VZCZCXYZ0445
RR RUEHWEB

DE RUEHQT #0294 0871235
ZNR UUUUU ZZH
R 271235Z MAR 08
FM AMEMBASSY QUITO
TO RUEHC/SECSTATE WASHDC 8681
INFO RUEHBO/AMEMBASSY BOGOTA 7457
RUEHRL/AMEMBASSY BERLIN 0125
RUEHCV/AMEMBASSY CARACAS 2961
RUEHLP/AMEMBASSY LA PAZ MAR LIMA 2500
RUEHMO/AMEMBASSY MOSCOW 0143
RUEHOT/AMEMBASSY OTTAWA 0617
RUEHFR/AMEMBASSY PARIS 0066
RUEHRO/AMEMBASSY ROME 0387
RUEHKO/AMEMBASSY TOKYO 0010
RUEHGL/AMCONSUL GUAYAQUIL 3434

UNCLAS QUITO 000294 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON TRGY SENV UNDP UNEP EINV PGOV TINT EC
SUBJECT:  U.S. COMPANY LEADS SUCCESSFUL WIND ENERGY PROJECT IN 
GALAPAGOS 
 
 
¶1.  (U) Summary:  The multilateral Galapagos Wind Energy Project 
dedicated its wind-turbine project, largely funded by private sector 
companies, on the Galapagos's San Cristobal island on March 18. 
Project leader American Electric Power (AEP) says that on windy 
days, the project provides 80% of San Cristobal's electricity at a 
price comparable to diesel generation, but without diesel's 
polluting impact.  It is a laudable demonstration model ripe for 
duplication, and especially valuable in one of the world's most 
sensitive marine habitats.  End summary. 
 
¶2.  (U) DCM Jefferson Brown spoke at the e8-sponsored dedication 
ceremony on San Cristobal at the invitation of e8 member American 
Electric Power (AEP) of Ohio.  The e8 is a charitable trust composed 
of nine of the world's leading power companies from G8 countries 
that was formed in 1992.  Its mission is to promote corporate 
responsibility in the energy sector.    Since 2001, AEP has provided 
$6 million of the $10.5 million necessary for the Galapagos Wind 
project (the UN Foundation contributed $1 million, and the 
Ecuadorian government made up the balance).  AEP has also provided 
project management, with technical assistance primarily from the 
German state power company RWE.  Other e8 members include EDF 
(France), Enel (Italy), Hydro-Qubec (Canada), Kansai Electric Power 
Company (Japan), Ontario Power Generation (Canada), RAO UESR 
(Russian Federation), RWE (Germany) and Tokyo Electric Power Company 
(Japan).  Representatives from RWE, EDF, and the Russian Embassy all 
attended the dedication ceremony. 
 
ECUADORIAN COMMITMENT 
 
¶3.  (U)  Electricity Minister Alecksey Mosquera and Environment 
Minister Marcela Aguinaga attended and spoke, echoing the commitment 
to the project expressed by President Correa when he visited the 
site in February.  The Galapagos provincial electricity authority, 
Elecgalapagos, recently-appointed interim Galapagos National Park 
Director Sixto Naranjo (see Guayaquil septel), and local and 
provincial government officials also attended. 
 
¶4.  (U) With the support of UNDP and the Ecuadorian Government, 
Elecgalapagos is implementing a re-electrification program 
throughout the Galapagos Islands with renewable sources, to 
partially replace the Galapagos' existing diesel power plants.  The 
wind power generated by three windmills on San Cristobal costs 
approximately 20% more than that produced by traditional diesel 
generators, but so far the price to consumers has remained constant, 
due to government subsidies.  Given these results, and the oil spill 
caused by the sinking of the tanker Jessica in 2001 in San Cristobal 
harbor, local support for the project is strong.  Elecgalapagos has 
already advertised tenders for similar wind projects on Baltra and 
Santa Cruz islands that emulate the San Cristobal project. 
 
U.S. LEADERSHIP 
 
¶5.  (U)  Representatives from RWE and EDF, along with local 
officials praised AEP at the dedication ceremony for their 
commitment to the project and the people of San Cristobal (and in 
turn, AEP presented awards to their e8 partners and local 
officials).  In addition to AEP, at least three other U.S. companies 
were also involved in the project as low-cost or pro-bono 
contractors.  Walsh Environmental, based in Boulder, Colorado, 
completed a two-year environmental impact study to protect the 
endangered Galapagos petrel from the windmills, which is native to 
the island, in cooperation with the Charles Darwin Foundation.  AEP 
also contracted with Industry and Energy Associates of Portland, 
Maine, to provide engineering project management to the diesel-wind 
hybrid plant that controls the windmills.  Finally, SolarQuest, a 
non-profit organization based in Burlington, Vermont, provided 
internet connectivity and solar panels to the wind power plant and 
local schools through grants from AEP. 
 
¶6.  (SBU) Comment:  The Galapagos Wind Project is an inspiring 
example of successful multilateral cooperation and corporate social 
responsibility.  Through careful diplomacy on behalf of the e8, and 
in particular, on behalf of AEP, the Ecuadorian government and the 
population of San Cristobal appear to be wholeheartedly tied to the 
project and claim it as their own.  As Ecuador moves forward with 
similar wind and hydroelectric power projects, post hopes this 
positive multilateral and contractual relationship can be 
replicated.  End summary. 
GRIFFITHS