Virtual Chilean forum on renewable energy set to end
The Renewable Energy Forum between Chile and Paraguay ends today. The event focused on the prospects of reinvigorated commercial ties between the two countries as well as growth opportunities present in regional renewable energy markets.
Due to its favourable climate, vast geography and abundant natural resources, Latin America accounts for nearly 10% of the world’s total installed renewable energy, which stood at 2,350 gigawatts (GW) in 2018. The region—particularly the Southern Cone—continues to elevate its production capacity, construct hydropower facilities and develop solar and wind infrastructure.
Foreign investment in regional clean energy amounted to approximately $6.9 billion in 2018, derived largely from Europe. As governments in Latin America scramble to combat the fallout of COVID-19, renewable energy has become a viable pathway to economic recovery. From policymakers and investors, the pandemic has accelerated a focus on sustainability as the risks of traditional energy supply chains become painfully evident.
Given the regional trajectory of sector growth, investors and governments are expected to make a gradual shift to an increasingly risk management-based model of investment. This would likely focus on securing critical materials and preparing for new waves of political instability and geopolitical tensions as well as the ramifications typically associated with large infrastructure projects.
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