Renewable Energy and Related Services: Recent Developments

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Renewable Energy and Related Services: Recent Developments ( renewable-energy-and-related-services-recent-developments )

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TABLE 5.9 Selected small hydropower projects with financing contributed by global development banks Country Brazil Honduras Suriname Haiti Panama Sri Lanka Papua New Guinea India Ecuador Romania Development Bank Inter-American Development Bank (IADB) IADB IADB IADB IADB Asian Development Bank (ADB) ADB ADB China Development Bank European Bank for Reconstruction & Development (EBRD) Project details A government-backed rural electrification program called Luz Para Todos has installed small solar, wind, and hydropower projects in remote villages throughout Brazil since 2003. One particular small hydropower project is the 50kW Cachoeira de Aruã micro-hydro facility in the Amazonian state of Pará, which benefits 50 low-income households in a remote area where it would be difficult to bring in transmission lines from larger power generation facilities. Two small hydropower plants with a total installed capacity of 6.4 MW form part of the MIPYMES Verdes program, which has disbursed almost $7 million to small and medium-sized companies to develop projects to cut energy consumption, improve efficiency, or generate power from renewables. At the end of 2011, Suriname’s rural electrification program received more than $25 million in loans and grants to fund electrification in rural villages in Suriname’s interior. The project aims to install almost 700kW of solar photovoltaic capacity and about 2.7 MW of micro hydropower plants. In Haiti, one small hydropower project, the 48 MW Peligré plant, represents 45 percent of the country’s total electricity capacity. However, the plant fails to operate at full capacity most of the time, due to lack of water during the dry season and aging equipment. In 2011, Haiti received a $20 million grant from the Inter-American Development Bank to rehabilitate Peligré. In 2012, France-based Alstom said it would provide turbines to restore the project to its full nameplate capacity. In Panama, small hydropower is the largest destination for clean energy investment, with most of the $1.1 billion in such investment in recent years destined for the small hydropower sector. In Sri Lanka, a $1.29 million credit line from the Asian Development Bank (ADB) Sustainable Power Sector Support Project will be used to rehabilitate and repair 19 micro-hydropower projects. The credits will be granted to private developers and will finance up to 100 percent of the total estimated costs for restarting the small hydropower sites. The 19 projects will add about 1.3 MW of combined capacity. Similar programs have existed in Sri Lanka since the mid-1990s, rehabilitating numerous small hydropower projects of 0.25 MW to 10 MW. These have added more than 253 MW of total hydroelectric capacity to Sri Lanka's grid. ADB approved a loan of $57.3 million to the local utility to fund renewable energy projects including run-of-river hydro. India is developing four run-of-river hydropower projects for a total capacity of 856 MW, with $800 million in ADB funding. $680 million for four hydropower plants, rated at 21 MW, 276 MW, 50 MW, and 15 MW. Financed through an 8-year loan at 6.9 percent, with a 2-year grace period. $150 million to state-owned hydropower company Hidroelectrica S.A. in May 2011 for modernization work on an existing 210 MW project. The loan will pay for refurbishing six units, adding 30 years to the life expectancy of the plant. $8.2 million for development of four small hydropower plants with a total capacity of 4.1 MW. Macedonia Sources: Ingram, “Banks Provide Critical Support,” November 1, 2011; BNEF, Climatescope 2012, 2012; development EBRD bank websites; HydroWorld.com, “Sri Lanka Micro Hydro Rehabilitation Projects,” January 18, 2013. would otherwise.64 In Indonesia, the government also imposes local-content requirements on hydropower based on the size of the project.65 64 Industry representative, telephone interview with USITC staff, February 6, 2013. 65 For projects up to 15 MW, local content must be a minimum of 64.20 percent for goods and 86.06 percent for services, or 70.76 percent combined. This is gradually reduced as projects get larger, with projects rated at greater than 150 MW required to have 47.82 percent local content for goods and 46.98 percent for services, with a combined rate of 47.60 percent. PWC, Power in Indonesia, 2013, 16. 5-20

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