November 2014: A report by the Worldwatch Institute explores the development of renewable energy in Latin America and the Caribbean’s electricity sector. The study is available on the Inter-American Development Bank’s (IDB) website.
Titled ‘Study on the Development of the Renewable Energy Market in Latin America and the Caribbean,’ the report provides an overview of global trends of renewable energy technologies, markets, grid integration and environmental issues. It then presents: the status of renewable energy development by subregion, policy landscape and trend; investment flows and market trends; and an outlook for medium-term expansion for renewable energy in the region. The study also examines the vulnerabilities of the power sector to climate change impacts. It concludes with recommendations on how multilateral development banks (MDBs) can drive the development of renewable energy in the region.
The report identifies several barriers to the advancement of renewable energy in Latin America and the Caribbean (LARC), including: lack of public awareness; vested interests; data inaccessibility; fossil fuel subsidies; lack of capital; unavailability of appropriate loan products; and absence of long-term policy frameworks and policy support. To overcome these, the report recommends integrated energy planning, detailed renewable energy roadmaps and technical, socioeconomic and financial assessments.
The report also presents key electricity sector climate vulnerabilities and related adaptation measures in the areas of generation, transmission and distribution, and energy demand. It calls for integrating adaptation measures into energy sector planning throughout the region and recommends detailed assessments of the impacts of and adaptation to climate change to enable the region to develop while guaranteeing energy security, reliability and resilience.
The report finds that MDBs can help drive the development of renewables in LARC through: support to building enabling infrastructures for the grid of the future; assistance to governments in securing private sector investment; and engagement in energy policy design. [IDB Publication Webpage] [Publication: Study on the Development of the Renewable Energy Market in Latin America and the Caribbean]