Event reports
On this occasion, the host country was Costa Rica, as it is one of the countries in the region where the importance of preserving the environment (around 25% of its entire territory are natural conservation areas) and the use of renewable energy have been the most intense, thanks to the political will and action, to the permanent presence of the private sector and to the country's environmental characteristics (characteristics which are shared by the majority of Central American countries and which, therefore, make it possible to replicate these policies). Aside from the fact that San José was the first city in Latin America (and third in the world, after Paris and New York) to be illuminated with electricity.
The event started with the words of Welcome from the organizers Werner Böhler, from KAS- Costa Rica, Christian Hübner, from the EKLA-KAS Program, Philipp Krakau from Pflüger International and Tatiana Remy from the Costa Rican-German AHK, who then introduced the presentation made by Laura Lizano from the Ministry of the Environment and Energy of Costa Rica. Ms. Lizano presented briefly the situation of the energy sector in Costa Rica, where 99.3% of the population have electricity in their homes and their electric energy mix is composed by 72% Hydroelectric, 13% geothermal, 11% wind, 3% thermal and 1% between biomass and solar (the latter having the least incidence in the country). However, transport is its main challenge, because it is oil-based (oil represents 66% of the total energy sources used) and takes up 52% of the total energy produced. That is why Costa Rica has a 2015-2030 Sustainable Development Plan and an Energy Policy which posit: Maximizing the use of renewable sources and minimizing non-renewable sources, moving along the path of energy efficiency, sourcing on distributed generation, seeking the sustainability of the energy matrix, seeking the transformation of the vehicle fleet into electric vehicles and achieving sustainable public transport in the country.
After listening to the vision for the country presented by the representative from MINAE (Ministry of Environment, Energy and Telecommunications), the audience watched a video sent by Werner Vargas (Executive Director of the SICA Secretariat), who explained the importance of Central American Integration, with an emphasis on electrical interconnection, which is a unique example in the world, since it covers about 1500 km of interconnection across countries and borders. This interconnection was possible thanks to the Esquipulas peace agreement (1987) that ended border conflicts in Central America and opened the doors to regional integration, which is strengthened and institutionalized with the Tegucigalpa Protocol (1991). This protocol mentions that “a new regional ecological order” must be sought. SICA was born in this scenario as an articulating organism for policies, plans and actions in pursuit of Central American integration, with the participation of boards of directors, ministers and presidents of the member countries, who, through the exchange of knowledge, common agreements and international cooperation, are advancing the integration and the common plans in the fight against climate change, whether in terms of mitigation (with plans and strategies such as the “Clean energy corridor”), or in terms of adaptation (for achieving the Sustainable Development Goals).
A debate table was subsequently held in the presence of the Bundestag representatives Carsten Müller and Karsten Möring, who, together with Gerardo Vargas (representative from the legislative assembly of Costa Rica), discussed the similarities and opportunities afforded by the energy transition in Germany and Costa Rica, and how it can be attractive, with the legislative work, to private investors in the region. Representative Möring mentioned that one of the main difficulties in the use of renewable energies in Germany is the transport of energy, since the big production centers are located in the north of the country and the great user demand is in the south. Therefore, it is essential that a business plan include this logistical cost, which can increase prices, but which, in the long run, could make the businesses sustainable without them depending excessively on state subsidies. “We must conduct calls for tender and implement business models that render attractive the entry of new players”, he said.
It is well known that the climate change mitigation has 2 main pillars: Energy transition and energy efficiency, the latter being the one that is least taken into account, though a fundamental element if we want to achieve the goals proposed at COP 21. Energy efficiency, as representative Carsten Müller mentioned, is not only a benefit for the environment, but it also provides economic benefits, both in terms of the reduction of organizational costs and in terms of the jobs that can be generated. He commented on Germany's example, where energy efficiency could generate a 10% increase in jobs, the average in that country being of 2-2.5% per year. Also, energy efficiency is a path of continuous improvement where the question we must always ask ourselves is: “How can we better use the materials?”
Representative Vargas mentioned that although it is true that Costa Rica is a country where the use of renewable energy has exemplary levels for the rest of the region, it is necessary to diversify the productive supply (toward non-hydraulic sources), and in this regard there are problems in the legislative branch. Indeed, he mentioned a law on the use of biofuels that was dismissed in Congress for unclear reasons. Something on which the 3 Representatives agreed was that there are 2 sectors where the efforts should be focused: The transport and the heating sectors, both highly oil-based; the transport sector having the greater incidence in Costa Rica and the region. In the face of this situation, for example, a law is currently being discussed in Germany to ban the use of fossil energy for these sectors from 2030 onwards.
The second day started with the presentation by Jorge Blanco, from AHK, who asserted the importance of renewable energy as a series of business opportunities, above all with respect to wind and solar energy, due to the weather conditions of the region and to the benefits and opportunities that these businesses entail: Productive efficiency, job generation, production decentralization and technology development.
Under the premise that “Recycling is the largest factor for the protection of climate and resources”, the panel on energy generation with biomass was put forth by Christian Wohlrabe, representative from the Alba Group, one of the most important companies in the sector of waste management, who explained the economic, social and environmental importance of waste treatment and all the possibilities that exist for reuse, including the manufacture of "Green coal"; all of them with technology that is state-of-the-art and in constant modernization. And Carlos Peláez from Brücken Consult, who is striving to develop energy with the use of municipal waste in Bolivia, with great difficulty, despite the fact that it is a great opportunity for development given the deficiencies in solid waste management in Bolivia: Lack of space, low recycling rate, fire risks, leachates, etc. However, they are confronting problems such as: a lack of knowledge and the complexity of the technology, regulations prohibiting the burning of garbage, bureaucracy, pricing regulations, penetration into the network, etc.
Continuing along the line of energy generation with biomass, Germán Rodríguez from Forest Finest explained the importance of the use of the forest biomass as an energy source since reliance on hydroelectric energy can be undercut by droughts and changes in rainfall patterns due to climate change, aside from the fact that it incentivizes afforestation (the creation of forests), that it is easily adapted to industry (it creates both electricity and caloric energy), that it generates value chains and that it can be applicable as a certification for the carbon market. It is worth indicating that in spite of these opportunities, in Costa Rica they represent only 0.77% of the energy mix, and in other countries such as Guatemala and Belize 11% and 14%, respectively. The energy generation through biomass, as an alternative source to hydroelectric, can be added to geothermal (volcanoes throughout the territory), solar (tropical zone with strong radiation) and wind (strong and constant winds), as mentioned by Jorge Montero from ICE, who stressed that distributed generation is the great opportunity for Costa Rica and the region, mainly in solar energy, which can be implemented through the private sector, would diversify the energy supply and would create stability and quality of electrical service, a better balance of payments, less GHG emissions and pollution, and, in the long-term, would enable to meet the demand that would be created by the incorporation of electric vehicles into the national fleet, as stipulated in the 2015-2030 Sustainable Development Plan in Costa Rica.
As was mentioned, renewable energy is a great opportunity for the private sector, and among its main benefits there is the increase in job creation. Regarding this point, Alex Haase from AMECS explained the importance of the technical preparation that should be achieved at the regional level so that the manpower required by these new technologies is managed productively. These must be qualified workers, both in terms of theory and practice, with engineering skills and ample knowledge in occupational safety (risk prevention). It is expected that in Latin America there will be an annual growth of 5000 MW, and it is calculated that, in a conservative estimate of 1 technician per each 5MW of energy produced, there will be a demand for 1000 new technicians per year. That is why AMECS conducts training projects such as the Regional Training Center for Wind Energy (Tillaran, Costa Rica) with the objective of multiplying these centers throughout the region.
As we mentioned, energy efficiency is a great opportunity for the private sector, and this was demonstrated in the presentations of the last panel of the event, where companies such as Yuxta, represented by Ernesto Moreno, offer software for the monitoring, alert control, automation and self-generation of clean energy for the benefit of companies in terms of cost savings. Energy Efficience, represented by Andreas Ziolek, carries out projects of Engineering, Procurement, and Construction Management (EPCM) through business consulting for its clients; and Rehau, represented by Ricardo Villareal, which, through the production of high-quality polymers contributes to an efficient and eco-friendly construction sector (for example, windows with state-of-the-art technology that reduce the consumption of air conditioning and electricity), have succeeded in positioning themselves in the Latin American and German markets with optimum growth projections.
To close the event, a reception was held at the residence of the Ambassador of Germany to Costa Rica, Mr. Ingo Winkellmann, who thanked the participants and the organizers, in an atmosphere of camaraderie, for the initiative to hold the event in Costa Rica, mentioning in his speech that the “Energy transition undertaken by Germany in the middle of the last century can be considered on a par the landing of man on the Moon, as it was one small step for man, but one giant leap for mankind.”
