Climate Action 2010-2011

Regional Focus
58 per cent of electricity generated in Latin America and the Caribbean comes
from hydropower.
© iStockphoto
Sustainable energy
development in
Latin America and
the Caribbean
Carlos A. Flórez Piedrahita
Executive Secretary for the Latin American Energy Organisation (OLADE)
In Latin America and the Caribbean, 96 per cent of
the total electricity generated comes from just two
sources of energy – hydroelectric power (58 per cent), and
fossil fuels (38 per cent). Despite the region’s great wind,
geothermal and solar energy potential, only two per
cent of electricity is generated from non-conventional
renewable sources. In this context, OLADE can play
an important bridging role in stimulating sustainable
energy development throughout the region. It is working
to establish and strengthen international co-operation
on renewable energy projects and to facilitate vital
technology transfer.
Within Latin America and the Caribbean, hydropower
is the chief source of electricity. The region’s total installed
capacity for hydropower is 150.4 gigawatts (GW) – of
which over half (80GW) is in Brazil. Brazil is one of the
world’s top hydroelectricity producers: 1,000 of the 1,500
power plants in Brazil are hydroelectric. By contrast,
Mexico generates more than 80 per cent of its electricity
from fossil fuels and Cuba, with no hydropower plants,
generates all its electricity from fossil fuels.
Although many countries in the region are harnessing
hydropower for electricity, there is great potential to
harness more. Only 23 per cent of hydropower’s potential
sources are currently being tapped. The principal source of
renewable energy and clean electric energy in the region
now and in the future will continue to be hydropower.
However, there is also great potential to increase the
proportion of other renewable energy sources, such as
biomass, wind, geothermal and solar.
The four pillars for renewable energy
development
There are four essential pillars for the development of
renewable energy:
The environment – Greater awareness of the irreversible
consequences of CO 2
released by the burning of fossil fuels
will serve to promote the use of sustainable, renewable
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energy sources and the reduction of CO 2
emissions.
Energy Security – The regional electricity matrix indicates
that there is a high dependence on a) fossil fuels and b)
hydroelectric systems. Therefore, there is an urgent need
to guarantee energy security in the region due to the
decreasing global supply of fossil fuels and the dependence
on external sources of energy in countries that are not
producers of fossil fuels. On the other hand, energy security
also depends how vulnerable hydroelectric systems may
become due to global warming, the impact on diverse
hydrographic sites and their poor management. The need to
diversify the energy matrix in the region is imperative.
Economic performance – Conventional, fossil-fuelled
forms of electricity generation must be substituted
progressively for clean technologies, provided the latter
increase their economic and technical efficiency. Efficiency
is assessed according to the cost of investment and the
energy required for the operation and maintenance of the
power plant.
Social inclusion – After a cost analysis, renewable energies
are found to be more expensive than their fossil-fuel
counterparts but, in reality, they are the ones that stimulate
the development of local industries and generate employment,
creating greater opportunities and enhancing social inclusion.
For example, the biomass sector has a positive impact on
social inclusion in the agricultural industry. If we add the
internalisation of environmental costs, renewable energy in
the long term has great benefits in terms of developing a
sustainable economy, society and environment.
Fostering a ‘renewables-friendly’
environment
If there were greater political will to develop the renewable
energy sector, a stimulating environment could be constructed
to accelerate the transition. Such an environment would
feature a favourable constitutional and regulatory framework,
greater fiscal stimulus and institutional capacity, education in
renewable energy technology and comprehensive (re)training
of local communities.
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