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Firm capacity in Central America: Definitions and implications for variable renewable energy

信息技术 2023-08-08 IRENA 娱乐而已

FIRM CAPACITY IN CENTRAL AMERICA: DEFINITIONS AND IMPLICATIONS FOR VARIABLE RENEWABLE ENERGY

Executive Summary

This guide provides a comprehensive overview of firm capacity within the context of variable renewable energy (VRE) in Central America. It explores definitions, implications, and strategies for integrating VRE into the region's power sectors. The guide covers power sector dynamics, regional market structures, and various mechanisms for purchasing firm capacity.

About This Guide

The guide serves as a resource for policymakers, industry professionals, and stakeholders interested in understanding the role of firm capacity in enhancing the integration of variable renewable energy sources like solar and wind in Central America. It emphasizes the importance of firm capacity in ensuring stable energy supply while leveraging the potential of VRE.

Central America Overview

Central America comprises seven countries—Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama—each with unique power sector characteristics. The region faces challenges in balancing traditional energy sources with the growing demand for renewable energy, particularly VRE.

Power Sector Dynamics

The power sector in Central America varies significantly among countries, with some adopting regulated markets and others embracing liberalized models. Each country has distinct regulations, infrastructure, and energy mix, impacting the integration of VRE.

Regional Market Structures

The guide highlights different market structures, including the single buyer model and the wholesale electricity market model, which influence how countries procure energy and manage firm capacity.

Firm Capacity for VRE

Key sections discuss firm capacity in regulated and liberalized markets, focusing on case studies from Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama. International benchmarks from Brazil, Chile, Mexico, and Peru provide comparative insights.

Conclusions

The guide concludes with recommendations for policymakers and industry leaders on effectively utilizing firm capacity to enhance the stability and reliability of VRE integration in Central America.

Key Guidelines for Use of Firm Capacity

The final section outlines guidelines for optimizing firm capacity to support the expansion of VRE, emphasizing the importance of regulatory frameworks, market mechanisms, and stakeholder engagement.

Annexes

The guide includes detailed annexes providing a deeper dive into the legal framework and institutional landscape of Central America, equations relevant to firm capacity calculations, and a case study on El Salvador, illustrating practical applications and considerations.

Bibliography

A comprehensive bibliography lists references used in the guide, offering readers a pathway to further explore the topic.

This summary captures the essence of the report's structure and key points, focusing on definitions, implications, and strategies for managing firm capacity in the context of variable renewable energy in Central America.

DEFINITIONS AND IMPLICATIONS FORVARIABLE RENEWABLE ENERGY © IRENA 2023 Unless otherwise stated, material in this publication may be freely used, shared, copied, reproduced, printed and/or stored, provided thatappropriate acknowledgement is given of IRENA as the source and copyright holder. Material in this publication that is attributed to third partiesmay be subject to separate terms of use and restrictions, and appropriate permissions from these third parties may need to be secured beforeany use of such material. CITATION IRENA (2023),Firm capacity in Central America: Definitions and implications for variable renewable energy,International Renewable Energy Agency, Abu Dhabi. ISBN: 978-92-9260-540-7 ABOUT IRENA The International Renewable Energy Agency (IRENA) is an intergovernmental organisation that supports countriesin their transition to a sustainable energy future and serves as the principal platform for international co-operation,a centre of excellence, and a repository of policy, technology, resource and financial knowledge on renewableenergy. IRENA promotes the widespread adoption and sustainable use of all forms of renewable energy, includingbioenergy, geothermal, hydropower, ocean, solar and wind energy, in the pursuit of sustainable development,energy access, energy security and low-carbon economic growth and prosperity. ABOUT THE CLEAN ENERGY CORRIDOR OF CENTRAL AMERICA (CECCA) IRENA developed the Clean Energy Corridor of Central America (CECCA) initiative in 2015 to support the accelerateddeployment of renewables at the regional level in Central America and, in the context of the Central AmericanElectric Interconnection System (SIEPAC) line interconnecting Costa Rica, El Salvador, Guatemala, Honduras,Nicaragua and Panama, promote the cross-border trade of electricity coming from clean energy sources. CECCAwas built around key pillars of implementation: power system operations and regulatory frameworks for increasingvariable renewable energy shares; country and regional power system planning with renewables; zoning andrenewable resource assessment; and capacity-building and information dissemination. ACKNOWLEDGEMENTS This report was developed under the guidance of Gurbuz Gonul (Director, Country Engagement and Partnerships,IRENA) and Binu Parthan (Deputy Director, Country Engagement and Partnerships, IRENA). The document wasauthored by José Torón, Camilo Ramírez (IRENA), Gastón Lestard and Coline Champetier (GME), Edna Soto andFabian Barrera (ex-IRENA). Valuable input and comments were offered by IRENA experts, Emanuele Bianco, Simon Benmarraze, Paul Komor,Paula Nardone, Mohamed Nababa, Kamran Siddiqui and Joong Yeop Lee; additional insights were provided byAlexandra Arias (SICA), Adonay Urrutia (DGEHM) and Dr. Meenu Mishra. The report benefited from the participation and contribution of representatives from national Institutions acrossLatin America countries, as well as other stakeholders from the region: Ministry of Public Utilities, Energy, Logisticsand E-Governance and BEL (Belize), MINAE and ICE (Costa Rica), CEL, CNE, SIGET and UT (El Salvador), MEM,CNEE and AGER (Guatemala), CREE, ODS and SEN (Honduras), CENACE (Mexico), MEM (Nicaragua), SNE and, CND(Panamá) and ENEL Green Power (Costa Rica and Guatemala). Publication and editorial support were provided by Francis Field, Stephanie Clarke and Manuela Stefanides. Thereport was copy-edited by Emily Youers, the graphic design was done by Phoenix Design Aid. DISCLAIMER This publication and the material herein are provided “as is”. All reasonable precautions have been taken by IRENA to verify the reliability of the material in thispublication. However, neither IRENA nor any of its officials, agents, data or other third-party content providers provides a warranty of any kind, either expressed orimplied, and they accept no responsibility or liability for any consequence of use of the publication or material herein. The information contained herein does not necessarily represent the views of all Members of IRENA. The mention of specific companies or certain projects orproducts does not imply that they are endorsed or recommended by IRENA in preference to others of a similar nature that are not mentioned. The designationsemployed and the presentation of material herein do not imply the expression of any opinion on the part of IRENA concerning the legal status of any region, country,territory, city or area or of its authorities, or concerning the delimitation of frontiers or boundaries. FIRM CAPACITY INCENTRAL AMERICA DEFINITIONS AND IMPLICATIONS FORVARIABLE RENEWABLE ENERGY CONTENTS CENTRAL AMERICA OVERVIEW.......................................................................................... 11 1.1Power systems in Central America...................................................................................171.2Changes in the power sector.................................................................................

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