Effective renewable policies can boost LAC economy: report

Solar-Farm-Chile (image courtesy: as-coa.org)

Major economic, social, and environmental issues faced frequently by Latin America and the Caribbean (LAC) countries can be addressed with enhanced sustainable investment, according to the Worldwatch report.

In addition, climate change concerns can also be tackled through improved sustainable production, making the energy systems more reliable and resilient.

Declining costs and maturing technologies offer an opportunity to develop self-sufficient, domestic renewable energy supply to increase the energy security of the region.

Effective renewable policies and measures will help to promote the investment factor for domestic, international, public and private sectors.

Solar-Farm-Chile (image courtesy: as-coa.org)
Solar-Farm-Chile (image courtesy: as-coa.org)

In order to enhance the sustainable investment in the region, the policymakers have to integrate resource plans with an aim to lower electricity costs in the long term by considering technical, socioeconomic, market, and policy analysis.

LAC needs to build up an integrated energy plan that can support growing shares of renewable energy, increase energy efficiency, and provide reliable service says the report.

They have to consider and integrate synergies among different renewable sources, energy efficiency, and smart grid technologies.

The LAC region has the world’s greenest electricity diversity in terms of carbon intensity.

Major power resources of the region are hydrological and biomass plants that affect the sustainable growth ultimately.

Besides, the region has untapped energy resources potential such as geothermal, solar photovoltaics (PV) and wind, the report said.

However, large dependence on hydropower creates risks such as changing rainfall patterns, melting glaciers, and the competition for scarce water resources.

Even excluding hydropower, the region is able enough to produce around 78,000 TWh of electricity from renewable sources.

This is enough capacity to meet the region’s current (1,400 TWh) and future (2,500 TWh) electricity needs many times over.

Moreover, the region faces serious grid reliability and stability challenges with the average system distribution losses reaching 15 percent of total power output in 2011, almost twice the world average, the report argues.

The problem arises from outdated grid infrastructure that needs modernization and expansion in most parts of the region.

Due to the high vulnerability to extreme weather events in the region, the report has particularly addressed the climate change adaptation needs for energy sector.

Approximately 34 million people in LAC still lack access to electricity, and the region will need to double its installed power capacity by 2030 to meet growing power demands.

Sabeena Wahid

[email protected]