The Annual Energy Dinner 2023 was a sold-out event and became the highly anticipated gathering for the energy sector. The key topics discussed included resources, regulation, networks, trust relationships, and decarbonization amidst a declining hydrocarbon production scenario.
ISSUE 118 | 2023
Raúl Serrano
On April 20th, the “Annual Energy Dinner 2023” took place, organized by CECAL SRL and ENERGÍABolivia Magazine at the Marriott Hotel in Santa Cruz de la Sierra. “It was truly an enriching night for all those interested in the sector, as the theme focused on Regional Energy Integration,” highlighted Juan Subirana Ozuna, the event’s moderator and presenter.
“The central theme that brings us together tonight is that of Integration for Energy Security in South America. As a media outlet, but above all as citizens of this region, rich in natural resources, complex intercultural dynamics, and situations of inequality and energy poverty, we want to know whether ‘energy integration’ refers to mere international energy trade or to real planning and coordination based on the capacities and needs of the people, taking into account the rational and efficient use of natural resources,” stated Vesna Marinkovic, Director of ENERGÍABolivia, during the event’s inauguration. She emphasized that it is not easy to discuss energy in a world torn between meeting the increasing energy demand and addressing climate change, especially when the planet’s population has exceeded 8 billion in 2022. Additionally, she mentioned the lack of access to electricity for approximately 17 million people in Latin America and the absence of clean cooking facilities for 67 million people, highlighting the significant challenges faced by policymakers in the energy field, particularly in the region.
ABSENCE OF EXPLORATORY SUCCESS
Juan Fernando Subirana highlighted the participation of Engineer Eduardo Alba from the Fioanini Foundation during the first panel, who addressed the topic “Current Situation of the Energy Sector in Bolivia: Perspectives for Energy Integration.” He emphasized that the country’s delicate position is mainly due to the lack of success in hydrocarbon exploration, which is why refineries in the country are operating at low capacity.
Alba also emphasized the importance of having an updated regulatory framework to incentivize international investments and regain trust in the country. He mentioned the need for regulating technical opportunities, such as tertiary recovery of mature fields, and highlighted the importance of transitioning to Green Hydrogen.
TRUST RELATIONSHIPS
Regarding the participation of the Spanish Ambassador in Bolivia, Francisco Javier Gassó, who spoke on the topic of “Regulation for Investment and Energy Integration in Latin America: The Case of Bolivia,” Subirana summarized that the diplomat explained the significance of what he called the “4Rs” to achieve energy integration: (1) Natural Resources (Recursos), (2) Networks (Redes), (3) Regulation (Regulación), and (4) Trust Relationships (Relaciones de Confianza).
“In Bolivia, as well as throughout Latin America, we need to work on the last two concepts, as they will attract more investments than what is currently received,” Subirana pointed out, highlighting the ambassador’s statement that “today, Bolivia is the main attraction for Spanish capital.” He acknowledged the participation of the oil company Repsol from Spain but also mentioned that other Spanish companies are investing in the country.
“Finally, Francisco Javier Gassó referred to the statements made by the Minister of Hydrocarbons, Franklin Molina, indicating that the regulatory changes in the Hydrocarbons Law (Law 3058) should be consensual with the investors to have a positive effect,” noted Subirana.
TECHNOLOGY IN ENERGY INTEGRATION
Continuing with the summary, Gustavo Añez, Head of Field Service and Tools at Siemens Energy, discussed the topic “How does technology contribute to energy integration projections in Latin America?” highlighting the need for constant innovation and the expansion of renewable energies in the regional energy matrix, emphasizing that “there is no energy security without resilience.”
“He also mentioned that many of the necessary materials to develop new technologies are found in Latin America, which reaffirms the strategic importance of the region and the need to work on integration ties,” emphasized Subirana.
DECARBONIZATION AND “REACTIVE” REGULATION
Continuing with the first panel of the evening, Christian Ferrari, Strategic Sourcing Manager at AB InBev South America, presented on the topic “2030 goal for the elimination of regular gas flaring at a global and regional level, through distributed power generation ‘Flare to Wire,’ and its impact on the industrial sector and energy security. CASE STUDY: AB InBev South America.” This talk was a “breath of fresh air” amidst the generally discouraging news circulating in the national energy sector.
“He talked about the ‘decarbonization’ process, which has set ambitious goals such as a 25% reduction in the carbon footprint throughout AB InBev’s entire chain, as the main shareholder of CBN in Bolivia,” Subirana highlighted.
“Ferrari presented successful cases of these initiatives, such as the implementation of wind farms in Argentina through public-private partnerships. Another replicable success case is the project they are developing in Bolivia at Cervecería Boliviana Nacional, managing biogas within their internal processes, which allows for a reduction of up to 8% of natural gas in their operations,” he emphasized.
For Subirana, this is truly excellent news and an alternative amidst a declining hydrocarbon production context. “To see companies committed to sustainability, green energy, and energy efficiency with clear goals and opportunities for regional integration is highly significant,” he stated, emphasizing Ferrari’s recommendation that for such initiatives to be incentivized by the State, “a reactive regulation should be avoided,” thus clearly inviting Bolivia to be a pioneer in this type of regulation.
COST REDUCTION AND INTEGRATION OF ELECTRIC GENERATION SYSTEMS
Finally, closing the first panel, Octavio Carrasquilla, Principal Executive in the Climate Action and Biodiversity Management Department at CAF, presented on the topic “Energy integration initiatives in the region, success stories, and main environmental challenges.” He explained that energy security has specific objectives such as cost reduction and the integration of electric generation systems, citing success cases in Central America and Brazil.
He indicated that when considering regional energy security, the impact of greenhouse gases, the analysis of waste generated by green energy alternatives, and the socioeconomic inequality of our American people should not be overlooked.
Subirana summarized by stating that CAF believes that four elements are needed to develop these types of initiatives: (1) governments must restrict and establish acceptable pollution levels for each activity, (2) governments must have sufficient control capacity and enforce the regulations they enact, (3) citizen participation is necessary to ensure transparent changes from traditional to green energy paradigms, and (4) embracing the ideas of innovation and the development of new technologies.
THE ACADEMY
The second panel of the evening began with the topic “Digitalization, Diversity, Energy Security, and New Generations,” presented by Claudia Tinoco de Vicente, Head of the Industrial and Systems Engineering Department at the Private University of Santa Cruz de la Sierra (UPSA). She emphasized the importance of training new professionals with a focus on the enabling technologies of Industry 4.0, inviting the audience to consider the concept of Talent 5.0. She highlighted that this requires a paradigm shifts in education and the industry in general, and particularly in the energy sector.
He also highlighted the importance of having eco-social and sustainable solutions as the foundation for building societies with energy security, ensuring that regional energy integration could be considered in the long term.
LEGAL SECURITY FOR INTEGRATION
Iver Von Borries, from the Law Firm Wayar & Von Borries, presented on “Legal security as a key element in regional energy integration.” He began his presentation with a key principle to understand the local, regional, and global situation, stating that “without legal security, there is no energy security.”
“To reaffirm this viewpoint, he presented a comparison of foreign investment received by Brazil from 2021 to 2022, amounting to 46 billion US dollars, according to reports from ECLAC, while the comparable figure for Bolivia is only 600 million US dollars. These data indicate that Brazil receives 77 times more foreign investment than Bolivia. Von Borries identified this phenomenon as a result of the lack of security in the country, as there have been no investment treaties since 2007,” Subirana highlighted.
He specified that the solutions proposed were to adjust Law 3058, enhance public-private partnerships, and work to reduce the perception of being a “high-risk country” by reinforcing the right to investment.
EXTRACTIVE ACTIVITY RESOURCES FOR TOURISM
On the other hand, Oscar Molina Tejerina, Vice-Rector of UPB, spoke about the “Role of universities in SDG 7: Affordable and Clean Energy in the processes of energy integration,” where he demonstrated the importance of conducting a thorough diagnosis before proposing any ideas or decisions. He also presented a case that moved from diagnosis to decision and from decision to action, a true pioneering case of success: the photovoltaic electricity generation initiative on the campuses of UPB nationwide.
“This initiative clearly aligns with and is framed within the Global Compact derived from the commitment of companies around the globe to the Sustainable Development Goals (SDGs). Along the same lines, he presented the project of the Municipal Atlas of Bolivia, developed by the SSDN, which aims to provide a clear and detailed diagnosis of the degree of compliance with the SDGs in each of the 339 municipalities of the country,” said Subirana.
Subirana highlighted Molina Tejerina’s proposal to encourage the use of resources generated from extractive activities in the development of “Smokeless Industries,” citing tourism as a direct application example in Bolivia.
REAL ENVIRONMENTAL REMEDIATION
To conclude the evening, Johanna Obreque, Co-Founder Partner of Domolif SpA-Chile, presented on the topic “Without sustainability, there can be no industrial development with social license and energy security,” highlighting the importance of conducting clear and precise diagnoses of ecosystems before they are directly or indirectly impacted by human intervention, be it through extractive activities or the effects of climate change, respectively.
“This diagnosis, which would serve as a baseline, could allow for future real environmental remediation with a clear focus on respect for the environment and the capacity for resilience in the energy industries,” Subirana emphasized.
Obreque also stressed that the three components of sustainability, or the “3 E’s” as they were renamed at the end of the conference, are: (1) Economic viability (Economicidad), (2) Social axis (Eje Social), and (3) Environmental balance (Equilibrio medioambiental). She ensured that respect among these three aspects would guarantee sustainable energy business scenarios, capable of being a breeding ground for greater regional integration.
