Investment renewable energy market in Latin America to carrot and stick

Polaris solar PV net news: “special geographical features is very suitable for renewable energy development in Latin America, hope to cooperate with more and more Chinese enterprises. “Guyana Minister of Commerce in response to a question, said, in recent years, the region’s rapid development puts higher demands on energy supply, Latin American countries hope that through the development of solar, wind and other clean energy sources to energy supply.

Renewable energy popular

“Energy is the cleanest in the world produced in Latin American countries. “From Costa Rica East class of AguilarCastilloLove law firm ˙ Aguero, in 2013, 54% energy is a renewable source of Latin American countries, such as solar, wind, biomass, etc. By 2030, Latin American countries will invest about 1.5 trillion dollars in energy infrastructure.

Reporters from the Inter-American Development Bank also learned of a clean energy development report, the world’s top 10 countries develop clean energy index, 4 from Latin America, namely Brazil, and Chile, and Mexico and Uruguay. In 2015, the region in wind, solar, biomass, geothermal and other renewable sectors up to 23 billion dollars.

“Renewable energy technologies are leading in some Latin American countries, such as Brazil on biofuels. “Long-term commitment to Latin American researcher at the National Research Institute of the Chinese Academy of social sciences in Latin America Yue Yunxia introduces, in addition to technical aspects, clean energy legislation generally relatively well in Latin American countries, the Government has a lot of incentives and means.

Said Yue Yunxia, diverse energy distribution in Latin America, some parts of the oil-rich, but many areas of traditional energy sources such as oil scarcity, development of local geographical characteristics of renewable energy such as solar energy, light energy is very important.

Reporters learned that some traditional energy superpower is also trying to upgrade the energy production model. “Argentina’s energy structure of 72% belongs to the traditional sources of energy, is a mode of polluting energy production. We also hope to raise the proportion of renewable energy use. Argentina world class solar energy resources, the Government also is working to boost its renewable energy development. “Argentina Director for renewable energy development in the Ministry of energy and mines, Maximiliano ˙ Morone said.

Enterprises engaged in the Latin American market

About market conditions across the region, Assistant Shen Chen, head of China energy in construction, international: “on one hand, overall Politburo smooth potential in Latin America, strong demand for infrastructure construction, Chinese companies are also more and more attention to cooperation with Latin American countries. The other hand, due to the high level of national debt in Latin America, Governments tend to infrastructure privatization and public-private partnership model to reduce financial pressure on the Government. “He said, electrical energy industry, Latin American countries such as Peru, and Colombia, and Chile, very high degree of marketization of power projects.

“For example in Chile building solar power projects, you can select a short-term power purchase agreements with the local customers, or participation in national electricity Commission periodic price bidding, or even to participate in electricity prices on the futures market transactions, the overall mechanism is relatively mature, and electricity markets are very different in Asia and Africa. “Shen Chen said.

In addition to the power project, in the field of high technology, China’s photovoltaic products have a strong advantage, very suitable for the Latin American market. “Solar power requires a certain amount of infrastructure and Government support and financial support, Latin America countries, both big countries Argentina, and Chile, and Peru, and Costa Rica, which, have a very good market conditions. Yingli is not, in the future we will also plan cooperation with joint production of solar panels and other Latin American countries. “Yingli Group General Manager Wang gang said.

Enterprises with roots in Latin American markets will inevitably face some challenges. “Compared with many European and American contractors, the popularity and reputation of Chinese enterprises is still not very high. Meanwhile, many enterprises faced with upgrading local share and meet the challenge of high engineering standards. “Shen Chen said, some project of feasibility often subject Yu local environment, like in Peru, Aboriginal groups very huge, many large of hydropower project, and high pressure transmission line project, although in technology Shang feasible, investment returns expected also is good, but due to local of Aboriginal problem, some project delay took not to license, or in implementation process in the to processing this class problem, cost serious exceeded, duration greatly lag, on engineering smooth completed brings has adverse effect.

In this regard, the Yue Yunxia also said Chinese cooperation with Latin American countries in the energy sector has a certain complementarity, but with investment in other regions is that enterprises not only need to pay great attention to their technical, financial and other hard conditions, but also to take into account local ecological, humanistic soft elements.

Original title: investing in Latin American energy market “carrot and stick”

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