Tag Archives: latin
Inter-American Development Bank Study Points At Latin America As The Future Of Renewable Energy
By Patricia Rey Mallén on October 17 2013 Renewable energy has been the subject of never-ending debate: Is it profitable? Is it better? Where is it headed. There may be no answers yet for those questions, but a report by the Inter-American Development Bank points out where the future of the energy may be: in Latin America. The region concentrated 6 percent in 2012 of the world’s investment in green energy, or $16 billion out of a total of $268 billion. Analysts from the IADB point at Latin America and the Caribbean as the “new frontier” for investment. “The lowering of prices and the better climate for investment makes Latin America an interesting and affordable market,” said Greg Watson, project specialist at the Inter-American Development Bank. According to the report, the political climate is also improving, as 110 green energy policies are identified, including tax incentives, feed-in tariffs, and other policies. “Policy frameworks are expanding and strengthening in Latin America and the Caribbean,” said Nancy Lee, general manager of the bank’s Multilateral Investment Fund. “The rapidly falling costs of clean technologies such as solar and wind power combined with an improved investment climate means that clean energy generation in the region is now truly affordable.” The favorable political climate has helped production capacity grow enormously. In 2007, the region had 1.5 gigawatts of renewable capacity, which has grown 296 percent since, reaching 26.6GW in 2012. Most of the investment went to Brazil, which received around $9.2 billion, although the percentage is lower than in previous years: It used to get close to 80 percent of the investment, and in 2012 that rate dropped to 55 percent. The reasons, as pointed out by the study, are that Brazil reduced its budget for clean energy 36 percent. Chile, on the other hand, multiplied its green energy budget by four, from $500 million in 2011 to $2.1 billion in 2012, making it the most-invested country in the region. Other countries that increased their investment in green energy are the Dominican Republic, which raised the investment from $47 million in 2011 to $248 million in 2012, and Uruguay, which raised it from $28 million to $118 million in the same time. The study singles out a geopolitical factor that explains the region’s interest in developing renewable energies. “Many Latin American countries want to stop importing oil, coal and natural gas, so they do not depend as much on other countries,” said Ethan Zindler, head of policy analysis at Bloomberg New Energy Finance, a provider of data, research and news on the clean and low-carbon energy sector. “That makes them want to invest more in energies they can produce themselves.” Continue reading
Latin America Clean Energy Investments Surged 127% Higher In 2012
April 30, 2013 Some $4.6 billion of clean energy investments were made in Latin America (excluding Brazil) in 2012, a whopping 127% increase from 2011, according to figures released in advance of the third annual Renewable Energy Finance Forum – Latin America & Caribbean (REFF-LAC), which is being held in Miami this week. In sharp contrast to the strong gain in Latin America clean energy investments, new clean energy investments fell 11% year over year globally, from $302.32 billion in 2011 to $268.69 billion, according to the latest report from Bloomberg New Energy Finance (BNEF). The global decrease was the first fall in renewable energy financing recorded by BNEF since it began collecting data. Latin America: A Clean Energy Investment Bright Spot In 2012 Latin America was a bright spot amid an overall decline in global renewable energy financing in 2012. Four countries experienced triple-digit clean energy investment growth: Mexico’s total new financial investments in clean energy for 2012 reached $1.9 billion, up 595% year over year; New financial investments in clean energy totaled $1 billion, up 313% from $246 million in 2011; Uruguay’s total new investments in clean energy reached $105 million, a 285% year-over-year increase; Total clean energy investments in Peru reached $643 million, a 176% increase from $233 million in 2011. By dollar amount, Brazil actually led the Latin America & Caribbean region when it came to total clean energy investments. Some $5.17 billion of capital was invested in clean energy in South America’s largest nation in 2012, according to BNEF. Mexico ($1.998 billion) and Chile ($1.018 billion) ranked second and third, respectively. Turning to 2012, LatAm-Caribbean investments in clean energy sectors, biomass and waste attracted the most capital ($822.34 million), biofuels followed ($539.47 million), and geothermal ranked third ($76.69 million), BNEF found. “The increased investments in non-Brazil Latin America was driven by increased activity by the Inter-American Development Bank,” Maria Gabriela da Rocha Oliveira, BNEF’s head of Latin America Research and Analysis, was quoted in a press release. “Additionally, European players, both project developers and manufacturers, have become more active in the region given grim conditions at home.” Added Carlos St. James, president of the Latin American & Caribbean Council on Renewable Energy (LAC-CORE) and CEO of VOLA Investments LLC: “As investments in clean energy declined in 2012 due to the ongoing financial crisis, the sector was actually growing in most of Latin America. This is a huge boon for clean energy finance and the region, which we expect to continue to grow. The most exciting trend is that this has moved beyond Brazil, with other countries now seeing amazing growth and potential.” Read more at http://cleantechnica…8VV0xjeBROwJ.99 Continue reading
