Latin America A New Hot Spot For Renewable Energy

Latin America is the new frontier for clean and sustainable energy. In 2013, Latin America attracted about US16 billion of investment in the clean energy sector, representing over seven per cent of total global investments in renewable energy. Decreasing technology costs and increasingly supportive policies in the clean energy field have allowed the region to become an exciting market for renewable energy. Today Latin America generates about seven percent of total global electricity, and almost 65 per cent of that comes from renewable sources. The largest share comes from hydropower: more than 725 terawatt-hours (TWh). Non-traditional renewable electricity sources (such as solar, wind, geothermal, etc.) account for only six percent of the power mix in the continent. POWERFUL GROWTH It is expected that by 2050 over 20 per cent of the electricity generated in the region will come from non-hydro renewables. From the northern Sonora Dessert in Mexico to southern Argentinian Patagonia, the region is loaded with vast renewable energy resources. They alone could supply over 20 times the electricity demand expected by 2050, which will nearly triple to about 3,500 TWh. The region's estimated onshore wind energy potential, about 1,600 TWh, would alone be enough to fully power the continent's current electricity demands. Electricity consumption is expected to increase annually by three per cent. By 2030, this rate of growth will require the region to almost double its installed power, to about 600,000 MW. Taking into account these massive power infrastructure requirements, renewable energy could be established as leading source of power. It could shift the region's energy model towards a more sustainable one. In the period between 2006 and 2013, total renewable energy capacity in Latin America and the Caribbean grew more than 270 per cent. In the same period, more than 3,000 MW of new additional renewable capacity were brought on line. There is no reason why the region's success in renewable energy could not continue to be extended over the coming decades. THE TOP FIVE There are several renewable energy success stories offering exciting examples of the potential for a clean energy revolution in the region. Five of the 26 countries of Latin America distinguish themselves for renewable energy performance. They shine thanks to the enabling environment created by their energy and industrial policies, the growing renewable energy investment attractiveness they have created, and the high speed in which clean technologies have penetrated into their energy markets. Latin America is booming for renewable energy, but five countries are particularly raising the bar for clean energy transformation. They are: Costa Rica, Uruguay, Brazil, Chile, Mexico; and special mentions on Peru and Nicaragua. A new report by WWF - Green Energy Leaders: Latin America's Top Countries in Renewable Energy - is a compilation of renewable energy success stories from the region, focusing in the five countries which are making renewable energy Latin America's new normal. "TABAR'e A. CURR'aS IS AN ENERGY ECONOMIST WITH WWF' S GLOBAL CLIMATE AND ENERGY INITIATIVE. HE IS BASED IN MEXICO. TACURRAS@WWF.PANDA.ORG"