In past days the envelopes with the technical offer of the Official Plan of Renewable Energies (GENREN) bid were opened. The proposing companies are now waiting for the economic offer envelopes.

he Argentine government announced the results of the 1,015 megawatt (MW) renewable energies tender proposed last May. The total offers reached 1,461 MW, a 46% oversubscription. The offers were broken down by technology: 1,203 for wind power; 155.4 MW from biofuels; 54.1 MW from biomass; 14 MW from biogas; 22.5 MW from photovoltaic solar energy; and 12.7 MW from small hydro projects.

The opening of the sealed envelopes was done at a ceremony at the presidential mansion known as la Casa Rosada, which included words from Argentine President Cristina Fernandez de Kirchner as well as from the Federal Planning Minister, Julio de Vido.

According to a recent study by the Argentine Renewable Energy Chamber (CADER), nearly 70% of Argentina’s territory is covered with winds whose annual average speed, measured at 50 meters above ground level, surpasses 6 m/s. In Central and Southern Patagonia the speeds can reach on average 9 m/s and up to 12 m/s. Most areas in the vast Patagonia region experience annual average capacity factors above 45%. The provinces of Córdoba, part of San Luis, La Pampa, San Juan, La Rioja and the central and southwestern regions of the province of Buenos Aires yield capacity factors between 35% and 40%.

But despite such massive potential, the 30 MW of wind generation that has been installed to date comes mainly from projects completed between the mid-1990s and early 2000s that were developed by small cooperatives in the Patagonian region.

The tender had been launched by the government last May to assist in the requirements under Renewable Energies Law 26.190 from 2006 that requires that by the year 2016, fully 8% of the country’s energy matrix must be derived from renewable sources. Once all offers have been reviewed, the government must evaluate each one objectively – prices offered and the companies’ technical and financial capacity, among others. According to calculations by the Argentine Renewable Energies Chamber, if all 1,462 MW are accepted it will result in investments in excess of US$2 billion and the creation of approximately 1000 new jobs.

After the public announcement, the President of the chamber, Carlos St. James, exchanged thoughts about the next steps with President Fernandez, expressing optimism about the future of the industry. “These offers, considering the quality and prestige of the multinational companies making them, leaves no doubt that Argentina is on its way to developing a full-fledged renewable energies industry. This is a clear demonstration of what can be achieved when a fluid communication is established between the public and private sectors.”

As the chamber had indicated in its recent State of the Argentine Wind Industry study published last May, Argentina has unequaled potential to develop wind energy, as seen by the dominance of wind projects in the tender totaling 1,203 MW, more than 80% of the total offerings. According to Mauro Soares, President of the Wind Energy Committee of the Chamber, “This tender generated unparalleled activity and interest from our sector; the number of proposals focused on wind was very gratifying. Now we will finally see this energy become part of our country’s energy matrix. We welcome this launch of the industry in Argentina, and I congratulate all those that worked towards making it possible.” Also, Sebastian Kind, co-author of the study and board member of the chamber, stated, “Today we saw a high degree of confidence of the sector’s potential; the 1461 MW offered represent solid foundations for a prosperous renewable industry. Argentina has a unique opportunity to generate new skills and develop technology while providing clean and competitive energy for our future.”

According to a recent study published by New Energy Finance, based in London, the global renewable energies industry invested US$155 billion in 2008, with a compound annual growth rate of 45%. Latin America captured US$12 billion of this total, but it is growing at a CAGR of 145%.

The Argentine Renewable Energies Chamber (Cámara Argentina de Energías Renovables, or CADER) is a non-profit industry trade association dedicated to the sustainable development of renewable energies in Argentina. It seeks to play a vital role in the establishment of a solid and vibrant industry, one which is respected globally for its standards and practices.

The Chamber counts among its members companies that believe these principles and work towards developing the local solar, wind and biomass sectors. Its great diversity in members creates one of the Chamber’s greatest strengths, since it is the only organization that represents the entire spectrum of this nascent industry’s value chain.

In past days the envelopes with the technical offer of the Official Plan of Renewable Energies (GENREN) bid were opened. The proposing companies are now waiting for the economic offer envelopes, which will be handed once the technical analysis is concluded. The complete list of proposing companies follows.

1. Emgasud Renovables: 4 wind farms (3 of 50 MW and one of 30 MW, two in Madryn and one in Rawson)

2. Patagonia Wind Energy: one 50 MW wind park, in Madryn.

3. Energías Sustentables SA: one 20 MW wind farm, in West Madryn.

4. International New Energy: one 50 MW wind park, in North Madryn.

5. Sogesic SA: 2 wind parks, of 50 MW, in Tres picos.

6. Unitec Energy – San Jose Argentina – INVAP (UTE): 2 wind parks, of 50 MW.

7. Isolux Ingenieria – Gas y Petróleo de Neuquén – Ingenieria Sima SA, (UTE): one 50 MW wind park.

8. Isolux Ingenieria: 4 wind parks of 50 MW in Loma Blanca 1.2.3 and 4.

9. Impsa Wind SA: 10 wind parks. Kaluel Kayke I (50MW), II (25MW), Malaspina I (50 MW), II (30MW), Condor Cliff La Barrancosa (50MW), Piedra Buena I (50MW), II (30MW), Las Heras (50 MW), Tornquist (50MW).

10. Pan American Fueguinas SA: 28 MW wind park in Cerro Dragon.

Patagonia in Argentina has some of the best conditions in the world for wind power generation. Not only are the winds strong in Patagonia, but they are also fierce in the south of Buenos Aires province and interior provinces such as Córdoba. Blessed with such potential, Argentina should be a world leader in wind energy.

Source: evwind

In justifying its stance the EBB explained that Argentine exports to EU had increased dramatically from less than 5,000 tons in July 2008 to almost 100,000 tons per month in July 2009, a twenty-fold increase. For the whole of 2009, Argentine exports are expected to exceed the 1 million metric tons threshold, as compared to only 70 000 tons the previous year.

This surge in Argentine biodiesel exports to EU is, claims the EBB, driven by a regime of differentiated export taxes (known as DETs). A system which, it says, creates a clear distortion, in the market, and one which needs rebalancing.

The differential between the 32% export tax on soybean oil and the 20% export tax on biodiesel creates a clear financial incentive to process soybean oil into biodiesel rather than exporting it, argues the EBB. This incentive is already substantial on paper, but is even higher in practice. The EBB says it has received indications that the tax differential between soybean oil and biodiesel is in reality in the range of 20% due to a number of ad hoc implementing rules. This information proved difficult to obtain despite EBB repeated contacts with Argentinean authorities and stakeholders.

The EBB is keen to stress that it has always been in favour of an open EU biodiesel market considering the EU’s objective of 10% renewable energy in transport by 2020. However, it is also keen to highlight the discrepancy in the market where Argentine biodiesel enjoys duty-free access to the EU biodiesel market, whereas Argentina levies a 14% customs duty on biodiesel from Europe and other countries.

The EBB is clear that it has to oppose any trade practices that distort competition between European and foreign producers. “EBB takes very seriously the challenge of Argentine biodiesel exports to EU. We stand ready to defend our interests, as we already did successfully against subsidised imports from the United States”, said Raffaello Garofalo, EBB Secretary-General.

In the view of EBB, it would be appropriate for Argentinean authorities to withdraw at the earliest opportunity the DETs regime currently applied on soybean products and biodiesel. The continuation of this trade distorting measure would call for an appropriate reaction from EU biodiesel producers.

Written by Giles Clark, London

Source: Biofuel Review

A sustainable energy initiative that will start with a huge solar project in the Sahara desert has been announced by a consortium of 12 European businesses.

The Desertec Industrial Initiative aims to supply Europe with 15% of its energy needs by 2050.

Companies who signed up to the $400bn (£240bn) venture include Deutsche Bank, Siemens and the energy provider E.On.

The consortium, which will be based in Munich, hopes to start supplying Europe with electricity by 2015.

Desertec Industrial Initiative aims to produce solar-generated electricity with a vast network of power plants and transmission grids across North Africa and the Middle East.

“The time has come to turn this vision into reality,” said the company’s chief executive, Paul van Son.

“That implies intensive co-operation with many parties and cultures, to create a sound basis for feasible investments into renewable energy technologies and interconnected grids.”

The first stage will be to build massive solar energy fields across North Africa’s Sahara desert, utilising concentrated solar power technology (CPS), which uses parabolic mirrors to focus the Sun’s rays on containers of water.

‘Pivotal initiative’

The super-heated water will power steam turbines to generate electricity 24 hours a day, 52 weeks of the year.

The electricity will then be transported great distances to Europe, using hi-tech cables that suffer little conductive loss of power.

The move was “pivotal” in the transition of Europe, North Africa and the Middle East to sustainable energy supplies, said Mr Van Son.

Currently there are some small initiatives across Spain and parts of North Africa, but the scale of the Desertec initiative will surpass any other comparable projects.

Strong desire

The initiative has gained the support of the German government of Angela Merkel, who has already expressed a desire to offset a dependence on Russian gas supplies.

A number of North African countries have also expressed a strong desire to join the project, the company says, utilising their main sustainable natural resource – the Sun.

Some of the power generated by the Sahara solar energy fields will also be used by domestic African consumers, Desertec is keen to stress. North Africa has a small population relative to the size of its desert terrain, it says.

The concept was first announced in 2007 by the Desertec Foundation, with small pilot projects based in North Africa. Prince Hassan of Jordan has previously been mentioned as a big supporter.

Companies signed up to the consortium include ABB, Abengoa Solar, Cevital, HSH Nordbank, MAN Solar Millennium, Munich Re, M+W Zander, RWE and Schott Solar.

Source: BBC World

FORMOSA (From our correspondent). – Directive of the Lloyds Bank and an investor from the United States visited this province recently, interested in acquiring lands to produce jatropha, a pluriannual crop that doesn’t impose the necessity of recurrent replanting.

 It´s a high value input for the biodiesel production. It is known that the most productive species of this plant are from Peru, although they are broadly spread in Brazil and in India.Â

Luis Basterra, the minister of Production explained it this way, who also detailed that the oil obtained from the plant is not eatable, for what it doesn’t compete with those that have nutritious property.

Contrary to the soya or the sunflower, that besides being used for biofuels are also demanded for human consumption, the jatropha only has industrial application and it is destinated only to the energy generation.Â

Previous investigationÂ

The official revealed, also, that the provincial Goverment has interest in promoting the production of this crop in his territory for what help has been requested to the center of validation for agricultural technologies, in which an experimentation program is being developed.Â

The objective of the technical advice is to evaluate the consequences of the introduction of this new species in the province, this is, to know in advance the fitosanitary risk that it can imply.Â

Without this previous investigation, in which can be known, for example, the susceptibility of the jatropha to certain illnesses and the varieties that better adapt to the conditions of the Formosa´s atmosphere, it won’t be able to take advange of the commercial opportunity that the crop represents, given the high biofuels demands in the world, at this moment.Â

As it could be known, the executive of the financial entity that was in Formosa, showed particular interest in acquiring the farm “La Floresta”, one of the oldest of the province, located in the Southwest, with a surface of 80.000 hectares. The establishment is supplemented with another, with equal characteristics, located in the neighboring province of Chaco, on the other side of the Bermejo river.Â

Source: La Nación