Finpro presentation material in Wind Power Opportunities in Latin America seminar, Vaasa 14.02.2013

1. Wind Energy Outlook in
Latin America
Finpro Americas
Heidi Virta, Nina Jaakkola,
Heta Pyhälahti, Ilkka Cafferata
February 2012

2. Future outlook for Latin America wind power
• Latin America is expected to reach 46 GW of total installed
wind capacity by 2025
• Latin America’s annual growth rate in wind power is 12.6%
• Total investment in Latin America wind turbine markets will
scale from 1 Billion USD in 2009 to more than 2.2 Billion USD
by 2015
• According to studies, European players will dominate the
market in the near term, but local players will challenge them
from 2015
• Brazil demands more than 300 turbines annually starting in
2011
Source: Latin America Wind Power Markets and Strategies 2010-2025

3. Wind energy capacity growth
• Brazil offers the largest growth capacity, up to 13 GW in next 8 years,
with prominent component sales possibilities, but has local content
requirements, which require special attention.
• Mexico has the second largest growth potential 10 GW in 13 years.
• Argentina plans to have approx. 3 GW installed by 2025
• Chile has several plans for expanding the wind energy capacity by
3GW, but construction has not started and financing the projects
remains as a challenge.
• Uruguay plans to significantly increase the share of renewable
resources in upcoming years, including 500MW of wind power by
2015.
• There are 2 wind farm are being constructed in Peru, planned to be
110MW when complete.
• Colombia and Ecuador have more undefined expansion plans.

4. Wind Energy Capacity
Country End of 2011 Future Target
Brazil 1509MW 15600MW (2021)
Mexico 569MW 12000MW (2025)
Chile 202MW 660 MW (2020)
now permits for 2853MW
Argentina 130MW 1200MW (2017)
Uruguay 43.5MW 550MW (2015)
Peru 0.7MW 202MW (upcoming)
Colombia 19.5MW 700MW (total planned)

5. Wind energy prices in LA
Wind Energy Prices in Latin America according to auction
prices
– Argentina: 120 – 134 USD/MWh (GENREN Auction)
– Brazil: 60 … 65 USD/MWh (ElectroBras Auctions)
– Mexico: 64 … 68 USD/MWh (CFE Oaxaca Auction)
– Peru: 65 … 87 USD/MWh (Osinergmin Auction)
– Uruguay: 62 … 65 USD/MWh (UTE Auctions)
– Chile: 90 … 110 USD/MWh
Source: Kenneth Jofs , GE Transportation,
May 2012

6. Electricity prices in Latin America 2011
Source: CADE, 2011

7. Wind Energy in Argentine
• Argentine area is
2,800,000 km2 (90% of EU)
• Almost 70% of Argentine
has 6 m/s at 50 meters
high.
Wind intensity
Km/h
AAEE - Asociación Argentina de Energía Eólica.

8. Wind energy investments in Argentina
• Some up-coming and on going investments:
1) Arauco: 90 MW
2) Vientos del Secano: 50 MW
3) Malaspina: 80 MW
4) Vientos de la Patagonia 1: 60 MW
5) Diadema: 6,3 MW
6) Vientos de la Patagonia 2: n/a MW
7) GENREN 2010: 7 projects in total: 754 MW
Turbines are defined in some of the
projects, but not in all

9. Wind Power in Uruguay
 Uruguay’s area is 176,000 km2
with 4 M inhabitants.
Nation wide wind survey results are
available: Good potential for wind
energy
The estimated potential is 3000 MW
Capacity factors between 35 and 45
for installed and future wind farms

10. Investments in Wind energy in Uruguay
 Present Wind Power capacity 43,5 MW
 Purchase agreements done by UTE (National energy company )
additionally for 216 MW
(66MW in service by 2013 and 150 MW by 2014-2015)
• Some projects under construction:
• Consorcio Venti: 50 MW, Location Maldonado
• Fingano S.A.: 50 MW, Location Maldonado
• Palmatir S.A.: 50 MW, Location Tacuarembó
• Additionally UTE itself plans to develop 100 MW in the form of a lease
agreement with a private supplier and another 100MW in association
with the private sector. ( These projects in in place by 2015).
• 2015 Wind Power capacity is planned to be 500 - 600 MW

11. Wind Energy in Chile
• Chile produced now 205 MW electricity with wind, but even projects with
common capasity of 2853 MW have environmental permit.
• Though electricity price has been very high for long time, there has been
challenges to find financing for the projects.
– Spot market agreements is only opportunity for renewable energy
projects at the moment. But banks are not financing spot market projects.
• There are several mecanism to force and encourage renewable energy
production.
– Public biddings for land for wind farms 40-150 MW.
– Growing share >5% of generated energy should be from renewable
source in new contracts, otherwise penalties for energy generators/ their
clients.

12. Up-coming investments Chile
• Following windpark projects have got approvals from authorities
• Total capacity of projects with environmental approval is approx. 2853 MW
• Minera Gaby 40 MW • La Gorgonia 76
• Quillagua 100 MW • Laguna Verde 24
• Sra Rosario 84 MW • Altos de Hualpen 20
• Canela 18 MW • Chome 12
• Punta Colorada 20 MW • Lebu 9
• Monte Redondo 74 MW
• Totoral 46 MW
• Canela II 60 MW
• Extension of Punta Colorada 16 MW
• Talinay 500 MW
• La Cachina 66 MW
• El Pacífico 72 MW
• Punta Palmeras103 MW
• Hacienda Quijote 26 MW

13. Wind Energy in Peru
• Peru’s total wind energy potential is 22 GW.
• Wind speed in some areas is 10 m/s
• Peru’s area is 1,280,000 km2 and population 30 million

14. Wind Energy in Peru
• There are 58 projects (9,415 MW) in the study phase for wind power
• The authorities have established the need for 752 MW
• Peru produces approx. 1 MW, but by the end of 2013 will have 256 MW
electricity with wind
• Peru has no local production requirements for the wind energy
• The government has auctioned wind parks in 2009 and 2011
• Some upcoming projects are:
– Cupisnique and Talara 114 MW (Vestas as tecnology provider) in
operation in 2013
– 142 MW auctioned in 2009 and operating in 2013 (Energía Eolica)
– Energía Renovable Peruana 200 MW

15. Wind Energy in Colombia
• Colombia has wind energy potential of more than 21 GW
• Colombia has land area of: 1,140,000 km2 and a population of 46 million

16. Wind Energy in Colombia
• Colombia’s actual wind energy production is 20 MW
• Colombia has 50 MUSD yearly for establishing wind and other renewable
energy project for areas without electricity interconnection
• Some upcoming projects are:
– Jepirachi with 20 MW
– EPM with 200 MW in Guajira
– Electrowayúu E.S.P. e Isagen with 35 MW
– Nazareth 250 KW (combined with gas and diesel
– Sopesa 7,5 MW