Renewable energy is on the rise in Latin America and the Caribbean (LAC). there is a palpable surge of excitement, interest – and investment – in a range of renewable technologies including wind, solar and biodiesel, complementing the already-important role being played by hydroelectric energy. While the region remains dependent on fossil fuel-based energy such as oil, gas and coal, various indicators suggest that a tipping point towards a more accelerated take-up of renewables may not be far off. Significantly, the region may be on the verge of an ‘electricity revolution’ that will have far-reaching implications and effects, both creative and disruptive. In this paper, we spell out the possible shape and implications of such a revolution. to start, we map out the current regional energy landscape and then identify some of the trends that foreshadow the dynamic role that renewables can play in the coming ‘Energy revolution’.
Still Addicted To Hydrocarbons
While the region is still hydrocarbon-dependent, there is growing awareness of the costs of that dependence, and of the potentially substantial benefits to be had from diversification and decarbonisation. Latin America and the Caribbean still has abundant conventional oil and gas reserves, concentrated in Venezuela, Mexico, Colombia, Ecuador, Brazil and several other countries. there have been major deepwater discoveries off the coast of Guyana. Also present are additional non- conventional hydrocarbons reserves, including the orinoco tar sands in Venezuela, sizeable shale oil and gas reserves in Mexico and Argentina, and deep water offshore oil deposits in Brazil. oil accounted for 46% of the region’s total primary energy supply (tPES) in 2013, significantly above the global average of 31%. oil dependency is particularly acute in the regional transport sector, reflecting a vehicle fleet that, on average, is older and less fuel-efficient than in other parts of the world.