Power-Starved Venezuela Targets 10,000 Megawatts from Windfarms Through 2025

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Researched by Industrial Info Resources (Sugar Land, Texas)--In its bid to develop energy security, Venezuela is exploring possibilities in the renewable energy sector. The government, in association with the Venezuelan Wind Energy Association (Caracas, Venezuela), has proposed the development of wind energy infrastructure of 10,000 megawatts (MW) through 2025. Technology and feasibility studies are in progress. The association also has submitted two projects to the Ministry of Science and Technology. The first project includes a coastal study to identify wind power generating opportunities and zones to set up wind turbines. The second project consists of a report on wind power's potential and development. By 2025, wind power will account for nearly 10% of the country's primary energy demand.

Venezuela has a 4,000-kilometer coastline, which makes it an ideal destination for wind parks. Minister for Electrical Energy Ali Rodriguez Araque has indicated that La Guajira in Zulia state and Paraguana in Falcon state have been identified as potential locations for windfarms. Studies have estimated that these regions could have wind power potential of nearly 10,000 MW. Venezuela's first windfarm is under construction at Paraguana. On completion, the project, which is being jointly developed by Gamesa Corporacion Technologica S.A. (MCE:GAM) (Victoria-Gasteiz, SpaIN) and Petróleos de Venezuela S.A. (PDVSA) (Caracas, Venezuela), will generate 100 MW using 76 turbines. In the medium-term, the country is likely to witness the development of four wind parks constructed by GALP Energia SGPS S.A. (ELI:GALP) (Lisbon, Portugal), with an investment of nearly 90 million euros ($122.5 million). The turbines, with a combined generating capacity of 72 MW, will be at Chacopala, Goche Island, La Guajira and Margarita Island. Impsa S.A. (Mendoza, Argentina) also has proposed setting up a series of windfarms in Venezuela.

Venezuela is an oil-rich country, but does not use oil as fuel in the energy and transportation sector. The Guri Dam on the Caroni River, which has an installed capacity of 10,235 MW, accounts for more than 70% of Venezuela's primary energy supply. In February, Hugo Chavez, President of Venezuela declared an electricity emergency in the country after water levels in the Guri Dam declined sharply. Venezuela's rainy season begins in April, followed by an increase in water levels in June. However, droughts and intermittent rainfall has led to a sharp decline in water levels, which are receding at a rate of 14 centimeters per day, in comparison to 9 centimeters per day in January. Presently, the dam's useful capacity level is 34%, in comparison to 60% recorded in January this year. To alleviate the situation, Venezuela has decided to expedite the purchase of 880 MW hydro turbines from General Electric (NYSE:GE) (Fairfield, Connecticut).

The government has urged consumers to reduce electricity consumption by 20%. There are reports that consumers using more than 500 kilowatt-hours per month will have to pay a penalty. If the power crisis continues, Chavez has not ruled out a possibility of declaring a presidential emergency in the next six months. Venezuela is also studying the potential of building a 500- to 1,000-MW nuclear power plant with Russian assistance. The government is also implementing the "Sembrando Luz" green energy program, which has completed implementation of 15 solar power systems of 3,000-MW capacity in the rural areas of Rio Blanco, in the state of Trujillo. Another solar power project is under execution at El Quino in Merida state, which proposes to install 40 solar units of 600 MW each. In a related development, the Foundation for the Development of Electric Service (FUNDELEC) announced that it would invest $6.2 billion on solar power projects in the country. The projects will include installation of photovoltaic systems in public and government buildings, schools and community centers.

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