DEWI Magazin Nr. 16, Februar 2000

46

Wind Energy for Developing Countries

Dr. Jasper Abramowski, GTZ, GermanyDr. Rolf Posorski, GTZ, Germany

1. Introduction

In recent years, wind energy utilisation has become increasingly attractive on economic grounds. To-day, wind turbines for electricity generation employ a proven technology, supply energy on a reliableand sustainable basis, and at good, windy sites may even be competitive with conventional sources ofenergy.

Many countries, especially in the developing parts of the world, have considerable wind resources thatare still untapped. A key barrier in these countries is their lack of expertise, concerning both methodsof site selection and technical aspects of wind power. To disseminate such expertise, the GermanGovernment is funding a wind-energy programme called TERNA1 (Technical Expertise for ReNewableEnergy Application), an overseas aid programme supporting grid connected wind park projects in Afri-ca, Latin America and Asia. The programme is being implemented by the German agency for techni-cal co-operation, Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH, in Eschborn,Germany.

TERNA aims at minimising the risks associated with the implementation of a new technology such aswind power plants. Operational or component failures result in a low technical availability of a windpark and adversely affect its economic viability. The same holds true for badly screened projects. Inparticular, site selection has proven a major difficulty when setting up wind parks, notably in complexterrain (mountains). Since the planning and design of a project involve numerous tasks (wind parkconfiguration, connection to the grid, access to roads, etc.) and devours considerable resources, spe-cial skills and expertise are required to ensure that only reasonable sites are pre-selected before aproject is planned in detail.

To date, GTZ has co-operated in the field of wind energy development with various developing coun-tries in Africa (Cape Verde, Morocco, Namibia), Asia (Jordan, PR China, Bangladesh), and Latin Ame-rica (Brazil, Bolivia). The TERNA programme is open to government bodies, public and private inve-stors, and operators of energy systems. It addresses the utility sector as well as non-utility entitiesincluding independent power producers.

All potential operators of grid-connected wind farms in developing countries may apply for TERNAassistance, provided the installed generation capacity is at least 3 MW and the mean annual windspeed exceeds 6 m/s at a height of 10 m. In detail, TERNA covers:

• preparatory work: wind monitoring (including supply of monitoring equipment), data analysis, siteselection;

• transfer of know-how: training courses (workshops) for specialists in partner organisations onproblems of wind monitoring, analysis of wind potentials and grid connection;

• planning: technical and economic analysis of wind farms, including calculation of investment andproject costs, efficiency and risk analysis;

• realisation: preparation of financing plans and project documentation for fund raising, as well asoptimal organisation of the operator.

TERNA does not provide finance for wind turbine installations, but GTZ closely co-operates with inter-national organisations and lending institutions and therefore is in a position to assist counterparts indealing with public and private funds and support programmes for renewable energy projects. Theintention is to bridge the gap between project planning and project financing, i.e., TERNA can stimu-late projects in developing countries and help liase with financial institutions of international and natio-nal donors.

In implementing individual measures within the TERNA programme, GTZ is working together withspecialised wind energy institutes, project developers and wind energy consultants. Their vast experi-

1 For further information see: http://www.gtz.de/wind

DEWI Magazin Nr. 16, Februar 2000

48

ence in the use of wind energy is made available through TERNA. In this regard, GTZ is co-operatingalso with DEWI in several TERNA activities (Morocco, Jordan, PR China).

2. Morocco

In 1990, the Moroccan Renewable Energy Development Centre (CDER) in Marrakech launched awind measurement programme supported by TERNA. Its purpose was to evaluate Morocco’s windenergy potential and to identify the most promising sites for wind energy utilisation. In the first phase,data collection and analysis concentrated on the Atlantic and the Mediterranean coasts. The results,which were published in 19952, indicated mean annual speeds of 11.5 m/s in the region Tétouan nearTangier, qualifying this area as one of the best sites on earth. Encouraged by these findings, the Mo-roccan Government decided to embark on wind power projects.

Through TERNA’s mediation in the search for funds, the state-owned utility Office National del’Electricité (ONE) signed a financingcontract with the German developmentbank (Kreditanstalt für Wiederaufbau -KfW) for a 3.5 MW demonstration windfarm in Al Koudia near Tangier in north-ern Morocco (credit of 8.5 Mio DM).Furthermore, a 50.4 MW wind park isscheduled to be constructed this yearand operated by a French-Danish groupunder a Build Operate Transfer (BOT)scheme in Tétouan.

In 1997, the TERNA programme wasextended to the south of the country.The objectives were to reinforce anddevelop CDER’s know how and experi-ence, and to delineate the wind re-sources and track down the best sites insouthern Morocco for the installation ofthree new wind plants. Backstoppingservices provided by DEWI have signifi-cantly improved the work in progress.Special attention has been given toanemometer calibration procedures.

Fig. 1: Selected sites for wind measurements in 40 m height

Selected sites for wind farms

The following activities have been carried out within the TERNA programme:

- Selection of high-potential sites in the southern region (Essaouira, Tarafaya, Laâyoune);- Manufacturing and installation of 3 meteorological masts, each 40 meters high, equipped with 3

calibrated anemometers at heights of 10, 20, and 40 meters. CDER financed the towers, whileTERNA paid for the anemometers and the technical backstopping;

- Monitoring, data collection and analysis every 3 months in co-operation between CDER-Marrakech and DEWI-Wilhelmshaven;

- Transfer of know-how: training courses organised by DEWI and training on the job for experts ofCDER and ONE: theory of wind measurements, calibration, analysis of wind potential, wind tech-nology, WASP model, etc.;

- Planning of wind farms: discussion of the results with ONE, final selection of sites, initiation of thetendering procedure.

2 CDER, Le gisement éolien du Maroc, March 1995

Essaouira

Tarfaya

Laâyoune

DEWI Magazin Nr. 16, Februar 2000

50

The results of the 1-year measurement programme which were carried out from mid-1998 to mid-1999, are very promising and seem to be suited for large wind farms:

Site Measuring Period Average Wind Speeds (in 40mabove the ground)

1 Essaouira 7/98 – 5/99 8,92 m/sec2 Tarfaya 7/98 – 6/99 7,69 m/sec3 Laâyoune 7/98 – 11/98 9,23 m/sec

Unfortunately, the measuring equipment in Laâyoune did not record any data as from November 1998so that there is no full year measurement cycle for this station. The recordings from all three sites hintat an important characteristic: the wind flows are unidirectional (north-east).

As a first step, ONE plans to finance the installation of 6 smaller wind turbines in Essaouira (2x500kW), Tan Tan (1x500 kW), Tarfaya (1x300 kW), Laâyoune (1x500 kW), and Dakhla (1x500 kW). Ifthese pilot schemes prove successful, ONE will consider the installation of larger units (50 – 100 MW)in southern Morocco. It has already financed the construction (1997) of a transmission line betweenTan-Tan and Laâyoune permitting the two sites to inject wind power into the grid. At the end of 1999ONE announced a call for tender for wind farms with an installed capacity of 200 MW; 60 MW at Tar-faya and two times 70 MW 18 km south of Tanger.

3. Namibia

In 1993, the Ministry of Mines and Energy (MME) embarked on a programme for the “Promotion of theUse of Renewable Energy Sources in Namibia”, which was supported by GTZ. In the framework of thisprogramme, it was also decided to evaluate the potential of wind energy for electricity generation. In1996, two measurement stations were established in Walvis Bay and Lüderitz. After the first promisingmeasurement results, the stations were upgraded using continuous data logging systems. The resultsof these measurements were compiled in the report “Wind Energy Evaluation Programme - WalvisBay - Lüderitz”, published in May 1997.

Based on the findings of this measurement campaign, GTZ launched the “Project Studies on WindParks in Walvis Bay and Lüderitz” as part of the TERNA programme. In 1999, the results of thesestudies were compiled in a comprehensive report, evaluating the wind resources and possible windpark arrangements at the proposed project sites and assessing the economic and financial viability ofthe wind park options under different scenarios. The report gives special consideration to selectedwind park solutions in Lüderitz which look most promising in terms of site characteristics and from aneconomic point of view.

Wind Resources

The assessment of the wind potential in Walvis Bay and Lüderitz was carried out under two differentaspects calling for different approaches and methods:

A. Evaluation of daily and annual characteristics of the wind speed distribution and their comparisonwith the load profiles in Walvis Bay and Lüderitz• statistical analysis of long and short term data• compilation of daily, seasonal and annual wind speed patterns• estimation of firm power probabilities during daily peaking hours.

B. Design of wind park alternatives and calculation of its annual energy yield (under various scenar-ios).

The resulting wind potential in 50m height is characterised as follows:

Site Annual AverageEnergy Density

kWh/m²/aWeibull Parameters

a, k

Walvis Bay 6.8 m/sec 3047 A=7.73 k=2.17Lüderitz 7.5 m/sec 4936 A=8.4 k=1.70

Overall, the wind resource assessment confirmed the view that the wind regimes in the Lüderitz areaare much more favourable than those in Walvis Bay.

DEWI Magazin Nr. 16, Februar 2000

51

Wind Park Alternatives at Lüderitz

In the course of the study environmental impact assessments was carried out for each site. Also thelocal network configurations were examined to identify the possible sizes of the wind farm and thewind energy converters.

The investment costs and annual expenditures on operation and maintenance (O+M) for different sitesand system configurations are given in the table below (1 US$ = 6.2 N$):

Cost Overview of Selected Wind Parks in Lüderitz (as of March 1999)Site MW Annual

MWhTurbine

(N$)66 kV

Connec-tion (N$)

Road(N$)

AnnualO+M (N$)

Total In-vestment

Costs (N$)Golf Course 2.4 6,441 16,856,722 2,021,600 627,200 337,135 19,505,522Golf Course 9.6 25,267 61,106,695 2,861,600 2,352,000 1,222,134 66,320,295Reservoir 2.4 7,416 16,856,722 2,111,200 672,000 337,135 19,639,922Reservoir 9.6 27,019 61,106,695 2,954,000 3,360,000 1,222,134 67,420,695Grosse Bucht 19.2 54,379 113,957,007 6,076,000 7,840,000 2,279,140 127,873,007

The above estimates were used to compute the “Long Run Marginal Costs” (LRMC) of electricity ge-neration by the wind farms, also known as lifetime average costs (i.e., the ratio of discounted costs todiscounted energy produced).

In the economic analysis, the costs of electricity generated by wind farms were compared with whatthe electricity is worth to the economy, i.e., the economic benefits of wind energy. The costs of alter-native supply scenarios, e.g. the import of electricity from South Africa, the increase of local genera-tion capacity by means of hydro power and/or natural gas, were analysed in detail. From the economicviewpoint, electricity from South-Africa is by far the most attractive option. However, this electricity isburdened with some of the highest amounts of emitted pollutants (CO2, SO2, NOx, ash) per generatedkWh in the world. One of Namibia's energy-policy-goals is the increase of the amount of indigenouslygenerated electricity. This, combined with the aim to protect the environment has lead to the decisionto support the development of a 20 MW wind park.

In a sensitivity analysis the study explored how changes in key parameters would affect the economicand financial viability of wind parks. It concluded that even if system costs and tariffs were to increasedue to the commissioning of more expensive power generating facilities, still a considerable amount ofgrant financing or other financial support would be required to make a wind park at Lüderitz commerci-ally viable. The following table presents mutually exclusive support options as there are a capital grantor an equivalent “wind energy levy” on electricity consumption (based on 1,700 GWh in 1997). It alsointroduces a notional CO2 bonus that can be given to wind parks.

Alternative Break-Even Requirements for Wind Parks in Lüderitz

Site InvestmentCosts (N$million)

RequiredCapital Grant(N$ million)

Or Required WindEnergy Levy

(N$/MWh)

PresentValue of

CO2 Bonus(N$ million)

G. Course 2.4 MW 19.5 11.7 0.60 5.4 G. Course 9.6 MW 66.3 34.4 1.76 21.2 Reservoir 2.4 MW 19.6 10.0 0.51 6.2 Reservoir 9.6 MW 67.4 32.4 1.66 22.7 G. Bucht 19.2 MW 127.9 55.3 2.84 45.5

The above figures indicate that an assumed CO2 bonus of N$ 100 per ton of CO2 avoided by windparks would warrant the support schemes to a large extent, but sources for grant financing have still tobe found.

As a result of a workshop held early 1999, all Namibian stakeholders gave their firm commitments tofurther pursue the wind energy option, provided that the international donor community would makeavailable the additional financial support required to make the project economically and financiallyviable.

DEWI Magazin Nr. 16, Februar 2000

52

4. Jordan

Electricity sector restructuring in Jordan is driven by policy objectives requiring the sector enterprisesto supply electricity at least cost, on a commercial basis, and in a regulatory and legal environmentthat is conducive to private sector participation, competition, and the use of renewable energy. To thisend the Jordanian government has introduced a new Electricity Law laying the groundwork for privatesector investment, third-party access, and efficient regulation through a Regulatory Commission. Sec-tor oversight and policy guidance rests with the Ministry of Energy and Mineral Resources (MEMR),which is also responsible for approving sector expansion plans and concluding agreements with inde-pendent power generators prior to the reward of licenses.

The gradual opening of the power sector to competition and private investment, which has alreadyattracted sponsors interested in implementing the first thermal power generation project on a BuildOwn and Operate (BOO) basis, also provides opportunities for renewable energy based capacity ad-ditions. Drawing on country-wide wind speed measurements conducted during the last 10 years, theMEMR reckons that the economically exploitable potential for wind energy is on the order of 100 MW.Two small-scale pilot wind park projects have been put in place in northern Jordan in 1988 and 1996,respectively. For the development of larger-scale wind parks, however, additional inquiries and exper-tise are called for to ensure that such projects are viable and will live up to expectations.

Prompted by the political commitment to develop renewable energy resources and buttressed by evi-dence of favourable wind regimes, the MEMR, requested TERNA to give assistance to a more thor-ough assessment of the potential for wind energy utilisation and to support investigations of the tech-nical, economic and financial feasibility of wind park projects at pre-selected sites.

A TERNA planning mission visited Jordan in March 1999 and decided in agreement with the MEMR tomore closely examine two potential sites: One in Aqaba and another at Shawbak. For each site, thetentative size of the wind parks considered for detailed investigations was set at 25 MW. The windspeeds measured by MEMR at these two sites are depicted in the table below. Figure 1 gives an over-view on the wind speed measurements performed in Jordan. The stations of the Meteorological De-partment are operated since a long time period, but with comparatively simple mechanical equipment.The Ministry of Energy and Mineral Resources performs measurements since ten years now at vary-ing sites, the equipment are data logger based systems. The measurements by Royal Scientific So-ciety were carried out for only one year, but simultaneously at all sites.

Wind speeds at the two proposed wind farm sites, measurements performed bythe Ministry of Energy and Mineral Resources

Location Wind Speed Measurement height Measurement periodAqaba, Wadi Araba 6.1 m/s

6.8 m/s20 m40 m

1997 - 98

Al-Shoubak 5.2 m/s 10 m 1992 - 96

The planned activities which will be carried out until mid-2001 include a comprehensive evaluation ofexisting wind speed recordings in Aqaba as well as additional measurements and wind data proces-sing at Shawbak. These activities will be carried out by DEWI on behalf of TERNA. The second mainactivity focuses on project and feasibility studies for wind parks that could be developed at the se-lected sites, and a third activity is concerned with arrangements and financing options for such proj-ects.

Based on the results of the wind resource appraisal and other relevant inputs, the project-/feasibility studies shall be performed to

• optimise the technical lay-out of wind park projects at the selected sites,• estimate the costs and benefits of alternative wind park configurations,• assess the economic and financial prospects of wind park projects, and to• transfer know-how to, and exchange information with Jordanian counterpart experts.

DEWI Magazin Nr. 16, Februar 2000

53

Fig. 2: Overview on all wind measurement stations of 10 and more meter height in Jordan. The sta-tions of the Meteorological Department (square), of the Ministry of Energy and Mineral Re-sources (circles) and of the Royal Scientific Society (triangles) are depicted.

5. PR China

Also the PR China is in the process of restructuring its electricity sector. The objectives are to improveenergy efficiency and increase electricity supply within an environmentally sustainable context. Thedevelopment of renewable energy is regarded by the Government as an important means to reducethe electricity sector’s heavy reliance on coal, which is essential to reduce greenhouse gas and otheremissions. The Chinese Government has set up mechanisms for attracting foreign private capital (JV,BOT-projects) and is gradually decentralising the decision making process, transferring powers to theprovincial level. Wind resources are virtually rich in China. The Government estimates the availablewind power potential about 250 GW. However, to date, there only exist wind farms with a total capac-ity of about 200 MW.

DEWI Magazin Nr. 16, Februar 2000

53

In line with the priorities of the Government in Beijing, the Government of the province Hubei in centralChina aims at developing wind energy resources, preferably together with foreign investors. In 1996,the Wuhan Science & Technology Commission (WSTC) conducted first wind measurements and iden-tified a site near Lichuan in the Western part of the province Hubei. These first measurements indi-cated an annual wind speed of over 7m/sec in 10 m height.

Upon mediation of the German project developer VSK energy innovation GmbH in Darmstadt (Ger-many), WSTC and the Ministry of Foreign Trade & Economic Co-operation in Beijing filed a TERNArequest with the German Government. Upon recommendation of a TERNA planning mission whichvisited the Lichuan site in June 1999, the German Government approved the Chinese TERNA re-quest. TERNA will support WSTC until approx. mid-2001 in carrying out additional wind speed measu-rements and wind data processing in Lichuan and in project and feasibility studies for a wind park atthat site with a tentative size of 24 MW will also be carried out. The measurement activities will becarried out by DEWI on behalf of TERNA.

TERNA will cooperate closely with the German project developer VSK who has initiated the projecttogether with WSTC and intends to further develop the project together with the authorities in Lichuanafter completion of the TERNA activities.

6. Lessons Learned

The TERNA activities have shown that the following points are crucial for the success of wind energyprojects in developing countries: For potential financiers and the wind energy industry in Europe andAmerica, it is essential to have access to high quality data certified by an international institution. Set-ting up a well- trained team in the host country is a prerequisite for the start of a comprehensive windenergy programme.

The initiation of wind projects takes much effort and time, especially when there is not much experien-ce with private power production. TERNA addresses this problem by giving high priority to the collec-tion of wind data and their analysis during the site selection process.

What makes TERNA a valuable partner is that it has a great deal of expertise regarding the transfer ofknow how and capacity building programmes for local institutions (e.g. renewable energy centres,utilities). TERNA’s role is particularly important for improving the co-operation among different institu-tions involved in wind energy projects. As a result of the TERNA Morocco programme, the demand bynational and international institutions and private firms for wind data from that country has increasedduring the last years.

Government policies in favour of renewable energy as well as support given by the national utility areessential for the success of wind energy projects. Wind projects should be integrated into nationalenergy policies, especially into the power sector masterplan.

BOT models and other forms of independent power production may be conducive to the developmentof wind energy projects in developing countries. Subsidy schemes from various international aid pro-grammes are available to buy down the production costs. TERNA has the capabilities to support suchschemes.