Venezuela

Energy solutions for the futures

TEAM MEMBERS:
AMARU CARHUARUPAY
MENTOR:
CARLOS MÁRQUEZ
VICENTE OROPEZA
DANIEL JAIMES
Team #69 Venezuela PIO ARIAS
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Excutive summary

The current situation in Venezuela

PROBLEM
OVERVIEW The current energy situation in Venezuela

Financial
CHALLENGES Social
Government
Environment

First Steps
PHASE 1 Recover and upgrade the hydroelectric park
Recovery of the thermoelectric park
Solve the critical situation in isolated towns

Complete Outstanding Projects

PHASE 2
Investment in new technology and new sources of energy

Review of the whole plan

FINAL
THOUGHTS Conclusion and recommendations.
Problem overview
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Venezuela Background

KEY DEVELOPMENT INDICATORS

POPULATION: 29 million people with a population density

of 31 inhabitants per km2

IMMIGRATION: 5.4 million people who had to leave the

country

GDP: 83.319 M. € with actual decrease of 18%

ANNUAL INFLATION RATE: 1300000%

OIL RESERVES: 309.000 million barrels, production of

650.000 barrels per day

EMISSION OF CO2: 110.057 kilotons, 3.36 kilotons per capita

ACCES TO ELECTRICITY: 98%

Source: datosmacro, BBC, examenonuvenezuela,

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Venezuela Energy Availability

EMIGRATION DEMAND
3000000
2000000 Men
1000000 Women
0 Total
2005 2010 2015 2019

GDP BACKGROUND
After a period of prosperity due to the oil boom at the
end of the twentieth century, Venezuela has
experienced a series of economic downturns that have
led to a decrease in GDP, a high percentage of
unemployment and subsequent migration of the
population.

The exodus of the Venezuelan population goes hand

in hand with a decrease in the country's energy
demand.

Source: datosmacro, statistic anuary of venezuelan electric system 2014, banco central
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Venezuela Energy Availability

TOTAL PRIMARY ENERGY SUPPLY

The National Demand Power capacity

Hydroelectric
Supply 6393 MW 74.64%
8545 MW 66% Termoeelctric
2162 MW 25.24%
Rationing Wind Power
10 MW 0.12%
4455 MW 34%

KEY DEVELOPMENT INDICATORS

GENERATION TYPE INSTALLED POWER AVAILABLE POWER

HYDROELECTRIC 16228 MW 6393 MW

TERMOELECTRIC 17812 MW 2162 MW

WIND POWER 125 MW 10 MW

Source: AVIEM
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Natural resource

NATURAL RESOURCE’S ROLES IN OIL PRODUCTION CO2 EMISSION

ECONOMY

12200 M$ 82.99% Oil and Minerals

337 M$ 2.29% Acyclic Alcohols
161 M$ 1.10% Ferrous Products
235 M$ 1.60%
Precious Metals
1767 M$ 12.02%
Other

BACKGROUND
The deterioration of the refineries and low oil production has caused Venezuela's CO2 emissions to fall in recent years. per capita
emissions have also declined despite the country's high emigration, demonstrating the deterioration of the country's oil production,
which is the main cause of CO2 emissions.

Interesting to observe the increase in CO2 emissions per $1000 of GDP, which measures, for the same country, the "environmental
efficiency" with which it is produced over time due to the country's population out-migration.

Source: datosmacro, OEC, BBC

Challenges
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Challenges to overcome

Financial

1.- Economic financing to carry out the proposed projects.

Venezuela has a large foreign debt and little investment capacity for new projects. For this
reason, it is necessary to ask for the support of private investors that want to invest in the
electrical and technological development of the country.
In addition, the number of projects proposed require a large amount of investment funds,
being the most profitable option to offer deals with private investors.

2.- There´s no Market Economy for The Electric Service.

The almost total subsidy of the electric service has created a false perception of the real
cost of the service. This makes any type of business in the power generation sector totally
unsustainable. For this reason, it is necessary to raise the cost of kWh in Venezuela to a
profitable price. Nevertheless, making this increase suddenly may negatively affect the
most vulnerable communities and the commercial sector of the country, so it is necessary
to take these sectors into account in order to make a progressive increase in the tariff that
will have a minimum impact on the society.
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Challenges to overcome

Social

3.-Lack of trained personnel to work on the proposed projects.

In order to carry out all the proposed projects, it is necessary to have qualified labor and
professionals capable of assuming the challenges inherent to each project. For this reason,
the preparation of the country's human capital is one of the main challenges to be faced
when executing the proposed plan.

4.- Public awareness about the generation, distribution, cost and use of electricity, as
well as about climate change.

The last awareness campaign on the electric system was carried out in 2016 as a result of
the severe drought in multiple reservoirs caused by the El Niño phenomenon. This added to
the almost total subsidy of the electric service has caused a state of total disinterest
towards the cost and savings of the electric service in the Venezuelan society. This lack of
interest represents a challenge when it comes to closing the gap between electricity
demand and generation, because it is necessary to raise awareness about the use of the
service in order to reduce this gap and satisfy the total demand
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Challenges to overcome

Government

5.- The effect of changes in government on the goals and objectives of the plan

It will be useless to propose a plan that can lead Venezuela to a state of prosperity and a zero-carbon electricity grid if
such a plan is vulnerable to modifications by new governments over the years. In addition, such a plan intends to handle
large amounts of money, so it is necessary to shield the plan from the interests of political groups and ideological
changes after changes of government.

Environment

6.- The impact of the projects to be done on the country's biodiversity.

Many of the proposals made in this plan have an associated environmental impact. The repair of the power plants and the
construction of new generation centers imply the felling and adaptation of land where local flora and fauna coexist.
For this reason, it is necessary to adhere to environmental regulations to minimize the environmental impact of the
proposed projects as much as possible.

7.- Dispense with thermoelectric generation without opening a gap between demand and generation.

To achieve a zero-carbon emissions network, it is necessary to dispense with the use of thermoelectric plants in the
electricity matrix of Venezuela. However, these represent an important contribution to the nation's electricity
generation, and disconnecting them without having another type of energy generation to supplant them will widen the
existing gap between demand and energy generation in the country.
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First steps

PLAN FINANCING FAIR TRANSITION TO A SOCIAL AWARENESS

PROFITABLE ENERGY SECTOR
We expect the investment of private companies. We Implement social campaigns that promote the
must privatize part of the electricity generation in awareness use of electricity, with objectives like the
Eliminate the electricity service subsidy
Venezuela. It is planned to use a financing model implementation of led lights, the disconnection of
through years and start charging fair amounts
like that used by Uruguay for the renewal of its equipment when not in use, and other ways to save
for the use of electricity service.
electricity matrix, expecting an investment of more energy. We expect the reduction of the increase rate
than 3.15 billion USD . by 50%.
Carry out a progressive and fair adjustment to
the kWh rate that considers the population
Sell the megawatts generated in Venezuela´s stock Do reforms in the educational programs of primary
most vulnerable to such increases, allowing
exchange, making ordinary citizens on investors of and secondary education to implement subjects that
citizens to better adapt to the new costs of
the electricity system and raise a greater amount of allow citizens to be aware of energy-saving,
electricity service.
funds. Each MW will be sold at an estimated price of renewable energies, and climate change.
$100
. Make a scholarship program to motivate people to
Contracts will be offered to private investors, they study and investigate. This will grant the trained
will be made between the years 2021 and 2025, personal available.
giving a period of 4 years to find most of the
financing.

Request the financial support of NGOs such as

Energía sin Fronteras and IRENA to install small
solar centers in the most affected regions in
Venezuela.
Solution Methodology
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Plan Overview

PHASE 1: 2022-2030 PHASE 2: 2030-2050

Recovery and Upgrade of the hydroelectric plants.

Some of them will be upgraded with a Pumped Taking advantage of the climate condition
Hydroelectric Storage to improve them in Venezuela we will focus on the use of solar
performance at the peak of demand. energy and wind power.

Following the plan, to reduce the CO2 emission of We propose the use of technology bases on
those we propose a small reconstruction that this to keep meeting the energy demand
allows the use of biogas and biomaterial. and increment production.

Community-building power by solar energy, where The final proposal is to meet the demand thought
all people of the town can have free access to energy. the power generates.

We point to a zero-carbon emissions grid at the end of 2050.

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Phase 1, 2022-2030
Closing the gap between electricity demand and
supply. Quick actions to supply vulnerable regions
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Repairing and improving country’s

hydroelectric plants
STAGE 1: Repair Hydroelectric Plants INVESTMENT
Simón Bolívar Power Plant (Guri): CM1: 400 MW. The available production In this way, the hydroelectric generation capacity
will pass from 52% to 67% (1764 MW of 2640 MW). CM2: 2328 MW. The
available production will pass from 52% to 74% (5394 MW of 7275 MW).
would go from 6,393 MW to 10,539 MW.

Central Antonio José de Sucre (Macagua): 706 MW. The available
production will pass from 36% to 60% (1772 MW of 2958 MW).
Central Francisco de Miranda (Caruachi):732 MW The available production
will pass from 40% to 73% (1609 MW of 2196 MW).
Planta Páez: 120 MW (Available 96 MW). Recover of the 50% available
production.
According to a report generated by AVIEM, the
amount to be invested for the partial rehabilitation of
the hydroelectric generation capacity of the plants
would be approximately 2,025 million dollars, giving
an average cost of 0.45 million dollars per MW to be
rehabilitated.

San Agatón: 300 MW – (Available 240 MW) Recover of the 20% available 10000
9000
production. 8000
7000
Fabricio Ojeda (La Vueltosa): 257 MW. Note: Nominal capacity of the 6000
central: 500 MW. Capac. (Real capacity 210 MW) due to several leeks in the 5000
4000 Current
plant, the recovery will take around 24 months 3000
2000
1000 Repaired
Peña Larga: 60 MW. Recover of the 75% of the nominal capacity. 0

2021-2022
2022-2024 2024-2026 2026-2030
Source: AVIEM, deikermejias
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Remodeling thermoelectric
plants for the use of biomass
VULNERABLE REGIONS VIABILITY OF BIOMASS POWER PLANT VIABILITY ON VENEZUELA
Zulia state. Region of the western coast of Lake
Maracaibo (especially the city of Maracaibo) and
Eastern Coast of the Lake.

Southwestern Region of the country (States of

Táchira, Mérida, Trujillo, Barinas, Portuguesa and
Apure).

Insular Region (Isla de Margarita).

Capital Region.

INVESTMENT

1000 MW in the country's generation capacity,

estimating one year to do these repairs at a cost of 450
million USD. India Urquía, La Raiza, TermoZulia, Rafael Urdaneta, Don Luis Zambrano, etc.

Reactivate thermoelectric plants to adapt them to the PLANTS The adaptation of thermoelectric plants is planned to be implemented between 2022 and
2025 while the country's hydroelectric plants are repaired. After that date, it is planned
use of biofuels (biomass and biomatter).
to continue generating biomass energy until other types of energy generation are
implemented in a sustainable way that can supplant biomass in electricity generation.
For a 100% biomass plant the costs can vary between
900-1500 USD / KW.

2021-2022
2022-2024 2024-2026 2026-2030
Source: researchgate, IRENA, rga-ip
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Installation of small solar centers in

the most vulnerable communities

INVESTMENT LOGISTICAL OVERVIEW

The cost of a 5000W solar kit that includes panels,
batteries, regulator and inverter costs is around 17,500
USD.

This kit could generate around 700KWh per month.

The consumption of a family home in rural areas is

approximately 45KWh per month, which would allow us
15 family homes for each solar kit.

The installation time of these kits does not usually

exceed 4 weeks, allowing their installation in at least 12
different communities per year.

This project is planned to be between 2022 and 2025

with the support of the IRENA.

It is planned to carry out a total installation of 25 solar

kits in rural communities in the southeast of the
country, investing a total of 437,500 USD just in the
acquisition of solar kits.

2021-2022
2022-2024 2024-2026 2026-2030
Source: researchgate, solargis, elinoticias.es, fpl, energysage
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Repairing and improving country’s

hydroelectric plants
STAGE 2: Reaching Installed Power ELECTRIC MAP
We will continue with the recovery of the hydroelectric park. At this
moment, the installed capacity will be around 10539 MW, but we need to
recover the rest of 4530 MW. The estimated budget for this part is like the
before, $2050 million. The time needed is only 2 years to put them in
function. By 2026 the full recovery of the hydroelectric plan will be
finished.

10000
9000
8000
7000
6000
5000
Current
4000 Repaired
3000
2000
1000
0
Guri Macagua
Caruachi PaezSan Agatón
La Vueltosa
Peña Larga

2022-2024
2024-2025 2024-2026 2026-2030
Source: AVIEM, bussinerinsider, deikermejias
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PHS Stage

STAGE 1 CURRENT GLOBAL INSTALED PHS STORAGE CAPACITY

Among the characteristics of PHS as an energy storage
method are:

Max Power rating: 3000MW.

Discharge time: 4-16 horas (10 horas promedio).

Life time: 30-60 years

Energy Density; 0.2-2 Wh/liter.

Efficiency: 70-85%.

The cost of installing this storage system according to the

Electric Power Research Institute varies between 1000-5000
USD / KW. With an estimated of 2500 USD / KW the total
investment for this area will be around $ 1843 million.
LOGISTIC
In addition, the installation of this storage system can take AL
between 3 and 5 years.
OVERVIEW
The implementation of these systems in the hydroelectric
plants of the Los Andes region is planned to be carried out
between 2026 and 2030.

2022-2024
2024-2025 2024-2026 2026-2030
Source: MDPI, newenergy, IEA ANALYSIS
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Phase 2, 2030-2050
Complete unfinished projects. Investment in new
technologies to take advantage of the climate
conditions.
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Complete Outstanding Projects

FINISH PARAGUANÁ WIND FARM WIND VELOCITY FINISH THE LAST HYDROELECTRIC
PLANT, THE TOCOMA DAM
The project started in 2003 but was never finished.

At this moment, the infrastructure is at 66% and is

not generating anything.

With an estimated cost need of at least $1020

million, and a time need of 5 years.

The system will gain an installed power of 2.160

MW, ending by 2035.
Right now, is only generating 8% of the 100 MW
total capacity.

The required investment is around $200 million.

The time needed is less than 5 years.

The cost of wind power MWh will be $ 122,57.

2030-2035 2035-2041 2041-2047 2047-2050

Source: talcualdigital, reve, researchgate, y&v,
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Solar thermal powerplant

SOLAR THERMAL POWER PLANT

Next, we will propose the building of 2 solar thermal power plants

Each of them will cost around $ 419 million to a total

of $838 million.

Will take around 6 years to be built.

Estimated an installed power of 19,9 MW.

And a cost of $33 per average watts installed.

The places of this plant are planning to be near Zulia,

because of 2 reasons:

The solar power potential and the distance between

Zulia from the hydroelectric plants.

The third part of the investment schedule is the

building of solar farms.

2030-2035 2035-2041 2041-2047 2047-2050

Source: researchgate, solargis, elinoticias.es
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Margarita Solar Power Park

SOLAR FARM

The next stage of the investment will be a solar power park in Margarita Island.

The cost will be around $238 million.

Will take around 2 years to be built.

Estimated an installed power of 200 MW.

The area needed is around 1.49 km2 and will.

This will benefit 70.000 houses.

Margarita

2030-2035 2035-2041 2041-2047 2047-2050

Source: researchgate, solargis, balkan green energy, gobernaciondenuevaesparta
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Apure Solar Power Parks

SOLAR FARM

The next part of the investment schedule is the finish of the 5 th solar farm.

The cost will be around $540 million each.

4 years to be done each of them.

Estimated an installed power of 720 MW

each.

The area needed is around 2 km2 and will.

This will benefit 1.250.000 houses.

There is huge an amount of territory that

can be used in Apure, and the climate
conditions there are ideal for solar parks.

2030-2035 2035-2041 2041-2047 2047-2050

Source: researchgate, solargis, balkan green energy, lyrsa.es
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Project Roadmap
2022 2023 2024 2025 2026 2027 2028 2029 2030 2033 2035 2037 2041 2044 2047 2050

PHASE 1 PHASE 2
REPAIRING AND IMPROVING
COUNTRY’S HYDROELECTRIC
PLANTS – STAGE 1

REMODELING
THERMOELECTRIC PLANT POR
THE USE OF BIOMASS

INSTALLATION OF SMALL
SOLAR CENTER IN
VULNERABLE COMMUNNITIES

REPAIRING AND IMPROVING

COUNTRY’S ELECTRIC PLANT – ◆
STAGE 2

PHS STAGE

FINISH PARAGUANÁ WIND

FARM

FINISH THE LAST

HYDROELECTRIC PLANT. THE
TACOMA DAN

SOLAR THERMAL POWER

PLANT

MARGARITA SOLAR POWER

PARK

SOLA FARM
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Plan Review

BEFORE PLAN AFTER PLAN

GENERATION TYPE Installed Available Power
2022-2030: Power MW MW
+8,676MW Hydroelectric $ 4,075 million + $ 1843 million PHS = HYDROELECTRIC 18388 17229
$ 5918 million
WIND POWER 125 100
+1000MW $ 450 million Thermoelectric
SOLAR THERMAL 39.8 39.8
437500 USD solar kits, isolate from de system. POWER
Total: + 9676MW $6368 million.
SOLAR FARMS 3800 3800
2030-2050: THERMOELECTRIC 17812 3162
+100 MW Wind power $200 million.
TOTAL GENERATION 40164.8 24330.9
+2.160 MW Hydroelectric $1020 million
+19,9 MW solar thermal power plants $ 838 million. Investment: $11364 million.
+3800 MW solar farms $ 2938 million.
Total: +3180 MW $2,836 million Estimated demand: 23.900 MW

Generate Power Generate Power

17229 MW 70.81%
HYDROELECTRIC
6393 MW…
HYDROELECTRIC
3162 MW 13.00% THERMOELECTRIC
THERMOELECTIC WIND POWER
2162 MW… 100 MW 0.41% SOLAR THERMAL POWER
WIND POWER
SOLAR FARM
10 MW 0.12% 39.8 MW 0%
3800 MW 16%
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Conclusion and
recommendations

By 2050, it is expected that all of the proposed projects will have been implemented, achieving an almost zero-carbon grid and
increasing the electricity generation capacity available in Venezuela to 24,330.9 MW. In addition, the implementation of awareness
plans, increased rates, and reforms in educational plans aims to reduce the annual increase in demand from 6% to 4%, thus expecting
an electricity demand of 23,900 MW by 2050, which implies an increase of approximately 10,000 MW. The fact that the energy supply
exceeds the demand is one of the most important achievements of the project, which in turn will contribute to the country's economy
by selling energy to neighboring countries. It is also important to point out that there is a close relationship between generation
capacity and economic development, for which the improvement of the generation capacity of the grid will generate new business
opportunities, open many job vacancies and contribute to the prosperity of the country.

However, the fact of achieving a zero-carbon emissions grid does not mean that Venezuela will stop emitting greenhouse gases.
Approximately 60% of Venezuela's current carbon emissions come from oil activity, and despite being aware of this, the plan does not
contemplate any measure to face this situation. We believe that only the issue of the oil sector addresses a broader project since it is the
main economic support of the nation, for which it is recommended for future research to study the possibility of reducing oil activity
in order to reduce the emission of greenhouse gases. the nation's greenhouse. This is of great importance to comply with the
commitments made in the Paris agreement and thus avoid the worsening of the effects of climate change on the planet.
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Team Presentation

Pio Arias Carlos Márquez Daniel Jaimes Amaru Carhuarupay

ELECTRICAL ENGINEERING ELECTRICAL ENGINEERING ELECTRICAL ENGINEERING MECHANICAL ENGINEERING
STUDENT STUDENT STUDENT STUDENT