san cristobal wind and solar project winter 2008
TRANSCRIPT
San
Cri
sto
bal
Win
d a
nd
So
lar
Pro
ject
Win
ter
2008
What is the e8?
The e8 is a non-profit international organization,composed of nine leading electricity companiesfrom the G8 countries, which promotessus ta inable energy development throughelectricity sector projects and human capacitybuilding activities in developing nationsworldwide.
The e8’s mission is: “To play an active role inglobal electricity issues and to promotesusta inable development.” This diverseinternational group offers electricity sectorexpertise and practical competency inelectr ic i ty generation, t ransmiss ion anddistribution. With field-proven expertise inthe planning, management , des ign ,operation and maintenance of energyfacil it ies, member companies togetherprovide an all-encompassing scope of theglobal electricity industry to assist developingcountries.
e8 Member Companies:
American Electric Power(USA)
Électricité de France(France)
ENEL S.p.a(Italy)
Hydro-Québec(Canada)
Kansai Electric Power Company, Inc(Japan)
Ontario Power Generation(Canada)
RAO-UES of Russia(Russia)
RWE AG(Germany)
Tokyo Electric Power Company, Inc(Japan)
Table of contents
Message from the e8 Chair
Message from the American Electric Power ChairMessage from Ecuador's Minister of Electricity and Renewable Energy
1. Renewable electrification of the Galapagos Islands 7Introducing the e8 Wind Project in the Galapagos 8Protecting a World Heritage Site 10
Ecuador: A country of rich and unique biodiversity 10Ecuador’s Galapagos Islands 11San Cristobal Island – Chatham 13
CO2 emissions reduction through sustainable energy development 15
2. The San Cristobal Wind Project 17Concept 18Managing the San Cristobal Wind Project 21Project Engineering, Development and Implementation 25
Project engineering 25Project development and implementation 28
Interview with Mr. Luis Vintimilla, Project Manager 36 Sustainable Development Footprint 38
Environmental impact assessment 38The Petrel protection programme 40Registering the Galapagos Wind Project under the Kyoto Protocol’s Clean Development Mechanism (CDM) 41Project replicability 42
Interview with Mr. Pedro Zapata Rumipamba, Mayor of San Cristobal 44
3. e8 Human capacity building activities to enhance the promotion of renewable energy options in the Galapagos 45
The micro-solar long-distance learning programme 46Introducing solar energy options to the Galapagos 47
Concluding Message 50
The year 2007 has been key for all actors involved in the cause ofcombating the major global challenge of climate change and itspotential grave consequences on human development and the globalenvironment. Science has now clearly demonstrated that urgent andconcerted international action is needed in order to reduce globalgreenhouse gas emissions and mitigate the adverse impact of climatechange on the overarching and global objective of achieving sus-tainable development for all.
The e8, the mission of which has been to promote sustainable develop-ment through renewable energy projects and human capacity buildingworldwide, is proud to inaugurate, this year, a major project, whichwill not only contribute to the national effort of Ecuador’s govern-ment and the global efforts to reduce green house gas emissions atlarge, but will also contribute to the protection of one of the richestand diverse ecosystems of our planet.
The e8 San Cristobal Wind Project, featuring the implementation of a2.4 MW wind farm on the inhabited island of San Cristobal, in theGalapagos World Heritage Site, will displace diesel-powered electricitygeneration by wind energy, helping to reduce greenhouse gas emissionsand the risk for equally devastating diesel-fuel tanker spills in this highlyprotected environment.
The Galapagos San Cristobal Wind Project demonstrates that concertedand joined action, local, international, private and public partnershipscan effectively contribute, and that they are in fact key, to theglobal effort needed to address the challenge of climate change,protect the global environment, and achieve sustainable develop-ment for all.
Message from the e8 chair
Mr. Thierry VandalChief Executive Officer, Hydro-Québece8 Chairman for the year 2007-2008
Thierry Vandal
I am very p leased to report to you that the e8 San Cr i s tobalWind Pro ject i s c o m m e r c i a l l y o p e r ating after six years of hardwork by all the partners. This is an accomplishment that has requiredcontinued teamwork between e8 companies since 2001, when theUnited Nations (UN) asked for the participation of our organization, thee8. During the Fifteenth session of the Conference on SustainableDevelopment in April 2007, the United Nations showcased the projectas a private-public partnership model for other nations and projectdevelopers to follow for the advancement of renewable energydevelopment worldwide.
The e8’s photovol ta ic (PV) so lar power o p e r a t ions andmaintenance t ra in ing and student energy efficiency educationprograms have also been completed this year. These programscomplement the wind project by strengthening the human capacity andskills of local utility company workers operating the type of technologyintroduced by the projects.
The student energy efficiency programme cont r ibutes toinc reas ing loca l c i t i zens ’ k n o w l edge of and awarenessabout ef f icient energy consumption. These three human capacitybuilding and educational programs, along with the major Wind Projectdeveloped on the Island of San Cristobal, will help the Galapagos Islandsto achieve Ecuador’s goal to s h i f t f r o m d i e s e l - b a s e d p o w e rg e n eration to renewable sustainable energy development.
I am very proud to launch, on behalf of the e8, an unprecedentedrenewable energy project in the Galapagos, Ecuador, which willcontribute to the protection of a unique World Heritage Site, helppreserve the biodiversity of an exceptionally rich ecosystem, and be partof the global effort to reduce green house gas emissions worldwide.
Message from the American Electric Power Chairman
Mr. Michael G. MorrisChairman, President and Chief Executive OfficerAmerican Electric Power (AEP)
Michael G. Morris
In a context in which petroleum is becoming a more expensive and scarce naturalresource, sustainable energy development raises two basic challenges. One of them isto promote the use of renewable energy resources. The other, perhaps even moreimportant, is to learn to efficiently us the energy available to us.
It is within this framework that Ecuador's Ministry of Electricity and Renewable Energy islooking to develop policies and projects which satisfy the country's short, medium andlong-term energy demand, while steadily diversifying the type of generating sourcesand paving the way for a post-petroleum era.
Wind energy i s one of the technical ly , economical ly and social ly v iable formso f r e n e w able energy which can be appl ied in Ecuador. Nevertheless , i t i s s t i l la re latively underused resource.
Thanks to the joint efforts of the national Government and the e8 companies, Ecuadorhas now commissioned its first wind farm, located in San Cristobal Island, in theGalapagos archipelago. The generation of this clean energy has been able to reducethermoelectricity to 50% on the island, benefiting both its population as well as theecosystem.
I n t e r n a t i o n a l c o o p e r a t i o n a l l o w e d t h i s p r o j e c t t o b e d e v e l o p e d w i t h i n as o c i o - e n v i r o n mentally responsible policy framework, which recognises the impor-tance of the well-being of the local population and the conservation of its naturalenvironment.
Continuing this line of work, the Ministry of Electricity and Renewable Energy is lookingfor additional opportunities to take advantage of wind power.
This is the case of other regions in Ecuador with an abundance of wind, which havealready initiated studies for potential future projects, like Villonaco and Salinas deImbabura, and which will need further support for implementation.
Wind energy is seen as a viable alternative because of its ability to replace thermicgeneration, and can eventually become an important part of the nation's electricitygeneration park.
Us ing renewable energy resources a lso represents a re l ief to the envi ronment,especial l y i n h i g h ly vulnerable environments such as the Galapagos islands. In thiss e n s e , r e n e w a b l e e n e r g y i s c o n s i s t e n t w i t h t h e d e v e l o p m e n t i d e a l s o ft h e c u r r e n t g e n eration while it also guarantees the right of future generations to livein a healthy environment.
Message from Ecuador’s Minister of Electricity and Renewable Energy
Mr. Alecksey MosqueraEcuador's Minister of Electricity andRenewable Energy
Alecksey Mosquera
The San Cristobal Galapagos Wind PowerProject is part of the Ecuador's Governmentumbrella program "Renewable Energy forElectricity Generation-Renewable Electrificationof the Galapagos Islands" supported by theGlobal Environment Facility (GEF) and theUnited Nations Development Programme(UNDP). This program involves public, private,local and international donors to re-electrifythe four populated islands of the GalapagosArchipelago. The Ecuadorian Government hascontributed to the San Cristobal Wind Projectwith approximately $ 3.3 million USD to this project.
The umbrella program aims at introducingPhotovoltaic (PV) and wind energy as substi-tutes for fossil fuel (mainly diesel) used for elec-tricity generation in the GalapagosArchipelago. In addition, the program will sub-stantially decrease the volume of dieselannually shipped to the islands, therebydecreasing the environmental threat of oilspills, which can cause great damage to theunique biodiversity of the islands' ecosystems.
The San Cristobal Wind Project includes theprovision of technical assistance by the e8member companies, the experts of whichshare technical and field-proven inter-nationally diverse expertise on r e n e w a b l ee n e r g y d e v e l opment. The San CristobalWind Project is a partnership between theGovernment of Ecuador, the United NationsDevelopment Programme (UNDP), and theSan Cristobal Wind P r o j e c t C o m m e r c i a lT r u s t ( F I D E ICOMISO MERCANTILPROYECTO EOLICO SAN CRISTOBAL). Thefounders of the F ideicomiso a r e m e m b e rcompanies of the e8 organization(AmericanElectric Power-AEP and RWE) and theGalapagos Electricity Utility (Elecgalapagos) isan Adherent and Beneficiary of the Trust.The project is designed to replace, asmuch as technically and economically feasible,the existing diesel combustion-generatedpower in the San Cristobal Island with a clean
energy source based on wind turbines, withthe dual objective of reducing green-house gas emissions and minimizing theenvironmental risks associated with thecurrent power generation system. The 2.4MW wind project in San Cristobal, operating inh y b r i d fash ion with the existing dieselgenerator units, will provide approximately50% of the island’s annual electricity demandfor energy.
Introducing the e8 Wind Project in the Galapagos
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Tropical Bird
• The first large-scale wind project in Ecuador00(Three (3) 800 kW turbines for total installed00capacity of 2,400 kW).
• A six-year project with an approximate00cost of $10 million USD.
• Complemented by two (2) 6 kW Solar00PV systems, solar PV technical training00and energy efficiency educational00prog r a m m e s .
• A wind project built on a UNESCO World00Heritage Site, as a component of the00Ecuador's renewable energy program for00the Galapagos Islands supported by the00United Nations Development Programme00(UNDP).
• One of the largest wind-diesel hybrid systems00in the region, supplying more than 50% of00the island’s electric needs through wind00power.
• Featuring a programme for the protection00of an endangered indigenous bird specie00(Galapagos Petrel).
• Registered under the Kyoto Protocol’s00Clean Development Mechanism.
• A non-profit wind project implemented00under a new and unique public–private00partnership trust.
• A project based on an innovative financing00structure, including funding from UN00agencies (UNF & UNDP), Ecuadorian00taxpayers’donations, the Government of00Ecuador and e8 companies.
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The e8 Galapagos San Cristobal wind project is:
San Cristobal Wind Park at El Tropezon
Nearly 300,000 years old, Fernandina is the youngest island in the Galapagos archipelago
Ecuador: A Country of Rich andUnique Biodiversity
Ecuador occupies only 0.17% of theEarth’s surface, but is home to more than 11%of all land vertebrate species, 16,087 vascularplant species, and around 600 species ofmarine fish.
The contrast between this country’s naturalabundance and size never ceases to amaze itsown people and foreign visitors. Ecuador is onthe United Nations Environment Programme’slist of the world’s 17 megadiverse countries, whichhas attracted the attention and interest ofmillions of people worldwide.
Ecuador prides itself on the multi-ethnic andmulticultural nature of its population of 12.6 million.Fourteen indigenous nationalities spread overthe Sierra, Coast and Amazon regions make upa unique mosaic of traditions and cosmovi-sions. The capital city of Quito alone is a movingshowcase of this impressive diversity. The sameis certainly true for Guayaquil, the country’smain port and economic driving force.
This Andean country enjoys unique geographicconditions, which make it particularlyattractive. Located on the Tropic of Cancer,the Andean Cordillera crosses it from north tosouth; warm damp sea currents from the northmerge with cold dry currents from the south onits continental and island coasts, contributing tothe unique geographic and climatic charac-teristics behind the country’s natural wealth.
Ecuador is divided into three continentalregions – the Coast, the Highlands and theAmazon – as well as an island region, theGalapagos, each with its own distinctgeographic and cultural characteristics.
The presence of the Andes Mountains gives thecountry a varied climate despite its location inthe tropical Zone along the equator. Ecuador
possesses a wide altitudinal range that extendsfrom sea level to 6,310 meters (at the summit ofthe country’s highest mountain, Chimborazo).
This altitudinal variation, combined with windscoming from the Amazon and the PacificOcean, nurture over 36 types of vegetation,including tropical humid forests, cloud forests,paramo grasslands, and dry forests. Despite itssmall size, Ecuador has more bird and treespecies than the s igni f icant ly large rt e r ritory of the United States.
Not only does Ecuador possess an amazingwealth of biodiversity, but it is also home to awide range of cultures. The presence ofQuichua, Huaorani, Chachi, Tsáchila, Cayapa,Puruhae and Tagaeris indigenous groups,along with mestizos, Afro-Ecuadorians andwhites, has been at the core of the richmultiethnic Ecuadorian cultural identity.
The recent migratory movements out of andinto the country have further contributed toEcuador’s rich an complex demographicmakeup. Today, remittances from emigrantsconstitute Ecuador’s second largest source ofincome after oil production.
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Protecting a World Heritage Site
Ecuador's unique biodiversity• 2,500 species of land vertebrates• 11.5% of the world total 34 plant formations• 20,000 species of vascular plants, 1.6%
of the Earth's species• 2,200 bird species
Quito, San Francisco Church and Square Chimborazo, Ecuador's highest peak at 6310 m. Guayaquil, main port of Ecuador
Ecuador’s Galapagos Islands0000000
The Galapagos archipelago is Ecuador’s bestknown face to the world. Graced with anextraordinary natural beauty, a unique endemicbiodiversity and scientific importance, this archi-pelago is unique on the globe.
Located in the South Paci f ic , 1 ,000k i lometers away from the American continentand below the equator, the Galapagos islandsare world renowned for the vital role that oneof their species, “the finch”, played in therevolutionary Theory of the Evolution of theSpecies, developed by the English naturalistCharles Darwin in the nineteenth century.
Today the Galapagos continues to offer anexceptional environment for the scientificstudy of evolution, being the world’s bestconserved oceanic archipelago, with 95percent of their original flora and fauna stillintact.
Comprised of 13 large islands and 112 smallislands and islets, the archipelago belongs tothe Republic of Ecuador. Its land surface is8,000 km², 96 percent of which consists ofprotected areas. The Galapagos has one ofthe world’s largest and best conserved marinereserves, encompassing a 138,000 km² surfacearea, which is home to a significantlydiverse and extraordinarily wide range ofbiological species.
Several theories have been proposed toexplain the origin of the land species in thearchipelago. However, the only certainty aboutthe uniqueness and endemic biodiversity ofthe Galapagos’ fauna is that geographic andgenetic isolation forced species to changeand adapt to the diverse ecosystems of theseyoung islands.
The environment of the Galapagos led itswildlife to evolve in specific and unique ways.One bird species, over hundreds of years,stopped flying, eventually evolving into theonly flightless cormorant that exists today.
One of the islands’ reptiles learned how to divefor food and became the only lava lizard thatfeeds under the water. Land birds, such as thefinches, adapted their beaks in order to be ableto reach their preferred diet, thus giving rise tothe mangrove, cactus and woodpecker finchesand 10 other subspecies found in the archipelago.
Another notable aspect of the Galapagos isassociated with i t s c o n s t a n t s t a t e o ff o r mat ion. I t s volcanic origin continues tomanifest itself. In fact, the islands are the peaksof underwater volcanoes. In the last 37 years,Isla Fernandina, the youngest island in thearchipelago (born approximately 300,000years ago), has recorded 14 eruptions.
The much celebrated levels of endemism (pro-portion of species that are only found naturallyin a particular space) in the Galapagos arepart of the fascination the archipelago holdsfor scientists, tourists, the Galapagos communi-ty and the world at large. Its emblematic floraand fauna include the giant tortoises, marineiguanas and the fur sea lion, as well as 229plants and 51 species of fish.
The Galapagos continues to offer an exceptional environment for the scientific study of evolution
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Hammerhead Sharks Giant Tortoise Frigate Bird
It is notable that the islands’ ecological valueand the state of conservation of its ecosystemhave made the Galapagos the recipient ofseveral international distinctions, including theirbeing named a Whale Sanctuary, BiosphereReserve, and listed as RAMSAR Site by the inter-governmental convention on the conservationof wetlands (The RAMSAR Convention onWetlands).
Underwater treasure
The Galapagos Marine Reserve is one of the mostproductive and biogeographically complexareas on the planet. Developed to protectthe waters surrounding the archipelago andits fascinating, rich and diverse ecosystems,the Galapagos Marine Reserve (GMR) wascreated in 1998.
Tropical, subtropical and sub-Antarctic cur-rents converge in the GMR, creating conditionsthat enable organisms from a wide range ofgeographic origins to coexist in its waters.
The waters of the archipelago contain anex t raord inary number o f b io log ica lc o m m u n i ties including penguins, tropicalcorals, hammerhead sharks among thousandsof other species. The GMR contributes to thecoastal life of the Galapagos National Park
(GNP), where marine iguanas, cormorants,lava gulls, sea lions, boobies and other speciesfind their daily sustenance. The islands also playan important role in the migratory routes ofpelagic species such as marine turtles,whales and dolphins.
Home to 30 species of sharks and approximately2,900 species in total,18% of which areendemic, the GMR was decreed an areaof s t r ict envi ronmental protection. Whilethe islands’ optimal diving conditions are oneof their main attractions, both fishing andtourism activities are strictly regulated andlimited.
Descending into its depths, one enters into acolorful and constantly changing landscape ofcoastal platforms and seamounts.Phytoplankton, zooplankton, the whale shark(the largest fish in the world) and the Pacificgreen sea turtle all cross the GMR in perfectharmony.
Land Species
The Galapagos’ appeal does not end behinda diving mask or snorkel. The nearly 8,000 km² ofprotected area are a constant source ofwonder. The islands’ strong volcanic nature, inwhich rock and vegetation merge, sustainland life for a unique variety of species.
In the diary of the journey that brought him tothe Galapagos aboard the Beagle, Darwinhimself delightedly described the whimsicalshapes the lava took as it turned to rock as“beautifully symmetrical”. He also noted thecontrast between the low a n d h i g h z o n e s ,t h e c l i m a t i c d i f f e r ences and therather dry envi ronment, and depicted theislands’ vegetation as “tolerably luxuriant”.
Opuntia (prickly pear) cacti and escalesiassprout among the rough lava flows while newl i fe spr ings up around them in habitats
Galapagos skate fish
Galapagos sea iguana
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that shelter geckos, cucuves, escolopendras,lizards and finches, all with unique characteristicsholding the secrets of life and evolution.
According to some theories, the two main fac-tors, which likely caused the Galapagosspecies to evolve differently from their relativesin the rest of the world, were the abundance offood and absence of natural predators.Beyond its biological diversity, the archipelagois mostly known for its significantly high levels ofendemism. Almost all of the Galapagos’ floraand fauna, with their distinctive characteristics,can only be found naturally in the islands, mak-ing the Galapagos Archipelago, like most of itsinhabitants, unique and distinct from any otherecosystem.
An overview of the Galapagos cannotcome near to covering all there is to sayabout such a unique natural envi ronment.Millions of years of evolution, with almost allof its secrets still intact, are not so easilyunderstood or told.
Thousands of species, including finches,tortoises, frigate birds, iguanas, opuntias, sealions,matazarnos and boobies, are still waiting forsomeone to tell their stories.
San Cristobal Island – Chatham
In 1790, when the whaling business crashed ina world-wide crisis, the Galapagos islandsbecame a new exploratory destination forwhalers around the world. In 1793, CaptainJames Colnett, heading an English fleet,arrived to the archipelago to study thepossibilities of establishing a whaling station inthe South Pacific. Captain Colnett re-drew anaccurate map of the archipelago andre-named some of the Islands, and amongthem San Cristobal, until then known asChatham.
The XVIII (1835) Century brought captainRobert FitzRoy on board of the HMS. Beagle tothe Bay of Chatham, with his fellow traveler,Charles Darwin.
At anchorage, the crew of the Hms. Beaglewas happy to observe, swimming alongthe ship, a wide variety of tropical fishestogether with sharks and sea turtles.
Admiral Villamil, by then Governor of theislands, had named Lawson (an unknownEnglishman) as his Deputy. Lawson greetedthe HMS. Beagle travelers and by making acomment on how the physical features of thegiant tortoises diverge, triggered in Darwin thefeeling that the place held unique potential forscientific research.
San Cristobal in its own way has never stoppedbeing Chatham even when its name officiallychanged in 1892. The presence of pirates andwhalers, characteristic of the 18th Century,and the mystery and harsh reality of these tur-bulent years of Chatham can still be felt on thestreets of Puerto Baquerizo Moreno today.
Puerto Baquerizo Moreno
With its approximately 6,142 inhabitants(INEC-2006) and its 558 square kilometers (85% ofwhich belong to the National Park), PuertoBaquerizo Moreno is the Galapagos province’scapital and its second largest town, precededby Puerto Ayora in Santa Cruz.
Today, in Puerto Baquerizo Moreno, previouslyknown as Puerto Chico, fishing remains thedominant economic activity of the island. SanCristobal holds the largest fishermen popula-tion of the archipelago. According to theGalapagos National Park Service, 1006 artisanfishermen are active members of the fishingfleet and 51,3 % (or 516) of them are based inSan Cristobal. Commercial fisheries consistmostly of lobster and sea cucumber, which
Puerto Baquerizo Moreno - San Cristobal Island : marina and harbor
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make up for half of the fishing year, while whitefisheries, including tuna, groupers and wahoos,make up for the other half.
Lately, the Island’s fishermen are no longer theonly ones to earn their living from the sea;ecotourism has become a major source ofrevenue for people of the Island. In fact,tourism has become a key sector for theGalapagos’s economy at large. In SanCristobal, ship captains, craftsmen, hotelkeepers, sailors and cooks, all benefit from theincrease in tourism activities, which has forcedCristobaleños to maintain a quality of serviceand seek permanent advice to fulfill visitors’expectations and comply with the increasingdemand.
According to the ‘Informe Galapagos2006-2007’, edited by the Galapagos NationalPark, the Charles Darwin Foundation, and theInstituto Nacional Galapagos, the tourisms e c tor’s annual growth rate has beenest imated to an average of 14% over thepast 25 years. The publication also estimatesthat, if such growth rate is sustained, over 500,000 visitors will annually visit the Islandswithin the next 10 years.
Local entrepreneurs, who have significantlyinvested in the Island’s tourism sector, expectSan Cristobal, or Chatham, to become themain tourist destination of the GalapagosArchipelago.
Around 145,000 tourists visited the archipelago in 2007
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The primary sources of greenhouse gases emis-sions include water vapor, carbon dioxide(CO2), methane (CH4), nitrous oxide (N2O),and ozone (O3).
The primary greenhouse gas (GHG) emitted byhuman activities is CO2. Emissions from fossilfuel combustion make the vast majority ofenergy-related emissions, with CO2 being theprimary gas emitted, including emissions fromdiesel power generators similar to thosecurrently used in the Galapagos Islands.
Small islands, whether located in the tropics orin higher latitudes, have characteristics whichmake them particularly vulnerable to theeffects of climate change, including sea levelrise and extreme climatic events1.
Deterioration of coastal conditions, for exam-ple, through erosion of beaches and coralbleaching, is expected to affect local resources,reduce the value of these destinations fortourism and jeopardize theses vulnerable smallislands’ environment and socioeconomicdevelopment at large.
Sea-level rise is expected to exacerbate inun-dation, storm surge, erosion and other coastalhazards, thus threatening vital infrastructure,settlements and facilities that support the liveli-hood of island communities.
Climate change is projected to contribute tothe reduction of water resources in many smallislands by 2050, leading to a significant risk ofwater shortage during low rainfall periods inmost of the Caribbean and Pacific Islandswhich will not be able to supply their localdemand for water.
Climate change mitigation through technologytransfer
The San Cristobal Galapagos Wind PowerProject assists in promoting a more sustainable energy future for the Galapagos Islands andhelps address the problem of global climatechange attributable to emissions of GHG fromfossil fuel-related energy production. TheProject has developed and demonstratedsustainable and commercial approaches todeliver community-based renewable energyservices. It encourages the wider use of renewableenergy technologies and assists in the creationand strengthening of market mechanisms thatprovide incentives for the private sector toinvest in these technologies. It addressesthe issue of protection of biodiversity through asubstantial decrease in the volume of dieselannually shipped to the islands, therebyreducing the environmental threat associatedwith fuel tanker oil spills, which can cause greatdamage to the rich biodiversity of the islands.
1.Climate Change 2007: Impacts, Adaptation and
Vulnerability, Working Group II Contribution to the
Intergovernmental Panel on Climate Change, Fourth
Assessment Report, April 2007.
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CO2 Emissions Reduction through Sustainable Energy Development
Elecgalápagos S.A. existing diesel power plant
Energy policy and the environment in theGalapagos
Fuel spills are relatively frequent in theGalapagos and will probably increase if strongmeasures to curb the amount of fuel trans-ported to the archipelago are not taken soon.
On 16 January 2001, the tanker Jessica ranaground at Bahia Naufragio in the coast of SanCristobal, spilling 75,000 gallons of fuel oil and70,000 gallons of diesel. Meteorologicalconditions and the relatively quick actionundertaken to control the spills lessenedthe damage, but evidence of severe effectson the marine iguana population on Santa Feisland were reported one year later.
The costs of proposed compensatory restorationmeasures were estimated at over $9 million USD(Source: Valuation of Environmental damagesfrom the Jessica Oil Spill, Galapagos Islands,Jacobs Gibb, final draft May 2002). Otherislands have suffered the impact of smallerspills, and the local population has beenaffected mainly due to the decrease in tourismactivities resulting from the adverse publicitycaused by the oil spills.
The electricity tariff in the Galapagos is highlysubsidized, as is the case in much of mainlandEcuador. For example, the diesel subsidy atthe national level in 2004 was $260 million USD.With the current government objective to pro-mote the use of renewable energy fore lect r ic i t y g e n erat ion , CONELEC,Ecuador’s electricity regulating agency,established tariffs to be paid to independentpower producers using these technologies asfollows (recently revised under Regulation009/06): PV —- 52.04 c/kWh; Wind —- 9.39c/kWh; Biomass —- 9.67 c/kWh. These tariffs arevalid for continental Ecuador only.
For renewable energy-based electricitygeneration in the Galapagos, the tariffs are30 % higher for wind and 10 % higher forother technologies.
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nc
ern
s ove
r fue
l tan
ker o
il spills m
ate
rialize
dw
he
n d
iese
l tan
ker “Je
ssica
” ran
ag
rou
nd
at
the
ha
rbo
r of Sa
n C
ristob
al in
Jan
ua
ry 2001,re
lea
sing
sig
nific
an
t a
mo
un
ts o
f o
il in
th
eIsla
nd
s’ surro
un
din
g w
ate
rs an
d c
oa
st.
Ob
jec
tive a
nd G
oa
ls
The
Sa
n
Cristo
ba
l W
ind
P
roje
ct’s
ma
ino
bje
ctiv
e is to
rep
lac
e, a
s tec
hn
ica
lly an
de
co
nom
ically a
s feasib
le, the existing
ge
ne
ratio
nsyste
m
in
San
C
ristob
al
Islan
d,
cu
rren
tlyb
ase
d
on
d
iese
l c
om
bu
stion
, b
y a
c
lea
ne
ne
rgy so
urc
e b
ase
d o
n w
ind
po
we
r. By
disp
lac
ing
fossil-fu
el p
ow
er w
ith w
ind
en
erg
yth
e p
roje
ct w
ill co
ntrib
ute
to th
e Isla
nd
’s cle
an
en
erg
y de
velo
pm
en
t, red
uc
e g
reenhouse g
as
emissio
ns while a
void
ing
the
inc
rea
sing
an
d re
al
en
viron
me
nta
l risks asso
cia
ted
with
the
cu
rren
tp
ow
er g
en
era
ting
system
.
The
San
Cristo
ba
l Proje
ct w
ill:
• R
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uc
e th
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f oil sp
ills asso
cia
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with
00tran
spo
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f fue
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ree
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ase
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ultilate
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r Clim
ate
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atio
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nd
er th
e00a
eg
is o
f th
e
Un
ited
N
atio
ns
Fram
ew
ork
00Co
nventio
n on C
lima
te C
hang
e (U
NFC
CC
).
• C
on
tribu
te to
the
pro
tec
tion
of b
io-d
iversity.
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ec
rea
se th
e G
ala
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go
s’ de
pe
nd
en
ce
on
00the
supp
ly o
f d
iese
l fue
l a
nd
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uce
the
00exp
ense
s asso
cia
ted
with
its de
live
ry00fo
r the
ge
ne
ratio
n o
f ele
ctric
ity in th
e00a
rch
ipe
lag
o.
• Pro
vide
valu
ab
le e
xpe
rien
ce
for th
e g
lob
al
00pro
mo
tion
of
sma
ll-scale
, re
new
ab
le
ene
rgy
00po
we
r ge
ne
ratio
n a
nd
distrib
utio
n syste
ms.
• In
cre
ase
the
ac
ce
ss of th
e lo
ca
l po
pu la
tion
00to n
on
-co
nve
ntio
na
l, cle
an
, en
erg
y.
• D
ev
elo
p p
ub
lic a
wa
ren
ess o
f effe
ctive
00de
ma
nd
-side
m
an
ag
em
en
t a
nd
e
ne
rgy
00co
nse
rvatio
n p
rac
tice
s.
Oth
er Pro
jec
t ob
jec
tives e
nvisio
ne
d b
y the
e8
pro
jec
t tea
m in
clu
de
:
•P
rov
idin
g
Ele
cg
ala
pa
go
s, th
e
loc
al
00ele
ctric
ity po
we
r co
mp
an
y, en
viron
me
nta
l00a
nd
fin
an
cia
l kn
ow
led
ge
n
ec
essa
ry to
00op
era
te a
flee
t of w
ind
turb
ine
s on
a00su
stain
ed
ba
sis.
•C
ata
lyzing
the
enviro
nme
ntal
imp
rove
me
nts
00needed
at the existing
diesel g
eneratio
np
lan
t.
• D
em
on
stratin
g th
at, if p
rop
erly d
eve
lop
ed
,00o
pe
rate
d, a
nd
ma
na
ge
d, a
win
d p
roje
ct
00ca
n c
oe
xist with
en
da
ng
ere
d in
dig
en
ou
s00sp
ec
ies, su
ch
as th
e G
ala
pa
go
s Petre
l.
Concept
18
Vie
w fro
m th
e to
p o
f the w
ind to
wer
CYANMAGENTAYELLOWBLACK
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Inception of the project
The San Cristobal Wind Project seeks to install awind-diesel hybrid system on San CristobalIsland, Galapagos- Ecuador, to reduce theamount of diesel fuel currently used inpower generation and to promote theintroduction of renewable energy in theGalapagos Islands in coordination with theEcuador´s Governement Umbrella Program inplace, supported by the United Nations.
Diesel fuel has been used in the Galapagosarchipelago to power generators thatproduce the electricity needed by its residents.Addressing the increased concern over the riskof fuel spills which continuously threaten thea r c h i p e l a g o ’ s u n i q u e a n d f r a g i l ee n v i ronment, the government of Ecuadordecided to explore the development ofenvironmentally friendly power generation with thesupport of the United Nations through the(UNDP) United Nations Development Program.
Concerns over fuel tanker oil spills materializedwhen diesel tanker “Jessica” ran aground atthe harbor of San Cristobal in January 2001,releasing significant amounts of oil in theIslands’ surrounding waters and coast.
Objective and Goals
The San Cristobal Wind Project’s mainobjective is to replace, as technically andeconomically as feasible, the existing generationsystem in San Cristobal Island, currentlybased on diesel combustion, by a cleanenergy source based on wind power. Bydisplacing fossil-fuel power with wind energythe project will contribute to the Island’s cleanenergy development, reduce greenhouse gasemissions while avoiding the increasing and realenvironmental risks associated with the currentpower generating system.
The San Cristobal Project will:
• Reduce the risks of oil spills associated with00transportation and delivery of fuel.
• Reduce the atmospher ic emiss ions00of fossil-fuel emissions and greenhouse00gases on a local and global scale.
• Be an example of multilateral collaboration00for Climate Change mitigation under the00aegis of the United Nations Framework00Convention on Climate Change (UNFCCC).
• Contribute to the protection of bio-diversity.
• Decrease the Galapagos’ dependence on00the supply of diesel fuel and reduce the00expenses associated with i t s delivery00for the generation of electricity in the00archipelago.
• Provide valuable experience for the global00promotion of small-scale, renewable energy00power generation and distribution systems.
• Increase the access of the local population00to non-conventional, clean, energy.
• Develop public awareness of effective00demand-side management and energy00conservation practices.
Other Project objectives envisioned by the e8project team include:
• Providing Elecgalapagos, the local00electricity power company, environmental00and financial knowledge necessary to00operate a fleet of wind turbines on a00sustained basis.
• Catalyzing the environmental improvements00needed at the existing diesel generation plant.
• Demonstrating that, if properly developed,00operated, and managed, a wind project00can coexist with endangered indigenous00species, such as the Galapagos Petrel.
Concept
18
View from the top of the wind tower
• Providing a road map for the development00of wind-diesel hybrid projects on other00islands.
Project participants
Based on the Memorandum of Understanding(MOU) signed between the e8 and theEcuadorian government (April 25th, 2003), aproject team was established to undergo thestudies and implement the project. The e8member companies provided managementand technical expertise, funded the cost ofin-country experts and c o n s u l t ants ona pro-bono basis; several other local andinternational partners contributed to thesuccessful development of the project.
American Electric Power (AEP), one of the e8’snine member companies, act ing as alead company fo r the p r o j e c t ’ sd e v e l opment and imp lementation,assigned a project leader, a project managerand a local manager in Ecuador to support theproject’s implementation.
The development and implementation of theSan Cristobal Wind Project involved the par-ticipation of several e8 member companies.Hydro-Québec (HQ) coordinated the Environ-mental Impact Assessment and related bird
monitoring activities in collaboration withScott i sh Power (SP) . HQ also providedtechnical expertise for the evaluation of theexisting diesel generating plant on SanCristobal and identified the environmentalconcerns which needed to be addressed.Electricité de France (EDF), RWE, and ENELalso contributed technical expertise, andOntario Power Generation (OPG) financiallysupported the project by funding a 50 meterwind measuring system.
The Galapagos National Park Service (SPNG)and the Charles Darwin Foundation (CDF)played a vital role in conducting the nesting,night-flight monitoring, mortality studies,and population enhancement activitiesassociated with the endangered GalapagosPetrel protection program. These organizationswere supported by a Bird Review Committeethat provided guidance and technical peerreview.
The participation and support of ElecgalapagosS.A., the local e l e c t r i c i ty utility, through theirdirect administrative, technical, and insti-tutional support to the project team, wascritical for the project’s development andimplementation.
Elecgalapagos S.A. became the e8’s partnerin the Commercial Trust established for theexecution of the project.
With the establishment of the Commercial Trustin Ecuador, the San Cristobal Wind Project’smanagement was passed f rom the e8 tothe des ignated Trustee, Fondos Pichincha, inEcuador. The Commercial Trust is governed bya Commercial Trust Committee composedof three members: AEP, RWE (e8 membercompanies) and Elecgalapagos S.A. After thefirst few years of operation, the majority of seatson the Trust Committee will be passed on toElecgalapagos S.A.
19
Signing Ceremony (Paul Loeffelman, Luis Vintimilla, Jim Tolan)
Ecuadorian President Mr. Rafael Correa being updated by Mr. Luis Vintimilla, project manager and Mr. Paul Loeffelman, project director
The UNDP regional office in Quito, Ecuador,was an important project team participant,mainly through its role in managing the e8’sand the United Nations Foundation's (UNF)grants towards the project. UNDP staff support-ed the project team in addressing key localadministrative matters, including imports dutyexemption and sales tax (IVA) reimbursementprocesses.
Beneficiaries
The primary beneficiaries of the San CristobalWind Project are Elecgalapagos S.A., theresidents and environment of the Galapagos(local communities, flora and fauna) and thepeople of Ecuador at large. The San CristobalWind Project is a key element of Ecuador’sobjective to eliminate the use of fossil fuels inthe Galapagos by the year 2015.
Elecgalapagos S.A will eventually assume owner-ship of the wind project and its staff will havereceived valuable training and expertise inconstructing and maintaining renewableenergy systems.
Indirect beneficiaries of the project are coun-tries with remote populations or island commu-nities seeking the development of renewableenergy sources and the achievement of
sustainable development. At many levels, theproject provides benefits to other countries by:
• Providing a development model for other00renewable energy projects.
• Serving as a cost reference for high00penetration, wind-diesel hybrid systems in00remote locations.
• Presenting a model of private-public00partnership, which can serve as a blue00print for future similar projects.
Elecgalápagos S.A. diesel power plant
20
Administration
The e8 proposed that the San Cristobal WindProject be implemented through a legal entitythat would be registered in Ecuador as aCommercial Trust Fund. This legal entity wouldin turn establish a Corporation (SociedadAnónima as per Ecuadorian Law) as anIndependent Power Producer (IPP), whichwould generate renewable energy and sell itat the wholesale price level to Elecgalapagos(Local distribution Company), thus complyingwith Ecuadorian regulations. The Trust provi-sions allow that Elecgalapagos and/ or others,may assign funds or assets or rights to the Trust,with prior compliance with the Ecuadorianlegal requirements, and thus join the Trust as“Adherent Settlors” and/or be designatedas Trust beneficiaries.
The work plan for the San Cristobal WindProject is to treat the entire Endeavour as abusiness, with a business plan, proper manage-ment and governance, and training of theworkforce. Since the projects’ capital fundingdoes not require repayment, all income gene-rated from the project can be reinvested in theproject to help support further renewable ener-gy development in San Cristobal.
The Trust and Elecgalápagos S.A are the share-holders of the corporation, Eólica San CristóbalS.A. (EOLICSA). The corporation EOLICSAreceived the Generating Permit fromCONELEC to construct and operate the windpark and sell energy at the wholesale pricelevel to Elecgalapagos and/or others, as pres-cribed by CONELEC regulations.
After the 12-year operating period establishedby CONELEC regulations, or if regulations aremodified in the future, it is possible that the cor-poration may seek a supplemental PowerPurchase Agreement (PPA) to clarify terms andconditions of the sale of wind energy toElecgalapagos.
Also, Elecgalapagos, which serves as the distri-bution company, will retain sole ownership andcomplete responsibility for the existing dieselgenerating plant.
The corporation, “Sociedad Anónima”,entered into an Operations and MaintenanceAgreement (O&M) with Elecgalapagos to pro-vide the Operation, Maintenance andDispatching services of the San Cristobal WindProject on a contract basis.
The members of the e8 are not owners of anyshares of the corporation. Instead of focusingon ownership, the e8 members will focus on theproject’s governance and oversight during theearlier years of operation of the wind park. Inthis regard, members of the e8 will hold themajority of seats in the Trust Committee duringthe first six years of operation. This period entailsthe construction period, warranty period, initialoperation, petrel mortality monitoring, comple-tion and renegotiation of long-term mainte-nance and service contracts, and possible firstreplacement of the battery system (if used).This outright majority may be warranted con-sidering the e8’s role as project developer, andthe need for the e8 to conduct significanthuman capacity building and to provide con-tinued technical expertise and training.
Stakeholders’ Financial Contribution
The financial structure of the San CristobalWind Project is unique. The funds, which aremanaged by the Trustee of the CommercialTrust, consist of a combination of internationalgrants (United Nations Foundation and e8),Ecuadorian Government grants (FERUM) topromote renewable energy projects, andEcuadorian taxpayers’ designated income taxpayments. The municipal government of SanCristobal declared the Wind Project as alegally-defined “community beneficial project”
21
Managing the San Cristobal Wind Project
Elecgalapagos operator, Rober Matapuncho, operating the wind - diesel system
thus allowing Ecuadorian taxpayers to annuallydesignate up to 25% of their nationalincome tax payment to the municipal govern-ment for the project (See Table1).
The Trust Agreement specifies the contributionsand roles of each stakeholder (settler).
PartnershipsElecgalapagos, the vertically integrated utilityin the Galapagos, has become the e8’s part-ner in promoting and developing the Project.
Elecgalapagos currently holds the authoriza-tion from CONELEC to increase its generationcapacity by means of renewable energy sys-tems. Current legislation allows Elecgalapagosto choose between developing renewableenergy systems themselves or entering intoagreements with partners for the projectdevelopment and operation with CONELEC’sapproval.
Prior to structuring the formal Commercial Trustof the Project, and the potential adherence byElecgalapagos, an “Agreement for PreliminaryActivities” was signed on July 1st, 2003. Basedon this Agreement, the e8 carried out severalinstitutional, financial, engineering, environ-mental and other related activities, with thecooperation and local support of Elecgalapagos.
The participation of the e8 in this project is facilitatedthrough a 1994 Memorandum of Understanding(MOU) between UNDP and the e8 for collabo-ration on issues of climate change and susta-inable development in UNDP countries.
It is within the context of this MOU that UNDPsolicited the support of the e8 in the re-poweringinitiative in the Galapagos, upon completionof the pre-feasibility study performed by theInternational consulting company, Lahmeyer.The rationale behind the e8’s support is theextensive experience of its members in elec-tricity generation, transmission, distribution andoperation activities world-wide, its expertise inimplementing PV/Wind/Diesel hybrid systemsboth in its member countries and in the developingworld, and its desire to support UNDP coun-tries in their effort to promote sustainabledevelopment and reduce poverty through theprovision of clean, efficient and reliable elec-tricity services to the rural poor worldwide.
A Memorandum of Understanding (Convenio)was signed by the Ministry of Energy and Mines,the Ministry of Environment and UNDP on 20February 2002. This MOU states that “theGovernment [of Ecuador] has expressed itsinterest in re-powering the Galapagos withrenewable energy in view of the risks associatedwith transportation and transfer of fuel oil foroperating the present system of thermalgeneration (diesel) and the emission of GHGat the local and global levels”.
Other civil society partners involved in thisproject are the Charles Darwin Research
22
Elecgalpagos staff
EEPG : President, Mr. L. Zaragocín; General Manager, Mr. P. Andrade
and Lawyer Ms. L. Tipán Signature meeting whereby
Elecgalapagos adhered to the Trust Meeting with GNP and CDF
representatives
Foundation and the former EcuadorianOrnithological Corporation – CECIA (currentlyAves y Conservación). These institutions,together with Elecgalapagos, the GalapagosNational Park Service and an exper to r n i t h o l ogis t , provided guidance andsupport in structuring the project so as to avoidany potential negative impact on theGalapagos’ Petrel endangered bird species.These inst i tut ions p layed a v i ta l ro le ins u p porting the e8 Project Team in theelaboration of the project’s environmentalimpact assessment. They have been part of aPetrel Protection Committee, composed ofornithologists from the CDRS, the CatholicUniversity of Quito and the EcuadorianOrnithological Corporation – CECIA, put inplace to develop a comprehensive EnvironmentalManagement Plan for the Wind Project.
Environmental procedures
To determine the Project’s feasibility, a prelimi-nary Environmental Impact Study and aDefinitive Environmental Impact Assessmentwere prepared.
The Environmental Impact study (EIS) was com-pleted and submitted after public consultationin September 2004.
The Ecuadorian government approved it withminor comments and no opposition fromstakeholders. The EIS includes a 15-yearEnvironmental Management Plan for the projectwith long-term monitoring of the endangeredPetrel and provisions for mitigation andenhancement of the bird’s population.
The e8 team, the Galapagos National ParkService staff, and expert ornithologists, gatheredin a committee convened by the e8, met in May 2005 to determine detailed activities and timelines to implement the plan.
Protecting an indigenous endangered bird species
The protection of the endangered GalapagosPetrel constitutes the major environmentalconcern associated with the Wind Project. TheGalapagos Petrel is one of the six endemicmarine birds of the Galapagos Archipelagoand has been declared as “critically endan-gered”, by the World Conservation Union(IUCN).
The Petrel nests in underground borrows and itseggs and chicks are preyed upon by rats andcats. Nesting areas are located in the high-lands of several islands, in sites with densevegetation and soil. In past decades, thespecies was seriously impacted by the expansionof land used for agricultural purposes and theassociated increased presence of preda-tors and other invasive species that crowd out plants supporting the Petrel.
The Environmental Management Planidentified a series of mitigation and enhance-ment measures which have been institutedduring the project’s implementation. Manyof these measures focus on the Petrel. It isintended that these measures will not only actto minimize impact of the project on the
Public hearing for the environmental impact assessment, San Cristobal
23
Petrels couple in nest: San Cristobal highlands
Petrel, but would actually help increasethe Petrel population by controlling adverseinvasive species and predators, conservingand protecting habitats and ensur inglong-term scientific monitoring of the bird’swell being.
Other environmental considerations
The existing diesel plant ownership, operation,and control will be retained by Elecgalapagos,the operating conditions and environmentalpractices of which need some improvements.Elecgalapagos has undertaken an environ-mental audit of the power stations in SanCristobal, Santa Cruz and Isabela, andCONELEC has issued concrete recommenda-tions for improving the storage and handling offuel in Elecgalapagos facilities in each island.These recommendations, together with thosesuggested by the e8, include better manage-ment of petroleum products, better spillprevention and containment, proper handlingof waste and storm-water streams, enhancednoise control, relocation of diesel exhausts,and disposal of accumulated industrial waste.
24
Petrel bird expert and e8 consultant for the Petrel Protection Programme
Project engineeringTechnology The system implemented by the San Cristobal
Win Project is considered a “high penetration”wind-diesel hybrid system, as the wind turbinesare expected to produce more that 50% of thepower electrical demand. Hybrid systemsrequire careful engineering and analysis toensure that customers’ electricity demand issatisfied through an optimal balance betweenthe energy supplied to the grid by the wind tur-bines and diesel generators.
Reaching this balance represents the mainchallenge associated with wind-based hybridsystems, given the intermittent nature of windpower, and the variance in consumers’ elec-tricity demand. An additional challenge result-ing from the intermittent nature of renewableenergy technology is the high cost and difficul-ty of storage of this type of energy.
These problems are addressed by the windresource, electrical demand assessment,equipment selection, and fast-acting electroniccontrollers.
Another significant element to address whenimplementing wind energy systems is theidentification of the most adequate systemlocation. To ensure the viability of a wind ener-gy project, a comprehensive wind monitoringprogram is needed to measure the wind over aprolonged period of time, allowing to deter-mine the optimal site to locate the wind sys-tem. For the San Cristobal Wind Project, two20-meter tall wind-measuring towers were inoperation for more than 5 years beforeconstruction started. Data from the windmeasuring towers and topographic maps ofthe project area were analyzed by computermodels to determine the potential power out-put of the wind turbines over the course of oneyear. This modeling identified potential loca-tions for the wind turbines. When the final proj-ect location on the hill named “el Tropezon”
25
Project Engineering, Development and Implementation
Hub ready to be lifted at wind turbine No. 2
Turbine blades arrive at site
was determined, a 50-meter tall wind towerwas located on that hill to verify the results ofthe computer modeling and confirmed that ElTropezon had adequate wind energy for theproject to proceed.
Project Definition
The San Cristobal Wind Project definitionfollowed the “design spiral” process. The“design spiral” approach starts with definingthe general project requirements, performingstudies, and then proposing the conceptualdesign.
The Wind Pro ject , as envis ioned in thePre-Feasibility Study prepared in December2001, was based on approximately 1,750 kW ofinstalled wind capacity and small photovoltaiccapacity coupled with the existing dieselgenerator plant in San Cristobal.
T h e e 8 a c c e p t e d t h e r e s u l t s o f t h eP r e - Feasibility study, and agreed to study theproject in more details during the FeasibilityStudy Phase.
The Feasibility Study phase was broken intospecific tasks which were assigned to e8member companies or Ecuadorian professionals.In addition to American Electric Power(AEP), acting as the team leader, lead andsupport organizations were designated toimplement the identified project tasks. Aproject website was established to facilitatethe exchange and sharing of project filesamong all actors involved in the study.
The e8 Feasibility Study Phase included anEnvironmental Impact Study, geotechnicalinvestigations, site surveys and topographicmodeling, archaeological investigations, amonitoring program for the protection of theGalapagos Petrel, engineering studies, andcontinued monitoring and modeling of thewind resource of the island’s electricaldemand.
Based on these comprehensive results, afeasibility study report was prepared by the e8and approved in February 2005. The feasibilitystudy report identified a baseline system of 3x 660 kW wind turbines with a total output of1,980 kW, with a battery energy storagesystem, coupled with the existing dieselgenerator plant.
System Selected
A competitive bidding process was held for thesupply and construction of the Wind Project. Thefinal configuration of wind turbines (manufac-turer, kW rating, quantity, blade diameter andrpm) was selected based on the market offeringsat the time of the construction tender.
MADE of Spain was selected as the supplier ofthe wind turbines, controls, and automationof existing diesel generators. Santos-CMI ofEcuador was selected as the Wind Projectconstructor and logistics coordinator.
The system selected includes three (3) 800 kWvariable speed, synchronous wind turbines withno energy storage provisions. Three (3) 650kW of the existing diesel generators benefitfrom automated controls. A Control Systemwould dispatch the wind turbines and diesel
26
SANTOS CMI staff with Project Manager, Luis Vintimillaand Field Supervisor, Simon Caicedo
Wind measuring tower being lifted
generators in hybrid mode, ensuring powersupply and quality to meet power electricaldemand.
The Wind Turbines are MADE Model AE59 with59-meter diameter blades and 51.5 meter hubheight, with a capacity of 800 kW each. Thewind turbine blades were optimized for thewind characteristics of the Galapagos Islands.
An electrical “collector” system gathersthe power from each wind turbine throughunderground cabling and transport thepower down the hillside to the wind parkboundaries where it interfaces with a trans-mission line. Leaving the wind park, the first 3km of the l ine run underground to min i -mize the poss ibility of collision, betweenthe endangered Galapagos Petrel and theline. The transmission line then convertsinto an aerial conductor for approximately 9km where it ties into the current distribution sys-tem at the diesel Plant.
A new Control Building was built adjacentto the existing Elecgalapagos S.A. Diesel plantcontrol room area. The Control Buildingincludes a control room, archives room, and anoffice for the Wind Project OperationsManagement team.
Provisions in the contract signed with MADEinclude the possibility of remote monitoringand troubleshooting of the wind turbine equip-ment via Internet by MADE staff in Spain.
The San Cristobal Wind Project does notinclude energy storage provisions due to main-tenance and environmental considerations.
While the system implemented will frequentlygenerate more energy at night than theisland’s electrical power companies require,this excess energy cannot be captured andused with the current system.
Energy storage may be considered for the project,in later years, as battery technology or othertechnologies are improved and become morecost effective.
More technical details about the San CristobalWind System and its hybrid operation andcontrol systems may be found on the project’swebsite, at:
www.eolicsa.com.ec
27
Wind turbine generator manufactured by Made in Spain
Project team: cooperation was key for success
Transmission line was buried in the highlands to avoid impact on Petrel and other birds' flight patterns
Project Development
The development of the San Cristobal WindProject was undertaken by the e8 based onthe following principles:
• The Project was implemented and operated00by the e8 jointly with Elecgalapagos S.A.00as the Ecuadorian in country partner.
• An ownership and management structure00was defined, which would accommodate00the needs of the public and private00partnership envisaged for the project’s00development and financing.
• Transparency and a streamlined organization00were critical to allow the project to quickly00address issues that would arise in the00final s t a g e s o f development and00during implementation.
• Risk management measures were to be00incorporated to allow the project to continue00progressing while withholding final00approvals until unresolved issues were00addressed.
To apply the principles outlined above, a two-foldsolution was undertaken:
The establishment of a Commercial Trust, anda pro ject implementat ion based onLimited-Notice-to-Proceed (LNTP) and Full-Notice-to-Proceed (FNTP).
The e8 Companies and Elecgalapagos S.Aestablished the Fideicomiso Mercantil ProyectoEolico San Cristobal, the San Cristobal WindProject Commercial Trust, to oversee theconstruction and operation of the SanCristobal Wind Project. The Commercial Trustwas established under Ecuadorian law.
The Commercial Trust exists on a “not-for-profit”basis. Any proceeds generated by the projectwill be used for the long-term sustainability of
the San Cristobal Wind Project or will berechanneled to support other r e n e w ableenergy or energy ef f ic iency programs inthe Galapagos.
e8 member companies, namely AEP and RWE,acted as “settlors” of the Trust, and were eachgranted a seat on the Trust Committee.Elecgalapagos S.A. was an “Adherent Settlor”to the Trust and is the sole beneficiary.
e8 member companies provided the largestshare of the project’s funding, on a pro-bonobasis, and continue to offer management andtechnical expertise for the project.
An authorized trust company in Ecuador,Fondos Pichincha, was assigned as Trustee,holding fiduciary and legal responsibility. Aftera formal bidding process, the Commercial Trustawarded the equipment and constructioncontracts.
As an adherent settlor to the Commercial Trust,Elecgalapagos agreed to perform the followingfunctions:
• To become the eventual sole beneficiary of the00Commercial Trust.
• To participate in the Commercial Trust and00support the acquisition of the generating00permit for the project.
• To provide authority for the Wind Project00to obtain legal title to Land Easement for00the Wind Project site at El Tropezon00and the transmission line easements.
• To continue to own, operate, and maintain the00Diesel Generating Station.
• To provide free lease for the Wind Power project00equipment and control room at the00diesel generating station in place.
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Project Development and Implementation
Trust committee meeting with Fondos Pichincha as trustee
• To serve as the vehicle used for the00Ecuadorian government’s capital funds to00be applied to the Wind Project.
• To sign the required Power Purchase00Agreement for the terms of the Wind00Project power sales to Elecgalapagos as00a distribution company.
• To sign the Operation & Maintenance00(O&M) Agreement required to operate00and maintain the Wind Project on behalf00of EOLICSA, the corporation established00to operate the project according to00Ecuadorian law.
With the legal structure of the Wind Projectdefined, a Project Document was signedbetween the United Nations DevelopmentProgram, the government of Ecuador, and SanCristobal Wind Project Commercial Trust inSeptember 2005.
The establishment of the Commercial Trust andsigning of the Project Document triggered thetransfer of funds from the EcuadorianGovernment, the e8 and UNF matching grant tothe Wind Project.
With the structure and funding in place, theCommercial Trust granted Limited-Notice-to-Proceed (LNTP) to the wind turbine equipmentsupplier and constructor. The LNTP phase wasintended as a risk-mitigation measure to allowprogress and finalize preliminary engineeringissues that could impact project costs or con-figuration. Also, pending institutional issueswere resolved during this period. During theLNTP phase, only limited project funding wasauthorized.
The conditions for moving from the LNTP to theFull-Notice-to-Proceed (FNTP) phase wereclearly defined in the Commercial TrustConstitution under the “Point of Initiation”clause.
These conditions included the Ecuadoriangovernment’s final approval of Elecgalapagoslegally joining the Trust, the receipt of finalenvironmental and generating permits, theapproval of a Power Purchase mechanism withworkable provisions for the Wind Project toreceive the defined tariff revenue, the receiptof the needed land easements, and theacquisition of all the funds needed to implementthe project.
The conditions specified in the FNTP were metin May 2006 and the Commercial Trust grantedthe Wind Turbine Supplier and Constructordirection to proceed with equipmentmanufacturing and construction in June 2006.The LNTP and FNTP approach was deemedsuccessful as it imposed restraint on the projectteam not to proceed at risk until critical issueswere resolved.
Project Management and Technical Team
The Constitution of the Commercial Trustrequired that a project director be designatedfor the project. The project director is responsiblefor the administration and supervision of theproject’s engineering and construction, operationand maintenance activities. This includes theelaboration of reports, budgeting, coordinationbetween all parties, development of contractsand liaison with the e8.
The success of the Wind Project was signifi-cantly due to the establishment of a highlytalented and experienced project teamduring the implementation phase, with indi-viduals and companies with a fervent andbeyond-normal commitment to the success ofthe project.
Team members during implementation phaseincluded:
• Team Leader and Trust Committee Member00Mr. Paul Loeffelman, AEP(USA).
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Mr. Paul Loeffelman Mr. Klaus Baumann Mr. Jim Tolan
• Trust Committee Member – Mr. Klaus00Baumann, RWE (Germany).
• Project Director - Project Director Services –00Industry & Energy Associates. (USA), Mr. Jim00Tolan and Mr. Luis C. Vintimilla C.00(Ecuador).
• EOLICSA General Manager – Mr. Luis C.00Vintimilla C. (Ecuador).
• Board, Management and Staff of00Elecgalapagos S.A.(Ecuador).
• Trustee Fondos Pichincha (Ecuador) Legal00Advisor - Bustamante& Bustamante00(Ecuador).
• EOLICSA Operations Manager, Mr. Jose00Moscoso (Ecuador).
• Engineering advisors and supervisors during00field construction activities: Mr. Simon00Caicedo, Mr. Oswaldo Yepez and Mr.00Daniel Torres (Ecuador).
Support on studies related to several aspects ofthe project was provided by:
• Technology Insights (USA).• Walsh Environmental (Ecuador).• Cartotecnia (Ecuador).• Inelin (Ecuador).
Contractors for execution of facilities were:
• MADE, Tecnologías Renovables, S.A.00(Spain): 00equipment.
• Consorcio Santos-CMI (Ecuador): construction.
• ELECDOR (Ecuador): transmission line.
The project team benefited from the supportof many government in s t i tu tions andlocal agencies, including the Municipality ofSan Cristobal, the Provincial Prefect of theGalapagos, INGALA, the Ministry of Energy and
Mines, the Ministry of Environment, CONELEC,Fondo de Solidaridad, Galapagos NationalPark, Charles Darwin Foundation and theEcuadorian Navy.
Day-to-day management of the Wind Projectwas performed by the Project Director andLocal Manager. All contracts for equipmentsupply, construction or consultants weredrafted by the project director and executedby the Trustee.
The Project Director and Trustee wereresponsible for the preparation of quarterlyfinancial reports submitted to the CommercialTrust Committee and UNDP. In addition, theproject director also provided quarterlynarrative progress reports and other reports asrequired by the Project Document signed withthe Government of Ecuador and UNDP.
The Trust Committee held two regularmeetings annually; one in Quito and one onSan Cristobal.
Construction
MADE and Santos- CMI were given direction toproceed with equipment manufacturing andconstruction in June 2006. The project teamhad originally proposed project implementation
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Wind turbine blades being lifted by special cranes
Barge at La Predial pier Off loading wind tower Moving through San Cristobal streets
under a “turn-key” Engineering, Procurement,and Construction (EPC) contract, but laterdecided to proceed with separate equip-ment supply and engineering-constructioncontracts. This decision required the projectteam to take on additional project coordina-tion and management duties, but yieldedoverall cost savings.
Based on the Wind Turbine manufacturingschedule, a two-phase approach for theproject’s construction phase was planned.
Phase I activities included road construction,underground cable installation, site prepara-tion, mining of aggregates and sand of suit-able quality for wind turbine foundation con-crete. During the Phase I period, an existingpier in the harbor was fortified and extendedslightly to accommodate the ocean bargeSantos-CMI used for the transportation of thelarge construction and wind turbine equipment.
A ground-breaking ceremony was held at theproject site on September 1, 2006. Phase Iactivities began at that time and werecompleted in December 2006. TheSantos-CMI workers building the access roadwere subjected to the “garúa” phenomenonof the Galapagos highlands – wet, windy,and fog-like harsh weather conditions.
Phase 2 activities involved building the windturbines’ foundation, erecting the windturbines, completing the collector systembetween wind turbines and grounding circuits,completing the substation, building theControl House, installing the automatedcontrols on the existing diesel generators, andcommissioning the systems.
Preparation work for the foundations began inFebruary 2007, and the first large bargeshipment of construction equipment, thewind towers, and foundation anchor ringsarrived on site in March 2007.
Constructing the wind turbine’s foundationswas a logistical challenge. Two batch cementplants were brought to the island as well ascement mixer trucks. Approximately 4,500large sacks (225 Tons) of cement wereimported from the continent. Using aggre-gates and sand mined from the island, testbatches of concrete were made and sub-jected to laboratory tests for the analysis ofstrength characteristics; these tests yieldedsuccessful results. Soil characteristics in the founda-tion area required each foundation to bedeeply excavated, and the removal of poorsoil with an “engineered” fill of proper qualityfor compaction. On Wind Turbine #3, thedepth of excavation required to reach ade-quate quality soil was deemed excessive givingthe site topography. As a result, the foundationdesign for that unit was changed to incor-porate concrete piles.
For all stages of the foundation design andconstruction, Santos-CMI proceeded under theguidance of geotechnical and engineeringspecialists, followed widely accepted industrypractices, and performed compaction andmaterials testing. After MADE’s approval ofthe foundat ion e n g i neer ing andmethodology, construction of the foundationinsta l lations started in April 2007 and wascompleted in June 2007.
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Blessing of the first stone : Groundbreaking Ceremony, SanCristobal, September 1, 2006
Tower anchoring rings Wind tower assembly Blades being installed
The large barge, carrying the wind turbinesupporting towers, cement and constructionequipment arrived in San Cristobal on March,2007. A second shipment carrying wind turbinenacelles, wind turbine blades, electronicequipment, and balance of plant equipmentand materials, arrived in San Cristobal in lateJuly 2007. The barge was also used to transportthe 230-ton crane needed to erect the windturbines, heavy haul trucks, and smaller cranesneeded to support unloading and constructionactivities.
Some of the main logistical challenges faced inthe construction phase, include the absenceof a functional crane in San Cristobal prior tothe development of the project.
During the turbine erection period in Phase II ofconstruction, Santos-CMI had transported fivecranes to work on the Wind Project site.
The wind turbines were erected in August 2007by Santos-CMI under the supervision of MADE’stechnical experts from Spain. During the sameperiod, Santos CMI completed the substationand completed outages on the island’s threemain diesel generators to automate theircontrol systems.
Manufacture of elements and installation ofthe overhead transmission line was carried outby ELECDOR from January through June, 2007.
Construction Monitoring
The Project team monitored construction activi-ties at different levels.
Safety, security, environmental compliance,work quality, and contractual compliancewere monitored by the project director. Thesemonitoring activities were conducted via variousmeans.
Contractual
All equipment supply and constructioncontracts reflected the requirements of theEnvironmental Management Plan (EMP)designed for the Wind Project and approvedby the e8, CONELEC, and the Ministry ofEnvironment. The EMP required detailedprograms for safety, security, community rela-tions, environmental compliance, waste, andreporting.
Santos-CMI was assigned primary responsibilityfor coordination of other on-site contractors withrespect to safety and security.
Reporting
The primary constructor for the Wind Pro ject ,Santos-CMI, produced bi -weekly reportson environmental compliance. These weresubmitted to the project director and sharedwith the wind project’s envi ronmentalconsultant, Walsh.
The contractors and wind turbine supplier wererequired to provide monthly progress reports. Ageneral monthly report was shared with themain stakeholders in the Wind Project(Commercial Trust, e8, Elecgalapagos, Ministryof Energy and Mines, Ministry of Environmentand CONELEC).
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Weather conditions increased the challenges of safely installingthe turbines while causing minimal environmental impact.
Truck with tower section crossing through El Progreso Village:community support was very important for the project success
The project director’s team also submittedquarterly, semi-annual, and annual reports asrequired under the Project Document signedwith the Government of Ecuador and UNDP.An overall accounting of project funds andexpenditures of all funding sources wasprovided by the Trustee, Fondos Pichincha.The project director’s was responsible forelaborating a “Working Budget” with theobjective to track the original budget, forecastthe budget of future costs, funding received,pending funding, and investment income. Theproject director’s “Working Budget” was a keytool to help manage the project budget andcapture actual costs as reference for futureprojects.
Unexpected costs were incurred due to theincreases in world commodity prices such assteel, copper, cement, and petroleum, andalso due to unforeseen and costly administra-tive matters. Through careful budget manage-ment, earnings from investment on the capitalfunds, and income tax payments from donorsin Ecuador, overall funding was secured for theproject’s full completion.
The Wind Project Team had to develop ade-quate cash flow models to effectively addressthe financial requirements involved by start-upoperational costs, the use of project funds ascollaterals, and delays in expected incomepayments. To that end, a line of credit wasestablished, through the Trustee, with a majorEcuadorian bank, to release operational fundsfor the project, collateralized by the pendingIVA reimbursements from the Government.
On-Site Observation
The wind project team maintained construc-tion supervisors on site in San Cristobal through-out the construction and commissioningphases. During the road site preparation, roadbuilding and foundation activities, a civilengineer was present and reported to the
local manager on a daily basis. When the largewind turbine foundations were being preparedand concrete poured, a structural engineer,representing the Commercial Trust, was at theEl Tropezon site to witness critical constructionactivities and perform testing.
When the wind turbines’ erection began andcommissioning activities started, an electricalconstruction supervisor was at the project site,representing the Commercial Trust. This personwas a supplement to the EOLICSA operationsmanager who was also assigned to the islandfor the supervision of these activities and whocoordinated system automation upgrades onthe operating 650 kW diesel generators withElecgalapagos.
As required by the EMP, a registeredarchaeologist was at the project site for theconstruction activities involving earth move-ment. The archeologist was part of the Walsh-Ecuador team. He was cross trained in envi-ronmental management and played a signifi-cant role early in Phase 1 construction activi-ties, working with the contractor to implementthe environmental monitoring compliance system.
In addition to on-site observation, it is importantto recognize the Community Outreach
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Working session at control room: Project Manager LuisVintimilla with Operations Manager Jose Moscoso
Program conducted along with the WindProject. As required by the EMP, delegatesfrom Walsh-Ecuador conducted door-to-doorvisits to meet the local community on SanCristobal, inform them about the pendingconstruction activities and record their poten-tial concerns over to the Wind Project. In general,the community and local institutions were high-ly supportive of the wind project. TheCommunity Outreach program included radioannouncements and the diffusion of informa-tive posters in the community. To keep thelocal community informed about the progressof the project, the project’s Local Managerwas interviewed by the local television andnational radio stations on a regular basis.
Auditing
The Wind Turbines were manufactured in strictaccordance to IEC and ISO quality standardsin Medina del Campo, Spain.
Santos-CMI followed its internal reportingsystems for assessing project progress, quali ty ,safety , and env i ronmental compliance.These reports were shared with theCommercial Trust and stakeholders.
To ensure compliance with the EnvironmentalManagement Plan, the Commercial Trustcontracted Walsh-Ecuador to audit theproject’s compliance with the EMP and toprepare the necessary reports for theEcuadorian government. Walsh providedthe on-site archeologist and visited the projectat key phases of const ruct ion to monitorand audit envi ronmental compliance.
At the higher project level, the CommercialTrust’s reports were monitored by UNDP.Also, special reports and verification of projectprogress were submitted to CONELEC andFondo de Solidaridad for the release ofGovernment funds in accordance withthe milestone payment schedule.
The Trustee’s accounts have been audited byinternational accounting firms. Also, UNDPconducted its own routine audit of projectfunds and a c t i v i t i e s i n 2 Q 2 0 0 7 v i a a nindependent accounting firm. No irregulari-ties were reported in any of the audits;project activities were conducted with thehighest levels of transparency and reporting tothe stakeholders.
Operations
In accordance with Ecuadorian electricsector laws, a Corporation (Sociedad Anónimaas per Ecuadorian Law) was established tooperate the San Cr i s tobal Wind Pro ject .Th is corporation is referred to as Eólica SanCristobal S.A. - EOLICSA. The Commercial Trustis EOLISCA’s primary shareholder along withElecgalapagos. In time, all shares of EOLICSAwill be transferred to Elecgalapagos.
To ensure continuity in the project’s manage-ment, the project’s local manager, Luis C.Vintimilla C., was designated as the generalmanager of EOLICSA, holding responsibilityand oversight over the project’s operations.
The project’s legal advisor, Alfredo Larrea F, amember of Bustamante&Bustamante Law Firm,was designated president of EOLICSA. Both thepresident and the general manager report toEOLICSA’s shareholders. EOLICSA assigned
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Monitoring of the hybrid system by Made engineer, Jose Jara
Jose Moscoso A. as the project’s operationsmanager, who resides on the Island of SanCristobal and holds responsibility over on-siteoperations and technical hands-on training.
In order to maintain a flat and economicalorganizational structure and ensure effectivetechnical monitoring, a strategic Operationand Maintenance contract (O&M) was signedwith MADE for a two-year period. Under thiscontract, MADE will provide, upon commi-ssioning of the project, a full-time representa-tive on San Cristobal to assist with operationand maintenance of the wind farm andhybrid system. Additionally, through protectedInternet links to the wind project control system,MADE experts, in Spain, will be able to monitoror operate the project’s equipment, if needed,and obtain data for maintenance andtroubleshooting activities.
EOLICSA also intends to reach agreement withElecgalapagos for operation, maintenanceand repair support of the Wind Turbines.Instead of manually operating and dispatchingthe existing diesel generators, Elecgalapagoswatch stander staff will now control thedispatch of the units, with computers, from thenew hybrid control system located in the newcontrol building.
The system will have the capacity to run inautomatic mode, whereby the control systemdispatches wind turbines and diesel poweraccording to the level of the electrical power’sdemand on the one hand, and availability ofwind at the El Tropezon wind park on the other.
Expected results
The Wind Project is expected to significantlyreduce San Cristobal’s consumption of dieselfuel. Modeling of the hybrid system using the USNational Renewables Energy Lab (NREL)internationally recognized HYBRID2 computermodel indicates the following annual per-formance levels will be achieved.
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Puerto Baquerizo main street along the harbor, by night
Tourist pier in Puerto Baquerizo Moreno
What are the basic aims of the San CristobalWind Project?
The basic purpose of the project is to replacethe current diesel-based electricity generationon Isla San Cristobal with wind power as aclean and renewable energy source, as muchas is technically and economically feasible. Thiswill reduce the risks of oil spills and limit green-house gas emissions.
What entities have been responsible fordeveloping this project?
The project is part of the Renewable EnergyProgram administered by the Ministry of Energywith support from the UNDP. It was developedon Isla San Cristobal thanks to a significantdonation of funding and technical expertisefrom the member companies of the “e8”, analliance of electric companies from the G8Group of industrialized countries. Additionalfinancing has also been provided by theUnited Nations Foundation. The local counter-part i s E lecgalapagos S .A. , which hascontributed resources from the Marginal Ruraland Urban Electrification Fund (FERUM).Donations have also been received fromincome taxes paid by large businesses andchanneled through the San CristobalMunicipality. All of these funds are adminis-tered through a Commercial Trust Fund.
What environmental consequences will theProject have?
The site for the wind farm was selected basedon rigorous and in-depth field studies in orderto avoid affecting two species found in thearea: the endangered “Galapagos petrel”,and the endangered plant “miconia robinsoni-ana”. The e8 carried out these studies with sig-nificant support from the Galapagos NationalPark, the Charles Darwin Foundation, and withongoing supervision from a high-levelCommittee. The Environmental License grantedby the Ecuadorian Ministry of Environment
includes a detailed Environmental ManagementPlan with a well-defined budget to ensure itssuccessful implementation.
Will diesel-based generation be entirely elimi-nated from the island?
That would be ideal, but there is not enoughwind year round. In particular, during 4 monthsof the year with unfavorable wind conditions,during certain hours on certain days, it will benecessary to continue using diesel-generatedelectricity. However, it is recommended thatfuture work be done on projects to substitutethe diesel currently used with a more environ-mentally friendly fuel.
The San Cristobal Wind Project will annuallyreplace approximately 50% of diesel genera-tion with clean energy, but can reach up to80% during the high wind season
What local participation is there in the Project?
Elecgalapagos S.A., a state-owned compa-ny belonging to Ecuador’s Solidarity Fundand sectional governments, will be theabsolute beneficiary of the project. The e8will continue to work with ElecgalapagosS.A. for a certain period of time, providingthe necessary support for the administration,operation and maintenance of the facilities.Simultaneously, the staff of ElecgalapagosS.A. will be trained in all activities related tothese new technologies, and, at the end ofthe trust term, the local company will haveownership of all property assets. Ecuadoriancontractors have also had an excellentopportunity to be involved in carrying outthe work with cutting-edge technology.
Interview with Mr. Luis Vintimilla - Project Manager
Mr. Luis VintimillaSan Cristobal Wind ProjectGeneral Manager
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Will the island’s electricity users pay more forthis clean energy?
No. The rate the final users pay is regulated bythe National Electricity Council (CONELEC),and will not be affected by the start-up of thisnew renewable energy source.
How is the project’s sustainability guaranteed?
I t s susta inabi l i ty i s guaranteed by thepayments received for the energy generatedand sold by Elecgalapagos S.A. Therefore, itis important for the distribution company tomaintain an adequate administrative andfinancial profile to ensure that it fulfills itsobl igations. This is not a for-profit project;thus, the income from the sale of energy will beused exclusively to finance operational andmaintenance p r o g r a m s , e n v i r o n m e n t a lm a n a g e ment plans and provisions forre investment in the facilities themselves.
What other elements are included in theProject?
Through a complementary donation by the e8,a number of photovoltaic panels have beeninstalled and connected to the grid on SanCristobal. These panels represent an addi-tional source of clean energy and will serve totrain the staff of Elecgalapagos S.A. in th i stechno logy . In add i t ion , a t ra in ingprogram on e f f i c ient energy use hasbeen conducted for high school students onIsla San Cristobal.
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Environmental impact assessment
Since the inception of the Galapagos project,extensive environmental field studies wereundertaken by the e8 experts and conductedin collaboration with the Darwin Foundationand the Galapagos National Park (GNP).
Due to the project location in the GalapagosIslands protected World Heritage Site, specifi-cally in the influence zone of the GalapagosNational Park, and in order to secure therequired Environment license, the GalapagosWind Project was required to develop aDefinitive Environmental Impact Assessment(EIAD).
In the early investigations, it was determinedthat detailed field studies were needed withrespect to the Galapagos Petrel, a bird specieslargely decimated and currently classified as‘critically endangered’ by the WorldConservation Union (IUCN). Due to the presenceof active Galapagos Petrel nests, and theendemic plant species, Miconia, on the origi-nally proposed wind site San Joaquim, otherpotential project sites were to be consideredfor the wind park. El Tropezon, a hill located inan active agricultural area, was identified asthe site offering the least impact on the birdspecies and where fewer Miconia plants exist.
Based on input from the Galapagos NationalPark and the experts of the Charles DarwinResearch Station, the e8 team agreed thatmore studies were required to analyze theGalapagos Petrel flight pattern in the vicinity ofthe project site. Studies on the Petrel’sreproduction cycle were undertaken todetermine the seasonal presence and thereproductive success of the endangeredspecies. The results of this study were includedin the final report from the Galapagos NationalPark.
The Petrel flight pattern studies were thenconducted for one year in collaborationwith GNP, including the development of acomprehensive monitoring programme ofthe petrel flight patterns, using a combinedmethodology of night visual observationswith night-vision devices and sound recordingvisual observations.
The results of this monitoring were reviewed bya committee composed of recognizedornithologists who formed a Bird ReviewCommittee. Ornithologists from the CharlesDarwin Research Station, the CatholicUniversity of Quito and the EcuadorianOrnithological Corporation participated in theBird Review Committee and were mandatedto review the results of the flight pattern
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Sustainable Development Footprint
Miconias bushes in the San Cristobal highlands
Petrels nest in the San Cristobal highlands
Miconias being protected during civil works
monitoring and make recommendations withregards to the wind project.
The e8 agreed that another season of birdmonitoring would be beneficial to better deter-mine the potential impact of the Wind Projecton the Galapagos Petrel. The study was donein collaboration with the e8, GNP and CDRSfrom June 2004 to October 2005.
Social consultations were undertaken through-out the development of the IEA through publichearings held to discuss the framework of theEIA study, the preliminary results and mitigationmeasures.
All results of these studies, consultations andthe various recommendations of the BirdReview Committee with respect to the petrelled to the establishment of an EnvironmentalManagement Plan (EMP), as part of the FinalEIAD, which contains mitigation measures andenhancement in conformity with theEnvironmental Regulations for ElectricalActivities (EREA), the CONELEC guidelines and Ecuadorian Laws.
The Environmental Management Plan waselaborated to evaluate the potential environ-mental impact of the Galapagos San CristobalWind Project and to identify the programmesto be implemented during the different phasesof the project to minimize any potentialimpact. The programmes for implementationidentified by the EMP included the followingactions during the development of the project:adapting the wind turbine location (Designphase), transplanting the endemic Miconiaplants found on the construction areas androad paths (Construction phase), handlingwaste materials and fluids and implementingthorough disposal procedures (Operation andtermination phases).
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Petrels safely fly right of the turbines
The Petrel Protection Programme
The Wind Project’s environmental manage-ment plan (EMP) includes a Petrel ProtectionProgramme, the objective of which is to helpincrease Petrel populations in the archipelago.This initiative consists of various programmesconducted to help control rats and otherPetrel predators, control invasive plantspecies that crowd out plants that support thePetrel, protect habitats, and ensure long-termscientific monitoring of the Galapagos Petrelbird’s well being.
Local NGO’s, along with the Bird ReviewCommittee established during the project’sEnvironmental Impact Assessment phase, willcontinue to work in collaboration with the SanCristobal Wind Project team, after the project’scommissioning, by providing continuousscientifically-based advice and guidance.
The Galapagos Petrel monitoring andenhancement activities, generally described inthe EMP, include:
• Monitoring and Control of Petrel’s nesting00sites.
• Reducing predator populations.
• Removal of invasive plant species and other00habitat enhancement activities.
• Land purchase or easements for nesting area00protection.
• Fencing to keep livestock out of nesting areas.
• Removal of abandoned antennas.
• Operational control measures for wind00turbines.
Yearly budget values were identified in theEMP for measures related to the Petrel birdprotection during the expected 20-yearoperating period of the wind turbines.
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Petrel bird monitored by bird expert and e8 consultant forthe Petrel Protection Pogramme
The yearly budgets would be applied towardthe most effective monitoring or enhancementmeasures based on feedback from fieldmonitoring and recommendations by thePetrel Protection Committee and accepted bythe Commercial Trust Fund/ EOLICSA.
Field measures undertaken in 2006 includednest monitoring, searches for additionalPetre l nest ing areas, rat c o n tro l andinvasive vegetation clearing. A directimpact on nesting success of the Petrel wasobserved during this period in areas where ratcontrol was applied. It is anticipated that thistrend should continue.
During the operational period of the w i n dt u r bines, a systemat ic and sc ientifically-based program will be conducted to monitorthe wind park site for avian mortality and otherspecies mortality (such as bats). The methodologyand monitoring results will be shared with thePetrel Protection Committee and other localstakeholders. This will allow adjustments or newsteps to be considered if unacceptablelevels of mortality are found.
The mortality monitoring program was initiatedin September 2007.
Registering The Galapagos WindProject under the Kyoto Protocol’sClean Development Mechanism(CDM)
The Clean Development Mechanism (CDM),an innovative cooperative flexible mechanisminitiated under the Kyoto Protocol, is designedwith the dual goal of assisting developingcountries in achieving sustainable development(SD) while supporting industrialized countries inachieving compliance with their greenhousegas reduction commitments.
The e8 San Cristobal Wind Project has beenplanned as a CDM Project since its initiation.The Jessica fuel tanker accident in 2001, whichresulted in large oil spills into the ocean waterssurrounding the Galapagos islands, a UNESCO-protected world heritage site, was a trigger forthe initiative to introduce renewable energyoptions in the Archipelago. The idea ofdeveloping renewable-energy-based powergeneration in the Galapagos Islands wasinitiated with the objectives of displacingdiesel-powered electricity, helping to reducegreenhouse gas emissions and the risk forequally devastating diesel-fuel tanker spills inthis highly protected environment, while con-tributing to local sustainable development.
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Presentation of the Environmental Managment Plan monitoringresults: Klaus Baumann (e8) and Jim Tolan attending
Wind Park on San Cristobal Island
The Ecuadorian Ministries of Environment andEnergy have paved the formal and legal waysnecessary to develop CDM projects inEcuador, and Ecuador’s National CDMPromotion Office (CORDELIM) has assisted theproject team in obtaining national approval forthe e8 Galapagos Wind Project’s CDM registration.
The formal project cycle leading to the officialregistration as a CDM project at the UnitedNations Framework Convention on ClimateChange (UNFCCC) Executive Board is a longprocedure starting with the elaboration of aProject Design Document (PDD) demonstratingcompliance with national and internat ionalr e q u i r e ments. The core of this documentconsists of demonstrating the prospect iveCDM project’s susta inability, a baselinestudy and the presentation of the project’smonitoring plan for emissions reduction.For the e8 Wind Project, this document hasbeen validated by an independent consultingcompany, and developed along with a publicstakeholder consultation required by the
registration process. The overall procedure,which took about one year, has been clearedfor the Wind Project to be officially registeredas a UNFCCC CDM Project.
Project Replicability
The Galapagos Wind project will provide a criti-cally needed road map for similar futurerenewable energy projects. The project modelemphasizes the involvement of local stake-holders and features an innovative knowledge-sharing approach aimed at widely dissemi-nating the lessons learned from this project,both in-country and globally.
Undoubtedly, the project developmentprocess has contributed to the education ofthe local Ecuadorian electricity powercompany Elecgalapagos, the e8, UNDP,national and local author i t ies , about theintricate complexities of such an ambitiousrenewable energy project. The lessons learned,especially on the practical aspects of the project
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Wind project staff sharing experience with UNDP and Ministry of Electricity staff at the wind park
such as the establishment of IndependentPower Producers (IPP) to provide electricitygenerated from renewable sources, will easethe way for future re-electrification projects inother Islands and elsewhere.
Also, the experience of planning and exe-cuting the Environmental Impact evaluationrequired by and associated with this type ofprojects could similarly be used to reduce theobstacles and costs for future similar projects.
In addition, the capacity of Elecgalapagos tonegotiate Power Purchase Agreements withIndependent Power Producers, to carry outoperation, maintenance and dispatchingactivities in hybrid power systems and to pro-vide quality service to its consumers will bestrengthened. Finally, Government institutionslike the Ministry of Energy and Mines andCONELEC will be better prepared to create apolicy and regulatory framework governingthe electricity sector.
Many of the project’s approaches and com-ponents are transferable to small island statesthat are similarly isolated from mainland elec-tricity generating systems and grids.
Project developers and governments focusedon mainland electricity supply and delivery
would be able to use and replicate theapproach undertaken for the development ofthe Galapagos Wind Project.
The Galapagos Islands are known worldwideand this visibility is even higher now thatUNESCO declared the islands an endangeredWorld Heritage Site in June 2007. As a result ofthis increased visibility and global commitmentto protecting the Galapagos endangeredworld heritage site, the e8 project has thepotential to become a model for renewableenergy project development aimed at envi-ronmental protection and the promotion ofsustainable development, in the Galapagos,the Latin American region, and the world.
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Wind turbine during installation process
Wind turbine with local farm cows
The project can be replicated anywhere in harmony with nature
San Cristobal’s development strategy: a sus-tainability model for Ecuador
In recent years, San Cristobal Canton hasundergone major changes in infrastructure,architecture and administration. What led tothis awakening?
We are developing and implementing projectswith a strong environmental componentbecause we are concerned about maintain-ing adequate environmental standards for themanagement of the islands. For example, wehave a solid waste project, an ecological dockand boardwalk project (the latter named afterCharles Darwin), and an operational center forthe fishing sector, specifically designed tosupport this activity. These are some of the proj-ects we are developing, and the San CristobalWind Project fits perfectly within this vision. Weare very pleased to support the clean energyproject for San Cristobal, which will help theisland become an attractive tourist destination.
How has the San Cristobal communityresponded to the start-up of the first wind farmin Ecuador and the only one of its kind ina natural protected area?
As the local counterpart and main beneficiaries, wewill of course adopt this internationallyprestigious project as our own. Consideringthat Galapagos is now experiencing aseries of problems related to the lack ofenvironmental zoning that should have beenapplied here, this project will enhance theimage we project overseas and in mainlandEcuador. Therefore, this project and others likeit, will certainly receive our full support.
Could it be said that the conservation of thenatural environment is central to the socio-cultural dynamics of San Cristobal’s population?
Clearly, if we did not have an environmentalculture here on the islands, we would not haveattached the same importance to the project.
The San Cristobal Wind Project and others like itthat lead to social development without dam-aging the natural environment, will always bewelcome on our island.
Specifically, what do the San Cristobal’speople think about the Wind Project?
The perception the islands’ inhabitants have ofthe Archipelago’s administration, as well as ourcurrent perception of this cantonal municipali-ty, is basically related to adequate resourcemanagement for the sustainability of theGalapagos Islands, and of Isla San Cristobal inthis case. We will take ownership of this projectand work to support its future sustainability.
With the San Cristobal Wind Project, this islandhas reached a milestone in the history of nationalelectrification by becoming the site of the coun-try’s first wind farm. How does that feel?
Speaking in the name of the people of SanCristobal, we are very grateful and are com-mitted to take good advantage of this historicevent. On behalf of and in representation ofthis community, I would like to thank the e8group for having taken the initiative to imple-ment this wind project. We also extend ourthanks to the National Government, throughCONELEC, and Elecgalapagos, partiallyowned by the Municipal Government. Thank youfor choosing San Cristobal as the place tolaunch this new phase of national electrifica-tion of this island.
“Ensuring a promising future forgenerations to come depends
on how we care for the environment today”
Interview with Mr. Pedro Zapata Rumipamba, Mayor of San Cristobal:
Mr. Pedro Zapata RumipambaMayor of San Cristobal44
The e8, in addition to the implementation ofthe San Cristobal Wind Project, has developeda complementary project aiming at buildinghuman capacity to manage solar electric(photovoltaic) systems, advancing studenteducation and research in energy efficiencyand hybrid wind-diesel applications, andsupporting the development of a renewableenergy services management entity in theGalapagos archipelago.
In collaboration with SolarQuest, a not-for-profiteducational organization specialized in rene-wable energy education worldwide, the e8has developed the Galapagos Solar PVhuman capacity building project consisting of:
• The educational micro-solar long distance00learning programme.
• The development of solar photovoltaic00installations complemented by a training00programme to build the Galapagos’00human capacity in solar PV renewable00energy systems.
The micro-solar long-distancelearning programme:
Educating the youth on renewable energyoptions and energy efficiency The MicroSolarDistance Learning Programme is designed topromote long-distance learning andtelecommunications based on photovoltaic(PV) installations in areas located beyond thereach of existing power and communicationsgrids. Solar panels have been installed inschools to provide lighting, power computers,and Internet connections.
What do students learn about?
Students in the MicroSolar Galapagos programapply computer science skills to learn aboutenergy efficiency and renewable energy tech-nologies, with renewable energy technologies,with the objective to serve the community andcontribute to the promotion of sustainableenergy development. MicroSolar resources arealso available for teachers and students toimprove learning in all subject areas.
How does this improve learning?
MicroSolar opens an unlimited window ofopportunity for education. Teachers ands tudents can access on-line l ibraries,encyclopedias and distance learning programs.Much of the World’s knowledge is nowavailable to students through the Internet.
How do students serve their communities?
In the Action, Communications, Technology,and Science (ACTS) program in 2004 and 2006,students from the Colegio Tecnico IgnacioHernandez (CTIH) in San Cristobal, eachprovided 200 hours of community service tomonitor and analyze the Island’s electric grid inorder to research the potential of reducingelectricity demand and consumer energycosts through energy efficiency.
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Local workers in training for solar panels installation
The grid-connected photovoltaic system in San Cristobal is a complement to the hybrid wind-diesel system
How did students do this?
With funding from e8 companies (AmericanElectric Power, Ontario Power Generation, andHydro-Quebec), SolarQuest® worked withstudents and teachers at CTIH to collect andanalyze data from common householdappl iances. Over the Internet, Enel, theItaly-based e8 member company, retrievedand processed the data in a computersimulation model to verify the accuracy of thestudents’ research.
What did students learn?
Students applied the scientific method andacquired critical thinking skills. They learned tocollect and analyze data and to represent itgraphically. They also learned practicalknowledge, including such information as theamount of energy waste from inefficient elec-tric appliances in the Galapagos.
What did they learn about energy waste?
They learned that nearly 36% of the refrigerators inthe Galapagos consume energy 24 hourseach day – they fail to shut off, and thatrefrigeration represents 68% of residential energyconsumption on the Islands. They also learnedthat this energy efficiency waste costsconsumers and the government nearly $1 milliondollars each year, which is equal to theGalapagos education budget from the federalgovernment.
What can be done about this?
The students at CTIH proposed the implementationof an energy efficiency program to replaceinefficient refrigerators and lighting withhigh-efficiency appliances. e8 company, Enel,supported this analysis, and verified that energycost savings could pay for the new appliancesin just over two years.
Has their proposal been accepted?
Students have not yet submitted a formalproposal to the government, as subsidies forenergy would need to be a part of thepayment for new appliances; this requireschanges in public policy. FutureMicroSolar students will learn about publicpolicy and project financing.
What is the future of MicroSolar?
As new skills are taught – computer program-ming, content development – students willlead the Galapagos to a global informationeconomy based on science educationcontent, and the Archipelago will become anecological observatory and Internet-basedresearch laboratory connected to classroomsworldwide.
Introducing Solar Energy Options toGalapagos
The e8’s Solar PV project in the Galapagosaims at introducing solar energy options to theArchipelago, and features the developmentand construction of two solar PV systems,totaling approximately 12kW, on the Island ofSan Cristobal.
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Students of the MicroSolar programme presenting the results oftheir research on local energy consumption to e8 representatives
6 kW solar panels installed on control room roof Project team with high school students
High school student sharing efficiency survey results
The project is complemented by a humancapacity building program the objective ofwhich is to provide training, expertise and edu-cation to the local power company emplo-yees, and community at large, on the develop-ment, construction and maintenance ofsolar PV systems. The PV panels were sup-plied by the Foundation for EnvironmentalEducation (USA), under its worldwide 'Learningfrom Light' program.
What are the options for solar energy in theGalapagos?
Solar power generation – based on photo-voltaic technology– is a viable technologyoption for electricity production in theGalapagos. However, today, the cost of smalland large scale applications of solar electricityand the lack of financial incentives remain abarrier to the wide spread of renewable energyin the archipelago. In the future, however, gov-ernment incentives will likely be available forsolar electric systems in the Galapagos andthroughout mainland Ecuador.
Then why is the e8 installing solar energy systemsin the Galapagos?
With the installation of two 6 kW PV systems, oneat Escuela Pedro Pablo Andrade and the otherat the central thermal power plant, the e8 is pro-viding critical experience for Empresa ElectricaProvincial Galapagos (EEPG), the local powercompany, in the installation, operation andmaintenance of solar energy systems. The e8 ishelping EEPG prepare for the future when solarenergy will be economically viable.
Why did the e8 install solar energy at theschool?
In addition to the training opportunity for EEPG,the PV installations at Escuela Pedro PabloAndrade offers students and the generalpublic an introduction to solar energy systems.
The school is partnering with the e8 andSolarQuest® to provide educationalopportunities to students in all grade levels ofschool and to the general public.
What kind of educational opportunities arebeing provided?
Students will learn basic concepts of solarenergy, such as how solar energy is convertedinto electricity. This will be a hands-on activitysupporting the core science curriculum atEscuela Pedro Pablo Andrade. A portable solarenergy educat ion disp lay that can bedisassembled and reassembled will be available oschools and community centers throughoutthe islands. e8 companies provide this type ofeducation to schools in their countries.
What will students teach the public aboutsolar energy?
As a service learning project, students willteach the general public about the basicconcepts of solar-based electricity generation.They will also provide information about thecomponents of a solar electric system, like solarcells and inverters, and inform the public aboutapplications of solar energy for their homesand businesses.
What are the other solar renewable energy tech-nologies that are appropriate for the Galapagos?
Solar thermal – heating and cooling – is impor-tant. Solar hot water heating systems canreplace the need for electric resistance hotwater heaters, and save consumers money. Solarcooling, including shading devices and ventila-tion can reduce the need for air conditioning.
Will these technologies be available to theGalapagos’ residents?
Yes, in the future. The e8 and SolarQuest® willwork with EEPG to introduce these technolo-
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gies in order to improve the positive impact ofthe e8 project reducing fossil fuel consumptionfor electricity generation. However, thisrequires human capacity building for personnelat EEPG, consumer acceptance of new tech-nologies, and financing.
How will this be accomplished?
SolarQuest® will continue to work with EEPG toprovide human capacity building for solarenergy technologies, and will continue to workwith schools and the general public toadvance solar energy education.
What is the future of solar energy in theGalapagos?
The e8 is providing important leadership toachieve energy security in the Province and toprotect the biodiversity of the archipelago. Thisleadership, in partnership with the UnitedNations and the Government of Ecuador, ismaking it possible for clean energy options toplay a vital role in achieving sustainabledevelopment in the Galapagos.
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Solar panels installed on top of the roof of Pedro PabloAndrade School in San Cristobal
The 2,400-kW Galapagos Wind Project is anexample of the significant role played byUN-Public-Private partnerships to promotesustainable power generation and distributionusing renewable energy options in small islandssuch as the Galapagos. The Wind Projectdemonstrates how such partnerships caneffectively contribute to the protection ofendangered ecosystems and the reduction ofgreen house gas emissions while simultaneous-ly enhancing economic and social sustainabledevelopment.
The complementary educational and trainingprogrammes on renewable energy optionsand energy efficiency use, initiated along withthe Wind Project have significantly contributedto the local community’s increased awarenessand knowledge of sustainable energy optionsand the importance of cost-conscious electricityuse and energy-efficient consumption.Through these programmes, the e8 hashighlighted the importance of human capacitybuilding and public education for the effectivelocal acceptance, development and spreadof renewable and clean energy technologies.
Br inging energy to the 2 b i l l ion peoplecurrent ly without access to electricity aroundthe world and developing clean powergeneration to mitigate climate change and itsnegative impact on human development andthe global environment have been at the coreof the e8’s mission and actions.
The renewable energy projects implementedby the e8 in the Galapagos are a response tothe call for action addressed to the electricitysector at the World Summit on SustainableDevelopment. At the Summit, such concreteactions were identified as a priority to alleviateenergy poverty through increased access toclean energy leading to sustainabledevelopment worldwide.
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Concluding Message
San Cristobal Wind Farm in operation
Kicker Rock (Leon Dormido): the San Cristobal Island symbol
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