Latin America & the Caribbean
Opportunities for UK companies
Renewable Energy
The Latin America & the Caribbean region is an exciting market for UK renewable energy companies.
Latin America & the Caribbean is home to some of the world’s most vibrant renewable energy markets. The region has been significantly focused on hydropower, biofuels, solar, wind and biomass-based electricity, and pioneering initiatives to build an even greener future from hydrogen and offshore wind sources. Brazil and Mexico ranked amongst the top ten global renewable energy markets, and several other countries across the region are well positioned to offer great Clean Growth trade and investment opportunities.
Market Detail:
The Latin America & the Caribbean region is one of the most exciting global markets for UK renewable energy companies.Brazil and Mexico are at the forefront of this fast-growing development.
Latin America & the Caribbean are home of some of the world’s most vibrant renewable energy markets, with more than 25% of primary energy coming from renewables. The region has been significantly focused on hydropower, biofuels, solar, wind and biomass-based electricity, and pioneering initiatives to build an even greener future from hydrogen and offshore wind sources. Brazil and Mexico ranked amongst the top ten global renewable energy markets, and several other countries across the region are well positioned to offer great Clean Growth trade and investment opportunities.
Market Detail:
Brazil
Brazil is an international reference in the Renewables sector. According to the Energy Research Office (EPE), by the end of 2029 renewable energy sources will represent 84% of the country’s electric power matrix, and 48% in the total energy matrix. The strategy for the upcoming decade will be focused on expanding the country’s matrix, ensuring energy security. A more diverse and competitive renewable matrix, aligned with the participation of the private sector is also part of the strategy in order to meet international sustainable development goals. In this sense, several government bodies have been promoting sectorial transformations to secure a business/regulatory scenario solid enough to attract investments. On transmission lines only, the total investment for the next 10 years should reach up to 59 billion GBP (456 billion BRL). Other market driver should be the Energy Distributed Generation, focused on micro and mini grids, which will reach 4.6% of the total power consumption by 2030[1].
As many of Brazil’s oil and gas offshore production units are aging, decommissioning will generate significant opportunities. The revised regulation announced last year already started to unlock projects. Petrobras, the Brazilian major oil company, has recently announced plans to spend $4.6 billion to decommission 18 offshore platforms and 1,000 km of subsea risers and flowlines by 2025.
Mexico
Mexico’s energy matrix is diversifying, with solar and wind energy installations grown significantly in the last 10 years. Currently, Mexico has 68 large-scale solar projects in commercial operation, positioning amongst the 20 countries with the highest installed capacity in the world. In addition, approximately 80 commercial wind projects have been built over the last decade[2].
In terms of market potential and future investment, Mexico has recently announced a GBP £4.2 billion investment in energy infrastructure projects, with construction starting in 2021[3].
Likewise, shallow water mature fields dominate the offshore oil and gas sector in the country, providing opportunities for the UK supply chain and its expertise applied to safe, healthy and environmental standards.
Opportunities in Argentina:
Argentina has developed its energetic renewable offer based in four categories and, according to the information provided by Cammesa (official Energetic Agent), the installed capacity is:
- Onshore Wind (2.387 MW)
- Solar (759 MW)
- Biomass (496 MW)
- Small Hydro facilities (206 MW)
Opportunities in Colombia:
Colombia has a rapidly developing energy sector with significant, untapped, oil and natural gas reserves as well as potential in renewable energy development. The oil and gas sector is a key generator of central government income. President Iván Duque has invested efforts to reactivate long-delayed policies and regulations to attract foreign investment in the development of onshore and offshore exploration activities.
Regarding non-conventional renewable energy, in 2018 the Ministry of Mines and Energy regulated the introduction of non-conventional renewable energies to the country's energy matrix and early this year, as part of the Government’s commitments towards the energy transition, they included important incentives such as tax reductions for new projects and technologies that want to enter the Colombian market.
Colombia has assumed a regional leading role towards energy transition by diversifying its energy matrix and has set clear goals to achieve its green/sustainable objectives toward the Latin America 2030 regional goal of 312 GW[4]. The country is in the process of incorporating solar and wind developments through private and public successful initiatives.
Opportunities in Guyana
The renewable energy mix will focus on hydro, solar, wind and biomass. The Guyana Energy Agency (GEA) has completed feasibility studies in areas suitable for hydropower investments and has just given the green light for the recommencement of the Amaila Falls Hydro project. Further opportunities include providing Minigrids for large hinterland communities with the development of Wind and Solar farms as part of the hinterland electrification programme. The Government of Guyana is also examining the installation of a natural gas plant.
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