Comparison between Wind Energy Public Policies in Brazil and Colombia Claudia Lorena Esquivel PhD Candidate - University of Sao Paulo Teacher University of San Buenaventura - Cali

Outline Carry out an analysis of the most relevant elements in energy planning of the energy grid - Installed capacity for wind energy Review the legal framework in order to assess the inclusion of wind power within the energy grid Identify the effect of these policies on the electric market

Energy Planning It is a strategic issue for the economic development of any country How do countries define strategic plans and design public policies to meet the expectations of CO2 reduction and at the same time to develop a reliable and secure system that responds satisfactorily to the demand?

Energy grid in Colombia and Brazil https://erenovable.com/importancia-de-energia-eolica/

Energy planning and Wind Power in Brazil The long term energy planning  is drawn up by the Ministry of Mines and Energy and the Energy Research Company which has been set out in the National Energy Plan 2030 document Photovoltaic Wind power Biomass Solar The proposal has a greater expansion of new renewable sources Brazil has one of cleanest energy (electricity grids in the world - approximately a 90% of electricity energy comes from renewable sources Hydraulic energy

Installed Capacity of Wind Power in Brazil www.energiaestrategica.com/desarrollo-e-implementacion-de-proyectos-de-energia-eolica/

Public policies for Wind Power in Brazil The strategic planning of the Brazilian Government provided for the alternative sources of energy is in concordance with the planning criteria for the development provided in the Federal Constitution in its Article 174. The long-term planning for the energy sector is the Ten-Year Plan for Expansion PNE and the last was prepared for 2030. Renewable energies: an opportunity to diversify the energy grid, to achieve technological innovation and develop new businesses creating conditions for a sustainable economy.

Colombia’s Electric System Strong population concentration in areas connected to the National Interconnected System Installed power generation capacity: 15,513 MW (6th largest in Latin America) Heavy dependence on hydro (70% of total installed capacity and 2ND after Brazil)

Renewable Energy Participation in Colombia’s Energy Basket Main factors for current limited renewables: Abundant water resources Reliability issues Limited to non-existent knowledge of market regarding renewables potential

Colombia’s Renewables Potential: Wind Power

Public policies designed for Wind Power Relevant elements in energy planning of the energy grid in terms of the expansion of the capacity installed for wind energy. Regulatory incentives in the legal framework that contemplates the contractual options of how the wind power can be negotiated.

Public policies designed for Wind Power in Colombia and Brazil Both developed and emerging countries include in their economic development and energy policy an increase of installed capacity of renewable energy. Brazil meets its energy demand with a 61% and Colombia with 70% of hydroelectric power. The lack of water in a reservoir constantly threat with a supply crisis, before it is forced to use the thermoelectric stations which are highly polluting and expensive

Public policies designed for Wind Power in Colombia and Brazil It is indispensable to create conditions that ensure the opening of spaces for alternative sources. This diversification process should be done by ensuring the continuity and security of the electric sector.  Wind power, among few other renewable energy sources, constitutes an alternative of an important impact in energetic transitions that are carried out in both countries.

Comparison Installed Capacity Source: XM and UPME Source: Aneel

Incentives for Renewable Energy Brazil Incentive Program for Alternative Sources - PROINFA New phase of wind power incentives. Thus, the electrical energy market includes two trading environments: - the regulated market of electrical power; the other the wholesale energy market, in both energy can participate. The contracts of wholesale market are bilateral and the price is freely negotiated, generating a greater risk and it usually has a short term duration Colombia Law 1715/15 and Decree 4541 /2017

electric MARKET Brazil had renewable energy auctions since 2009 Colombian the renewable energy have not participation in the market

Evolution of the price of wind power in auctions in Brazil

conclusions The two countries have clean electric matrices if the main source is considered to be hydraulic generation, however they must diversify this matrix to avoid vulnerability to drought seasons. Therefore, participation with renewable energies should continue to be increased; the most interesting is the wind energy due to its enormous competitive advantages in terms of prices, participation in the auctions and in addition it is environmentally friendly. Within the incentives created by Brazil, the aspect of competition as a criterion to enter to participate in the electricity market, always has been present -PROINFA- and it is currently maintained in the auction system.

conclusions • With regard to Colombia, it is pertinent to design and implement public policies with specific targets for increasing the wind power source, which should include benefits that will allow private investments and thus bring new players into the sector Electrical, with which it is democratized its operation and management. Therefore, it is essential that Colombia incorporate mechanisms that allow the development of wind energy projects with private public participation. • Just as Brazil has done, Colombia requires that the wind source actively participate in the electricity market, which depends to a large extent on the progress made in connection with the national distribution and transmission system.

conclusions • Current regulations in Colombia offer a greater degree of legal certainty for investors in wind power sources, however greater benefits are required to make it attractive. This is essential for the wind power source to acquire greater stability and competitiveness compared to conventional sources of energy.

Thank you