Part II: Renewable Electricity Doesn’t Even Generate Inertia
This is the second of a three part series entitled, Why Argentina’s Renewable Energy Program Has Stalled. This article outlines Argentina’s initial push to develop a strong renewable energy sector. However, the numerous investment projects that were approved by the government at very attractive returns for investors have not taken place because of the perceived risk of investing in the country under the current government administration, the high levels of subsidies on electricity pricing, and a lack of consistency in policymaking.
About the Author: Carlos St. James founded the Argentine Renewable Energies Chamber; is a board member of the Latin American & Caribbean Council on Renewable Energy; founded and is chairman of the Middle East-Americas Energy Council; and publisher of The Latin American Energy Review.
Taking the long view, this article makes the case that the renewable energy industry is one third of the way into a century long success story. Latin America has all the requisite stakeholders in place: financial institutions, technology providers, and certainly an abundance of natural resources. Ultimate success depends on global priorities: the winning energy sources will be the ones that meet humanity’s goals best. If the goal is lowest-cost energy, then fossil fuels will win – until it runs out. If the goal is low cost and least pollution, then natural gas and renewables will win. If the goal is least impact on global warming, then nuclear power and renewable energy will win.
Invited Contributor: Michael Eckhart authored this piece exclusively for The Review. Heis Managing Director and Global Head of Environmental Finance and Sustainability for Citigroup in New York City.
Increasing economic growth in Latin American countries, growing environmental awareness, initiatives by agencies such as the Inter-American Development Bank and International Finance Corporation, and reducing cost of renewable technologies have provided many regional governments the impetus to implementing diverse policies to attract new investment in the renewable energy sector.
Invited Contributor: Jaya Viswanadha authored this piece exclusively for The Review. She is a Managing Director in the Latin American Energy & Infrastructure Group at Crédit Agricole CIB in New York. She has over thirteen year’s experience in the project finance industry in Latin America, Europe and India.