|Nanik Singh, Regional Director – Central America & Caribbean, INNOVENT, answers key questions about wind power in Central America.
Nanik Singh will be speaking at the Wind Power Central America Congress in July in Panama.
As an estimation, what do you envisage the potential Wind Power projects pipeline for Wind in Central America over the next 3 years?
In terms of the capacity of the investors & developers in the area I think is possible to have more than 200MW per year of Wind Installed in the region. Nevertheless this capacity will be restricted in terms of the willingness of the government agencies in charge of providing tenders on time or mechanism to incorporate this non-conventional renewable energy into the grid.
What are the 3 top challenges organisations face when looking to develop wind farms in the region?
First will be getting the right in house partner or outside consultant which knows the legal and technical requirements to develop projects accordingly to the specific country in Central America. Second, clear market rules and programed tenders so the developer can plan ahead. Last, grid investment on behalf of the grid operator, so new projects have the opportunity to connect to the grid without curtailing.
How do you advise organisations overcome these challenges?
With the proper government and private sector interaction, where free market participants can have the opportunity to integrate without political influenced rules. So the right price and the proper technical qualifications guides the markets behaviour and performance.
What makes a PPA bankable in Central America?
The right price and clear contract conditions. And of course a professional and experience developer.
Which country, in your opinion, has the most favourable policies for Wind farm development in Central America?
All the countries in the region have different circumstances. To develop a wind project is like trying to play a music piece, all of the instruments and the director need to work in harmony to get beautiful music. So in each countries there are different conditions for grid capacity, market rules, financing opportunities and tenders. So it would depend on the developers future strategy to select the country which aligns better with its corporate goals.