The Latin American meeting place for biomass power generation

São Paulo, Brazil, 22-23 April 2009

Introduction | Why attend? | Agenda | Speaking Opportunities | Sponsorship Opportunities | Partners l Venue l Register

1) What does your company do in the bio power generation sector? 

PSR was directly involved in the design of Brazil's bioelectricity program, in cooperation with UNICA (the sugarcane producer association) and Cogen-SP (São Paulo cogeneration association). The bioelectricity program aimed at making cogen from sugarcane bagasse the second largest source of power production in the country, right after hydropower. The key elements are direct competition with other energy sources such as gas- and oil-fired thermal plants. About 3 thousand MWs of bioelectricity are in operation or under construction. PSR has been an advisor to most of the investors in this area for the economic analysis and bidding in the energy contracting auction. We have also advised investors in other biomass areas such as organic residues and "elephant grass", which are very competitive in Brazil.  

2) What do you consider to be key factors which will affect the growth of the Latin American bio power generation market?  

Brazil and several other Latin American countries have the right combination of weather, water and available agricultural space (without displacing environmentally sensitive areas and food crops) which make biomass very competitive with other energy sources. In our opinion, the key factor is to develop regulations for the power sector that are suitable for this type of energy and allow them to compete in the same basis as traditional generation. For example, the transmission access regulations in Brazil were originally developed for traditional generators connected to the high voltage grid (230 kV and above) and were not adequate for distributed generation which connects at lower voltages. The government and cogen associations redesigned the grid codes to make their regulatory situation isonomic to the other generations, which resulted in announced plans for building thousands of MWs of biomass cogen.  

3) What are the biggest short term challenges to market growth?  

The most important is access to financing, which has been very reduced due to the worlwide crisis. Other key issues are post-Kyoto carbon credits and, in the case of sugarcane biomass, the business modeling of investors in the "power side" of the business separated from the "sugar and ethanol" side, which would benefit many smaller producers.   

4) What do you think are the most exiting innovations or developments in this area at the moment?

The growing use of straw, in addition to the bagasse, which can potentially double the energy production; and the genetic improvements to sugarcane, which makes it even more suitable for energy generation