Executive Secretary, CACIER

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Regional Energy Integration CommissionCIER
CIER Argentine CommitteeCACIER
Ester Beatriz Fandiño

• Executive Secretary, CACIER

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THE ROLE OF TRADE AND MARKETS IN ADDRESSING
CLIMATE CHANGE AND SUSTAINABLE DEVELOPMENTICTSD
SYMPOSIUM AT COP 16

• Cancún
• December 8-9/2010

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Latin America Integrated
Electrical interconnections in Latin America (MW)
Main pipelines planned
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Main CIER 02 ResultsPeru-Ecuador-Colombia-Venezue
la
Peru Ecuador Colombia - Venezuela Interconnect
ion boundaries
Operating costs
The reduction of operating costs in Peru, Ecuador
and Colombia were substantial in case A, while
the operating cost increased in Venezuela.
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CIER 02 Main ResultsBrazil-Argentina-Paraguay-Uru
guay
Brazil-Argentina-Paraguay-Uruguay
interconnection boundaries
Operating Costs
Annual Average of annual marginal costs
The graph shows the operating costs of each
country for the different interconnection
scenarios. The operating cost for Paraguay is
considered nil since all the demand is supplied
through Itaipu y Yacyretá.
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CIERs view 2010

• As developing countries, our objective in Latin
  America is to move towards higher development
  levels, while achiving greater efficiency in
  carbon and emission avoidance..
• As you all know, it will be difficult the shift
  to a low emissions path to economic growth for
  most of the developing countries. However, an
  easily integrated electric sector in the region
  will take advantage of the potential provided by
  hydroelectricity and complementary regimes of
  each system when consider isolated, and provide
  a quite clean support for economic development
  and poverty eradication. The de-coupling of
  conventional economic growth and emissions is
  possible in Latin America with an integrated
  electricity infraestructure

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CIERs view 2010

• We need a better comprehension for our productive
  electricity features as far as the Flexible
  Mechanisms is concerned. We also need financial
  resources quite different from development aids-
  and technology transfer.
• In these terms there is a big gap for efficiency
  to improve intensity and economic output for each
  unit of carbon emission.

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Main Results CIER 15
Remarks 1 Benefit calculated as the difference
between the cost of the hydroelectric plant and
the marginal cost of generation in the long term
in Brazil 2 Amount not calculated due to
uncertainty regarding the simulation of the
hydroelectric plant in Brazil 3 Information on
transmission reinforcements not available. 4 Due
to uncertainty regarding systems operation,
congestion entry in the interconnection was used
as a proxy for operating costs reduction. 5
Investment cost values and ICB for the BR-AR
for the project were calculated on the basis of
annual payment reported by the investors.
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Participation of non-emission sources(EF)
Wind, biomass, geothermal, small hydroelectric
and nuclear stations
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CIER Position Paper COP16

• Points of consensus to address
• LA electric region is quite clean in terms of
  GHG emissions, due to the past efforts, and the
  expansion axes of our capacity for generation are
  hydroelectricity, thermal generation based on
  natural gas with the alternative of LNG- and
  non conventional renewable energies (NCRE).
• Thus, LAC is able to contribute to the
  achievement of the reduction targets. For that,
  we ask to support the following measures

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CIER Position Paper COP16

• Points of consensus to address (cont)
• Perform prospective hydrological studies to face
  greater variability of future flows
• Promote better understanding of the benefits of
  hydroelectric projects and its dams for multiple
  mitigation purposes and Climate Change effects
  (floods droughts)
• Support NAMAs mitigation mechanisms
  technological transfer. Includes CO2 capture/CCS

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CIER Position Paper COP16

• Points of consensus to address (cont)
• Special considerations for the emissions of the
  thermoelectric stations needed for security
  complementary to the generation matrix of the
  CIER countries, (focusing the trends to minimize
  the operating periods of thermoelectric
  facilities)
• The negotiations must avoid making commitments
  that result in electric energy rate increases to
  consumers of the CIER region.

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CIER Position Paper COP16

• Last, but not least
• Advocate for the continuity of CDM provided for
  Kyoto, with new improvements to
• Better comprehension of hydro matrix benefits.
• Enforce Energy Integration as a strategic
  contribution to GHG reduction (Project CIER 15
  identified 12 projects to increase cross border
  transactions with environmental benefits of 7.8
  millions tons CO2 avoided per year).
• Promote improvements in the approval process of
  CDM project, for instance agility and
  transaction costs.

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Thank you !
CIER www.cier.org.uy CACIER
www.cacier.com.ar Ester Fandiño
www.esterfandino.com.ar