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1. 1
RENEWABLE ENERGY
TRAINING WEEK
ABU DABHI- JANUARY 2015

2. 2
RENEWABLE ENERGY TRAINING WEEK
REGULATORY EXPERIENCE OF ECUADOR
BYRON BETANCOURT, MEE
National Regulatory Coordinator
Electricity Regulation and Control Agency (ARCONEL)
ABU DABHI – JANUARY 2015

3. 3
New Law for the public service of electricity ( 16 th of January 2015).
Promotion mechanisms characteristics
Feed In Tariff mechanism
Regulation: “Renewable Energy Promotion”
Conclusions
INDEX

4. 4
New Law for the public service of electricity
January 16th, 2015.
1

5. 5
Structure
Objetives
Institutions Private participation
NCRE (ERNC)
Perfomance of the
electric sector
Special Regimes
Energy Efficiency
Policies
Violations and
penalties
Transition Period
Law of public service of
Electricity

6. Article 26.- Non-conventional renewable energy.- The Ministry of Electricity and Renewable Energy will
promote the use of clean technologies and alternative energies , in accordance with the provisions in the
Constitution that aims to develop a sustainable electricity system, based on the use of renewable energy
resources.
Electricity produced with such energies will have preferential conditions established by regulation issued by
the ARCONEL.

7. Promotion mechanisms characteristics2

8. Promotion mechanisms characteristics
Resources Inventory
Promotion policies
Regulatory mechanisms

9. • Resources availability.
• Production Costs per
technology
• Balance load/generation
• Energy matrix policy
• Expansion Plan of
electricity generation
Reference: Renewables 2010 Global Status
Report

10. PROMOTION POLICIES
• REASONS FOR PROMOTION:
• i) Autonomous supply (no depend on
importation);
• ii) Natural resource use;
• iii) Know-how transfer;
• Promotion concepts have to be supported by law. In
some countries focused regulations issued to promote
NCRE. (Ex: UK, Germany, Spain, Sweden)

11. Price incentive Amount incentive
Based on
investment
 Special treatment
for investment
 Tax deductions
• Auctions.
Base on the
generation
 Feed-in Tariffs • Green certificates
MECANISMOS REGULATORIOS

12. Types of mechanism
Auctions: Establishing quotas by the amount of
energy required to meet the demand
Quotas: Maximum quota to be allowed to build
with each type of renewable energy generation
(economic-tariff evaluation)
Feed In Tariffs: Special ( attractive) prices for energy
generated.

13. Feed In Tariffs Mechanism3

14. Esquema : Feed – In Tariffs
Guaranted grid acces
Special (preferential)
price
Preferential
term ( with
preferential
Price)
International policy
developed to
promote renewable
energy sources for
electricity generation

15. PREFERENTIAL PRICES AND TERMS
Recover the investment plus
reasonable profitability.
Price = f (cost + profit)
Tariff scheme

16. PRIORITY DISPATCH
Some type of renewable energy have
uncertainty to determine the amount of
generation, ( as eolic, solar or small hydro,
depend on nature/weather) It is neccesary to
ensure the energy produced is dispatched ( to
cover the demand) through the national
grid). Balance: generation cost vs amount of
generation

17. ECUADORIAN REGULATION:
“PROMOTION OF RENEWABLE ENERGIES”
4

18. Regulación 001/13
Since 2000, Ecuadorian electricity regulator, put in place
mechanisms to promote NCRE. (including small hydro)
Mechanisms vary according to state policy and market
developmen.
Last regulation approved by the Board of Directors
focused on biomass, biogass and hydro.

19. Centrales
Territorio
Continental
Territorio
Insular de
Galápagos
Biomasa 9,67 10,64
Biogás 7,32 8,05
Precios Preferentes (cUSD/kWh)
Centrales
Capacidad
(MW)
Territorio
Continental
Hidroeléctricas C ≤ 30 6,58
*C = Capacidad Instalada
100 MW
QUOTA
Regulación 001/13 - Codificada

20. Preferential term and dispatch- Ecuador
Concesion term– Regulación No 003/11
Year 0 Year n
15 years
Preferential term– Regulación No 001/13
Electrical energy generated has priorirty dispatch and it
is paid with special tariff
Economic dispatch as any other
conventional generation .
(Variable costs )

21. Concession
CONCESSIONED GENERATION PROJECTS
FEED IN TARIFFS MECHANISM
BEFORE 2011
TYPE CAPACITY (MW)
EOLIC 27,4
BIOMASS 44,6
HYDRO 4,62
2011 - 2012
TYPE CAPACITY (MW)
EOLIC 1,98
BIOGAS 15,7
HYDRO 280,03
PHOTOVOLTAIC 355,97 24,43 MW; O.C.
O.C. commercial operation

22. Promotion mechanisms should be designed to
provide appropiate signals for each technology
Mechanisms has to be desgined tailored to the conditions
or characteristics of the national market ( economy,
policy, reosurces inventory, etc.)
Renewable energy should be developed as a sustainable
supply source (most important option).
Conclusions

23. Thank you
byron.betancourt@conelec.gob.ec