Experts gathered at Energy Week 2022 highlighted that Latin America could be a key part in global energy supply, although they have pointed out the need to achieve “clarity in the regulation” to encourage investment in the region.
ISSUE 108 | 2022
ENERGÍABolivia/Siemens Energy
The Latin America Energy Week 2022 brought together important experts focused on recognizing the enormous potential of the region to export clean energy to different regions of the planet, as part of a “strategic priority”, after the pandemic and the war between Russia and Ukraine. The current war environment was analyzed by the participants to point out that the region can expand its role in international energy markets, considering that in the short term, the region could even supply oil and gas to the countries affected by the sanctions against Russia. Along these lines, César Norton, president of HIF Global Chile, said that “there is a consensus about the enormous opportunities in Latin America, which has the ideal conditions to export to other regions. But you must have clarity in the regulation to encourage these investments.”
RELIABLE ENERGY PRODUCERS
André Clark, Senior Vice President Hub Latin America, Siemens Energy (Brazil), assured that: “In Latin America, many of the countries are reliable energy producers, and they are also democracies with solid institutions. These nations have great potential to provide reliable energy to other countries, helping them in their energy transitions.”
All in all, various leaders from the energy, finance, technology, public and private sectors recognized that it is mandatory to create the right conditions such as greater regional integration and make clean energy exports a strategic priority in the public agendas of the region.
This would happen, by accelerating integration processes as a way of fostering energy security, which once again is gaining momentum in a global scale, although it was clear that there is still a lot to be done in all these areas, specifying that the commitment of governments in defining energy models, the elimination of barriers and the application of regulations that promote investment in energy is crucial for energy infrastructure, security and sovereignty.
ENERGY PRIORITIES
The event, which took place virtually from June 8th to 10th , also opened the analysis for a set of key energy priorities and the progress made at the level of energy transition, a topic that is considered as essential in the world’s agenda because of its sustainability implications for the planet. Energy Week 2022 managed to set the idea that despite the region’s minor contribution to climate change, which is responsible for only 5% of global CO2 emissions, some misperceptions remain about the region’s performance regarding emissions reduction. The experts pointed out that most of the energy sources in Latin American and Caribbean countries are reliant on hydroelectric energy, although there are exceptions, considering that in fact, most of the emissions in Latin America come from outside the electricity sector.
the energy transition could be a catalyst for the region’s economy, attracting investment and creating many new job opportunities”
The experts made it clear that in terms of primary energy consumption, approximately 70% of this energy comes from fossil fuels. So, they highlighted that the electrification of the industry, transport and the residential sector, are a key priority in order to achieve carbon reduction.
THE TRANSITION AS A CATALYST
Under these considerations, the participants said that ” the energy transition could be a catalyst for the region’s economy, attracting investment and creating many new job opportunities”.
They highlighted the abundant sources of high-quality wind and solar energy as a competitive advantage, which has an interesting generation cost, at the same time, they recognized the potential of green hydrogen generation.
In this agenda, the necessity of integration to guarantee energy security regain momentum, although it became clear that there is still a lot to be done in all areas, specifying that the commitment of governments to define energy models, the elimination of barriers and enforcement of regulations that drive investment in energy are crucial for energy infrastructure, security and sovereignty.
TRANSITION READINESS INDEX
As one of the important conclusions, it was established that, in general, Latin America has a 22% score in its Preparation for the Energy Transition Index, pointing out that this gives it a solid base, especially since the emission quota of the region is low.
However, the panelists pointed out that the challenges for Latin America are great and these challenges range from evaluating and making corrections to current perceptions about what has already been achieved, as well as finding ways to compensate the region for potential income losses related to fossil fuel exports.
“…integration to guarantee energy security regain momentum, although it became clear that there is still a lot to be done…”
