Presentation is loading. Please wait.

Presentation is loading. Please wait.

Case Study: Jepirachi Wind Power Project Northeastern Atlantic Coast Colombia Charles Cormier, PCF Team Tel: +1.202.473.5423

Similar presentations


Presentation on theme: "Case Study: Jepirachi Wind Power Project Northeastern Atlantic Coast Colombia Charles Cormier, PCF Team Tel: +1.202.473.5423"— Presentation transcript:

1 Case Study: Jepirachi Wind Power Project Northeastern Atlantic Coast Colombia Charles Cormier, PCF Team Tel: +1.202.473.5423 ccormier@worldbank.org

2 Project Characteristics Description: Aeolic facility owned and operated by Empresas Publicas de Medellin (EPM), with 19.5 MW, supplied by a total of 15 generators (capacity of 1.3 MW each) Location: Wayuu Indian Territory in the Northeastern region of the Atlantic Coast of Colombia Financing: EPM’s balance sheet; USD $21 million

3 Benefits for Project Sponsor Carbon finance provides an additional source of revenue –Revenues from sales of electricity: 90% –Revenues from carbon emission credits: 10% With carbon finance, IRR increases by +1.0 Plant will be first in country (renewable, new technology) Wind potential in area is significant (5 GW/y ) and could represent important contribution to power system for the country (contrary trend to period of rains) Linked to social development program

4 Sources of Energy in the Colombian Grid 1990-2010

5 The project is additional... Demand is expected to increase between 3.7 to 5.8% in the next five years. Due to economic situation: Withdrawal of public sector investors Reluctance of private sector to invest in hydroelectric power Most likely course of action without CDM as determined through least cost analysis:  The most probable expansion plan consists of future investments in thermal energy  This is confirmed by comparing generation costs of Jepirachi wind power project (USD 38.35 / MWh) with other alternatives in the baseline study Coal USD /MWh 35.30 CCGT USD/ MWh 31.50 – 32.82 OCGT USD/ MWh 36.50

6 What type of energy will be displaced ? Will displace the most expensive energy that is dispatched at the margin From 2003 to 2009 will displace a mixture of gas and coal From 2010 to 2024 will displace energy from gas The Monitoring Plan will confirm these assumptions and measure actual emission reductions

7 Issues during Validation Whether local indigenous community were supportive of project Extent of public consultation Environmental Impact Assessment (migratory birds, etc.) Sustainable development indicators/ economic development indicators

8 Characteristics of the Wayuu Nation Semi-nomadic people; territory spans Northern east corner of Colombia and adjacent Venezuela Matriarchal society without centralized structure 30,000 individuals, 300 in the project area.

9 A formal agreement between the Project Sponsor and the Wayuu Community was signed following extensive negotiations, to outline a community driven compensation and development plan Social Development

10 Education: Provision of school facilities and teachers

11 Health Strengthening of health center (electricity, instruments, medical personnel)

12 Water Supply: Provision of water desalinization plant

13 Conclusions PIN submitted in march 2001 Initial validation opinion (favorable) was issued in June 2002 Agreement reached on terms of emission reduction purchase agreement in June 2002 Project will generate: 1.168 mtCO2 over 21 years PCF will buy first 800,000 tons at $3.5/tCO2e, with additional premium of $0.50 t/CO2e for social benefits Finalisation of Emission Reduction Purchase Agreement expected in December 2002 Completion of construction expected in October 2003


Download ppt "Case Study: Jepirachi Wind Power Project Northeastern Atlantic Coast Colombia Charles Cormier, PCF Team Tel: +1.202.473.5423"

Similar presentations


Ads by Google