects bankable private power deal for Rawson II Chubut 28.8 Emgasud Renovables Vestas the company’s 50MW Vientos del Secano wind farm in Buenos Aires Expected 2013 520.2MW province. Arauco II La Rioja 25.2 La Rioja government Impsa The project has four years’ Vientos del Secano Buenos Aires 50 ABO Wind TBC wind measurements and all the Genren projects permits needed to break ground, Koluel Kayke II Santa Cruz 25 Impsa Impsa but a bankable PPA is proving Loma Blanca IV Chubut 50 Isolux Alstom stubbornly elusive. Malaspina I Chubut 50 Impsa Impsa Revelli said variable power Puerto Madryn I & II Chubut 100 Emgasud Renovables Vestas sources such as wind remain Puerto Madryn Norte Chubut 50 International New Energies (Emgasud) Vestas excluded from Energy Plus, an Puerto Madryn Oeste Chubut 20 Energías Sustentables (Emgasud) Vestas initiative launched in 2006 to Puerto Madryn Sur Chubut 50 Patagonia Wind Energy (Emgasud) Vestas encourage self-supply generation Tres Picos I & II Buenos Aires 100 Sogesic TBC in industrial sectors. “Energy Due from 2014 269MW Plus provides rates above the spot Puerto Deseado Santa Cruz 39 Sowitec TBC market and would be a perfect Genren projects framework for us to achieve Koluel Kayke I Santa Cruz 50 Impsa Impsa finance but the law says you have Loma Blanca I & III Chubut 100 Isolux Hydrochina to guarantee an exact quota of Loma Blanca II Chubut 50 Isolux Alstom energy, minute by minute,” she Malaspina II Chubut 30 Impsa Impsa said. Another potential route to Expected from 2015 300MW market through Argentina’s Picún Leufú Neuquén 100 WPD/Sadesa TBC distributed generation system is La Americana Neuquén 50 WPD/Sadesa TBC effectively blocked to large wind Gastre I Chubut 150 Generadora Eólica Argentina (GEASSA) TBC farms. The distributed model • Two wind farms added 55MW to the national tally last year and installed capacity at end-2012 is expected to reach 150MW www.reNewsAmericas.com • www.reNews.biz latin america 10 reNewsAmericas 9 August 2012

CENTRAL AMERICA SURGE Panama putting its Due 2012 39.6MW Project Country MW Developer/owner Turbines La Fé - San Martin Nicaragua 39.6 Blue Power & Energy Vestas faith in local hero Expected 2013 172.4MW anama will become the Auction Alba Rivas Nicaragua 39.6 Albanisa Vestas latest Central American Cerro de Hula II Honduras 24 Globeleq Mesoamerica Energy Gamesa Chiripa Costa Rica 49.5 Acciona/Grupo Ecoenergía Acciona country to join the wind winner UEP P Eolo de Nicaragua Nicaragua 44 Globeleq Mesoamerica Energy Gamesa club next year with the installation brings leap Valle Central Costa Rica 15.3 Juwi of a sizeable project in the central province of Coclé. in scale to Due 2014 220MW Union Eólica Panameña (UEP), Central American Penonomé Panama 220 Unión Eólica Panameña Vestas? a local renewables developer wind development Due 2015 116MW backed by Spanish capital, Penonomé II Panama 116 Unión Eólica Panameña TBC is preparing to kick off civil engineering works at its 220MW UEP swept the board at the secured $340m project finance no later than January 2014. Penonomé 1 wind farm. auction to secure power purchase for Penonomé’s first phase from Further expansion is on the The development, by far the agreements for 158MW with local Banco Internacional de Costa cards and UEP will future-proof largest in the region in its first distributors. A further 62MW Rica and a group of local banks, the wind farm by installing phase alone, will draw a line under private supply deal was inked with leveraged by $110m of equity. a substation and electrical the fruitless speculation that has GDF Suez subsidiary Altenergy to Foundation excavations will infrastructure capable of exporting characterized developer interest bring Penonomé up to 220MW. begin in September. Tents and the site’s full 336MW capacity. in the country’ wind resource in The developer’s boss said the water pumps will be used to allow Once turbine installation is recent years. key to its success at last year’s work to progress during Panama’s underway at phase one, UEP will “When I first came to Panama auction, aside from competitive rainy season. look to close out power deals for four years ago there were bids in the region of $100 per Turbines are expected to the remaining output. 4000MW of provisional licenses MWh, was its localized approach. arrive at a local port next March. “The large substation allows us approved for wind farms and “We have had an office here Installation is slated for May at the to dilute the cost per megawatt not a single meteorological in Panama for more than two end of the dry season when a drop and gives us flexibility to build mast installed,” said UEP chief years and employ local staff who in wind speeds makes working at out smaller phases of 10MW executive Rafael Pérez Pire. monitor progress on a daily basis. height possible. quickly and easily. We could sell A government initiative to Some of our competitors work on A segment of the park may the power in a subsequent tender tender for wind projects sorted their sites from abroad and fly in become operational before end- or through the SIEPAC regional the wheat from the chaff and for only brief visits,” he said. UEP 2013 and full power is scheduled interconnector,” Pérez Pire said.

Capacity jump on cards for 2013

Nicaragua hotspot: the 39.6MW La Fé – San Martin wind farm is the latest in a string of new projects coming forward in the department of Rivas Photo: Blue Power & Energy

single wind farm will come to be 340MW. Blue Power & nearby Alba Rivas project on the de Hula II project in Honduras Aonline in Central America this Energy’s 39.6MW La Fé – San shores of Lake Nicaragua early in next year. year but firm plans are in place for Martin development went live in the New Year. Costa Rica will host a further a regional growth spurt of 172MW June after powering up 22 Vestas Globeleq Mesoamerica Energy’s 63MW of wind capacity in 2013 in 2013. V90 1.8MW turbines at the site in 44MW Eolo de Nicaragua scheme, courtesy of Acciona and Juwi. A The region saw 115MW added Rivas, southwest Nicaragua. the fifth to date in Rivas, is pending wind tender will see Costa last year and total installed An almost identical array of 22 scheduled for later in 2013. GME Rica’s state utility ICE buy in more capacity at end-2012 is expected V100s will follow at Albanisa’s will also deliver the 22MW Cerro megawatts later in the decade. www.reNewsAmericas.com • www.reNews.biz latin america reNewsAmericas 9 August 2012 11

Joining the club: the first wind farm in Chiapas state became a reality this year with the commissioning of Grupo Dragon’s 28.8MW Arriaga facility Photo: Chiapas govt.

Mexican search on for easier life ind development has progress opportunities in other achieved a momentum Rowdy neighbors in Tehuantepec parts of the country. Wof sorts in Mexico persuade wind developers to look The state of Chiapas joined the despite ongoing difficulties for wind club this year and a second projects located in the country’s further afield for new project sites project is scheduled nearby in Tehuantepec hot-spot. around 12 months’ time. The sector is aiming to build Renovalia’s Piedra Larga and have suffered setbacks early in the Nuevo León, Jalisco and more than 350MW by end-2012 Recursos Eólicos de Mexico’s build-out. Tamaulipas could follow suit with for the third year running with Oaxaca I, have seen repeated Macquarie Group, which owns modest-sized maiden projects in total installed capacity currently altercations. a third of Mareña, said the wind 2013. standing at 1377MW. Both companies declined to farm will come online in 2013 as Ambitious gigawatt-scale plans Four Oaxaca wind farms comment on their wind farms, planned but would not comment in Baja California may also begin representing more than 200MW which were originally scheduled to on reported local disputes. to bear fruit next year. are already online, courtesy of begin operating in 2011. The ongoing issues in Oaxaca These and other developments Grupo Dragón, Enel, Peñoles and The international consortium undermine the deliverability of will have to contend with issues Gamesa. behind Mareña Renovables’ large-scale ambitions in the region common to all Mexican However, progress at other key 396MW project is also reported to and developers are starting to wind farms contracted 12 projects is significantly hampered by ongoing conflicts with indigenous communities. Bidders ante up 5GW in second open season The pace in Oaxaca’s windy exican developers have 400MW while EDF took 300MW. requests for 1212MW fell well Tehuantepec Isthmus is still Mreserved more than 5GW State utility CFE reserved at least short of CRE’s anticipation of up largely dictated by developers’ of capacity on new transmission 400MW for the Sureste wind to 4GW. ability to negotiate land use infrastructure to be built in three tender. Grupo Energia Mexico GEMEX, agreements in a way that avoids states. Clipper made part-owned by Spanish company generating confrontations Energy regulator CRE is the largest request in Oaxaca of Fersa, scooped 254MW across five with neighboring tenants and concluding the latest open season 500MW only to walk away from Tamaulipas wind farms. landowners. to gauge the companies’ appetite the allocation later. Under the Mexican system, CRE Recent history shows for new wind projects. In Baja California, demand of estimates the level of developer disagreements over rents and The greatest demand was found 987MW outstripped expectations demand for transmission and access payments can easily lead in Oaxaca, as expected, but the of 500MW. The largest slice of invites companies to respond with to prolonged road blockades and 3GW total fell slightly short of the 362MW was taken by holding specific project proposals. The even boil over into violence. 3200MW on offer. company Quadrant Dos de regulator then allocates capacity Two projects running Eólica Unión Hidalgo and Baja California. The opposite accordingly and levies holding significantly behind schedule, Mareña Renovables each bagged transpired in Tamaulipas, where fees. www.reNewsAmericas.com • www.reNews.biz latin america 12 reNewsAmericas 9 August 2012 Developer leads pack of municipalities to the power deal table n independent developer in project in Tamaulipas, have fallen of Mexico to which banks are rate per MWh, Lebrija said, well AChiapas state is exploiting a by the wayside. prepared to lend. above those available to industrial largely overlooked route to market The task of securing project “To get around this, the state consumers through private power for wind energy in Mexico by finance against local off-takers government is setting up a trust in purchase deals. selling electricity to a grouping of deemed to be uncreditworthy is order to guarantee payment from The payoff for local local municipal consumers. seen as the primary obstacle. the municipalities for their street communities is a potentially Wind farms in the country However, Generadores Eólicos lighting and public buildings. significant saving on energy typically sell power straight to the de Mexico, or Geomex, has “We will charge for electricity bills and the opportunity of Federal Electricity Commission overcome the obstacles and generated by the wind farm from employment during construction (CFE) or through a private supply closed a complex power purchase the trust, which is backed up by a of the wind farm. contract with a large industrial agreement with 121 municipal federal budget in the eventuality of “Use of local labor is part of the consumer. entities for a 20MW pilot wind non-payment,” he added. agreement. Technical specialists The only known examples of farm in Arriaga. The “very difficult task” of will have to come from further successful municipal farms are a The deal required the approval explaining the concept to local afield, but security and heavy 10MW site in La Rumurosa, Baja of Mexico’s Congress to free leaders, some of whom had never lift work can be sourced locally,” California, built in 2009, and up federal funds to serve as a heard of wind energy, getting Lebrija said. Grupo Dragon’s 28.8MW Arriaga payment guarantee. them on board and seeking Geomex hopes to break ground in Chiapas, delivered this year. Geomex managing director Congressional approval is set as soon as September and deliver Other larger initiatives, such as Ricardo Lebrija said: “There are to pay off soon. Municipalities the wind farm in August 2013. the ill-fated 160MW Los Vergeles very few municipalities in all in Mexico can pay a very high The project is set out on a 100-hectare plot owned by MEXICO ON THE MOVE Geomex. The company has installed meteorological masts Due 2012 398.8MW across a nearby 1000-hectare Project State MW Developer Turbines plot that it has rented from local Arriaga Chiapas 28.8 REM Generación Electrica Mexicana/Grupo Dragón Vestas owners. Bií Nee Stipa II Oaxaca 74 Enel Gamesa It hopes to begin planning work Fuerza Eolica del Istmo II Oaxaca 30 Peñoles Clipper at the end of the year for a second Oaxaca I Oaxaca 102 Recursos Eólicos de Mexico Vestas phase that could top 250MW, Piedra Larga I Oaxaca 90 Desarrollos Eolicos Mexicanos (Renovalia) Gamesa depending on local transmission Stipa Nayaa Oaxaca 74 CISA/Gamesa Gamesa arrangements. Expected 2013 1030.4MW Elsewhere, the developer is Aubanel phase 1 Baja California 72 Cannon Power/Mexico Power Group Gamesa in the early stages of designing Chiapas I Chiapas 20 Geomex TBC a phased 860MW wind farm in El Porvenir I Tamaulipas 54 Enhol Vestas? Baja California. The first 100MW Energía Eólica Mareña & Alterna Istmeña Oaxaca 396 Mareña Renovables (Macquarie, Mitsubishi, PGGM) Vestas or 200MW element could enter Energía Sierra Juárez phase 1 Baja California 156 Sempra Generation TBC planning later this year. Los Altos Jalisco 50.4 REM Generación Electrica Mexicana / Grupo Dragón Vestas Geomex, like others in the state, Santa Catarina Nuevo León 22 Comexhidro/Next Energy México GE is examining options for exporting Santo Domingo Ingenio Oaxaca 160 EDF-EN Gamesa power to the US state of California (previously Eoliatec del Pacifico) or for local consumption. Sureste I Oaxaca 100 TBC (CFE tender) TBC

Due 2014 2670.5MW Search is on for an Bií Stinu (prev. Eoliatec del Istmo) Oaxaca 164 EDF-EN Gamesa easier life in Mexico Carabina I & II Coahuila 400 Sowitec, Santander TBC outside of the federal Comondu/Loreto Baja California Sur 22 Next Energy de Mexico TBC 11 tenders: structuring Cozumel I Quintana Roo 60 Mexico Power Group Gamesa? a bankable long-term power Fuerza Eolica del Istmo III Oaxaca 100 Peñoles TBC purchase agreement with a Mezquite Nuevo León 160 Sowitec, Santander TBC creditworthy off-taker and Piedra Larga II Oaxaca 137.5 Desarrollos Eolicos Mexicanos (Renovalia) Gamesa securing amortized finance. Sureste II, III & IV Oaxaca 1,100 TBC (CFE tender) TBC Numerous significant proposals Tepetate San Luis Potosí 160 Sowitec, Santander TBC originally mooted under Mexico’s Virgen de los Zacatecas Zacatecas 153 Grupo Preneal TBC first dual wind project and Zopiloapan, Dos Arbolitos, El Retiro Oaxaca 214 CISA/Gamesa Gamesa transmission open season have Coming around 2015 1537.5MW failed to get off the drawing board Bií Hioxo Oaxaca 227.5 Unión Fenosa Generación Mexico TBC due largely to these hurdles. Chiapas II Chiapas 250 Geomex TBC The open season delays raise Fuerza Eólica de Baja California Baja California 300 Fuerza Eolica TBC inevitable questions over the Fuerza Eolica del Istmo IV Oaxaca 80 Peñoles TBC likelihood that Mexico will deliver La Bufa Zacatecas 180 Mexico Power Group Gamesa? the 5GW of projects that featured Mexico Wind (power export) Baja California 500 Gas Natural Fenosa/Geobat TBC in the second call (see page 11). www.reNewsAmericas.com • www.reNews.biz latin america reNewsAmericas 9 August 2012 13 Caribbean takes step up in class 101MW Santa Isabel wind farm in Puerto Rico set to give big boost to regional capacity by the year-end

he wind sector is enjoying be physically complete this month a relatively bountiful year when the substation is due to be Tin the Caribbean where brought into service. 256MW of additional capacity The first array in the eastern is due online by December at six portion of Santa Isabel will be sites spread across three islands. energized by early September, Dutch outfit NuCapital followed by the remaining western inaugurated its twin 15MW section at the end of that month. repowering projects on Curacao Full power is slated for early last month and Gestamp’s October and the project will be 23.4MW Punta Lima wind farm is wrapped up by November. Pattern making construction headway in will own and operate the facility Puerto Rico. thereafter. The Puerto Rico Gamesa could also fire up its Electric Power Authority holds 50MW El Guanillo site in the a power purchase agreement for Dominican Republic before 75MW with output above that year-end, when installed capacity amount subject to curtailment. across the region as a whole is “We have defined the number of expected to reach 396MW. hours per year when output would By far the largest Caribbean consistently peak above 75MW wind farm to date, Pattern and there is a strong likelihood Local giant: Pattern’s 101MW Santa Isabel wind farm in Puerto Rico Energy’s 101MW Santa Isabel that the utility will be able to plan will be the largest Caribbean wind farm by a wide margin when it in Puerto Rico, is said to be for and accept the power,” Powell powers up in October Photo: Pattern Energy advancing “exceptionally well” told reNews. towards full power. “All of this was taken into utility accepting the 75MW will be capacity of the PPA eventually to Project manager Collie Powell account in the planning, execution an upside for the project and the rule out curtailment altogether but said at least half of the project’s and financing of the wind farm, island.” this is expected to take time. “In 44 Siemens 2.3MW turbines will so anything above and beyond the Pattern will look to increase the the interim there is a mechanism for minimising those instances,” the project manager said. CARIBBEAN HIGH JUMP Powell said curtailment should Due 2012 256.4MW not hinder further renewables Project State MW Developer Turbines development in Puerto Rico El Guanillo Dominican Republic 50 PECASA (Gamesa) Gamesa because output tends to coincide Los Cocos II Dominican Republic 52 EGE Haina Gamesa with periods of peak demand. Playa Kanoa repowering Curacao 15 NuCapital Vestas Over time the utilities will Punta Lima Puerto Rico 23.4 Gestamp Wind Vestas improve their understanding Santa Isabel Puerto Rico 101 Pattern Energy Siemens of the generating pattern of Tera Kora repowering Curacao 15 NuCapital Vestas renewables facilities to power down greater chunks of the Expected 2013 110.15MW island’s diesel and bunker oil Belle Vue St. Kitts 5.4 North Star Development TBC burners during high winds and Granadillos Dominican Republic 50 InverAvante Vestas sunshine. Guayanilla Puerto Rico 24.75 WindMar Renewable Energy Vestas “I don’t think that we will see a Matafongo Dominican Republic 30 InverAvante Vestas complete displacement of fossil Due 2014 165MW fuels for some time, there is a natural apprehension (to shutting Puerto Plata-Imbert Dominican Republic 115 Jasper Caribbean Windpower TBC Luperón Dominican Republic 50 Los 4 Vientos ? down plant). They will more fully power down when they can Likely 2015 409MW reliably count on wind and solar,” Los Cocos III Dominican Republic 40 EGE Haina TBC he said. www.reNewsAmericas.com • www.reNews.biz latin america 14 reNewsAmericas 9 August 2012 Permits and grid muddy water in Peru Contrasting fortunes for developers looking to scale heights in northeastern Andes area

handful of wind farms advancing toward completion are starting to come despite the inevitable permitting Aonline in the northeastern issues experienced by maiden Andean region of South schemes. America but growth is limited “These first projects are Expansion phase: the last batch of blades is making its way to EGE by administrative delays and pioneers in Peru so there is a Haina’s 52MW Los Cocos II wind farm in the Dominican Republic unhelpful regulation. lack of understanding among Photo: EGE Haina This year’s addition of 73MW the authorities that influence the in the area will fall more than issuance of permits and licenses. 100MW short of predictions 12 This is reflected in delays to the Level playing field suits wind months ago for developments execution of some projects,” he across Bolivia, Peru, Ecuador, explained in the Dominican Republic Colombia and Venezuela. Coronado said such difficulties ind energy has reached grid and no leverage – then it gets Delivery of Peru’s first wind should dissipate as regulators Wparity in the Dominican complicated,” she said. farms is running significantly become familiar with the new Republic, thanks mainly to the EGE Haina is currently pouring behind schedule and projects technology but more substantial high cost of imported fossil fuel- foundations and progressing civil contracted at renewables auctions barriers lie in wait for the wind fired generation. engineering works at its 52MW are seeking extensions to sector. Power company EGE Haina is Los Cocos II, which will likely connection deadlines. A condition for projects selling output from its 25MW Los retail in the same fashion as phase Construction has barely started connecting to the Peruvian grid Cocos wind farm in Pedernales one. at three projects first tabled for is that they must be developed straight into the spot market and Delivery of the expansion’s 23 operation in June and December near existing substations as the is planning to do the same for Gamesa G97 turbines and three this year. Completion of the system operator will not build future phases at the project. G90s is complete, bar the final combined 142MW is now looking new transmission capacity for Advantages including the site’s consignment of blades. more likely toward end-2013 or renewables. high and EGE Nacelles, gearboxes and tower even later. A wind farm without nearby Haina’s mixed portfolio of plant sections are in storage on-site and Juan Coronado, VP at Peruvian transmission would have to allowed the company to get the at a dockside yard at the port of renewables association APEGER, cover the costs of new scheme away without a long-term Cabo Rojo in Pedernales. said the wind farms are still infrastructure. An 80MW 15 power purchase agreement. Paniagua said she is confident Business development manager the project will at least hit its ANDES GROWTH STRUGGLE Larissa Paniagua said the wind target commissioning date of farm attracts the same revenue as December. “We are optimistic and Due 2012 73.7MW a fossil fuel plant. everything is working out fine,” Project Country MW Developer Turbines “The spot price in our system she said. La Guajira 1a Venezuela 25.2 MPPEE/Corpoelec Impsa is so high that wind energy The company is also pouring Paraguaná I Venezuela 32 PDVSA Gamesa doesn’t really need the support foundations for a meteorological Villonaco I Ecuador 16.5 Enersur/Celec Goldwind of subsidies. The floor price is mast to measure wind speeds at Expected 2013 142MW around $0.14 per kWh and we sell a third instalment of the farm, Cupisnique Peru 80 Energía Eólica/Montealto Vestas? at $0.18.” conditionally pegged in the range Talara Peru 30 Energía Eólica/Montealto Vestas? Paniagua said EGE Haina can of 30MW or 40MW. Marcona Peru 32 Cobra Energía Gamesa? afford to treat the wind farm as a “Los Cocos III is coming but it complement to its existing pool of is very early days. I would look at Due 2014 264.4MW assets but recognizes the challenge 2015 (for construction). Ducal-Membrillo Ecuador 55 Enersur/Celec TBC faced by independent generators. “We shouldn’t assume it is going La Guajira 1b Venezuela 50.4 MPPEE/Corpoelec Impsa “If you don’t have the backbone to be as easy (as previous phases) Paraguaná II Venezuela 69 PDVSA Gamesa? to support your project – if you because it is up in the mountains,” Tres Hermanas Peru 90 Cobra Energia Gamesa? have no PPA, no customers Paniagua said. Andes = Bolivia, Peru, Ecuador, Colombia and Venezuela www.reNewsAmericas.com • www.reNews.biz latin america reNewsAmericas 9 August 2012 15

cuador is racing to bring its Andean ridges around Villonaco. Emaiden wind farm online in High ridges beckon in Ecuador The most advanced is at Ducal- the mountainous southern region coming weeks. Completion of this should be online well before year- Membrillo, where a 36-month of Loja. phase has slipped slightly from the end. wind measurement campaign and Installation of 11 Goldwind original plan of April, when strong Local developer Enersur and micro-siting exercise confirmed 1.5MW turbines at the Villonaco winds impede working at heights. Ecuadorian state power company potential for up to 55MW. project is well underway and it is A June commissioning target CELEC are progressing further The development is pegged for expected to be wrapped up in the came and went but the wind farm sites along the same high-altitude delivery in 2014.

Wide horizons: Enersur is targeting the hills around Villonaco for a series of future wind projects in Ecuador Photo courtesy of Facebook: FotoStock Loja

Mystery gremlins Permits and grid muddy water in Peru at PDVSA project project in a high resource awareness among officials of entire system, and assign capacity nexplained delays have 14 area might be rendered the seasonal benefits of wind to (projects which can) ensure Uprevented the completion unviable by the cost of building and hydro and to improve the security of supply for the whole of commissioning at Venezuelan a 60km high-voltage cable and regulatory system for renewables. country, otherwise we are going state oil company PDVSA’s the losses incurred over such a “We hope the government will to be facing rationing every year,” 32MW Paraguaná I wind farm distance. take a rational approach to the Coronado added. in Falcón state. All 24 Gamesa “This is a major limitation to the MADE AE61 1.32MW turbines growth prospects of wind energy were fully installed in 2011 but will in Peru. Unfortunately there are Visit our websites ... remain inoperative until at least some myths and opposing ideas September this year. from the system operator towards A local engineering source said wind energy,” Coronado said. heavy rains have hit the area but National energy policy is still www.renewsamericas.com there is “no known explanation” geared firmly toward hydro and for the prolonged stoppage. gas reserves despite seasonal Further wind developments in despatch issues with the former Falcón, Nueva Esparta and Sucre and a dwindling supply of the states were cast into doubt by the latter. recent abandonment of plans for Periodic bouts of power a factory to produce the outdated rationing have not brought an MADE turbine range locally. end to the era of cheap gas, which Government officials depresses the marginal electricity reportedly cited a host of external spot price and leaves renewables complications and confirmed dependant on government alternative supply options are auctions. under consideration. “The auction prices are not ... for daily news updates Argentina’s Impsa is a likely very high but they are better than choice for most future Venezuelan competing in the spot market. The wind farms. The company views problem here is low visibility. www.renews.biz Venezuela as a strategic priority “It depends on a political and is advancing plans for a decision to call an auction,” the VP component assembly hub to said. supply a 225MW expansion in La A new renewables tender is Guajira, where turbines are going expected at some point in mid- up at a first phase of 25.2MW. 2013, which should contract a Impsa said the Venezuelan significant amount to keep Peru on facility will provide a stepping course to meet its target of 5% of stone to break into the Caribbean national supply. market. APEGER is pushing to raise www.reNewsAmericas.com • www.reNews.biz latin america 16 reNewsAmericas 9 August 2012

BEATING THE CHILL Due 2012 90MW Project State MW Developer Turbines Talinay East Coquimbo (IV) 90 Vestas Vestas

Expected 2013 246MW Negrete Cuel Biobío (VIII) 34.5 Mainstream Renewable Power Goldwind Punta Chome Biobío (VIII) 9 Seawind Vestas Punta Palmeras Coquimbo (IV) 103.5 Acciona Acciona Raki Biobío (VIII) 9 Seawind Vestas Valle de los Vientos Antofagasta (II) 90 Sowitec/Enel Vestas

Due 2014 463MW Cabo Leones Atacama (III) 170 Grupo Ibereólica Gamesa Ckani phase 1 Antofagasta (II) 70 Mainstream Renewable Power Goldwind El Arrayán Coquimbo (IV) 115 Pattern Energy Siemens Lebu Sur Biobío (VIII) 108 Inversiones Bosquemar/ TBC Consorcio Eólico

Due 2015 170MW Ckani phase 2 Antofagasta (II) 170 Mainstream Renewable Power Goldwind Deck stacked against green power in Chile Government dragging territory with load centers in the middle and north of the country feet on auctions that will take many years to deliver would open floodgates results. An opposition-led attempt to to more generation set a target of 20% renewables by 2020 has meanwhile reached a hile has so far failed to political stalemate. deliver on promises of wide- The upshot is a de-facto return Empty words: Chilean energy minister Jorge Bunster (right) voiced Cranging reforms to allow to business as usual, where support for renewables, despite delays to reforms, during a visit to renewables to compete in the renewables struggle to tie down Vestas’ Talinay East wind farm last month Photo: Chile Ministry of Energy country’s power sector. long-term power purchase Commentators said the agreements despite rising example is Pattern Energy’s but as long as there is no incentive government in Santiago has been wholesale energy prices and the 115MW El Arrayán project in or signal from the government at pains to water down mooted prospect of supply shortages. Coquimbo, which will sell power that this is actually going to plans for technology-specific Despite the difficulties, the to a subsidiary of Antofagasta happen then a large percentage is auctions that would open the wind industry built out 30MW at Minerals from 2014. going to pull out. floodgates to new two projects last year and total The scope for such deals is “We see cash flow issues and capacity. installed capacity at end-2012 is limited, though, and major this is reducing the number President expected to reach 291MW. changes are needed to clear of companies interested in Sebastian Piñera’s A few wind projects are now a multi-gigawatt backlog of developing further,” he said. administration coming forward and a spate of wind farms with environmental New development activity is appears to be turbine deals in recent months will consents or in the planning beginning to slow as companies playing for time by progressing see installation rates pick up over system. concentrate on getting their with only modest initiatives such the next few years. A local industry source said existing pipelines off the drawing as a single solar auction and Utilities are buying in some the uncertain future of electricity board. leasing out government land to capacity to meet a renewables provision in Chile is placing Others are looking to cut their developers. portfolio standard that recently independent developers under losses by offloading projects to Other new measures including came into effect, and mining enormous strain. utilities and shutting down their an “electric highway” to connect companies are also providing “You have around 70 companies Chilean operations altogether, the Chile’s high-resource Patagonian a route to market. A notable fighting over the sites that are left source said. www.reNewsAmericas.com • www.reNews.biz latin america reNewsAmericas 9 August 2012 17 Uruguay stuck on starting blocks Gigawatt-plus wind using a variety of procurement 65MW Libertador, which is second wind tender are also mechanisms to operate, lease or under construction and due for now coming forward. German ambitions now look buy power from up to 1500MW of completion midway through 2013. developer Sowitec’s 42MW new farms. Impsa said the project will help Generación Eólica Minas in set to begin paying The lengthy gestation of UTE’s kick-start Montevideo’s industrial Lavalleja is scheduled to deliver dividends in 2013 plans has led to warnings in some plan, modeled around Brazil’s power in 2013. quarters of the practicality of national content requirement The company’s 49.2MW Vientos ruguay will have to wait sourcing enough local components for turbine manufacturers, by de Pastorale wind farm in Flores another year before its and labor, and of the grid’s sourcing an “important part” of will follow suit in 2014. It is one Uambitions to host more capability to equipment locally. of nine developments with firm than a gigawatt of wind start to absorb the power. This has allowed the supplier- grid offers and a “second chance” bear fruit. Plans are developer to secure a “significant power purchase agreement of Projects contracted under the beginning to part of the funding” for Libertador $63.50 per MWh with UTE. country’s first tender failed to come together, from the main Uruguayan banks. Four of the remaining five materialize as planned in 2012 albeit more slowly Impsa is also training local “second chance” bids – Compania amid reports of transmission and than anticipated, at the first technicians and professionals to Darinel, Enerfin, Estrellada, supply chain constraints. wave of three private wind farms run a service center in the country Infeval and Ladaner – are being State utility UTE is at the heart contracted to supply 165MW to to carry out operations and relocated to sites with spare export of Uruguay’s diversification UTE. maintenance work. capacity before power deals with into wind and the company is The most advanced is Impsa’s Projects contracted in UTE’s UTE can be finalized.

A stitch in time...

urbine installations are Florida. The machine is project inception to oversee Vestas and managed the Tset to dip to a four-year powering production at the economic modeling, wind construction phase. low in Uruguay this year factory under the ‘Windmade’ measurements, permitting Total installed capacity in with a sole 1.8MW Vestas international initiative and civil and electrical Uruguay at end-2012 will be V100 unit (right) being to promote industrial engineering designs. 55MW. Just 10MW was added commissioned at wool applications of wind energy. Ventus also negotiated the last year by Kentilux at its exporter Engraw’s premises Local consultancy Ventus supply and operations and Magdalena project in San near the town of Fray Marcos, was brought on-board at maintenance contract with José. Photo: Ventus www.reNewsAmericas.com • www.reNews.biz latin america 18 reNewsAmericas 9 August 2012

URUGUAY’S STEEP LEARNING CURVE Due 2012 1.8MW Project Department MW Developer Turbines Engraw Florida 1.8 Engraw Export & Import Co. S.A Vestas

Expected 2013 393.7MW Arbolito / Fortuny I & II Cerro Largo 18.7 Grupo Fortuny Gamesa Luz de Mar-Caracoles Maldonado 18 Luz de Mar TBC UTE first 150MW tender Libertador I-III Lavalleja & Maldonado 65 Consorcio Venti (Impsa) Impsa Carapé Maldonado 50 Fingano (Grupo Sanjose, Corporación America, Vestas? Contreras Hermanos), Statoil Peralta Tacuarembó 50 Palmatir (Teyma Abengoa, Inabensa) Gamesa UTE second 150MW tender Peralta GCEE Tacuarembó 100 Aguas Leguas (EAB New Energy, Wobben SEG Ingeniería, Enercon) Generación Eólica Minas Lavalleja 42 Sowitec TBC Santa Catalina Florida 50 Ensol TBC

Due 2014 617.8MW UTE leasing San José, Colonia & Flores 180 TBC TBC UTE ‘second chance’ power purchase agreement awards Astidey Flores 50 Astidey SA TBC Florida I Florida 50 Polesine SA (Akuo Energy) Nordex Libertador IV Lavalleja & Maldonado 50 Noukar SA (Impsa) Impsa Melowind Cerro Largo 50 Estrellada (Ferrostaal & juwi) Nordex Molino de Rosas Maldonado 50 Molino de Rosas SA / PTZ Energy Nordex? R del Sur Maldonado 50 R del Sur SA TBC Tulifox San José 48.6 Grupo ACS Gamesa? Vengano Maldonado 40 Vengano (Grupo Sanjose, Corporación America, TBC Contreras Hermanos) Vientos de Pastorale Flores 49.2 Sowitec TBC

Possible in 2015 402.95MW UTE ‘second chance’ offers, awards to be confirmed Compania Darinel Inc. SA Maldonado 82.5 Compania Darinel Inc. SA TBC Consorcio Enerfin Montelecnor Canelones 80 Consorcio Enerfin Montelecnor TBC Estrellada SA Cerro Largo 68.5 Estrellada SA TBC Infeval SA Maldonado 76.95 Infeval SA TBC Ladaner Tacuarembo 95 Ladaner SA TBC

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