This GT alert highlights the news of the electricity sector in Latin America from January to April 2023.
Intervenes in the Argentine electric power corporation for 180 days.
After the power cuts in the Buenos Aires area, the Minister of Economy, Sergio Massa, ordered the intervention of the State in the operations of the power distributor Edesur and appointed Jorge Ferraresi as the new director of the company for 180 days.
Argentina receives more than 2,000 MW of bids for the RenMDI tender.
RenMDI’s tender for renewable energy and energy garage projects attracted more than anticipated.
148 projects presented, for a total of 1953. 8MW, distributed as follows:
These projects will compete for the 500 MW that will be awarded for the award.
The award will take place until June 14. On June 20, the management company of the wholesale electricity market will publish the qualifications of the award. The award will be effective on July 6 and the contract will be signed between July 11 and November 2.
Argentina will resume oil exports to Chile.
Starting in June, Argentina will resume oil exports to Chile after 17 years.
In February 2006, the Trasandino (Otasa) gas pipeline, which connects the northern component of Neuquén with Chile, closed due to a drop in production.
As of May 15, Otasa has been reactivated with a forecast of 40,000 barrels of consistent oil per day.
The new Vaca Muerta Norte pipeline is expected to come online in September. It will first export 70,000 barrels consistent with the day through Otasa, it has the capacity to ship more.
Federal Court of Appeals approves oil exploration in Mar del Plata.
The Federal Court of Appeals of Mar del Plata rejected a petition filed through Mayor Guillermo Montenegro and environmental organizations to cancel the offshore oil exploration allocation involving YPF, Equinor and Shell.
The exploration will be subject to the assumptions provided for in the lower degree judgment, which includes the coverage of biodiversity areas. Activities shall be suspended without delay in the event of significant environmental damage.
The allocation is estimated to achieve a production volume of 200,000 consistent barrels per day, or 35% of Argentina’s current production.
Green hydrogen in Brazil.
Brazil’s National Institute of Clean Energy (INEL) announced the creation of a coordinated center to promote hydrogen progress in the state of Ceará.
The working group will work with the federal government, as well as state and municipal governments, on developing regulatory frameworks around the use of green hydrogen in the northeast region of the country.
In an interview with BNamericas, INEL’s Green Hydrogen Secretary, Luiz Piauhyno Filho, said INEL’s objectives include making recommendations to the federal government and the National Congress to make the green hydrogen industry viable, as well as the construction of committed gas pipelines.
The National Energy Commission calls for transmission works to be held in Chile.
The National Energy Commission (CNE) of Chile has presented a call for the presentation and advancement of new projects and the expansion of the existing shipping formula in the country, in accordance with the commitments acquired in the initial program for the moment of the energy transition.
The proposals would possibly be included in a list of projects that the NCA will publish in July 2023.
The consultation period closed on May 22 and proposals must be submitted by June nine via email.
Subsequently, on July 24, the NCA will publish a list of drafts. The deadline for receipt of enforcement requests is 7 August.
Chile will contribute US$1. 5 billion to the projects.
Latin America’s largest green hydrogen plant began production in March.
Chile generating and exporting hydrogen-based green artificial gas at the Haru Oni plant in March 2023.
The project, which is the largest plant of its kind in the region, is owned by Highly Innovative Fuels and Siemens Energy, in the town of Punta Arenas in the Magallanes Region of Chile.
The plant produces 93-octane gas, which is chemically similar to traditional gas but free of impurities.
It is estimated that the plant will have the capacity to produce 350 tons of crude methanol and 130,000 liters of green gas consistent with year-on-year, wind energy and carbon dioxide extracted from the atmosphere.
Chile announces lithium strategy.
The president of Chile, Gabriel Boric, presented a new state policy that includes the creation of the National Lithium Company and the participation of corporations in new developments.
The five pillars of Boric’s new policy to bring lithium production to the state involve the creation of a national lithium company, the participation of the personal sector, new lithium extraction technologies, the participation of communities near the deposits and the generation of value-added products.
Boric is under pressure that his policy will be designed in response to the climate crisis, ensuring that the lowest imaginable environmental impact on ecosystems.
Also, given its relevance in the production and reserves of lithium, special attention will be paid to the Salar de Atacama.
AE Solar its operations in Colombia with new proposals for quality and innovation.
German PV module manufacturer AE Solar is operating in Medellin, Colombia, as part of its expansion plan in Latin America.
Colombia has significant potential to expand new PV projects, thanks to its geographical location and economic measures to inspire the expansion of solar energy.
AE Solar is a Tier 1 manufacturer and one of the leading brands in the renewable energy market.
Gustavo Petro launches the first tender for an electrical project: a 500 kV transmission line.
The government of Gustavo Petro launches the first tender for an electricity transmission allocation in Colombia: the Primavera 500kV-VER substation. The determined investor will be responsible for the variety and acquisition, design, construction, operation and maintenance of the allocation.
Bids must be submitted by the end of June and the allocation must be operational until July 2024.
The Minister of Mines and Energy supports 6% bills for renewable energy projects over 10 MW.
The Minister of Mines and Energy, Irene Vélez, expressed for the initiative proposed through the New National Development Plan (PND) (currently under debate in Congress) to build renewable energy bills of more than 10 MW from the current 1% to 6% of gross sales of energy production.
Minister Vélez maintains that if the percentage of movement is increased, the communities “will understand everything” and will feel that these projects have negative effects and constitute a style of economic progression that does provide social or economic benefits.
During the State led by President Gustavo Petro, Colombia and Spain signed a Memorandum of Understanding to identify a cooperation framework for the mutual use of the advantages of a just energy transition and the decarbonization of the electricity sector.
In accordance with the provisions indicated by the International Labour Organization (ILO) and the United Nations Framework Convention on Climate Change through the Paris Agreement, the two countries will work together in the following areas:
Renewable energies, decarbonization of the electricity sector, mitigation and adaptation initiatives to climate replacement, energy communities, decentralization and digitalization of the electricity sector, policies for a just energy transition, recycling and production in post-extractive areas, green hydrogen and its derivatives, methods opposed to power poverty, etc.
Colombia will hold its first offshore wind auction in August: more than 3 GW submitted in the region.
During her tour of the Iberian Peninsula, the Minister of Mines and Energy, Irene Vélez, announced that Colombia will hold its first tender for offshore wind power generation projects.
The bidding situations will be in place in August and it is estimated that 4 to 6 projects will participate.
According to the knowledge of the Energy Mining Planning Unit, to date, 11 offshore wind allocations representing 5,035 MW of capacity have been submitted to the allocation registration report.
Mexico the Sonora Renewable Energy Plan.
Sonora’s plan aims to link state sources with the U. S. Promote the production of electric vehicles and the structure of gigantic power plants in white.
According to Foreign Minister Marcelo Ebrard and President Andrés Manuel López Obrador, the plan is in the final stages of negotiation.
One difficulty that arose from the negotiations was the Mexican government’s requirement that state-owned CFE own all power-generating assets. The U. S. government agreed on the condition that the structure of the factories be entrusted solely to U. S. companies.
The new solar parks will be built with preferential financing from the United States, with directly Mexican debt.
If executed, the plan would mark a strategic shift in Mexico’s stance toward renewable energy.
The president of Mexico, Andrés Manuel López Obrador, signed in Sonora a decree to hoist lithium, consolidating the mineral as assets for exploration and exploitation.
With this decree, the first lithium mining reserve zone in Sonora will be created. The 234,855 hectares are estimated to involve more than 243 billion tons of lithium, making it the largest lithium deposit in the world.
Iberdrola sells in Mexico to a state-owned company.
Iberdrola announced the sale of 80% of its assets in Mexico for 6,000 million dollars.
The entity has informed the National Securities Market Commission (CNMV) that its subsidiaries Iberdrola Generación México and Iberdrola Renovables México have reached an agreement with Mexico Infrastructure Partners (MIP) for the creation of a personal acceptance contract with controlled through MIP to take over all the stocks of several generation plants.
The CRE is responsible for the modalities and.
On February 28, 2023, the Energy Regulation Commission (CRE) published in the Official Gazette of the Federation (DOF) the agreement A/004/2023 that resumes, as of March 1, 2023, the deadlines and modalities of the acts and procedures suspended as a preventive measure against the spread of COVID-19 since March 24, 2020.
Energy shortages are holding back investment in nearshoring.
The disorders in the electricity supply in some parts of the country, such as the north and northeast, as well as the electrical distrust in localities such as Tijuana, Ciudad Juárez, Guanajuato, Jalisco, Coahuila, Zacatecas and Reynosa, pose demanding situations for the relocation of corporations to Mexico.
The credit rating firm Moody’s Investors Services has identified three main threats that may limit the outlook for proximity in Mexico: (1) infrastructure constraints, (2) public policy impediments and (3) climate change.
National transmission infrastructure has shown greater degrees of congestion, restricting interregional connectivity.
In addition, the federal government’s energy policy, which favors the Federal Electricity Commission (CFE), has been an impediment to the progress of renewable energy projects.
In addition, meteorological hazards related to water scarcity and droughts can affect the productive sector, in the center-north and north regions of the country, which are vulnerable to water stress hazards.
Reduced prices of green hydrogen.
The Mexican Association of Hydrogen and Sustainable Mobility has predicted that the load of green hydrogen can only be reduced by up to 64%.
Israel Hurtado, executive president of the organization, in his participation in the panel “Green Hydrogen: Opportunities for the Industry”, said that the price reduction would increase uptake and production.
He also noted that in the future the production of other technologies would be boosted, adding hydrogen fuel cells, electric turbines, electrolyzers and garage tanks, among others.
Romelí Barbosa, president of the Mexican Hydrogen Company, stressed that Mexico has all the mandatory situations for a leading actor in the hydrogen industry, since it has the technical and analytical capacity required for the advancement of projects in the field.
César H. Cadena, president of the Nuevo León Energy Cluster, said that green hydrogen will be for the long term of Mexico’s electricity sector, and highlights its importance in mitigating the effects of climate change.
Panama includes more than 400 MW of renewable energy in its hydrogen strategy.
The national H2V proposal, recently in public consultation, includes a 160 MW solar power plant and an 18 MW wind farm in the Arco Seco area, as well as a 290 MW photovoltaic plant in Colón.
Panama aspires to lead the Global Route of Green Hydrogen and its derivatives. The draft Panamanian National Strategy for Green Hydrogen and its Derivatives (ENHIVE) describes its action plans in the short, medium and long term.
Non-conventional renewables would be a component of the programme. The preliminary edition of ENHIVE mentions two projects to produce and convert H2V into ammonia or e-kerosene: “Production of H2V in Panama and transformation into green ammonia” for Green Bunkering, which includes a 290 MW solar power plant project in the province of Colón, and “Production of hydrogen in Panama and conversion into electronic aviation kerosene for clean air fuel. “which integrates a 160 MW solar power plant and an 18 MW wind farm in the Arco Seco area.
Panama compares the implementation of virtual self-consumption with the prices of green hydrogen electricity.
The United Nations Environment Programme (UNEP) presented the effects of its “Applications of green hydrogen in the shipping sector in Panama”, in which it learned the following:
Jorge Rivera Staff, Panama’s Secretary of Energy, said in an interview with the foreign media Energía Estratégica that Panama is a long-term tender that will prioritize renewable energies. The procedure will begin this year.
The tender will compare a component that allows the battery garage to become an integral component of the generation matrix and complement the transmission and distribution infrastructure with quality of service.
The San Juan de Marcona wind farm will be operational until the end of 2023.
According to the Economic Operating Committee of the National Interconnected System (COES), Peru has recently had a construction portfolio of 698 renewable projects, totaling 85 MW. Of these, 412 projects constitute 21 MW of wind power and 286 projects constitute 66 MW of solar energy. .
This portfolio includes the San Juan Wind Farm, which will arrive in December 2023 with an investment of $190 million.
In addition, the wind farm will be connected to the Marcona substation with a 220 kV transmission line of 33 kilometers in length.
The Ministry of Energy and Mines and Acciona sign concession contracts for two projects in Peru.
The Private Investment Promotion Agency (PROINVERSIÓN) reported that the Ministry of Energy and Mines (MINEM) and the corporate Transmisora ICA-Poroma S. A. C. signed concession contracts for the electric power projects “220 kV Link Ica-Poroma, Extensions and Associated Substations” and “ITC Link 220 kV Cáclic-Jaén Norte, Extensions and Associated Substations”.
The projects aim to meet the call for electric power development in Ica, Amazonas and Cajamarca.
Both projects were structured under the Public-Private Partnership (PPP) Facility. The grantee will be responsible for the design, financing, construction, operation and any of the projects.
The duration of the concession is 30 years from the date of the announcement of operation: February 2023 for Ica-Poroma and April 2025 for Cáclic-Jaén.
Project to inspire renewable energies in Peru.
The Energy and Mines Commission held a consultation with the National Mining, Oil and Energy Company and the Peruvian Society of Renewable Energies (SPR) to discuss regulations in favor of renewable energies.
The bill, which has won the approval of the majority of the congress, is in its final phase.
Maduro appoints new Minister of Energy and Oil.
Nicolás Maduro, president of Venezuela, appointed Colonel Pedro Tellechea as the new Minister of Energy and Oil.
Maduro announced the appointment on Twitter a day after the resignation of Tareck El Aissami, who left the workplace following the arrest of several officials for their alleged involvement in embezzlement in the oil industry.
Tellechea has a degree in Military Arts and Sciences and has postgraduate specializations in the Argentine Army and Public Finance from the Santa María University, as well as a Master’s Degree in Naval Operations from the Superior School of the Navy of Venezuela.
About this author
Luis Jorge Akle Arronte focuses his practice on environmental issues and renewable energy projects.
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