Renewable energy programs in South America: Implementation models, costs and lessons learned

Since 1991, NRECA International, through its regional office based in La Pat, Bolivia, has implemented rural electrification projects in several South American countries: Bolivia, Chile, Argentina, and Brazil. Of a total of over 33,000 rural electricity connections made through NRECA's efforts in Bolivia from 1991 to 1997, over 7,000 have been based on renewable energy technologies, utilizing solarphotovoltaics (PV), wind and biomass resources for electricity generation. Local institutional partners include electric utilities, local and regional governments, rural development-oriented non-governmental organizations, and even rural communities themselves. Fundamental to NRECA's approach are the following program elements: least-cost solutions for the level of service required; strong emphasis on transfer of knowledge to local counterpart agencies; and appropriate blending of complementary technologies in any given geographical area. In addition to the nuts-and-bolts of project implementation, NRECA's roles include high-level electrification planning assistance to government regulatory bodies and concessionaire electric utilities. The focus on program design, including innovative and flexible financing and tariff schemes, intensive training activities, and an emphasis on long-term maintenance issues, has provided important lessons for the massive implementation of renewable energy technologies in South America and beyond. The purpose of this paper is to present a concrete picture of various programs NRECA has implemented in South America utilizing dispersed renewables-based electrification systems. First, the evolving policy context in the region is presented. The institutional frameworks and administration models are detailed, the main technical aspects and system configurations installed are described, and the corresponding project life cycle costs are enumerated. From these experiences, lessons relevant for program replication are drawn. Insofar as these activities reflect a coherent overall strategy for electrification in general, including conventional line extension and other options where appropriate, broader "societal" criteria and methods for preproject screening are presented. In many less-developed countries (LDCs), renewable energy technologies have been seen as marginal, their use limited to "special" subsidized projects which, in part due to lack of long-term technical assistance related to these technologies, were generally seen as "demonstration". NRECA's experience has shown that, with careful and informed planning, appropriate program design and the cultivation of local technical capabilities, renewable energy technologies can provide reliable, long-term economically tenable solutions to the challenges of rural electrification in LDCs.