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The Energy Policy Gerrit F. Schotte March 29, 2012 1 INVOLVEMENT IMPLEMENTATION INNOVATION

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Page 1: 01. Schotte

The Energy Policy

Gerrit F. Schotte March 29, 2012

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INVOLVEMENT IMPLEMENTATION INNOVATION

Page 2: 01. Schotte

The Energy market before 10/10/2010

• No policy, no goals, no vision • Very old legislation, no regulations • High prices of Electricity, Water and Fuels • Fully dependent on oil • Polluting refinery • Highly inefficient production and distribution network • Weak service performance • Major production issues (outages) • No sustainable production • No energy reduction incentives

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The new government had to start immediately with a new Energy policy

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A few figures on Electricity

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• Base load: 100MW • Peak load: 130MW • Number of households: 62.000 • Average usage per household: 350kWh per month • Number of companies: 7.000 • Average usage per SME: 2000kWh per month • Base products: 127V/50Hz 220V/50Hz • Grid: 66-30-12-LV

100% based upon fossil fuels, time to change!!

Page 4: 01. Schotte

New Energy policy consists of 3 elements

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Energy Policy

Electricity Fuels Water

Approved February 16th 2011, Currently under implementation

Draft version ready December 19th 2011 Consultation in final phase

Draft version will be realized soon Consultation in Q2

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Policy documents (more to come)

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February 16th , 2011: Policy document regulation electricity supply Curaçao 2011-2015 November 16th , 2011: Policy paper small-scale renewable production November 23rd , 2011: Tariff Guideline small-scale renewable electricity production November 23rd , 2011: 2012 feed-in tariffs for small-scale renewable electricity production March 5th , 2012: Adjusted import duties for energy saving products

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New Electricity Policy 2011-2015 was defined based upon the following principles

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• Affordable prices for households and business • Reliable services • Sustainable energy production, minimum of 25% in 2015 • Switch from oil to natural gas for at least another 25% • Energy savings first • Market orientation for production (IPP’s) • Introduction of feed-in and net-metering • Consumer interest to be secured • Independent regulatory body

New Energy policy was formalized on February 16th 2011, and is currently being implemented

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Solar and wind regimes in Curaçao are excellent

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Goal to reach at least 25% sustainable electricity production in 2015 (currently neglectible)

SOLAR: average of 5+ sun hours per day on an average, driving the business case for small and large scale solar production to offset daily peak loads

WIND: average wind speeds of 10+m/s at 80m height along the northern coast line, driving the business case for large scale wind production

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Policy paper provides for small-scale renewable electricity production

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• Small scale electricity production is allowed as of January 1st 2012 • Renewables only (solar and wind to start with); • Households up tot 10kW, companies up to 1MW; • Net metering for households, net billing for companies.

• Stimulation via tax regime (adjusted duty tariffs) and feed-in tariffs;

• No cap in place yet, to be evaluated over time.

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Advantages of renewable electricity production

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• Clean energy

• $aves fossil fuel

• Reduces the dependency on fossil fuels

• Reduces the investments in conventional electricity production

• Creates economic activity

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Yearly costs of (energy related) fuel in 2011: Fuel for transportation 240 mln ANG Fuel for energy production* 310 mln ANG TOTAL IMPORT 550 mln ANG

Oil import represent a substantial factor on the Balance sheet

Becoming less dependent on fossil fuel helps our financial balance sheet as well !!

•Energy production for ISLA not included

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INVOLVEMENT is key • Involvement of all stakeholder is a key success factor

• Involvement starts with awareness • Intensive information campaign with all media has started end of

2011 to create awareness

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Social media

Press conferences

Articles

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INVOLVEMENT

Read it all on: www.energiakonsiente.com 12

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Waste to Energy plant (appr. 10MW) to be built in combination with garbage separation

Decommissioning of 22MW Aggreko’s as a first step towards efficient NG based power plants

New state- of-the-art Wind turbines (30MW)

IMPLEMENTATION of large scale has started

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IMPLEMENTATION of small scale as well

Dutch Marine Base

New gas station Curoil

St. Margaretha School

Goisco Building Depot

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IMPLEMENTATION Estimate of small scale renewable electricity production 2012

After only 3 months already heading for 8MW small scale renewable production in 2012

Category Number kW (kVA) Installed 20 1.000 Pending 50 7.000 Total 70 8.000

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From a useless roof in 2011…

…to a useful roof in 2012.

It is also about INNOVATION

with a useful parking lot

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INNOVATION needs to be embraced mobility appliances

Saving fossil fuels Saving electricity

Full Electric: Nissan Leaf

Hybrid: Toyota Prius Biodiesel

Inverter Airco LED television

Inverter fridge LED bulbs

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New Policy on Fuels will include mobility

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Key elements of the draft Policy: • Switch from fossil fuels to cleaner renewable alternatives • CO2 and (post) Kyoto objectives • Sustainable mobility: (bio-fuels, e-vehicles, CNG and fuel cells)

• vision document • roadmap • impact on Electricity (demand and recharging infrastructure)

Financial incentives already in place as of January 2012: • 0% import duties on Full Electric Vehicles, • 10% import duties on Hybrid Vehicles

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It not about what THEY are doing…

It is about what YOU can do!

Finally…

The government of Curacao wishes you a very informative, fruitful and durable conference !!

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