LATAM: How investment in the renewable energy market could be a strong move this year
Continuing with the theme of the environment, the generation of renewable energy seemed like a key market for us to investigate, especially in Latin America where rapid technological development and a favourable climate facilitate new investment opportunities throughout the region. To provide a little more context, renewable energy, or, clean energy, makes reference to sustainably produced fuels which do not add to the problem of climate change while also providing a solution for the future of transport as well as daily life in general. The COVID-19 pandemic has shown us the potential for accelerated and unforeseen changes to the global population, giving a new perspective to the environmental crisis. However, the changes following the pandemic are temporary, meanwhile the changes associated with climate change are not the same and it is due to this that today’s theme is all the more important.
Before sharing specific examples, it is important to highlight the numbers and, in effect, underline the potential that exists within this sector in Latin America. The capacity for renewable energy in the region in 2020 was 278GW, 60% more than at the beginning of the decade. This statistic represents the incredible potential for investments in the market, and with a need to make ourselves the difference between crisis and success with respect to the environment, there is a need to also continue the development seen in the past decade in order to increase the capacity a bit more and perhaps your investment could change our course towards lower emissions.
With this established, we can investigate some examples of their use in Latin America. We just mentioned the climate in the region, and, specifically, each country has their own individual advantages which make the generation of other forms of energy more viable, for example, solar energy in Chile or wind energy in Argentina. For potential investors, this diversity shows a large gap in the market to find big returns, not only economically, but also environmentally. Furthermore, with 25% of the total energy consumption of the region being from renewables, there still exists a potential to increase the level of development with new projects in Latin America.
Now we have three projects to share with you, hopefully they can demonstrate the type of investment that you would be able to make in the region:
Uruguay - Paso de los Toros
· US$2.7 billion of investment