Latin America Is Poised to Become a Leader in Renewable Energy This Year

artist's impression on renewable energy
Image Source: Olearys, CC BY 2.0

Countries in Latin America are set to take on a leading role in the international arena of renewable energy and climate change this 2017.

With the rapid development and more great potential of renewable energy, the region offers high hopes for a global transition to a low-carbon economy, which also brings about an enormous opportunity that extends beyond its borders.

According to a December 2016 report by the World Economic Forum, Mexico, Chile, and Brazil, among other Latin American countries, are rapidly developing their solar and wind energy resources, outcompeting fossil fuels. It is also predicted by the Bloomberg New Energy Finance that solar energy would be cheaper than coal by 2025, especially in countries without a carbon tax and with limited coal deposits, such as Brazil.

A recent report by the International Energy Agency also indicated that renewable energy resources will remain the fastest-growing source of electricity. And with 53% of electricity-generating capacity accounted for by clean energy sources in Latin America, the region is already leading the green energy movement in the world.

Argentina also ranks among the top performers in the renewable energy country attractiveness index by Ernst & Young. This means that the country has ambitious clean energy targets, legislations, and fiscal incentives to establish a good business climate that increases investor confidence in the renewable market.

Commenting on how Latin America will be able to achieve its goals, Andrés Romero Celedón, executive secretary of National Energy Commission of Chile, said:

“Different countries should collaborate in three areas: the development of human capital, capable of solving the different problems we’re predicted to face in the next years; providing open public information on energy to the community; and sharing good practices and knowledge for the construction of appropriate public policies in the energy sector.”

Aside from being focused on renewables, the region also has a growing awareness about land use and forest conservation.