The wind energy potential in many developing and emerging countries is substantial. In many locations, generating electricity from wind energy presents an economically viable alternative to the use of conventional fossil energy sources such as coal or diesel. In developing and emerging countries, wind turbines are an alternative to conventional power stations. In comparison to fossil-fuelled power stations, wind energy can now be cost-effective in many places, as well as being non-polluting and reducing dependence on imports of fossil fuels.
At many sites, the excellent wind conditions make up for the higher investment costs compared to conventional methods of power generation. In comparison with wind farm projects in industrialised countries, wind energy projects in developing and emerging countries often incur higher costs for transport, installation, maintenance and adaptation to the prevailing climatic conditions. Nevertheless, economically-viable operation is still often possible, as high opportunity costs have to be taken into account when assessing generation from wind power. For example, if it is intended to replace diesel as a high-cost fuel in power stations, the value of the wind-generated electricity largely depends on the price of diesel at the particular location. Diesel prices, in particular, rose sharply in 2005.
Over and above that, the profitability of wind farm projects in developing and emerging countries can be improved through the sale of Certified Emission Reductions (CERs) generated within the context of the Clean Development Mechanism (CDM) .
From the macroeconomic standpoint, expanding wind energy brings yet more positive effects. Generating energy from wind turbines saves developing countries from all-too-rapid use of their foreign exchange resources to pay for energy imports, which in view of the rise in energy prices on world markets constitutes a considerable additional burden on their economies. At the same time, diversifying national energy sources usually enhances the security of supply. In the long term, reducing energy generation from fossil sources will make a positive contribution to climate protection and improve local air quality. The local market will also gain new impetus for growth, as well as many new jobs in the fields of maintenance, repair and controlling.
All in all, the utilisation of wind energy in developing countries can help achieve more efficient energy supply and improve a country’s macroeconomic situation, thereby contributing towards poverty reduction and sustainable development.
Despite the economic and ecological advantages, so far even good wind resources in developing and emerging countries have not been used to the desirable extent.
The essential reasons for this are based in the lack of knowledge in the developing and emerging countries. From the view of international wind energy companies, beside the difficulties of raising of capital and risk covering, the barriers for private investment are especially:
To reduce these barriers is the aim of the wind energy programme TERNA (Technical Expertise for Renewable Energy Application) of the Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH. If successful, TERNA will be able to initiate wind farm projects that are ready for investment to begin.
The services provided by the TERNA programme encompass four different areas, and can be called upon either separately or in combination:
All measures are carried out together with the partners in the developing and emerging countries. Partners are mostly the competent authorities / ministries (of energy) as well as the – mostly state-owned – utilties.
TERNA offers its partners many years of expertise in the development of wind farm projects. This begins with the search for suitable locations and identification of the wind potential. We work with the partner to draw up feasibility studies on the basis of wind and energy yield studies. This involves analysing a variety of aspects, in particular case-specific technical design and microeconomic and macroeconomic issues. Licensing requirements and environmental questions are also examined.
TERNA advises the partners on matters relating to finance. As a member of the international donor community, GTZ is able to put the partners and potential financiers in contact with each other. If so required, TERNA can try to involve donor insititutions such as the KfW Entwicklungsbank (KfW Development Bank), Germany, the World Bank or regional development banks in early phases of the project.
An example of the successful implementation of the advisory services is the first wind farm in Colombia. In response to a request by the Public Service Department of Medellín (Empresas Públicas de Medellín - EPM), supported by the Colombian Ministry of Energy (MME), GTZ has been assisting EPM since the beginning of 2001 in planning a 19.5 MW wind farm on the Guajira Peninsula on the Caribbean coast.
TERNA subsequently conducted an energy yield study, an economic analysis and an environmental impact assessment, on the basis of which EPM took an investment decision in favour of a 19.5 MW wind farm at the investigated location. In September 2002, EPM issued invitations to tender the wind generators, transformer stations and construction work. The evaluation of the tenders was supported by TERNA in November 2002. The wind farm, with 15 Nordex N 60 turbines, entered operation in December 2003.
Jepírachi wind farm, Colombia (Photo/Courtesy: Bernhard Boesl)
Inadequate or non-existent framework conditions often form crucial barriers impeding the utilization of available wind energy potential. Despite macroeconomic benefits which can arise when the supply situation and environmental factors are taken into account, it can happen that a large number of investment projects are not brought to fruition. In most cases, accompanying government measures supporting the development of wind energy do not exist.
TERNA advises the partners on developing relevant regulations. This can include legislation promoting renewables, for example, but also advice on technical aspects of integrating wind farms into the grid or questions of site licences and environmental regulation.
For example, in China, the GTZ cooperated with the Center for Renewable Energy Development at the Energy Research Institute (ERI) in Beijing. Comparative studies were drawn up on international legislation on feed-in tariffs and other necessary promotion conditions. The results of the consultancy work were incorporated in the Chinese law on renewable energy that was passed by the National People’s Congress at the end of February 2005 and came into force on 1 January 2006.
Training and upgrading is an integral part of the TERNA programme. The aim is that, following completion of a TERNA scheme, partners should be able to plan and develop wind farms on their own, in that way making increasing use of the wind energy potential in the partner countries.
TERNA offers theoretical training courses and practical implementation exercises in connection with site-related measures. First of all, the various issues surrounding wind measurements are dealt with in seminars lasting one or more days. The topics covered include how wind measuring equipment works and how it is set up and installed, and an introduction to software-based analysis of the wind measurement data. The results are put into practical implementation at specific locations.
The wind energy studies conducted by the partners (which are drawn up every three months during the measuring period), can be evaluated by means of measuring campaigns. When the series of wind measurements are completed, the results are presented jointly at a workshop and remaining questions are discussed.
The dissemination of information by the TERNA programme is targeted at two aims:
In order to achieve these aims, GTZ’s TERNA programme has investigated the political and economic framework conditions and promotional measures relating to the use of renewable forms of energy in selected countries and has published the results as a collection of country studies.
The country studies are published under the following title: Energy-policy Framework Conditions for Electricity Markets and Renewable Energies - 21 Country Analyses.
The electricity markets and their respective actors are investigated for 21 countries in various regions: Latin America; Caribbean; Africa; Europe; Caucasus and Asia-Pacific. The country reports analyse the energy-policy framework conditions and closely examine the status of and promotion policy for electricity generation on the basis of hydropower, wind power, solar power, biomass and geothermal energy. The chapters on each country are rounded off by information about rural electrification.
At present, TERNA is implementing two country projects: in Ethiopia and in Senegal. Detailed information on the TERNA measures in other countries is available at:
Since the end of 2004, GTZ has supported the Ethiopian Electric Power Corporation (EEPCo), the Ethiopian national utility, in the planning of grid-connected wind farms in the range of 40-60 MW each. Within its TERNA programme, GTZ activities comprise advice on site selection, wind measurements and evaluation at the selected sites and the preparation of feasibility studies. In its application, EEPCo points out that the highest wind speeds can be expected above all during the dry season. This means that wind energy would neatly complement hydropower, which accounts for about 95% of grid-connected electricity supply in Ethiopia.
In cooperation with the Austrian Development Agency (ADA), theoretical and practical training schemes were conducted on setting up measuring masts and installing wind measuring equipment. Employees of the national utility EEPCo are now capable of installing wind measuring equipment on their own and are familiar with the basics of evaluating the results of wind measurements.
After measurements were taken at a height of 10 m at ten locations and were evaluated jointly, EEPCo identified four locations for subsequent measurements, with advice from GTZ. Average wind speeds measured there were between 5.5 and 7 m/s at a height of 10 m. These sites are near the cities of Mekelle, Nazareth and Gondar. Since October 2005, measurements have also been taken at a height of 40 m at these locations. Furthermore, work on feasibility studies for these locations began in January 2006. EEPCo is planning on taking an investment decision in the second half of 2006 and then to begin construction of probably not one but two wind farms straightaway, with the aim of being able to connect them to the grid as early as the end of 2007.
Erection of a wind measurement mast in Ethiopia (Photo/Courtesy: Benjamin Jargstorf)
In mid-2003 the Government of Senegal asked the German Federal Ministry for Economic Cooperation and Development (BMZ) for support in the development of a 10 MW wind farm. The proposed location is on the coast between Dakar and St. Louis. The generated electricity is to be fed into the grid belonging to the national public utility company SENELEC.
After a positive conclusion to the appraisal and signing of the relevant documents, the project activities commenced in the second half of 2005. The first steps to be taken are wind measurements conducted at two locations for a period of a year and various training measures.