Beginning in the 1990s, there was increasing concern that the risk of fuel spills threatened the fragile environment of the Galapagos Islands. Diesel fuel is used in the archipelago to power diesel generators that produce electricity needed by its residents. The Government of Ecuador took note of these events and initiated exploration of environmentally friendly power generation. The government sought help from the United Nations, and then the UN Development Programme (UNDP). Concerns of fuel spills unfortunately proved to be true when a major oil spill occurred in January 2001 when the oil tanker Jessica ran aground at the harbor of San Cristobal releasing significant amounts of oil.
The Project as envisioned in a Pre-Feasibility Study prepared in December 2001 was based on approximately 1,750 kW of installed wind capacity and small photovoltaic capacity coupled to the existing diesel generator plant that exists on San Cristobal. The proposed San Cristobal Wind Project is part of an UNDP Umbrella program to bring renewables to the inhabited islands of the Galapagos Islands.
In February 2002, the Government of the Republic of Ecuador and UNDP signed a Memorandum of Understanding for the development of the global project for re-powering with renewable energy the inhabited islands of Galapagos. Within the frame of this MOU, UNDP committed the participation of the e8 Fund for the development of the project in the part corresponding to San Cristobal Island. For this purpose a Memorandum of Understanding was later signed on April 25, 2003, between the Government of the Republic of Ecuador and the e8 Fund.
The next step in project development at that time was for e8
to undertake a Feasibility Study to address and resolve the Institutional, Financial, and Environmental concerns identified when the e8 accepted the Project. The Feasibility Study was completed in 2005 and indicated that Wind Project is feasible considering the Technical, Environmental, and Institutional issues related to the Project. It is note worthy to highlight that the length of the Feasibility Study was primarily a result of extensive environmental monitoring and studies related to the endangered Galapagos Petrel that nests in the vicinity of the proposed Wind Project Site.
The Feasibility Study effort was broken into specific tasks. American Electric Power (AEP) acted as Team Leader on behalf of the e8 and took responsibility for the project development effort and Feasibility Study. Lead organizations were assigned and supporting organizations identified for various Project tasks.
AEP assigned a Project Manager and a Local Project Manager in Ecuador to support the project. The contribution of the Local Project Manager has been vital in moving the project forward by addressing the institutional issues, spearheading fund raising efforts, and coordinating the numerous in-country consultants who have participated in the Project.
Hydro Quebec (HQ) coordinated the Environmental Impact Assessment and related bird monitoring activities in collaboration with Scottish Power (SP). HQ also provided technical expertise in evaluating the existing diesel generating plant on San Cristobal and identifying environmental concerns that need to be addressed. Electricite de France (EDF), RWE, and ENEL also contributed technical expertise and Ontario Power Generation (OPG) has financially supported the project by funding a 50-meter wind measuring system.
Within the framework of the MOU signed in April 2003, the e8 Project Team has worked extensively with the Government of Ecuador and local stakeholders in the Galapagos on the development of the Project. The Project has received wide support from all levels of government and from the NGO community.
Key to the success of the project has been Elecgalapagos S.A, the vertically integrated utility for the Galapagos, becoming the e8s partner in promoting and developing the Project and renewable energy programs proposed thoughout the Galapagos. Prior to structuring the formal Commercial Trust for the San Cristobal Wind Project involving Elecgalapagos and the e8, an Agreement for Preliminary Activities was signed on July 1st, 2003. Based on this Agreement, the e8 has being performing several institutional, financial, engineering, environmental and other related activities, with the cooperation and local support of Elecgalapagos. Elecgalapagos currently holds the authorization to increase their generation capacity by means of renewable energy systems. Elecgalapagos can chose to develop the renewable energy systems themselves, or as permitted by current legislation, they can enter into agreements with others for the project development/operation after CONELEC approval. The San Cristobal Wind Project implementation is based on e8 members and Elecgalapagos joining together to form a non-profit Commercial Trust to construct and operate the wind project. The Commercial Trust will own a Generating Company that will enter into a Power Purchase Agreement and Operation & Maintenance Agreement with Elecgalapagos as Distribution Company.
The Wind Project implementation will provide training for Elecgalapagos staff and the Commercial Trust structure includes provisions to ensure the long-term sustainability of the wind Project.
After approval of the Feasibility Study by e8 members and acceptance of the project approach with respect to financing, tariff, role of Elecgalapagos, Commercial Trust structure, and Environmental Management Plan, the decision was reached to proceed to the implementation phase of the project.
Through a transparent, competitive bidding process, MADE of Spain was selected to provide the wind turbines and supporting equipment. SANTOS-CMI of Ecuador will be responsible for logistics and construction.
View from El Tropezón to west