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Electrophoresis, Gel Runner, Gel Systems, Electrophoretic Blotting Systems, Vertical Gel System, Gel Casting, Comb, Spacers, Gel Wrap Gasket, Glass Plates, Casting clamps, Gel Imaging Documentation, Ultraviolet Lamp, Gel Grying System Filter Membranes, Agarose, Molecular Weight Markers,  Environmental Chambers, Dehumidifiers, Humidity Controllers Evaporator : Digital Rotary Evaporator System, Compact Rotary Evaporator, Centrifugal Solvent Evaporator System, Evaporator & Concentrator, O-rac system Extraction, Fat Analysis System, Extraction and Analytical Glassware Fermentation, Modular Fermentation Start up Kit, Pre-Packaged Systems, Fermentation Accessories, Antifoam Meter, CO2 meter, Flow Filtration System,  Filtration, Disposal Filterware, Sampling Capsule, shaker, Centrifuge Filter, Stirred Cells, Dialysis Tube, Filter Paper, Filter Mesh, Filter Device, Vacuum pressure Pump, Pressure Filtration, membranes, Syringe Filter Holder, Water Filtration Elements, Compact Filtration System, Compressed Air Purification from Ultrafilter, Prefilter, Dryer, Microfilter, Activated carbon Fitting : Chromatography, Compression Fittings, Luer Fitting, Pipe Fitting, Quick Disconnect Fitting, Sanitary Fitting, Barbed Fittings Flame Photometer Flowmeter, Acrylic Flowmeters, Laboratory Flowmeter, Dual Scale Flowmeter, Spring Flowmeter, Piston and Vane Flowmeter, Mechanical Bellows Flowmeters, Gas / Liquid Flowmeter, Tokico, Tut Hill, Tokyo Keiso, Magnaught, Water Flowmeter, Ultrasonic Flowmeter, Area Flow Controller, Gas Mass Flow Transmitters, Thermal Gas Flow Controllers,  Volumetric Flowmeter, Differential Pressure Gas Flowmeter, High Accuracy Turbine meters, Turbine Flowmeter, insertion Turbine Flowmeters, Accumulators, Gear Flowmeter, High Viscosity Flowmeter, Digital Flowmeter, Magnetic Flowmeter, Paddle Wheel Flowmeter Flowsensor, Transmitter, Flow Monitors and Controller, Flow Display Panel Meter, Flow Switches, Flow Indicator, Flid Bed Dryers. 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Homogenizer, Stirrer motor, Accessories, Tube and Pastle, blender, dispersing machine, electronic controller, module, generators Hood, ductless Fume Hoods, PCR Enclosures, Biosafety Cabinet, Cleanroom benches Hot Plates : Digital Hot Plates, Explosion Proof Hot Plate, Industrial Hot Plate, Dry Block Heaters Humidity : Hygrometer, Thermohygrometer, Humidity / Temperature Pen, Humidity Sticks, Wireless Thermohygrometer, Digital Psychrometers, Sling Psychrometers, Dew Point, RH/ Temperature Transmitters, Dew Point Transmitters, Moisture Analyzer. Hydrometer : Specific Gravity Hydrometer, Degrees API, Degress Baume, Soil Hydrometers, Sugar Hydrometers, Specialty Hydrometers, Plastic Hydrometers, Specific Gravity Cups, Density and Specific Gravity Meter. 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Life Science : Dry Baths for compound Synthesis, High Throughput Screening, Synthesis Products, Liquid Handling Multiwell Plates, Plate washers, concentrator, Microplate immunology, filter plateschilling / heating, thermomixer, semidry blotting system, Slot Blot, Transfer Membrane, Gel Blot Paper, Blotting, cloning cylinder, Crosslinker / concentrator, Electroporation, Hybridization, PCR, Spectrophotometry, Radiation Safety, Wave Bioreactor, Media Bag, Flasks, Cell Culture Multiwell Plates, Slide System, coverslips, Vacuum Tweezers, Roller Bottles, Bioprocess Vessels Lighting and Illumination : Fluorescent and Incandescent Safety Lighting, Wrap Light, Water Resistant Hand Lamp, Flood Light, Explosion Proof Light. 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85 deg C Safety : Apparel, Uniform, Environment monitoring, ergonomic, eye protection, eyewashes, fire protection, first aid, gloves, hearing protection, lock out/ tagout, matting, respiratory protection, shield, sign and floor sign, spill control and waste disposal, storage and handling, safety shoes, fitter glove, welding glove, welding apron, fitter glove, welding glove, smaw welding glove, lab coat, coverall, rubber over boots, safety boots, head cover, shoe cover, boot cover, chemical splash suits, PVC rain suits Safety Environment Monitoring : Digital Sound level meter, sound meter, acoustical calibrator, sound level meter, sound level datalogger, economical noise dosimeter, light probe meter, light meter, broad range light meter, High Intensity light meter, digital radiometer, radiation monitor, surface radiation monitor, beta radiation shield, personal heat stress monitor, thermal vest, Dual position CO2 / temperature meter, Indor quality Meters, gas detection Tubes, Fixed gas monitor, single gas monitor, multigas monitor, radio, handy talky, walky talky, wrist support, back support belt,  Safety : Eye Protection, spectacles, safety glasses, safety goggles, face shield, lens cleaner Safety Eyewashes : eyestations, personal eyestations, faucet mount eyewashes, eyewash bowls, showers, eyewash bowls, combination showers Safety : Fire Extinguisher, CO alarm Safety : First Aid : Digital Blood Pressure Monitor, Vinyl Glove, Latex Gloves, chloroprene gloves, glove liners, disposable gloves, nitrile gloves, neoprene, pvc, butyl, norfoil, cryo, heat resistance, cold weather gloves,  Safety : Hearing Protection, ear plug, ear band, earmuffs Safety : Matting, spongue mats, anti fatigue mats, draining floor mats, rejuvenator mats Safety : Respiration : N95, R95, P95, N100 Respirator, dust mask, particulate respirator, half mask respirator, AO5 AO7 Respirator, Powered Air Purifying Respirators, Air Supply System, Respirator wipes Safety : Sign and Floor Sign Safety : Spill Control and Waste Disposal, Sorbents, spill pads, oil sorbents, Absorbent kit, spill cleanup kit Safety : Storage and Handling, sewer stoppers, high capacity secondary spill containment pallet, splill-containment vessels, overpack salvage drums, secondary containment dolly, drum bogie, poly cylinder bumper brackets. Samplers : Aluminum Round Scoops, Dipper Sampler, cylindrical probe, sample spatula, conical sampler, piston sampler, sampler probe, powder sampler, sample thieves, swing samplers, extension rods, economical soil sampler, soil auger kit, disposable polyethylene and teflon bailer shakers : orbital shaker, orbital shakers, benchtop orbital shakers, dual action shakers, rocker, dry powder rocking shaker, vortex shakers, genie shakers, pulsing vortex shaker, volumetric flask shakers, rotating shakers, rotator, microplate shakers, incubator shaker Sieves : siever shakers, vibro separator, pocket sieve kit, Testing sieves, ultrasonic test sieve cleaner Soil Analysis : soil sampler, soil auger, pocket penetrometer, soil test kit, portable turf lab, soil/ compost thermometers, soil moisture meter, lead test kit, soil ph electrodes Spectroscopy : visible spectrophotometers, visible and UV Visible, graphical display spectrophotometer, fluorometer, atomic absorption spectrophotometers, NMR Tubes, Scanning IR spectrophotometer, cuvette Sterilizers : Portable sterilizer, benchtop sterilizers, sterilizer accessories Stirrers : Compact Stirrer, Air or Water driven magnetic stirrer, battery powered magnetic stirrer, Electromagnetic stirrers, stirrers and Hot plates, aluminum stirring hot plate, slow speed stirrer, digital stirring hot plate, stirring hot plate, stirring hot plate with temperature probe, digital stirring hot plate, multiposition stirrers, immersible modular stirrers, super magnetic stirrer, thermoline illuminating stirrer, large volume stirrer, stirring hot plate, stir bars, stir bar retrievers. Surface testing : durometer, pocket durometer, mini dial durometers, standard dial durometers, digital durometer, test block, portable hardness tester, hardness tester, ultrasonic thickness gauge, low cost ultrasonic thickness gauge, digital coating thickness gauge, mechanical magnetic thickness gauge, portable porosity detector, surface roughness tester, laminator, fail tester,  Syringes : disposable syringes, polypropylele sharp collector, jumbo syringes, needles, syringe pipettors, repetitive syringe dispensers, high performance syringers, microsyringes, gel loading syringes, stainless steel syringes. Tachometers and stroboscopes : tachometer with inverting display, digital tachometer, pocket tachometer, contact tachometer, laser tachometer, lcd tachometer, dual function tachometer, combination tachometer, combination optical tachometer / stroboscope, optical tachometer, tachometer / counter / totalizer, digital strobotachometer, digital stroboscopes. Tanks : polyethylene drums Temperature : Thermocouple calibrator / simulator, temperature calibrator, precicion multifunction calibrators, thermometer calibrators, economical temperature simulators, Precicion Multifunction Calibrator, Infrared digital Calibrator, thermometer calibrator, portable calibrator baths, thermometer calibration systems Temperature : Control, Panel Mount, thermocouple & RTD Panel Meters, Universal Input Panel Meters, Temperature Process controllers, Temperature / process controllers, universal input controller, temperature controller, temperature / process indicator, on/ off controllers, display temperature meters, AC Power Controller,  Temperature : alarms, temperature controller with timer, temperature transmitter system, temperature switch, incandescent light temperature switch, relays, Pocket thermometer, surface thermometer, anti bacterial pocket thermometer, solar powered adjustable angle thermometer, soil / compost thermometer, hot and cold holding thermometer, bimetal thermometer with 4 to 20 mA output, bimetal thermometer with type K thermocouple output, industrial bimetal thermometer, thermowells Temperature : Digital Indicator, pocket thermometer, pen style thermometer, wide range thermometer, long stem thermometer, large display thermometer, T bar head thermometer, adjustable angle thermometer, thermometer timer, thermometer with alarm, minimum and maximum reading thermometer, floating thermometer, thermohygrometer, solar powered thermometer, panel mount lcd thermometer, compact panel mount thermohygrometers Temperature : Glass thermometer, Partial emersion, total immersion, dairy thermometers, spirit filled thermometer, oven testing thermometer, thermometer magnifier Temperature : Infrared thermometer, IR Food thermometer, food safety infrared thermometer, compact infrared probes, laser sighted infrared thermometer, single laser, dual laser, scope sighting type, direct viewing infrared thermometers, infrared imaging camera, infrared sensor, infrared digital calibrator, infrared sensor with transmitters Temperature : thermocouple recorder, temperature recorder, wireless recorders, temperature / humidity datalogger, compact temperature dataloggers, large display temperature datalogger, multi point monitor, high temperature submersible datalogger, mini temperature datalogger Temperature : temp 6 rtd thermometer, rtd thermometer, rtd thermometer with ansi connector, precision rtd thermometer, high accuracy dual input platinum rtd thermometer, rtd probes, industrial rtd probes, protection head probe assemblies, RTD Transmitter, thermowellsanitary rtd assembly, rtd adapter, connector and extension cables Temperature : Thermistors, temp 4 and temp 5 thermistor thermometers, thermistor thermometer, water resistant handheld thermistor thermometer, five channel scanning thermistor thermometer, 400 and 500 series thermistor accessories, thermistor probe,  Temperature : Thermocouple instruments, type K swivel thermometer, Type K pocket thermometer, economical thermocouple thermometer, temp J/ K/ T thermometer, backlit type K thermometer, single-channel datalogging thermometer with rs 232 output, , type J/ k/ T thermocouple thermometers, type K thermometer, 50 series II thermocouple thermometer, water resistance thermocouple thermometer, dual J T E K thermocouple thermometer, 12 channel scanning thermometer, penetration probes, air/ gas probes, surface probespecialty surface probes, specialty surface probes, spring clamp probes, flexible insulated wire probes, fine gauge, high temperature flexible bare wire probes, thermocouples probes with stripped wire end, handles and detachable probe, thermocouple thermowellsthermocouple wire, thermocouple accessories, rubber boots for probe connections Tensiometer : contact angle micrometer, tensiometer, semiautomatic tensiometer, automatic tensiometer, bubble tensiometers Timer : stopwatch, mechanical stopwatch, digital timersintervalometer, electronic digital timers, programmable interval timer Titration : Volumetric Titration, portable titration, automatic titration, programmable titration, coulometric titration Tools : Laboratory Tools kit, electrical engraver, calipers and micrometers, Precision indicator, Vise Turbidity : Turbidity Meter, Portable Turbidity, Benchtop turbidity meter, Paddle stirrer Ultrasonic : Ultrasonic Cleaner, Stainless Steel Ultrasonic Cleaners, Ultrasonic Generator Systems Ultrasonic : Ultrasonic Processor, 130 Watt / 500 watt / 750 watt ultrasonic processors Ultraviolet equipment : Ultraviolet lamp, Pen UV Lamps, High intensity longwave UV Lamps, Hand held ultraviolet lamps, Three-way UV Lamps, Ultraviolet viewing cabinet, ultraviolet fluorescent tables, ultraviolet/ white light tables, UV Bench Lamps, UV Germicidal lamps, Ultraviolet intensity meters, germicidal detector and lamp monitor, UV Disinfections system monitor, high capacity ultraviolet sterilizer, combination filter / ultraviolet sterilizers Vacuum / Pressure Pumps : Dry Pump, Water lubricated pump, oil lubricated pump, hand held operated vacuum / pressure pumps, venturi vacuum pumps Valves : Globe Valves, Gate Valves, Butterfly valves, Check valves, PVC Ball Valves, Metering Ball Valves, Elliptical Valves, Three Way ball Valves, Teflon Ball Valves, Carbon steel Valves, Stainless Steel Valves, Alloy Steel Valves, True Union Valves, Ystrainer, diaphragm valves, Pipe joint compound, thread sealer, Needle Valves, Metering Valves, Volumetric Gas Mass Flow Controller, Spray Nozzle, slow rotation nozzle, pinch valves, solenoid valves, pneumatic solenoid and manifold block, Plastic Valves, Cryogenic Liquid CO2 Solenoid Valves, Gas Regulator, Pressure Relief Valves, Pneumatic Actuated Butterfly valve, deionized water valves, pneumatic drain valves Vials : Cap crimper, decrimper Vibration : Vibration Meter, Pocket vibration Meter, vibration with electronic stethoscope, industrial vibration monitor, machine monitor Viscometer : Falling Ball Viscometer, Portable disposable Viscometer, ford viscosity cups, consistometer, bubble viscometer kits, sample viscometer, glass capillary viscometers, visco clockbath cooler, constant temperature bath, viscosity baths, sybolt viscometer bath, rotational viscometer Washer : Glassware washers,  Water purification : Reverse osmosis systems, water purification system, b pue, e pure, nano pure RO, Easy pure, deionization system, Filter Cartridges, Ion Exchange Cartridges, Monobed Deionizers, Laboratory Water still, compact general purpose stills, distillation system, automatic glass still, ultraviolet sterilizers Water sampling : Drum and Tank samplers, extendable tank sampler, HDPE Coliwasa, swing samplers, bailers, water level loggers, water level indicator, water samplers, dredges, coretaker, portable sampler kits, sludge nabber, portable sampler, composite samplerperistaltic sampler, peristaltic sampling pump, GPS Water Testing : Bacterial testing equipment, colorimeter, digestion apparatus, dye tracers, lead analyzers, multiparameter meters, test kits, test strips, water quality test strips, titrimetric test kit, colorimetric test kits, lead test kits, arsenic test kit, coliform test kit, bacterial assay kit, liquid sanitizer strength verification kits, collection system, dye tracers, liquid analysis system, single test colorimeter kits, aquamate visible and UV / Visible Water analysis spectrophotometers, pH/ conductivity/ temperature meter, Portable multiparameter meter, water quality meters, handheld analysis system, flexible electrode holder, digestion apparatus, lead analyzer Weather Measurement : Compass, digital compass, thermoanemometer, weather radio, barometer / altimeter, weather monitor, digital wireless weather center, wireless weather stations, professional weather stations, weather transmitters, rain gauges, digital rainfall gauge, wireless digital rain gauge, water deep gauge. 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Latin American Energy Review | Intelligent debate on energy issues Summary: Many emerging market governments – including those in Latin America -- are unwittingly promoting speculation in their renewable energy auctions, with developers and lenders getting caught up in it as well. This has a destabilizing effect on the energy sector and ultimately does not serve citizens' or investors' best interests. A brief analysis of the situation with recommendations. About the publisher: Carlos St. James is a leading advisor to energy investors, bankers and developers in at Wood plc. He is also a board member of the Latin American & Caribbean Council on Renewable Energy (LAC-CORE) and publishes the Latin American Energy Review to help generate debate on the industry's issues. He will next be speaking at the Andean Renewable Energy Congress in Bogota, Colombia, November 14-17, 2017. ============ We've seen the charts and graphs highlighting the increasingly low electricity prices obtained in renewable energy auctions in Latin America under government-sponsored power purchase agreements (PPAs). The announcement of a US$37 per megawatt-hour (MWh) bid achieved in Peru's wind auctions gets overshadowed by the $29/MWh achieved by a solar project in Chile, which in turn become old news with a winning $27/MWh price in Mexico. And so on. Energy ministries avidly compete for these headlines. Yet this push for ever-lower prices as sole determinant of success has an important distortional effect on energy markets. As it turns out, many of the lowest-priced winning bids do not get built because they are not financeable by banks (i.e., "bankable") at those prices. Those that do get built with similarly low prices operate on a razor's edge with no margin for error. This is not the ideal structure of a sound national energy matrix. "Countries will not be able to develop sound capital markets if they remain dependent on subsidized lending." The need for bankable proposals Banks typically need to see debt service coverage ratios of between 1.25-1.50 times (at P90) a project's cash flow in order to lend. But because auctions are structured to only consider lowest price as determinant of success, they result in reduced cash flow from projects and in turn lower debt service ratios – below the levels banks can approve. And so banks shy away from them, resulting in two adverse effects: continued dependence on development banks and export credit agency (ECA) guarantees to access financing, and a rise in speculation by developers, scrambling to lower the quality and warranties on technology (solar panels and wind turbines) so capital expenditures and debt is lowered. Dependance on previouly-owned or otherwise rejected equipment is on the rise. Emerging market countries will not be able to develop sound capital markets if they remain dependent on subsidized lending, and growing an energy matrix using firms who steer towards high risk solutions that don't have correspondingly high upsides (as is the case with renewable energy auctions) is like playing with fire. Sooner or later you're gonna get burned. Turkish and Argentine cases Turkey's recent wind energy auction provides an example of what's happening. See Graph A; click on images to enlarge. Eight large multinational conglomerates made initial bids for the 15-year power purchase agreements (PPAs) being offered by the energy ministry. The auction was to have a single winner. Prices in the initial round of bids were all between US$52 and 63/MWh. These were all bankable in the traditional sense: Turkey had lost its investment grade status in 2016, so these prices allowed for access to project financing at higher interest rates. Graph A: Summary of results of Turkey's renewable energy wind auction, August 2017. Data source: Bloomberg New Energy Finance and Citibank But the government included numerous additional rounds whose sole objective was to lower the price. Five of the initial eight immediately dropped out; that in itself is significant. In the end a winning price of $34.80/MWh was obtained – a 38% drop from the first round's average $56/MWh. (Bear in mind the best wind in Turkey is about 6 meters/second, roughly a wind power class of 2 or 3 -- where class 7 represents the highest wind.) This winning price is not bankable in the sense of using project financing debt as a primary source of capital. Commercial banks won't touch it without further guarantees, so it is likely to be relegated to subsidized financing from development banks. Within Latin America, there are a number of comparable examples. Let's take a quick look at an admittedly unique situation: Argentina. See Graph B. Last year's RenovAr auctions, Rounds 1 and 1.5, were eye-opening on many levels and an unequivocal success from the government's perspective. Argentina had been absent from international debt markets for about a decade and the local private sector had no experience developing or pricing renewable projects -- and it showed. On the solar side there were 20 initial bids that also participated in Round 1.5. Graph B: Summary results of solar PV bids in Argentina's RenovAr Rounds 1 and 1.5 renewable energy auctions of 2017. Data source: Argentine ministry of energy Round 1 had seen extremely wide prices ranging from US$63 to $99/MWh from this grouping; in Round 1.5 those very same projects presented new prices ranging from $48 to $59/MWh, a 31% drop on average but narrowing the range considerably. The most extreme case was a 52% drop in bid price. These bidders were essentially shooting in the dark – with the government's blessing. Save larger corporates that had access to institutional funding or were using their own balance sheets, bidders had no clear sense of cost of debt and were simply hoping to have a winning project to sell: they were speculating. The country remains dependent on development bank financing and ECA guarantees. Additional considerations Penalties for not building a winning project are typically not high; governments have decided they would rather have many market participants than simply good ones and to let market forces separate them. Three final examples from Mexico, Chile, and commercial banks: In Mexico an unexpected twist took place: the last auction resulted in such low prices that the 15-year energy PPAs had insufficient tenor to repay debt (note that Turkey's auction also has 15-year PPAs). Commercial lenders backed off after realizing they needed 18-20 years for debt to fully amortize at those prices, and so the government muscled the three national development banks to step in: institutions which, while very professional and capable, do not have significant experience in project finance nor renewables. Again: increased dependence on subsidized lending. As mentioned in an earlier analysis, Chile's current auctions allow for a six year period between signing the winning PPAs and commercial operation date. While ostensibly it allows winners more time to finish putting together their projects, it actually entices them to speculate on lower technology costs (namely cheaper solar panels). Yet too much can go wrong during this waiting period: interest rates may well rise, trade walls get built. Commercial banks are looking for ways to not miss out on the opportunities, persuading themselves the projects can be made bankable. How? By adding merchant risk, i.e., betting on spot price sales of electricity to enhance cash flows. They're allowing projects to be structured to have about three quarters of installed capacity sold under the long term fixed price PPAs -- and the remainder sold at the open spot price. Since spot prices are usually higher than the fixed price of the long term PPAs it has the effect of increasing the weighted average overall price and therefore projected cashflows. This is even being considered in Chile, which had a painful experience from lending to merchant projects as outlined in this other analysis. Increasing use of the spot price is already taking place in markets like the United States. But they aren't comparable to Latin Americas': they're much larger, more sophisticated and efficient, and have numerous ways to box in uncertainty through hedging. Latin American energy markets are only in the very early stages of shifting from managing contracts to managing energy and risk. Better ideas needed One possible solution could be in the way emerging market governments structure their auctions. Rather than seeking the lowest price, they could seek assurance of bankability (tip of the hat to Mike Eckhart at Citibank from where this idea was born). Selecting the lowest price among bankable proposals would include a balanced evaluation comprised of three legs, each weighing about a third for purposes of decision making: a financial plan that might include a letter from an accounting firm confirming its viability, or better yet, a commitment letter from a bank; a price structure that includes escalators allowing for more breathing room in the project and for ownership changes once operational that can reduce return on investment requirements; and technical evaluations: letters from independent engineering consultants stating that the projects as envisioned are indeed technically viable*. The industry's continued growth will be tested when the lowest-priced projects continue to fail at reaching financial closure -- or worse, fail outright and weaken a country's overall energy matrix. This is a very avoidable problem. *in the interest of transparency, note that I work for one such technical advisory services firm – specifically one of the largest of its kind in the world, that has worked on more than 160 GW's worth of renewable energy projects globally. Wood plc has pretty much seen it all. © Latin American Energy Review 2017 This report has been prepared by Carlos St. James for The Latin American Energy Review. The views expressed on this site are his own and do not reflect the views of Wood plc, its affiliates or business partners. This report has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. It is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. The report is based on information obtained from sources believed to be reliable but is not guaranteed as being accurate, nor is it a complete statement or summary of the securities, markets or developments referred to in the report. The report should not be regarded by recipients as a substitute for the exercise of their own judgment. Any opinions expressed herewith are subject to change without notice and The Latin American Energy Review is not under any obligation to update or keep current the information contained herein. The Latin American Energy Review accepts no liability whatsoever for any loss or damage of any kind arising out of the use of all or any part of this report. Additional information will be made available upon request.
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