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Costa Rica
Clean Energy
  Initiative
Peak Oil
Sometime over the next months
or years when the current
economic crisis ends, the price of
oil will go up to keep a balance
between Supply and Demand

This increase in cost, will
challenge countries to find
alternative sources of energy
and to become more energy
efficient

Volatility and uncertainty in the
price of oil is an extra burden
that consumers, investor and
producers have not been able to
manage well.

This increase of efficiency take
years and a moving to a oil-free
economy will take decades
Energy Consumption
10 BOE
3




         Oil                              Costa Rica has increased the use of energy over
         Biomass                          time to sustain economic growth
         Electric Energy                  In 2007 it consumed 23 MM BOE or 64,000 BOE
         Coal                             per Day

BOE = Barrels of Oil Equivalent (http://en.wikipedia.org/wiki/Barrel_of_oil_equivalent )
Energy Consumption by Source
  Of the energy consumed, 65.7% was Oil
  That is 42,000 Barrels of Oil per Day (65.7%@ 64,000 BOE)
Consumption of Oil by Sector
      Of that, 32,000 Barrels of Oil per Day was used on
      Transportation (77%@ 42,000 Barrels of Oil)


               Others
       Public Services
Commercial & Services
           Agriculture
           Residential
             Industry
       Transportation
Electric Energy Generation
In Costa Rica more than 90% of Electric Energy comes
from Renewable Sources




                                                 Hydro
                                                 Geothermal
                                                 Wind
                                                 Biomass
                                                 Oil
Long Term Goals…
Costa Rica is relatively well positioned to reduce
its dependency for Oil, by using surplus Electric
Energy from renewable resources

This is consistent with the goal set by President
Arias for the country to become Carbon Neutral
by 2021.

Doing this would boost the economy with the
investment to grow Renewable Energy
production while reducing imports of Oil.
                                                     7
Costa Rica Clean Energy
         Initiative
Reduce Oil consumption 2,500 Barrels of Oil
per day in 3 years.

This can be accomplished by storing excess
Electric Energy of peak times to be used on
transportation.

That would translates into savings of $64
million per year (@ $70 per Barrel of Oil)

                                              8
Costa Rica Clean Energy
           Initiative
Setup a tax on Oil
    A tax that would set a floor at the price of a barrel of oil at $70.
    This would provide financing for this plan, for public transportation systems and for
    increasing renewable energy production base.
    It would provide certainty for the consumers to make purchase decisions.
    Most important however is that it would take financial uncertainty to allow the market
    economy to finance the new projects

Store excess electric energy into Hydrogen, Electric Batteries or Air:
    The public utility companies already have a low cost plans when the energy is used at off
    peak hours.
    Since the average drive in San Jose is less that 90 Km per day, most of the energy would be
    stored on the batteries at night at home.

Promote purchase and conversion of Vehicles:
    Promote conversion and purchase of Electric vehicles, Air vehicles and Plug-in-Hybrid
    electric vehicles
    Promote/Require Public transportation vehicles that run on Hydrogen
    This can be done by eliminating import duties on these type of vehicles (overall import tax
    on vehicles is 65%).

Develop the infrastructure required to provide energy to the vehicles:
    60% of the population of Costa Rica lives on a 70 by 20 mile valley. With a handful of
    stations, full coverage can be accomplished.
                                                                                              9
Clean Technologies
Use of Electric Energy to power vehicles:
     http://www.betterplace.com/


Conversion of vehicles into Plug-in-Hybrids:
     http://ecobella.blogspot.com/2008/12/electric-plan-for-energy-
       resilience.html


Use of Air Vehicles:
     http://ecobella.blogspot.com/2008/07/first-compressed-air-vehicles-
       mdi.html

     http://www.mdi.lu/english/


Use of Hydrogen to power vehicles:
     http://en.wikipedia.org/wiki/Hydrogen_vehicle

                                                                       10
Rationale
In 2007 Costa Rica consumed 23 MM BOE or 64,000 BOE per Day
Of that it used 42,000 Barrels of Oil per Day (65.7%@ 64,000
BOE)
And 32,000 Barrels of Oil per Day was used on Transportation
(77%@ 42,000 Barrels of Oil)

Costa Rica produced 12,700 BOE per Day in Electric Energy
(19.8% @ 64,000 BOE per Day)
The Electric Energy installed capacity supplies 90% of the energy
at peak time.
About 50% of time (12 hrs/day) the system is 40% under peak
capacity. If we could store that energy to be used in
transportation, that would save an equivalent of 2,500 bpd


                                                                11

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Costa Rica Clean Energy Initiative Reduces Oil Dependence

  • 2. Peak Oil Sometime over the next months or years when the current economic crisis ends, the price of oil will go up to keep a balance between Supply and Demand This increase in cost, will challenge countries to find alternative sources of energy and to become more energy efficient Volatility and uncertainty in the price of oil is an extra burden that consumers, investor and producers have not been able to manage well. This increase of efficiency take years and a moving to a oil-free economy will take decades
  • 3. Energy Consumption 10 BOE 3 Oil Costa Rica has increased the use of energy over Biomass time to sustain economic growth Electric Energy In 2007 it consumed 23 MM BOE or 64,000 BOE Coal per Day BOE = Barrels of Oil Equivalent (http://en.wikipedia.org/wiki/Barrel_of_oil_equivalent )
  • 4. Energy Consumption by Source Of the energy consumed, 65.7% was Oil That is 42,000 Barrels of Oil per Day (65.7%@ 64,000 BOE)
  • 5. Consumption of Oil by Sector Of that, 32,000 Barrels of Oil per Day was used on Transportation (77%@ 42,000 Barrels of Oil) Others Public Services Commercial & Services Agriculture Residential Industry Transportation
  • 6. Electric Energy Generation In Costa Rica more than 90% of Electric Energy comes from Renewable Sources Hydro Geothermal Wind Biomass Oil
  • 7. Long Term Goals… Costa Rica is relatively well positioned to reduce its dependency for Oil, by using surplus Electric Energy from renewable resources This is consistent with the goal set by President Arias for the country to become Carbon Neutral by 2021. Doing this would boost the economy with the investment to grow Renewable Energy production while reducing imports of Oil. 7
  • 8. Costa Rica Clean Energy Initiative Reduce Oil consumption 2,500 Barrels of Oil per day in 3 years. This can be accomplished by storing excess Electric Energy of peak times to be used on transportation. That would translates into savings of $64 million per year (@ $70 per Barrel of Oil) 8
  • 9. Costa Rica Clean Energy Initiative Setup a tax on Oil A tax that would set a floor at the price of a barrel of oil at $70. This would provide financing for this plan, for public transportation systems and for increasing renewable energy production base. It would provide certainty for the consumers to make purchase decisions. Most important however is that it would take financial uncertainty to allow the market economy to finance the new projects Store excess electric energy into Hydrogen, Electric Batteries or Air: The public utility companies already have a low cost plans when the energy is used at off peak hours. Since the average drive in San Jose is less that 90 Km per day, most of the energy would be stored on the batteries at night at home. Promote purchase and conversion of Vehicles: Promote conversion and purchase of Electric vehicles, Air vehicles and Plug-in-Hybrid electric vehicles Promote/Require Public transportation vehicles that run on Hydrogen This can be done by eliminating import duties on these type of vehicles (overall import tax on vehicles is 65%). Develop the infrastructure required to provide energy to the vehicles: 60% of the population of Costa Rica lives on a 70 by 20 mile valley. With a handful of stations, full coverage can be accomplished. 9
  • 10. Clean Technologies Use of Electric Energy to power vehicles: http://www.betterplace.com/ Conversion of vehicles into Plug-in-Hybrids: http://ecobella.blogspot.com/2008/12/electric-plan-for-energy- resilience.html Use of Air Vehicles: http://ecobella.blogspot.com/2008/07/first-compressed-air-vehicles- mdi.html http://www.mdi.lu/english/ Use of Hydrogen to power vehicles: http://en.wikipedia.org/wiki/Hydrogen_vehicle 10
  • 11. Rationale In 2007 Costa Rica consumed 23 MM BOE or 64,000 BOE per Day Of that it used 42,000 Barrels of Oil per Day (65.7%@ 64,000 BOE) And 32,000 Barrels of Oil per Day was used on Transportation (77%@ 42,000 Barrels of Oil) Costa Rica produced 12,700 BOE per Day in Electric Energy (19.8% @ 64,000 BOE per Day) The Electric Energy installed capacity supplies 90% of the energy at peak time. About 50% of time (12 hrs/day) the system is 40% under peak capacity. If we could store that energy to be used in transportation, that would save an equivalent of 2,500 bpd 11