The Energy Path Of Latin America And The Caribbean

With rapid energy growth in the past 40 years, the Latin American and Caribbean (LAC) region has maintained a steady increase in electricity needs above the global level. While there is no question that demand will remain strong over the next two decades, what remains to be seen is what kind of energy matrix will be used to meet that appetite and what will be the investments going into the industry. This report makes an attempt to answer these critical questions by taking a deep look into the demand and supply side of the industry. To this end, it will seek to (i) identify the amount of demand growth until 2040, (ii) project the electricity generation matrix by each energy source, and (iii) determine the investment requirements by source, based on cost efficiency criteria, for regulators and utilities’ consideration.

Energy efficiency is the best tool to improve sustainability and affordability of energy services. However, there are considerable challenges when it comes to identifying opportunities and measurement. This monograph provides a comprehensive understanding of the trends and progress made in terms of energy intensity in Latin America and the Caribbean (LAC) compared to other world regions and nationally by looking at the aggregate, industrial and household levels. Additionally, it discusses the limitations of using such indicator to measure energy efficiency in LAC. In order to complement perspectives resulting from this indicator, it investigates the counterpart challenge of promoting energy efficiency: creating incentives. To address this challenge, the present document proposes a conceptual framework through which to analyze energy efficiency policies and regulation across the region. This framework consists of four steps: Law and regulation, Types of incentives, Targets and Governance and Support. The analysis carried out leads to policy recommendations at both the national and regional levels.

Over the coming decades, the supply of electric power will need to expand to meet the growing demand for electricity, but how the production and use of electricity develops will have broad ramifications for the diverse economies and societies of Latin America and the Caribbean. This report discusses the critical issues for the power sector considering a baseline scenario to 2030 for countries and sub-regions. Among these critical issues are the demand for electricity, the total new supply of electric generating capacity needed, the technology and fuel mix of the generating capacity, and the CO2 emissions of the sector. Under modest GDP growth assumptions, the demand for electricity in Latin America and the Caribbean would more than double by 2030. The analysis suggests that under any economic scenario, it will be challenging for the Region to meet future electricity demand. The report shows that meeting the demand for electricity in Latin America and the Caribbean can be achieved by not only building new generating capacity by the expansion of hydropower and natural gas, but by relying on an increased supply of non-hydro renewables, expanding electricity trade, and making use of supply and demand-side energy efficiency to lower the overall demand for electricity. Some recommendations derived from the report are the need for strengthening regulations and market design of hydropower and gas power generation projects and the need to design supportive policies to develop renewable energy technologies and promote energy efficiency measures. The primary audience to which this report is addressed are policy makers, power sector planners and stakeholders.

This book explores the potential for renewable energy development and the adoption of sustainable production processes in Latin America and the Caribbean. By examining the energy transition process, the impact of environmental degradation, and the relationship between renewable energy sources and economic growth, the effects of increased globalisation and liberalisation in this part of the world are analysed. Particular attention is given to renewable energy investment, the energy-economics growth nexus, the impact of trade openness, and the mitigation of carbon emissions. This book aims to highlight econometric techniques that can be used to tackle issues relating to globalisation, the energy transition, and environmental degradation. It will be relevant to researchers and policymakers interested in energy and environmental economics.

Due to the lack of systematic policy evaluations, identifying successful policies in the Latin American and the Caribbean (LAC) region is a hunting task. Nevertheless, this type of analysis is crucial to inform policymakers in their decision-making process. Herein we contribute to filling this gap by assessing the progress in terms of energy services since the year 2000 and reviewing the policies that have led us to where we are.We focus on three fundamental dimensions in the definition of energy services: access to electricity and clean fuels for cooking, affordability of those energy services and quality considering both service’s interruptions and energy losses. We find that countries that have improved in all these dimensions simultaneously, catching up with the best performers in the region, are the ones that have implemented integrated policies that are part of a pluriannual plan, implemented in a strong institutional environment.Aside from macroeconomic differences, successful energy policies have in common the following characteristics: (i) important institutional reforms already in place by the end of the century; (ii) state-led plans that measure performance accounting for most dimensions simultaneously and including mechanisms to enforce preestablished objectives in targeted population; (iii) appropriate financing mechanisms to ensure affordability; and (iv) partnership with private stakeholders when their participation increases efficiency, adoption of innovation and ensure maintenance, either directly or through the involvement of local communities.Even if the discussion is presented dimension by dimension, two countries appear like having implemented successful integrated policies: Peru and Ecuador. Despite their institutional differences, they have succeeded in increasing access to affordable electricity that is more reliable (with less frequency and duration of interruptions). Additionally, Ecuador has also enhanced efficiency through electricity loss reduction thanks to enforceable performance-based regulation.Aside from these two countries, other countries have also implemented successful policies that have greatly improved one or two of the dimensions mentioned but fail to tackle all the issues simultaneously. This is the case of El Salvador with access to clean cooking and fuel subsidy reform, for example. Similarly, Nicaragua appears as an example in bridging the gap in access and Brazil, Colombia and more recently Argentina are implementing a mechanism to target demand-side subsidies based on family economic means.

How do households consume and spend on energy? What are the drivers of their spending and consumption patterns? How does energy consumption has evolved? What is to be expected as the region climbs the development ladder? What are the distributive implications of different energy pricing approaches? This book looks at these questions and examines which policies work in reducing energy poverty and increasing energy savings. The authors unveil the growing household demand of better quality of energy and show that to achieve more cost-effective and progressive public policies, it is necessary to strengthen the transparency and sustainability of energy pricing while having into account the consumer behavioral responses. This volume is a resource for designing energy policies based on an empirical understanding of the household’s energy needs.