The 6th International Conference on Integration of Renewable and Distributed Energy Resources The Current Situation of Renewable Energy in Latin America Dr. Jorge M Huacuz Renewable Energy Unit Electrical Research Institute (IIE) Cuernavaca, Mexico E-Mail: [email protected] A glimpse at Latin America General Information Surface area 22’,222.000 km2 Number of countries 26 Total population 588 million Urban population 79% Official languages Spanish, Portuguese (Brazil) Installed electrical capacity 336 GW Electricity production (2011) 1,348 TWh Energy use 1,292 kg o.e./capita People w/o electricity 34 million CO2 emissions 2.7 Tons/capita CO2 emissions in the World context (2011) Electricity Generation in the World context (2011) The LATAM electricity matrix Hydro Nat Gas Oil Derivatives Coal Biofuels & Waste Nuclear Geothermal Imports Wind & solar Crude Oil 30.70% 29.40% 16.10% 8.50% 5.10% 3.90% 3.90% 2.10% 0.22% 0.08% GWh/year Industry Residential Commercial Other Export Transport Source: IDB Energy Innovation Center, Latin America Electricity Matrix 2011 (GWh/year) Source: Yepez-García R.A., et al, Meeting the Electricity Supply/Demand Balance in Latin America & the Caribbean. ESMAP, The World Bank, 2010 44.80% 25.30% 20.30% 4.70% 4.50% 0.40% Challenge: increasing per capita electricity use Per capita electricity use and total electricity production in Latin America are still relatively low Economic growth is pushing up electricity demand but capacity growth projections heavily rely on natural gas and big hydro Electricity Production in GWh LATAM generation capacity growth ICEPAC scenario Source: Yepez-García R.A., et al, Meeting the Electricity Supply/Demand Balance in Latin America & the Caribbean. ESMAP, The World Bank, 2010 Will renewables get a chance? Capacity expansion for electricity generation in Latin America is expected to grow about 600 GW by the year 2030 An investment close to 430 billion US$ will be required for capacity expansion Fossil energy use will reach 41% due to substantial reliance on natural gas However, the Latin American region could produce close to 80 PWh from renewable energy, corresponding to a peak capacity of about 34 TWh Investment capital is flowing in US$ ~108 bn Bright future for Photovoltaics World PV Attractiveness Chart COUNTRY Brazil Chile Mexico PV PROJECTS AMOUNT TOTAL GW 400 10.2 64 5.2 72 1.7 Source: 1 PV Magazine, 9/26 Latin American countries highly attractive for PV investment PHOTOVOLTAIC PROJECT CATEGORY Under construction Expected within 5 years Project portfolio Source: LATIN AMERICA CENTRAL AMERICA 1 GW 9 GW 22 GW 22 MW 1.5 GW ---- NPD Solarbuzz IHS Technology Regional PV Portfolios Wind, on its way and growing COUNTRY INSTALLED CAPACITY (MW) 3,461 1,917 335 218 148 146 102 85 Brazil Mexico Chile Argentina Costa Rica Nicaragua Honduras Dominican Republic Uruguay 59 The 136 Caribbean Others 74 Total 6,681 Fraction of World Total: 2.1% Source: GWEC-Global Wind 2013 Report Argentina Barbados Brazil Chile Colombia Costa Rica Dominican Republic Ecuador El Salvador Guatemala Grenada Haiti Honduras Jamaica Mexico Nicaragua Panama Paraguay Peru St. Lucia Trinidad and Tobago Uruguay Source: Own construction with data from REN21 Renewable Energy Global Status Report 2014 Public investment, loans or grants Energy production payment Investment or production tax credit Tax reductions Capital subsidy or rebate Biofuels obligation/ mandate Heat obligation/ mandate Tendering Tradable REC New Net metering Revised Electric utility quota obligations/RPS Existing FINANCIAL INCENTIVES AND PUBLIC FINANCING ENABLING REGULATORY POLICIES Feed-in Tariff/ Premium payment Key Renewable energy targets COUNTRY Concluding Remarks Given its abundant renewable energy resources, growing electricity demand and evolving enabling legal and regulatory framework, Latin America may become a major player in the arena of green power However, for this to happen in the near future, a number barriers have to be removed, including: • The growing tendency of the regional electrical sectors to rely on natural gas • The concerns of the electric utilities regarding the variability and intermittency of some renewable energy resources, notably wind and solar • The set of subsidies applied to fossil fuels and to fossil-fueled electricity generation • The limited number of regional analysis for the valuation of renewable energy as a motor for economic growth, job creation and development of new forms of the electricity business • The hesitation of government officials to move swiftly towards a green economy Electrical Research Institute www.iie.org.mx Gracias..... Thank you….….. [email protected]