SECTION 3

Literature review

TOPIC: RESEARCH AND DEVELOPMENT

TITLE: WHAT IS THE CURRENT VIABILITY FOR THE INSTALLATION OF WIND
POWER PLANTS IN COLOMBIA?

RELATED LITERATURE
WIND ENERGY

Wind energy refers to those technologies and applications in which the kinetic
energy of the wind is harnessed, converting it to electrical or mechanical energy.
Two types of applications can be distinguished: installations for the production of
electricity and pumping water .Among the electricity production we can distinguish
isolated installations, not connected to the electrical network and connected
installations, normally called wind farms. Installations that are not connected to the
network, normally cover small power applications, principally of rural electrification.
The applications connected to the power grid, on the other hand, are the ones that
can get a greater energy use, in addition to those with the best market growth
expectations. Secretary of Energy. Wind Energy. 2008. Colombia.

RENEWABLE ENERGY: AN OVERVIEW

Today we primarily use fossil fuels to heat and power our homes and fuel our cars.
It’s convenient to use coal, oil, and natural gas for meeting our energy needs, but
we have a limited supply of these fuels on the Earth. We’re using them much more
rapidly than they are being created. Eventually, they will run out. And because of
safety concerns and waste disposal problems, the United States will close much of
its nuclear capacity by 2020. In the meantime, the nation’s energy needs are
expected to grow by 33 percent during the next 20 years. Renewable energy can
help fill the gap. National Renewable Energy Laboratory (NREL). Renewable
energy: an overview. United states. 2001

PREVIOUS WORK
WIND ENERGY IN COLOMBIA: A FRAMEWORK FOR MARKET ENTRY

The purpose of this report is to provide decision makers in Colombia (and by

extension other countries or regions), who are considering the deployment or
consolidation of wind power, with a set of options to promote its use. The options
presented are the result of an analysis of the Colombian market; this analysis
included simulations and modeling of the country’s power sector, and extensive
consultations with operators, managers, and agents. Wind was chosen to
exemplify the range of renewable energy alternatives available to complement
traditional power sector technologies on the basis of its technical maturity, its
relatively low cost compared to other options, the country’s experience, and its
wind power potential.Vergara, Walter & Deeb, Alejandro & Toba, Natsuko &
Cramton, Peter & Leino, Irene. (2010). Wind Energy in Colombia: A
Framework for Market Entry. June 2010. The World Bank

WIND ENERGY IN COLOMBIA: An approach from the real options

It is proposed to employ the real options methodology to assess an investment

project of wind energy generation in Colombia, backed up by a model with systems
dynamics which reproduces the interaction between market values that determine
the operative conditions of the projects and that have an effect on the investment
decisions.

With that purpose, the Colombian Electrical System (CES) and the investment
conditions within it are characterized. Then the real options methodology to
assess investment projects in the analyzed market is presented and the built model
is described. Finally, the found results are shown and it is given a conclusion on
profitability of the real options to assess investment projects of wind generation in
Colombia. Mora Luna, Ana María & Agudelo, Susana & Dyner R., Assuad
Isaac (SF). WIND ENERGY IN COLOMBIA: An Approach From The Real
Options. National University of Colombia.

STATE OF THE ART

TAX INCENTIVES OVER WIND FARMS IN COLOMBIA

In this paper, we evaluate the new policies of the Colombian government to

encourage investment in power generation project from non-conventional
renewable sources. We do a simulation to a wind farm through dynamic systems,
and we obtain scenarios without tax incentives and scenarios with the tax
incentives granted by the Colombian law. Jiménez Gómez, Luis miguel &
Acevedo Prins, Natalia María. Tax Incentives evaluation over wind farms in
Colombia. 25/11/2017. Magazine Espacios

Study of the wind potential in Colombia: viability of a wind farm

The most used energy sources in the world are thermal, hydraulic, nuclear
and alternatives. The energy used by Colombia comes from 70% of the dams that
depend on the rains (hydraulic). 29.5% of the turbines and engines that depend on
fossil fuels such as coal, oil and gas (thermal), and 0.5% of small
Hydraulic, biomass, solar, wind and other plants (alternatives).

It is well known that thermal causes respiratory problems for people and the
air pollution is an important cause of the greenhouse effect that makes the
temperature of the planet increases. On the other hand, hydraulics can affect
significantly the balance of ecosystems. We must ask ourselves: how is going to
face Colombia to the growing demand for energy in the coming years? Rodríguez
Arcilla, Johann Ricardo. Study of the wind potential in Colombia: viability of
a wind farm .Universidad Politécnica de Cartagena. 2019/04/10