acore: renewable energy in latin america and the caribbean (2014)
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REGIONALBRIEFING:RENEWABLEENERGYINLATINAMERICAANDTHECARIBBEAN APRIL2014
1 AmericanCouncilOnRenewableEnergy(ACORE)
REGIONAL BRIEFING: RENEWABLEENERGY
INLATINAMERICAANDTHECARIBBEAN
APRIL 2014
AMERICAN COUNCIL ON RENEWABLE ENERGY (ACORE)
ACORE,a501(c)(3)nonprofitmembershiporganization,isdedicatedtobuildingasecureandprosperousAmerica
withclean,renewableenergy.ACOREseekstoadvancerenewableenergythroughfinance,policy,technology,and
marketdevelopmentandisconcentratingitsmemberfocusin2014onNationalDefense&Security,Power
Generation&Infrastructure,andTransportation.Additionalinformationisavailableat:www.acore.org
INTERATIONALPROGRAMS
Tobuildasecure,prosperousAmericawithclean,renewableenergy,wemustcultivateglobalpartnershipsas
technologicaladvancementsandinnovativeinvestmentstrategiesemanatefromallcornersoftheworld.ACOREs
InternationalProgramsprovideaplatformformemberstobuildthesepartnershipswithgovernment,industry,
andnon
profit
entities
across
the
globe.
ACOREs
International
Programs
also
facilitate
opportunities
for
sharing
knowledgeonpolicyandfinancetocreateanenvironmentconducivetoadvancingrenewableenergygrowthboth
intheU.S.andabroad.Withamultitieredstrategyfocusedbothontrackingglobaltrendsandbuilding
partnershipswithspecificcountriesonsixcontinents,ACOREsInternationalProgramsworktoplaceU.S.
leadershipattheforefrontofglobalrenewableenergypolicyandfinance.Additionalinformationisavailableat:
www.acore.org/programs/acore internationalprograms
POWERGENERATIONANDINFRASTRUCTUREINITIATIVE
ThePowerGenerationandInfrastructureInitiativebringstogetherleadersfromtheutility,business,investment,
regulatory,public,andnonprofitsectorsto:(1)examinethechallenges,opportunities,andappropriatestrategies
relatedto
the
expanded
use
and
effective
integration
of
renewable
energy
in
the
power
generation
sector;
and
(2)
explore21stcenturybusinessmodelsthatwillallowforthisrenewableenergyscaleup.Additionalinformationis
availableat:www.acore.org/programs/member initiatives/powergeneration
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REGIONALBRIEFING:RENEWABLEENERGYINLATINAMERICAANDTHECARIBBEAN APRIL2014
2 AmericanCouncilOnRenewableEnergy(ACORE)
AUTHORS
ACORE
MichaelBrower,Risa
Edelman,JamesHewett,and
LesleyHunter
AkinGumpStraussHauer
&FeldLLP
DinoBarajas
CleanEnergyLatin
America
CamilaRamos
Dentons
JuanCarlosIturreguiand
SydneyMcNiffJohnson
SPONSORS
COPYRIGHT
2014ACORE
AllRightsReservedunderU.S.andforeignlaw,treaties,andconventions.Thisworkcannotbereproduced,
downloaded,disseminated,published,ortransferredinanyformorbyanymeanswithoutthepriorwritten
permissionofthecopyrightownerorpursuanttotheLicensebelow:
Publishedby:
AmericanCouncil
On
Renewable
Energy
(ACORE)
1600KSt.NW,Suite650
Washington,DC20006
202.393.0001
QuestionsorComments:info@acore.org
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REGIONALBRIEFING:RENEWABLEENERGYINLATINAMERICAANDTHECARIBBEAN APRIL2014
4 AmericanCouncilOnRenewableEnergy(ACORE)
INTRODUCTION
ACOREispleasedtopresentRenewableEnergyinLatinAmericaandtheCaribbean,awhitepaperon
issuesand
opportunities
in
the
Latin
American
and
the
Caribbean
(LAC)
region
renewable
energy
markets.
ThisregionalbriefingtiesdirectlytotwoofACOREskeyfocusareas:ourInternationalProgramsandour
PowerGeneration&InfrastructureInitiative.Theformercultivatespartnershipswithinternational
businessesandgovernmentstofosterthesharingofinformationonthebestofglobalrenewable
finance,policy,andtechnology,whilethelatterexaminesstrategiesforintegratingrenewableenergy
intoutilitybusinessmodelsandtheevolvingelectricpowergenerationindustry.
Asyouwillreadinthefollowingarticles,commoncharacteristicsoftheLACenergymarketmakeita
naturalareaoffocusforACOREsinternationalandpowergenerationefforts.Presentenergyissuesin
theregionincludehighelectricityprices,outdatedorburgeoninginfrastructure,andwaterandenergy
accessconcerns.Renewableenergyhasthepotentialtoaddresstheseproblems.
ACOREinvitesourmembers,whoarefocusedonpowergenerationmodels,globalbusiness
opportunities,andinfrastructuremodernization,toplayanactiveroleincreatingthefinancial,policy,
andmarketsolutionsneededtofacilitaterenewableenergygrowthintheLACregion.Wethankthe
authorsforthearticlestheyhavecontributedonthesecriticallyimportanttopicsandlookforwardto
yourengagementinthisdialogue.
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REGIONALBRIEFING:RENEWABLEENERGYINLATINAMERICAANDTHECARIBBEAN APRIL2014
5 AmericanCouncilOnRenewableEnergy(ACORE)
EXECUTIVE SUMMARY
CamilaRamos
CleanEnergyLatinAmerica(CELA)
ThegrowingeconomiesoftheLatinAmericanand
theCaribbean(LAC)regionareripeforrenewable
energydevelopment.TheLACregionspopulationof
600millionisgrowingat1%peryear,anditsGDP
morethandoubledbetween1990and2013.More
than50millionpeoplehaveworkedtheirwayupthe
socialandincomeladdertojointheregionsmiddle
classinthelastdecade,andthistrendisexpectedto
continue.Nonetheless,percapitaelectricityusagein
theregion,
at
1,987
kWh,
is
still
athird
below
the
worldaverage,and29millionhouseholdsdonot
haveaccesstoresidentialelectricity.
Asaresultofongoingdemographicandsocio
economicstructuralchanges,thedemandfor
electricityintheLACregionwilldoubleby2030and
tripleby2050,accordingtotheEconomic
CommissionforLatinAmericaandtheCaribbean
(ECLAC).Consequently,countriesintheLACregion
willrequiremorethan$350billionofinvestmentin
newpower
generation
assets
between
2013
and
2030tomeetthisdemand.
Thepresentscenarioofstrongelectricitydemand
growth,decreasingcostsforrenewableenergy,
increasingpricesoffossilfuels,thedesireforenergy
security,andconcernsaboutclimatechangeinthe
LACregionpresentsinterestingopportunitiesforthe
expansionofrenewableenergy.Andthereis
significantpotentialforexpandingtheuseof
renewableenergysources,rangingfromextensive
solarand
wind
resources
from
Mexico
to
Argentina,
togeothermalresourcesalongthetectonicallyactive
PacificRim,tobiomassresourcesthroughoutthe
region.Theseenergysourcescanhelpdiversifythe
overallelectricitysupplymixbeyondconventional
optionssuchasfossilfuels.
AccordingtoBloombergNewEnergyFinance(BNEF),
theprivatesectorinvested$92billioninrenewable
energyintheLACregionbetween2008and2013,
including$9.3billionin2013.Intotal,37%ofall
regionalinvestmentsin2013weremadeinBrazil,
followedbyChile(17%),Mexico(16%),andUruguay
(12%).Thebulkofinvestmentwasforwindenergy,
whichaccountedfor60%ofrenewableenergy
investmentintheregionin2013.However,solar
poweris
also
becoming
more
common
in
the
region,
responsiblefor$1.3billionofinvestmentin2013.
Thisinvestmentledtotheinstallationof1GWof
newwindenergycapacityin2013and200MWof
newsolarphotovoltaic(PV)capacity,withthefirst
megawattscalesolarprojectsbeingdeployedin
Chile,Peru,andMexico.
Policymakershavebeencompelledtosetnational
carbonreductionand/orcleanenergyinstallation
goals
and
to
hold
auctions
for
renewable
power
and
biofuelssupplycontractstoattractadditional
investmenttotheregion.Bottlenecksanddifficulties
intermsoflegislation,marketmaturity,andsupply
chainconstraintsarepresent.However,theseissues
arebeingtackledgraduallyastherenewableenergy
industryadvances.Newsourcesoffundingare
increasinglyavailable,includingfromlocaland
multinationaldevelopmentbankssuchastheInter
AmericanDevelopmentBank(IDB),Brazilian
DevelopmentBank(BNDES),andOverseasPrivate
InvestmentCorporation
(OPIC),
as
well
as
foreign
andlocalprivateinvestors.Thesepositivesignals
indicatethattheLACregionwillcontinuetobean
importantlocationforrenewableenergyinvestment
anddeploymentintheyearstocome.
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REGIONALBRIEFING:RENEWABLEENERGYINLATINAMERICAANDTHECARIBBEAN APRIL2014
6 AmericanCouncilOnRenewableEnergy(ACORE)
ABOUTTHEAUTHOR
CamilaRamosisManagingDirectoratCELA Clean
EnergyLatinAmerica,aSoPaulobasedconsulting
andadvisoryfirmsupportingclientstoexplore
opportunitiesintheLatinAmericanrenewable
energymarket,specializinginpolicyanalysis,
fundraising,projectfinance,strategicplanning,and
connectingprojectsandinvestors.Camilaisalsoan
AdvisoryBoardMemberoftheInterAmericanClean
EnergyInstitute,aCaliforniabasedcleanenergy
thinktank.
PriortofoundingCELA,Ms.RamosservedasCountry
ManagerandHeadofLatinAmericaResearchat
BloombergNewEnergyFinance(BNEF). Shewas
alsoMarketingandCommunicationsManagerat
ERB EnergiasRenovveisdoBrasil,aBrazilian
renewable
energy
company.
She
has
also
worked
as
aconsultantatPricewaterhouseCooperswithafocus
onagribusiness.CamilaholdsanMSc.andBSc.from
theLondonSchoolofEconomicsandPoliticalScience
(LSE).
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7 AmericanCouncilOnRenewableEnergy(ACORE)
THE RENEWABLE ENERGY SECTORS NEW
FRONTIER:LATIN AMERICA AND THE CARIBBEAN
Dino
Barajas
AkinGumpStraussHauer&Feld,LLP
WhilemostjurisdictionswithinLatinAmericaand
theCaribbeanbasetheircoreelectricgeneration
assetportfolioonfossilfuels,1renewableenergy
technologiesarenowchangingtheregionalenergy
landscape.Now,wind,solar,hydro,tidal,and
geothermalpowerplantdevelopersarefocusing
effortsontransformingLatinAmericaandthe
Caribbeanintomoreecofriendlypowergenerators.
Asaresult,localgovernmentshavebeenmodifying
electricutilityregulatoryframeworksto
accommodatetheintroductionofrenewableenergy
intoregionalelectricgenerationanddistribution
systems.
Therenewableenergydevelopmentactivity
throughouttheregionhasresultedfromarecent
twoyearperfectstormofglobalenergyevents.
Forexample,windpowerprojectdevelopersand
theirtax
investors
face
tax
policy
uncertainty
in
the
UnitedStates.Theresultisachoppyseriesof
boomandbustdevelopmentcycles.Globalsolar
powerplantdevelopers,whohavebeengaining
somecompetitiveadvantagesasaresultofdeclining
solarpanelandsupplypipelinecosts,weredealta
cripplingblowintheU.S.afterChinesesolarcell
manufacturerswereleviedantidumpingtariffson
productsimportedintotheU.S.Equally,solarpower
developershavealsobeenaffectedintheEuropean
Unionbyathreatofhightariffsbeingimposedon
Chinesemanufacturedsolarpanels.Additionally,
Spain,whichhadbeenadarlingofrenewableenergy
developers,retroactivelylowereditsrenewable
energyfeedintariffsandthrewthecertaintyof
Europesrenewableenergyindustryintoatailspin.
1WiththenotableexceptionsofBrazilandCostaRica
CAPITALIZINGONLATINAMERICANAND
CARIBBEANMARKETSANDPOLICIES
Facedwiththedownturnanduncertaintyinthe
EuropeanandU.S.renewableenergymarkets,many
renewableprojectdevelopersareturningtheir
attentionanddevelopmentdollarstowardLatin
AmericaandtheCaribbean.Theregion,whichhas
beenplaguedwithunnaturallyhighenergy
productioncosts,mostlyduetotheneedfor
expensive,imported,fossilbasedbunkerfueland
diesel,offersamarketwhererenewableenergycan
competedirectly,onatrueeconomicbasiswith
existingpowergenerators,evenwithoutextensive
financialsubsidiesorfeedintariffs;however,
regionalgovernmentsmustbeproactiveandenact
favorablerenewableenergyregulatoryand
integrationpolicies.Thepredictabilityofsuch
marketbasedopportunitiesoffersrenewableenergy
developersalongterm,stabledevelopment
environmentwheresuccessislargelycraftedby
economicopportunitybasedontechnology
competitivenessratherthaneverchangingpolitical
andpublicopinion.
Theintegrationofrenewableenergyintoregional
generationportfolioswillhelpachieveindividual
nationalandregionalsecurity,economicsecurity,
andenvironmentalsecuritythroughtheuseoflocal
renewableenergy
resources.
As
more
and
more
countriesintheregionassertgreatercontrolover
energyproductioncostsviarenewableresources,
susceptibilitytovariancesinimportedfuelpriceswill
beminimized,andregionalenergyintensive
industrieswillemergeasmorecompetitiveona
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REGIONALBRIEFING:RENEWABLEENERGYINLATINAMERICAANDTHECARIBBEAN APRIL2014
8 AmericanCouncilOnRenewableEnergy(ACORE)
globalbasis.Thesebenefitswillalsoallowtheregion
toattractagreatervarietyofindustriestotheir
marketsandpermithighervalue,moreenergy
intensiveprocessestobedonelocally,thusallowing
agreateramountofthevaluechaintoremainat
home.
Somecountriesintheregion,suchasMexico,are
activelycourtingrenewableenergydevelopersby
creatingattractiveregulatorysystemsthatrecognize
theuniquefeaturesofrenewableenergy
production.Forexample,ComisinFederalde
Electricidad(CFE),Mexicosnationalelectricutility,is
addressingissuesofwheelingpower,whichhas
oftenhinderedpastdevelopmentofregional
renewablepowerprojects.CFEspreviouswheeling
structurefailedtoaccountforwindandsolar
powersuniquecharacteristics.CFEwaspenalizing
suchrenewableenergypowerprojectsfornot
producingbaseloadelectricitysupplywithout
considerationoftheactualvalueofrenewablesover
fossilfuelpowerprojects.Today,CFEswheeling
arrangementsbalancetheuniquecharacteristicsof
renewables.CFEhascreatedasystemwherea
renewableenergyprojectcanbankexcessenergy
productionduringperiodswhenanofftakerdoes
notrequireenergyfromtheproject,andallowsthe
usertoaccessthebankedenergyduringperiods
whenthepowerprojectproducesinsufficientenergy
tomeettheusersneeds.Additionally,postage
stampwheelingcharges,earmarkedsolelyfor
renewableenergy,havebenefittedrenewable
energyproduction.Asaresult,buyersofrenewable
powerseeenergysaleratesthatcompeteeffectively
anddirectlywithfossilfuelgeneratedenergy.
LESSONSLEARNEDANDBESTPRACTICES
RenewableenergycompaniesenteringtheLatin
Americanand
Caribbean
markets
are
quickly
learningthatthepotentialrewardsavailableinthe
regionarenotwithouttheirchallenges.Successfully
navigatingjurisdictional,legal,cultural,andbusiness
environmentsisthedeterminingfactorasto
whetheranewmarketentrantcanbesuccessful.
Seeminglysimpletasks,suchassecuringsitecontrol
andpermitting,havebeentheAchillesheelon
numerousprojects.Projectsonthevergeof
achievingfinancinghavecollapseduponthe
discoverythatnegligentorillinformedactionswere
takenduringtheearlystagesofaprojects
development,requiringdeveloperstoredotheir
projects
fundamentals.
Mindfulofthesechallenges,successfulrenewable
energydevelopersintheregionhaveleveragedthe
lessonslearnedfrompreviouslydevelopedprojects
inspecificcountries.Thecomplexproject
contractingandequityinfusionstructuresdeveloped
overthelast20yearsareservingtodaysrenewable
energypioneerswellbyhelpingthemcreatethe
mostefficienttaxstructurespossiblefortheir
projectsand,inturn,preservingtheirprojectsrates
ofreturn.GiventhattheLatinAmericanand
CaribbeanmarketsdonotresembletheU.S.or
Europeanmarkets,knowledgeofthetermsand
structuresofexistingpowerprojectdealsspecificto
theregionisessentialtoachievingearlysuccess.
Additionally,manydevelopershaveformedjoint
ventureswithlocalcompaniestogainmarketlegal
andculturalknowledgewherepossible.Othershave
reassembledtheexternallegalandtechnical
advisoryteamsresponsibleforstructuringearlier
powerprojecttransactionsinordertogainvaluable
marketaccess
and
knowledge.
CONCLUSIONSANDRECOMMENDATIONS
GivenexistinghighfossilbasedLatinAmericanand
Caribbeanenergyprices,renewableenergy
developersenteringtheregionarefindingsomeof
themostlucrativeprojectsanywhereintheworld.
Theultimateresultoftheexpansionofthe
renewableenergyindustrythroughoutLatinAmerica
andtheCaribbeanwillbeawinwinfordevelopers
andinvestors
as
well
as
local
consumers.
For
developers,anexpandedrenewableenergymarket
andincreasedequipmentdemandwillcontinueto
driveinnovationinthemarketandlowerequipment
pricing.Forconsumers,theinclusionofnew
renewableenergypowerprojectsintotheirnational
powergenerationportfolioswillloweroverall
electricitypricesandpromoteincreased
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REGIONALBRIEFING:RENEWABLEENERGYINLATINAMERICAANDTHECARIBBEAN APRIL2014
11 AmericanCouncilOnRenewableEnergy(ACORE)
outages,draconianinflationrates,andsevere,
unsettlingeconomiccontraction.
Poorenergyaccessalsoresultsfromtheinefficient,
insufficient,oroutdatedpowergenerationmodels
oroperationsthatexistinmanyoftheregional
nations.TheInterAmericanDevelopmentBank
predictsthatseveralhundredbilliondollarswillneed
tobeinvestedintheregionsenergysectoroverthe
nextdecadetosatisfydemand,improveormaintain
growth,mitigateclimatechange,andsupply
affordableelectricitytothemajorityofthe
population.Theseneedsrepresentaunique
opportunitytoupgradeelectricityresources.From
generationtotransmissiontodistributionand
operations,theincorporationofrenewablepower
canbeawinwinforallstakeholders.Capitalis
available,andfinancingtoolscanleverage
investmentsandfacilitatewellconceivedprojectsin
placeswithreliableregulatoryandlegalframeworks.
SURMOUNTINGPETROLEUMDEPENDENCY
Insomeregions,suchasCentralAmericaandthe
Caribbean,thedependencyonfossilbasedliquid
fuelstogenerateelectricityhasfosteredeconomic
stagnation,orinsomecases,aregression.Burning
oiltoproduceenergyisamongthemostinefficient
energyproduction
practices
known.
Not
only
making
zeroeconomicsense,theadverseenvironmental
effectsaretragic.Severalregionalnationshavean
excessiveaddictiontoafossilbasedliquidfuelhabit
thatsiphonstremendouswealthfromtheir
economiesandratepayerswhiledestroyingtheir
environmentalhealth.Contrastsuchpracticeswith
thoseoftheU.S.,wherelessthanonepercentofthe
country'senergygenerationcomesfromburningoil.
Petrocaribe,theinitiativebeguntenyearsagoby
Venezuela'snationalstateoilmonopoly(PdVESA)to
createan
oil
alliance
with
many
Caribbean
states,
mayhaveappearedtoassistsomeofitsaffiliated
countries(clients)intheshortterm;butatitscore,
itisapoliticaltooltoensuresubsidizeddeliveriesof
expensivefuels,anevenlessreliablemechanism
todaygiventhedecliningproductionofPdVESAand
thepoliticalturmoilinVenezuela.
Ironically,twooftheleastefficientenergygrids
happentobeinsideU.S.borders:PuertoRicoand
theU.S.VirginIslands.Theseisolatedislandsystems
dependonburningoilforover70%oftheir
generation.Itisnosurprisethenthatboth
economies
remain
economically
burdened
while
manyoftheirneighborshaveexperiencedemergent
orsustainedgrowth.Withratesrangingfrom29
centsperkWhinthecaseofthePuertoRicoElectric
&PowerAuthority(PREPA)and45centsperkWh
chargedbytheVirginIslandsWater&Power
Authority(WAPA),itisnearlyimpossibletofoster
economicgrowth.
Withoilpriceshoveringatabout$100perbarrel
nowandinthefuture,theeconomicsare
detrimentaltoanynationtosurrenderitsenergy
presentandfuturetooil,aswellasimprudentfora
regionalnationsenvironmentalwellbeing.The
problembecomesmorevividwithasidebyside
comparisonofenergypricesindeveloped
economies,inpartbecauseinordertomeasurethe
realandcompleteadverseeffects,onemust
considerthe"purchasingpowerparity"(PPP)ofa
nationsratepayersrelativetonationalpercapita
GDP.Inrealandabsoluteterms,mostratepayersin
theCaribbeanbasinarepaying47timesmorefor
electricitythanratepayersintheU.S.Tobeginwith,
thefamilyorbusinessthatissubjecttothe35cents
perkWhcostforelectricityinadevelopingisland
nationwouldbepayingabout10centsperkWhin
TexasorMaryland.Butinaddition,theislanders
haveaPPPthatislessthan50%oftheir
counterpartsintheU.S.Ineffect,theislandersare
payingtheequivalentofabout400500%morefor
thesameamountofenergyconsumedbypeoplein
theU.S.Thisisthesituationtoday,whetheryouare
aclientofWAPA,PREPA,theCDEEEinthe
Dominican
Republic,
or
elsewhere.
SEIZINGMARKETOPPORTUNITIES
Withsuchamarkedcontrasthavingrealandvery
detrimentaleffectsonpeopleandbusinesses,the
onlywayoutofthissocioeconomicenigmaisto
pushforwardwithgamechangingrenewableenergy
strategies.
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Allcountrieshaveatleastpartialenergywealth
throughtheabilitytoexploitrenewablepower,beit
hydro,solar,wind,geothermal,biomass,orallofthe
above.Thepeopleandtheirelectedofficialsare
responsibleforoptimizingsuchnaturalresources.
While
some
assert
that
it
is
very
difficult
to
incorporatesignificantrenewablepowerinisland
jurisdictions,thefactsdemonstrateotherwise.Afew
yearsago,theHawaiianarchipelagoadoptedan
ambitiousyetfeasiblegoalofdiversifyingits
generationmatrixonafasttrackbasis.Thusfar,
Hawaiisplanisaheadofscheduleandreaching
tangibleeconomicandenvironmentalbenefits.
TakethecaseofChile;itseconomyhasgrownby
leapsandboundsoverthelasttwodecades.Official
estimatesindicatethatthecountryneedsto
increaseitspresentenergyoutputby100%during
thenexteighttotenyearstokeepupwithdemand,
meaningChile'senergymatrixneedstobevery
quicklyduplicated.Toachievethisreality,authorities
have,ofnecessity,fasttrackedenergydevelopment
madetheinclusionofunconventional,renewable
energysources(i.e.,virtuallyallrenewablesexcept
traditionalbighydro)atopnationalpriority.Hence,
Chilesemergingbutrobustgreenpowersectoris
expectedtoexperienceover60%growthin2014.
Gridconnectedprojectsinthepipelinewilladd
approximately650750MWofnewrenewable
power,foratotalinstalledcapacityofabout1,800
MW.Inaddition,considerabledeploymentofoff
gridrenewableenergyistakingplacevia
freestandingprojectsthatsupportcriticaleconomic
activities,includingtheuseofsolarphotovoltaics
(PV)atminingsitesandbiomassandsmallhydroin
forestryandagriculturaloperations.
Changeisheretostay.IntheCaribbean,theCDEEE
isimplementingaplantoincorporateover2,000
MWinnewgenerationwhilerestructuringitsfuels
matrix,significantlyaddingrenewableenergy,but
alsoincludingimportednaturalgasandcoal.The
endresultwillbetogrowandstabilizeboththe
nationalgridandprices.Otherregionalnationsare
takingthejumpintothefutureaswell.Uruguayhad
virtuallyzerounconventional,renewablepower
installationsin2011.Bytheendofthisyear,itwill
haveover700MWofnewwindandsolarPV
capacityinstalled.Noteworthyisthefactthat
Uruguaysstrategyisbeingimplemented100%via
privateinvestments.
Gamechangingstrategiesarerealistic.Renewable
energydeploymentinEurope,theU.S.,andCanada
haveproventobesmartpoliciesandgoodeconomic
choices.China,SouthAfrica,Chile,andotherfast
pacedeconomiesareadoptingaggressivemetricsto
installseveralthousandgigawattsofrenewable
energyoverthenextfewyears.Nowisthetimefor
LatinAmericaandtheCaribbeantoleapforwardand
advancethissustainabletrend.Thepublicand
privatesectorsoughttoworktogetherinthiscritical
endeavortocomplementandsupporteachother.
Governmentscanleverageprivatecapitalandfoster
directinvestmentsingenerationandtechnology
transfer.Usingprivatesectorfundsfornewsmart
andrenewablegeneration,thepublicsectorcan
liberateresourcestoinvestintransmissionand
distribution,andotherareasincludingsocial
prioritiessuchaslow andmediumincome
renewablefinancetools.
Globally,technologiesareeverimprovingand
achievinggridparityinmanylocations.AkWh
generatedby
petroleum
may
cost
over
30
cents;
however,akWhproducedbyrenewableresources
averagesroughly50%less.Moreover,advancesin
storagetechnologies,betterefficiencyratiosin
equipment,andsmartmetering,amongseveral
othertechnologies,reinforcetheeconomicsecurity
ofincorporatingrenewablepowerintoLACnational
grids.
CONCLUSION
Amidstall
the
changes
in
the
LAC
energy
landscape,
onethingisfairlycertain:renewablepowersources
arepredictable,sustainable,affordable,andreadyto
bedeployed.Smarttechnologiesarenowareality,
financingoptionsareattractive,andadistributed
generationandmicrogridrevolutionlookstobethe
nextbigmarketdriver.Suchindicators,conditions,
anddevelopmentsareagreatharbingerforLatin
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13 AmericanCouncilOnRenewableEnergy(ACORE)
AmericaandCaribbean.Formostregionalnations,
renewableenergyportfoliosofbetween3040%by
2020aredoable.Meanwhile,shortterm,feasible
goalssuchas1520%oftotaldeployedrenewable
powerby2017mustbeapriority,and
achievement
of
that
goal
would
be
quite
a
game
changer.
ABOUTTHEAUTHORS
Dentonsisaglobalfirmdriventoprovidea
competitiveedgeinanincreasinglycomplexand
interconnectedworld.ItwasformedinMarch2013
bythecombinationofinternationallawfirmSalans
LLP,CanadianlawfirmFraserMilnerCasgrainLLP
(FMC),andinternationallawfirmSNRDenton.
Dentons'clientsbenefitfromapproximately2,600
lawyersand
professionals
in
more
than
75
locations
spanning50pluscountriesacrossAfrica,AsiaPacific,
Canada,CentralAsia,Europe,theMiddleEast,
RussiaandtheCIS,theUK,andtheU.S.whoare
committedtochallengethestatusquoandoffer
creative,dynamicbusinessandlegalsolutions.
JuanCarlosIturreguiisaSeniorAdvisoratDentons,
basedinWashington,D.C.Heisanaccomplished
attorney,entrepreneur, andpublicpolicy
professionalwithtwodecadesofWashingtonand
internationalexperience.
He
has
practical
experience
andyearsofworkingwithdiverseclients,colleagues,
andinterestsinbothpublicandprivatesectors.Juan
Carloshasakeenunderstandingoftheinteractions
andinterconnectionsamonggovernments,
multilateralentities,stakeholders,andspecial
interestsintheformulationandexecutionofpublic
policyandprojects,withparticularfocusonthe
globaltrade,commerce,energy,renewables,and
infrastructuresectors.Hetravelsextensively
throughoutLatinAmericaandtheCaribbeanandhas
beenacommittedadvocateforcloserintegration
andnorthsouthcommercialtiesformanyyears.He
obtained
his
BA
in
Political
Science
from
the
UniversityofMassachusettsinAmherst,andhisJD
fromtheCatholicUniversityofAmericain
Washington.JuanCarlosspeaksSpanishandEnglish.
SydneyMcNiffJohnsonisaPrincipalatDentons,
basedinWashington,D.C.Sydneyhasoverthirty
yearsofenergypolicyexperience,startingonCapitol
HillwithCongressmanPeteMcCloskey(RCA)in
1978asEnergyandEnvironmentalLegislative
Assistant.SydneyworksintheDentonsEnergy
Practiceonprojectmanagementforalternative
energyandtraditionalenergyclients,aswellas
strategiccommunicationsstrategiestoincrease
clientvisibilityanddirectpublicopinionwithin
governmentandcommercialsectors.Shealso
advisesclientsoncurrentenergypolicyissues.
SydneyconsultswithCEOsandseniormanagement
teamstomakelongtermbusinessdecisionstohelp
bringproductstoalargermarketplace.Sheisskilled
inevaluatingthegovernmentrelationsstrategyand
publicrelationseffortsofacompanytoultimately
increaseshareholdervalue.Sydneyservesonthe
LeadershipCouncilofACORE,theBoardofDirectors
oftheWomen'sCouncilonEnergyandEnvironment
(WCEE),andisamemberoftheChairman'sCouncil
ofConservationInternational.Sydneyobtainedher
BAinPoliticalEconomicsfromtheColoradoCollege
andspeaksEnglishandFrench.
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