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Renewables in Other Emerging Markets: The Case of Latin America
and Crosspoints with MENA
Carlos St. JamesChairman
Middle East-Americas Energy Council
Amman, November 16-18, 2014
Latin America in Context
3
4Source: La Inversion Extranjera Directa en America Latina y el Caribe 2013, CEPAL
Foreign Direct Investment 2012 y 2013, in USD billion
Global Investment in Renewable EnergyBy Region
Source: Global Trends in Renewable Energy Investment 2014, Bloomberg New Energy Finance
Global: $214 billion in 2013
Latin America: $15 billion
MENA: $9 billion
USA: $36 billion
6
New Renewable Energy Investment in Latin America, USD billion
Source: Global Trends in Renewable Energy Investment 2014, Bloomberg New Energy Finance
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Total Investment in Renewable Energy, Selected LatAm Countries, 2013, USD Billion
Source: Global Trends in Renewable Energy Investment 2014, Bloomberg New Energy Finance
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Cost of renewable energy generation by region and technology: Latin America has among the lowest
Source: Renewable Power Generation Costs in 2012, International Renewable Energy Agency (IRENA), 2013
Source: World Energy Investment Outlook 2014, lnternational Energy Agency (IEA), 2014
Energy Investment Required 2014-2035 (USD billion)
• Over $40 trillion will be needed over the next twenty years to satisfy energy demand worldwide
• Latin America will require $3.7 trillion • Middle East will require $3.2 trillion
Power Investment Required in Middle EastSo
urce
: Wor
ld E
nerg
y In
vest
men
t Out
look
201
4, ln
tern
ation
al E
nerg
y Ag
ency
(IEA
), 20
14
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BRAZIL+ Solar auctions 2014:•1 GW awarded•20-year PPAs in BRL•US$87/MWh
+ Wind auctions 2014:•770 MW awarded•20-year PPAs in BRL•US$57/MWh
ARGENTINARenewables tenders 2010:•15 year PPAs•Solar averaged US$525/MWh•Wind averaged US$127/MWh
CHILE•Excellent solar, mini-hydro, geothermal•Mining industry avid for energy•Preference for merchant agreements•Average daytime spot price $172/MWh
Argentina
Wind EnergyHydro EnergySolar EnergyBiomass Biofuels
Argentina
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Chile
Average Monthly Cost of Electricity, in USD/MWh
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The Caribbean
Antigua & BarbudaUS$0.43/kwh
GrenadaUS$0.40/kwh
BahamasUS$0.26/kwh
Islas BahiaUS$0.47/kwh
JamaicaUS$0.36/kwh
Puerto RicoUS$0.27/kwh
BarbadosUS$0.32/kwh
Dominican Rep.US$0.22/kwh
NicaraguaUS$0.25/kwh
PanamaUS$0.19/kwh
USA: $0.11/KWh
Mexico: Pre-Energy Reform Institutional Structure
Mexico: POST-Energy Reform Institutional Structure
Trends for Spot Electricity Price in Mexico
• Residential: US$0.11/kwh• Industrial: US$0.15/kwh
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Mexico: Wind
Wind:•2 GW installed through 2013•89% in southern Oaxaca region•700 MW under construction•Target of 12 GW by 2022
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Mexico: Solar
Solar:•112 MW installed through 2013•Concentrated in N and NW regions•230 MW under construction•Target of 6 GW by 2020
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Mexico: Geothermal Geothermal:•850 MW installed through 2013•4th highest in the world•Energy Reform to provide insurance•Target of 8 GW by 2025
• Nasser bin Khalil Al-Jaida, CEO, Qatar Petroleum International, Qatar• Omran Al-Kuwari, CEO, GreenGulf, Qatar• Ahmad Bin Al Nuaimi, CEO, Arab Petroleum Investments Corp., Saudi Arabia• Jose Correa, CEO, Crival Holdings, Brazil• Paddy Padmanathan, CEO, ACWA Power, Saudi Arabia• Hasan Qabazard, CEO, Kuwait Catalyst Co., Kuwait• Bill Richardson, ex-Secretary of Energy, USA• Carlos St. James, Managing Director, Santiago & Sinclair, LLC, Argentina• Harib Al Kitani, CEO, Oman LNG, Oman• Adel Sharif, Director of Research, Qatar Foundation, Qatar
Board of Directors
Mexico Energy Reform InitiativeJordy Herrera, Chair
Carlos St. James, boardmember
Water Desalinization Initiative
Investments Initiative
Adel Sharif, boardmemberGreg Flores, Chair
Ahmad Al Nuaimi, boardmemberTBD, chair
Renewable Energy Initiative
Bill Richardson, boardmember[Middle East leader], Chair
