The Country Program of Chile under the Global Solar Water Heating Market Transformation and Strengthening Initiative - ProgramaSolar

The Country Program of Chile
under the Global Solar Water
Heating Market Transformation
and Strengthening Initiative
Emilio Rauld
National Project Coordinator

                               ProgramaSolar

Agenda

 General Objective of the Program in Chile
 Stakeholders
 Resources Available
 SWH Market in Chile
 Barriers of the Market
 State-of-the-Art
 GEF Fund and the Removal of barriers by the Program
 Website - Platform
 Conclusions

                                                        ProgramaSolar

General Objective

Transformation and Strengthening of the SWH market in Chile, baseline created of
the industry, by means of fortification of different areas, to obtain an increase of
facilities of SWH of a 45% per year to start of 2012:
 Government regulation and obligatory norms
 Diffusion and awareness of the end users
 Financial mechanisms, incentives, and governmental subsidies
 Certification of the equipment.
 Capacity Building for Projects and services.

                                                                 ProgramaSolar

Stakeholders

This Instance considers the participation of the main groups of interest of the
industry of which the following institutions stands out:

  Goverment         Institutions              Universities -Trade Association

 MINENERGIA        ICA-Procobre              Universidad de Chile
 SEC               GTZ                       Universidad Católica
 PPEE              Fundación Chile           Universidad Federico Santa María
 MINVU             INN                       CCHC: Trade Builders Association
 CORFO-CER         CDT                       ACESOL: Association of SWH suppliers
 SII

                                                                 ProgramaSolar

Resources Available

Program begins in September of 2009 and finishes in 2013. It involves resources
GEF and CNE mainly. (today ministry of the energy of Chile, MINENERGIA)

 Resources GEF for the MUS$ 1,5
 Resources projected by MUS$ 1,3 and others co-financing by MUS$ 0,5
    • Total Resources US$ 3,3 Millions Dollars
    • The Government are above of these co-financing amounts

                                                                    ProgramaSolar

SWH Market: Situation of the installed
Solar Thermal Collectors in Chile

Characteristics of the SWH Demand and Offer

 Main energy sources used for the hot water production sanitary: NG and LPG in the 90%.
 Individual residential sector: Only the 57% of the homes have hot water system. (Census
  2002)
 Approximately 100 companies. Only 30% they are stable. High rotation
 Low: Incipient market. Is expected this will be pushed by the tributary incentive.

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SWH Market: Situation of the installed
Solar Thermal Collectors in Chile

Companies dedicated of Solar Energy by Chile
Region (Source: CDT-CCHC)

                                               ProgramaSolar

SWH Market : Situation of the installed
Solar Thermal Collectors in Chile SWH

Area in m2 installed SWH at august 2008 (Source: CDT-CCHC)

                                                             ProgramaSolar

Market SWH : Situation of the installed
Solar Thermal Collectors in Chile

Area in m2 STC according to Sector- uses (Source: CDT-CCHC)

                                                          ProgramaSolar

SWH Market: Situation of the installed
Solar Thermal Collectors in Chile

Import of STC according to origin country in US$ (Source: CDT-CCHC)

                                                           ProgramaSolar

SWH Market: Situation of the installed
Solar Thermal Collectors in Chile

Import of STC according to origin country in % (Source: CDT-CCHC)

                       Note: The 75% Sale Offer is the Plane Solar Panel

                                                                       ProgramaSolar

SWH Market: Situation of the installed
Solar Thermal Collectors in Chile

Companies dedicated of Solar Energy for Activity
in Chile (Source: CDT-CCHC)

                                                   ProgramaSolar

Barriers of the Market:
Situation of the installed
Solar Thermal Collectors in Chile

 Capacity Building

 Technical qualification in Projects and Services
 Quality Control and inspections SWH equipment
 Technical qualification in Big Projects: Hospitals, Schools, etc.

                                                                      ProgramaSolar

Barriers of the Market:
Situation of the installed
Solar Thermal Collectors in Chile

 Low demand by SWH

 Ignorance of the technology and its benefits
 Distrust by bad experiences
 High initial SWH cost.
 High periods of recovery of the investment.
 Lack of certification of equipment and exigency of minimum standards

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State-of-the-Art

Initiative

 CNE elaborated base studies to policy designs
 Coordination between stakeholders
 CNE – MINVU* developed pilot projects in social houses

  Financial and incentives instruments carrying out

 Law 20.365, Tributary tax exemption (TE) for new houses (2010)
 MINVU: Social Program to subsidize SWH in existing social houses (2010)
 CORFO: Designed a financial instrument for existing social houses

                                                                      *Ministerio de Vivienda y Urbanismo
                                                                       ProgramaSolar

Summary of other projects
developed and the future plans

Studies* between 2006-2008 In the Frame of the “National Plan of the SWH”

  1.Study the Chilean SWH Market. And an analysis Hybrid Alternative NCE/CE. Nov 2006
  2.Pilot Project: Technical and economic evaluation to the Easter Island SWH project. Oct 2006
  3.Studies Institutional.
               a) Frame analysis Institutional. Feb 2006
               b) Development of the frame regulatory and technical norms. Sep 2007
               c) Development of the Financial Mechanism. Dic 2007

  4.Dossier to the campaign SWH promotion . Nov 2007
              National plan of promotion to the use of solar collectors. Jan 2008

  5.Formation and qualification. a) Evaluation needed. Nov 2006
                                 b) Design Plans F & Q. Dic 2006
                                 c) Manual by F&Q to the SWH technician. Jan 2008

                                                              *Studies maked by Transénergie, French Consultants

                                                                                    ProgramaSolar

Summary of other projects
developed and the future plans

Studies in the 2009 In the Frame of the “Law 20.365”

  1. Antecedents for the Specification of Technical Requirements for the Development of the Solar
     Thermal Collectors . ECOSFYSVAGESTA Consultants May 2006

  2. Technical regulations and rules to facilities. CNE- Dic 2006

  3. Accumulating study of Solar Collectors and Deposits. MINENERGIA Jan 2010

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Summary of other projects
developed and the future plans

Nodo Solar: Private instance, coordinated by the CDT*, to facilitate the
knowledge, technological transference and diffusion of the SST between the
builders and solar companies. (Beginning from the 2009)

  1. Magazine “Sustenta Bit” three editions in the 2009

  2. Manual of Design to SWH

  3. Manual of Design of bigger facilities

  4. Study: Analysis of laboratory feasibility of solar certification in Chile

  5. Study: Solar Collectors and water accumulators

  6. Curses of Facilities and Design. Basic level

PDT Solar: Private instance, coordinated by the CDT*, continuator of Nodo Solar
with the same goals.

                                                       *Technological development Corporation of the Builders Association

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Before Law 20.365

Agreement between CNE*-MINVU (2008-2010)

  •   Realizations of the Pilot projects by Social Houses Building. 308 Houses

Necessary products
  •   Development and diffusion of a meteorological data base communal. Tº, Hº, Solar Radiation, etc.)

  •   Development and diffusion of a tool of verification of the fulfillment of the demanded solar
      contribution.

  •   Product exigency certificates

  •   Development of procedure of inspection of the facilities

  •   Guarantee of 5 years by the installation

                                                                                       * Today : “Minstry of Energy”

                                                                                     ProgramaSolar

Next Steps and the new
projects 2010

Agreement between MINENERGIA*-MINVU* (2010)
  •   To develop a program of subsidies of SWH systems in existing social houses

Necessary products this program will require
  •   To transfer resources from MINENERGIA to MINVU by MUS$ 2

  •   Elaboration of the engineering specifications of the solutions you affect subsidy .

  •   Qualification of the civil servants of the regional offices of the MINVU and companies of technical
      attendance for the preparation, evaluation and control of projects SWH systems.

  •   Included in to Protection to the Familiar Patrimony Program (PPPT in the Spanish acrostic). MINVU
      Program what attend ones 9.000 houses

IADB/GEF project "Promotion and Development of Local Solar Technologies in Chile"
  •   Fund GEF for technological transference projects SWH and PV by MS$ 2,73

                                                                                       * Acronyms in Spanish

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State-of-the-Art

 Pushed to Market

 The Government hopes are to push the market by the Law 20.365.
     • Through Tributary tax exemption new houses building (TE)

  As it operates this, (TE).

 The maximum potential benefit of the credit that considers the value of the house and the
  land, is determined by this scale:
 Houses of a value ≤ US$75,000: 100% SWH price.
 Houses of a value ≥ US$ 75,001 ≤ US$113,100: 40% SWH price
 Houses of a value ≥ 113,101 U$ and ≤ 169,653 U$: 20% SWH price
 Houses of a value ≥ 169,654 doesn't receive subsidy.

                                                                         ProgramaSolar

State-of-the-Art

Pushed to Market

 The Government hopes are to push the market by the Law 20.365.
    • Total benefice for new houses building:

                                                                Groups Systems
                     Individual Systems
                                                 CST120m2

       Año              UF*/Houses              (a) UF/Houses               (b) UF/Houses

      2009                 32,5                     29,5                          26,0

      2010                 32,0                     29,0                          25,5

      2011                 31,5                     28,0                          24,5

      2012                 31,0                     27,5                          24,0

      2013                 30,0                     26,5                          23,5

                                                                          * UF: Unit equivalent to US$ 39 aprox.

                                                                            ProgramaSolar

State-of-the-Art

Incipient Market

 Objective Law 20.365. Remove Barrier
  1. Create the conditions for the development of the SWH systems market, to impel the demand though
     new houses building

  2. lower costs by implementation of the SWH

  3. To increase the demand

  4. Period of 4 years 2010-2013

                                                                             ProgramaSolar

GEF Fund and the Removal of barriers
by the Program

 Main areas they are

  •   Regulation, codes and standards of houses construction with SWH system obligatory.

  •   Formation, qualification and awareness.

  •   New and novel mechanisms of incentives and financing of SWH.

  •   Investigation and development.

                                                                               ProgramaSolar

GEF Fund and the
Removal of barriers in the 2010

 Main areas they are

  •   Demand Incentive: Diffusion to uses TE Law 20.365

  •   Baseline to Capacity Building by Projects and Services

  •   Baseline for the Certification of Equipment and Quality Control

  •   Methodology to quantify the size of the market

  •   Demonstrative projects

  •   Dissemination of the relevant information of the SWH systems

  •   Knowledge and good practices

                                                                        ProgramaSolar

Global Knowledge Management

Generation of knowledge and Management in the local program

                  Where                              How

      Government
      Solar industrie
      Nodo Solar (PDT-Solar)
      University´s
      Local program
      Global KM component

                                                              ProgramaSolar

Global Knowledge Management

Generation of knowledge and Management in the local program

        Where                     How                         Where

 Government
 Solar industrie
 Nodo Solar (PDT-Solar)
 University´s
 Local program
 Global KM component

                                                       Capacity Building
                                                       Financial Mechanisms
                                                       Others experiences

                                                              ProgramaSolar

Website : www.programasolar.cl

                                 ProgramaSolar

Conclusions

 The Law of tax exemption is a high incentive to the use of SWH until of MUS$
  300

 The law of the exemption of the tax for the SWH is of voluntary use. It will be
  necessary to show cases of success of the use of the tributary tax exemption

 For existing houses the Government development initiatives for Social Houses
  by MUS$ 2 in the 2010. More than 1500 facilities of systems SWH between
  2010-2013.

 Pilot experiences with MINVU, today 125 houses and 183 in this year.

 The line bases to the Solar Industry needed to be supported. Mainly by the
  Government.

 From the formulation of the program Chile advanced much in the development
  of incentives for the use of the SWH market, nevertheless is much to do so
  that this consolidates.

                                                             ProgramaSolar

WebReferences
                       •   www.solarthermalworld.org
                       •   www.programasolar.cl
                       •   www.nodosolar.cl
                       •   www.acesol.cl
                       •   www.procobre.org

                       Thanks
ProgramaSolar
www.programasolar.cl

                       ProgramaSolar