Project Name URU/10/G31 “Electricity Production from Biomass in Uruguay”, (PROBIO) GEF ID UNDP PIMS 3618 UNDP Atlas “Award Number 00059520 UNDP “Project Number” 61545 Country/Region included in Project Uruguay Final Evaluation Periodol December 2014 Evaaluation Report Date 2015 GEF Area Cambio Climático GEF Operational Programme OP-4 GEF Strategic Priority CC-SP4 : Promoting grid electricity from renewable sources; Promoting Sustainable Energy Production from Biomass In Cash Contribution (US$) 1,155,000 ( GEF financing: 950,000) In Cash Co-financing (US$) UNDP (25,000); Government (180,000) In-Kind and Investment Co-financing (US$) Others (595,000); Private Investment (6,750,000) Executing Agency MVOTMA-DINAMA Executing Partners Ministry of Industry, Energy and Mining (MIEM); Ministry of Agriculture, Livestock and Fishery (MGAP) Estimated date for project start, according Prodoc Octuber-26-2010 Actual start date for Project Implementation August 2011 Estimated project closing date according Prodoc Dec-31-2013 Actual project closing date 31-Dec-2014 Project team of final Project evaluation Jorge Leiva Valenzuela, Msc in Chemical Engineering, PhD(c). Acknowledgements I like to thank to the project team, DINAMA and UNDP officials for its collaboration and good response for organizing field visits, meetings and interviews. I would also thank to project’s partner institutions (DGF, DNE) and private sector for its clear statements and analysis. Doubtlessly, without the provided support, this evaluation work would be impossible to carry out.
N°5: Biomass power plants in operation. N° Nombre Año Ingreso al mercado Tipo Combustible Potencia Autorizada (MW) 1 Bioenergy S.A.* 2015 Forestry biomass 43 2 Pereira S.A. 2014 Black liquour 164 3 PONLAR 2012 By products from neighbor forest industry. 7,5 4 ALUR 2010 Wastes, and eucaliptus sawdust 10 5 Bioener 2010 Byproducts from sawmill 12 6 Galofer 2010 Rice husks 14 7 LIDERDAT S.A 2010 By products from forest industry and wood chipping industry. 5 8 Weyerhaeuser Productos 2010 By products from board veneering process 12 9 Fenirol S.A. 2009 Forestry by products (field and industry) and rice husk 10 10 UPM 2007 liquour 160 437,5 (*): project approved and with an UTE contract. Fig N°4: Power generation base on biomass (GW) for the period (UMP and Punta Pereira included). 2013
Table N° 11: Summary for changes made by the project substantive revision. Element Id Original element Original modified element Element type Component/Result affected by changes A Distributed electricity generation using forestry biomass wastes, supplying to the national grid. Distributed electricity generation biomass, supplying to the national grid. Objective indicator for the program. Across all project document. C Forestry biomass wastes database for relevant regions. Forestry biomass database for relevant regions. Objective indicator for the program. Result 1 A At least one 5MW biomass power generator, operating under a long-term ACE contract. Biomass power generators in operation, have a long term PPA contract, with an additional capacity of 30 MW in process. By July 2011, the installed capacity reached 65 MW. Objective at the end of program. Result 4 A Forestry biomass wastes database for relevant regions. Forestry biomass database for relevant regions. Result Indicador. Result 1 B GIS application to collect geographical information on forestry biomass wastes. GIS application to collect geographical information on forestry biomass. Result indicator Result 1 D An ESA has been carried out for the entire forestry sector. Environmental studies for the entire forestry sector have been made, to be used as inputs for the decision taking process and a Sectoral Environmental Assessment will be made after project completion. Objective at the end of result Result 1 Result 2 The current policy framework for electricity generation based on biomass wastes from forestry and agriculture industries, has been strengthened The current policy framework for electricity generation based on biomass by-products from forestry and agriculture industries, has been strengthened. Result Result 2 A Lack of knowledge on economic, technical and logistics aspects of forestry biomass waste collection. Lack of knowledge on economic, technical and logistics aspects of forestry biomass by-products collection. Baseline Result 2 B The distributed biomass power generation is being facilitated within the framework of the national strategies of energy policies. The sustainable use of biomass for energy is being facilitated within the framework of a national energy policy and strategies. Objective at the end of result. Result 2
C Operation and safety guidelines for biomass facilities. Plan for development of sustainable use of biomass for energy purposes, in collaboration with local and national authorities. Result indicator Result 2 D It did not exist in prodoc Emissions, operation and safety guidelines for biomass facilities. Result indicator Result 2 C It did not exist in prodoc There is no a wide sectoral plan for sustainable use of biomass. Baseline Result 2 C It did not exist in prodoc Sustainable use of biomass for energy purposes is facilitated through coordinated local and national strategies, supported with studies and guidelines for the decision making process. Objective at the end of result. Result 2 A National companies involved in the construction of small biomass power plants. Technical support activities in collaboration with private sector (metallic infrastructure sector, logistics and servicing companies. Result indicator Result 3 B Promotional campaign aimed at investors, makers and public. Promotional campaign for investors, about increasing the knowledge on sustainable use of biomass for energy purposes and focused on equipment and servicing providers and public. Result indicator Result 3 C National seminar on decentralized biomass energy generation. National seminar on biomass use for energy purposes in Uruguay. Result indicator Result 3 A Companies producing metallic godos are making boilers and containers for biomass plants, according specifications, design and limited engineering capacity. There is no clear guidelines and procedures for investment projects of biomass energy generation. Baseline Result 3 A Enhanced design and engineering capacity, more involvement of national equipment providers (objective: 3 companies). Support has been brought to all investors, about the added value chain (plant construction, supply logistics, energy developers) of biomass power projects. Objective at the end of result. Result 3 D Detailed technical information on operation parameters of distributed biomass power plants. Detailed technical information on operation parameters of distributed biomass plants. Result indicator Result 4
22 Manuel Oñate Director Conglomerado de la madera Tuacarembo-Rivera 23 Chaer Asesor de Presidencia y Gerente de ADME. (Administradora del mercado mayorista de EE) UTE Mariana Kazprzyk Profesional Área Cambio Climático DINAMA
operation of biomass installation biomass electricity generators. Outcome 1 A comprehensive assessment of domestic forestry resources has been completed as input for policy development, including a survey of market aspects. (A) Database of forestry biomass residues in relevant regions; (B) GIS application to retrieve spatial information on forestry biomass residues; (C) Economic assessment of the commercial value of forestry biomass resources; (D) SEA (Strategic Environmental Assessment) on extraction of biomass residues for energy purposes for the Forestry Sector. (A) No information available forestry biomass residues for planning purposes; (B) GIS application in use with DGF, but not covering forestry residues and economic/logistical parameters; (C) Lack of insight in economic drivers behind the market of forestry products and residues; (D) No sector-wide SEA available. (A) Accurate information has been obtained on forestry biomass resources; (B) An appropriate GIS module has been implemented linking biomass data with economic and technical parameters; (C) A detailed assessment (report) provides energy policy makers with adequate information about potential uses of forestry products and residues, including the use for electricity and heat production; (D) A SEA has been carried for the forestry sector as a whole. Project evaluation, assessment of project outputs. This project outcome concerns studies and analyses. No specific risks have been identified. Assumptions: (1) the Government of Uruguay maintains its firm commitment of co-financing resources for the PROBIO initiative. Outcome 2 The current policy framework for electricity generation based on biomass residues from forest and agro-industry, has been strengthened. (A) Insight in economic, technical and logistical aspects of biomass collection; B) National strategy for use of biomass from forestry, wood processing industry (A) Lack of insight in economic, technical and logistical aspects of collection of forestry-based biomass residues; (B) Two contracts have been awarded for two 10-MW (A) Adequate determination of key parameters to assess costs and constraints; (B) Distributed biomass generation is being facilitated within the framework of national Official publications, project evaluation, assessment of project outputs Risks: The involved ministries (MVOTMA and MIEM) would withdraw their commitment to PROBIO. Assumption: The Government of Uruguay is strongly committed to include biomass energy sources in its national policies.
and agro-industry for energy generation; (C) Operation and safety guidelines for biomass installations; (D) Review of forestry policy framework on energy relevant issues. biomass plants on an ad-hoc (C) No specific guidelines for biomass plants available in Uruguay; (D) The existing forestry policy framework does not foresee the use of biomass for energy purposes. energy policy and strategies; (C) Guidelines on key issues have been implemented for biomass generators; (D) A review (report) produced including recommendation on relevant aspects of forestry policy. Outcome 3 The business opportunities of biomass-based power generation have been promoted among industries, investors and the general public. (A) National companies involved in manufacturing of small biomass generating plants; (B) Promotional campaign on biomass targeted investors, manufacturers and general public; (C) National seminar on decentralized biomass generation. (A) Metal manufacturing companies (1) produce heaters and vessels for biomass plants according to specifications; limited design and engineering capacity; (B) Lack of awareness and knowledge of biomass opportunities; (C) Lack of dissemination and exchange of knowledge on energy production from biomass. (A) Enhanced design and engineering capacity; more structural involvement of national equipment suppliers (target: 3 companies); (B) A broad promotional campaign has increased awareness on biomass among general public; and drawn attention of investors and manufacturers; (C) A national seminar has brought together experts and stakeholders in biomass development. Project evaluations, interviews Risks: Local actors (manufactures and investors) would show insufficient interest in distributed biomass technology. Assumptions: (1) Market actors in Uruguay are seriously interested in biomass technology; (2) the national electricity company UTE will will governmental policies and provide a framework for interconnection. Outcome 4 (A) Feasibility studies, final engineering (A) Preliminary studies have been made for (A) Full feasibility studies, technical designs, Project evaluation, site visits, assessment Risks : (1) The biomass pilot plant would not be concluded under
One biomass-based electricity generator (5 MW) has been installed, supplying energy to the national grid, and a mechanism for widespread replication has been prepared. studies and contracts for pilot electricity generator; (B) One pilot generating plant constructed and supplying power to the national grid; (C) Stimulating policy instruments in place enabling additional capacity to be installed; (D) Detailed technical information on operation parameters of distributed biomass plants. the private pilot plant under consideration; (B) Envisaged pilot biomass plant in prefeasibility stage; (C) Recent Decrees invite companies to present small biomass projects on an ad-hoc basis; incentives are non-continuous; Several tax incentives in place. (D) Lack of data and experience in Uruguay concerning field performance of small, grid-connected biomass generators. contracts and permits concluded for the envisaged pilot plant; (B) One 5-MW pilot biomass plant constructed and supplying electricity to the grid; (C) A policy framework in place allowing the widespread implementation of distributed biomass plants over a longer timeframe; (D) Detailed field data have been collected regarding operational safety, dispatch, GHG benefits, economy and reliability of distributed biomass generators. of project outputs, monitoring reports the project’s time horizon; (2) Conflicting interests would keep the Government from implementing a stimulating framework for biomass. Assumptions: (1) Existing experience in Uruguay and commitment of private investors ensure a fast development of the pilot biomass generator based on forestry residues; (2) The newly elected Government is sufficiently strong to push forward its biomass development plans. Outcome 5 A project monitoring and evaluation plan implemented, and lessons learnt are disseminated. (A) Mid-term Evaluation Report; (B) Final Evaluation Report; (C) Documentation of project experiences; (D) Sharing of project results. (A) No MTE; (B) No FEV; (C) No systematization of lessons-learnt on distributed biomass plants in Uruguay; (D) No sharing of biomass experiences in the region. (A) MTE completed; (B) FEV completed; (C) Lessons learnt publication; (D) Seminar to present project results. Evaluation reports Risks: No specific risks have been identified related to UNDP/GEF M&E. Assumptions: (1) project stakeholders correctly understand UNDP/GEF M&E principles; (2) national counterparts are committed to the objectives of the Project.