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Hydro and geothermal electricity as an alternative for industrial petroleum consumption in Costa Rica.

1982

180
CIENA

This report assesses the potential for substitution of electricity for petroleum in the industrial/agro-industrial sector of Costa Rica. The study includes a preliminary estimate of the process energy needs in this sector, a survey of the principal petroleum consuming industries in Costa Rica, an assessment of the electrical technologies appropriate for substitution, and an analysis of the cost trade offs of alternative fuels and technologies. The report summarizes the total substitution potential both by technical feasibility and by cost effectiveness under varying fuel price scenarios and identifies major institutional constraints to the introduction of electric based technologies. Recommendation to the Government of Costa Rica are presented. The key to the success of a Costa Rican program for substitution of electricity for petroleum in industry rests in energy pricing policy. The report shows that if Costa Rica Bunker C prices are increased to compare equitably with Caribbean Bunker C prices, and increase at 3 percent annun relative to a special industrial electricity rate structure, the entire substitution program, including both industrial and national electric investment, would be cost effective. The definition of these pricing structures and their potential impacts need to be assessed in depth. INTRODUCTION. Background. Objetives. Methodology. INDUSTRIAL SECTOR: ECONOMIC AND ENERGY PROFILE. Background. Energy Consumption Patterns. Industrial Structure. Current Petroleum Use -By Sub-sector- and Process Energy. CONVENTIONAL INDUSTRIAL ENERGY TECHNOLOGIES AND POTENTIAL ELECTRIC SUBSTITUTES. Existing Industrial/Agro-Industrial Energy Technologies. Potential Electric Substitutes. Maximum Potential for Electricity Substitution in the Industrial Sector of Costa Rica. NATIONAL POLICY ISSUES AND INSTITUTIONAL FACTORS. Energy Pricing. Electricity Prices. Institutional Factors. ECONOMIC ANALYSIS. Methodology. Assumptions. Results. POTENTIAL FOR ELECTRIC SUBSTITUTION. MACRO COST/BENEFIT ANALYSIS. Petroleum and Electricity Demand Projections. Projected Costs. Projected Benefits. Internal Rate of Return.

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Ministerio de Ambiente y Energía. Secretaría de Planificación del Sub-Sector Energía - Centro de Información de Energía y Ambiente, CIENA

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