2011年-世界发展银行全球_Peru_Opportunities_and_Challenges_of_Small_Hydropower_Development_174页_1mb

Summary of "Peru Opportunities and Challenges of Small Hydropower Development"

Core Content

This report, prepared by the World Bank's Energy Sector Management Assistance Program (ESMAP), evaluates the potential of small hydropower development in Peru and identifies the key challenges and opportunities for its promotion. It provides an analysis of the economic, financial, institutional, and regulatory aspects of small hydropower and discusses the role of policy instruments in encouraging its development.

Main Points

• Small Hydropower Potential: Peru has a significant small hydropower potential, defined as projects with capacity less than 20 MW, estimated at over 1,600 MW. However, the technical potential is not well-documented due to the lack of resource inventories.

• Resource and Technical Capacity: The 1979 Hydropower Potential Study is the main source of data, but it focused on larger projects. The technical capacity for small to medium hydropower is available, but not fully utilized.

• Economic and Financial Viability: Small hydropower projects are not financially viable due to the low gas-based generation price, which is linked to the low cost of natural gas from the Camisea Field. The financial internal rate of return (FIRR) for small hydro is constrained by this pricing. With the inclusion of carbon finance, the allowable capital cost increases, making certain projects viable.

• Tariff and Cost Considerations: The report highlights the need for tariffs that reflect the economic opportunity cost of energy generation. A tariff of about 6 US cents/kWh is recommended to support small hydropower development. The current system disadvantages small hydro by charging transmission costs to consumers rather than to generators.

• Renewable Energy Decree (2008): The decree aims to promote renewable energy by setting a target ceiling for renewable energy share and introducing a premium price. Small hydro is not included in the ceiling but benefits from the incentives. The decree's implementation is crucial for unlocking the potential of small hydro, especially through a transparent and efficient auction system for tariff premiums.

• Financing Challenges: Access to long-term financing is a major issue for small hydropower projects. Commercial banks are not interested in project finance for small-scale projects. The report suggests the need for long-term financing facilities, similar to those in Brazil, Vietnam, and Turkey.

• Regulatory and Institutional Barriers: The process for obtaining water rights and land concessions is unclear and unpredictable. A detailed and transparent TUPA (Consolidated Text for Administrative Procedures) is needed to streamline the process. Social assessments are also recommended to address rights-of-way issues, especially when land belongs to communities.

• International Experience: The report draws on experiences from other countries, such as China, Germany, and Sri Lanka, to suggest best practices for tariff support, financing, and regulatory frameworks. These lessons can be adapted to improve the development of small hydropower in Peru.

• Climate Change and CDM: The report notes that the Clean Development Mechanism (CDM) could provide additional financial incentives for small hydropower, especially when combined with long-term financing and a predictable regulatory environment.

Key Recommendations

• Implement a rational tariff system that reflects the opportunity cost of other energy sources.
• Ensure transparent and predictable regulatory processes for water rights and land concessions.
• Develop an efficient auction system for tariff premiums to provide certainty for investors.
• Expand the Renewable Energy Decree to include medium-scale hydropower projects or create an alternative mechanism for their development.
• Introduce long-term financing facilities to support small hydropower projects.
• Formalize social assessments for all hydropower projects to address community concerns and land rights.
• Eliminate unfair advantages given to thermal projects by revising VAT recovery policies.

Conclusion

The report emphasizes that small hydropower has the potential to contribute significantly to Peru's electricity generation and sustainable development. However, this potential is constrained by low tariffs, unclear regulatory frameworks, and limited access to long-term financing. The successful development of small hydropower requires a combination of policy reform, institutional support, and financial mechanisms that ensure economic viability and social acceptance.