The conference titled “Solar Photovoltaic Energy: A Highly Profitable Energy Source in Uruguay” was held on Thursday, April 9, 2015, in the auditorium of the School of Business and Social Sciences at Universidad ORT Uruguay.
The event was part of the Management and Business Lecture Series organized by the faculty's Graduate School.
The speakers were Marcelo Mula San Martín and Diego Oroño Spera. The former is the CEO of Tecnogroup, a Uruguayan company specializing in the development and construction of photovoltaic power plants. The latter is the head of engineering at Tecnogroup’s subsidiary, “NOVASOL Ingeniería.”
Why renewable energy?
Renewable energy has seen exponential growth in recent years. “It’s about using energy more efficiently,” said Mula. He also explained that renewable energy keeps greenhouse gas (GHG) emissions low, reduces the need to import fuels, lowers and stabilizes prices, and helps build local capacity.
Their purpose is to meet recent energy demands, and they often depend on their location on the planet and on weather conditions.
Global awareness goes hand in hand with the use of new technologies. This is particularly evident in Uruguay, which in 2010—through a multiparty commission—set the course for its energy policy through 2030.
Mula distinguished between the old model (the traditional electrical system) and a new model in which, for example, solar farms coexist with natural gas. New and existing sources of energy generation are integrated.
“At the same time, energy is also generated in a decentralized manner in cities and population centers. So it’s no longer just a one-way street. It’s a two-way street,” the speaker stated.
And all of this is related to sustainable development, which meets “the needs of the present without compromising the ability of future generations to meet their own needs,” according to the definition first established in 1987 by the World Commission on Environment and Development, as cited by Mula.
Solar energy
Solar energy, biomass, and wind energy are examples of renewable energy sources. Regarding solar thermal energy, Mula noted that it is used to heat domestic water. Solar photovoltaic energy, on the other hand, is used to generate electricity.
Regarding solar energy resources, Mula stated that 70% of the population lives within the “Solar Belt.” In Uruguay, the School of Engineering has developed a “solar map.” According to its website, “the solar map is not static; rather, it should be understood as an incremental process aimed at continuously improving our understanding of solar energy resources in Uruguay.”
Regarding the quantification of the resource, he mentioned irradiance—the power of solar radiation received per unit area—and irradiation—the energy received per unit area over a given period of time.
Photovoltaic systems
They are used—for example—at airports and shopping malls to reduce electricity consumption or feed energy back into the grid. They have a basic classification: photovoltaic (PV) cells, PV modules, and PV generators. The latter can be of two types:
- Standalone or off-grid: they include an inverter, a regulator, and a battery.
- Grid-connected: They are equipped with inverters, meters, and laminated photovoltaic glass.
The installation of solar panels worldwide has grown exponentially due to their significant price drop.
Current regulations
Oroño explained the three types of power generation:
- First, microgeneration, regulated by Decree 173/010. This refers to small- and medium-scale installations of up to 150 kilowatts (kW). To date, approximately 3 megawatts (MW) have been installed in microgeneration facilities, almost entirely through solar photovoltaic technology.
- Second, industrial self-consumption, as established in Decree 114/014; this is implemented by industries seeking to install larger-scale generation facilities to meet their own energy needs.
- Third, large-scale power generation, established through various decrees, for large power plants.
Technical aspects
The components to consider are the solar panels, inverters, mounting structure, safety devices, and the bidirectional meter.
Decree 173/010 sets forth certain general considerations to be taken into account: the capacity of the microgeneration system, the contract with UTE, the connection voltage, the required land area, the property registry, the tax incentive, and remote consumption.
Tax incentives
“A key aspect of all this—particularly with regard to microgeneration—is tax incentives. The Investment Promotion Act No. 16,906 establishes very robust mechanisms to promote the energy sector, which make investments of this kind in energy viable,” added Oroño.
Decree No. 002/012 allows companies that invest in equipment to be exempt from a percentage of the investment, which is deducted from their IRAE over a five-year period.
Decree No. 354/009 exempts certain income brackets from IRAE payments.
“These two decrees have sparked a boom in microgeneration facilities,” explained Oroño, “without a doubt, this is a major boost for the development of this technology in our country.”
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