Latin America economy: Latin America attracts clean energy investment
Latin America, like other regions of the world, faces the twin challenges of meeting rising energy demand while attending to the impact of climate change by promoting the use of clean energy technologies. Owing to its abundant natural resources, the region is seen as providing solid opportunities for investment in low-carbon energy technologies such as photovoltaic, wind, geothermal, small hydro and others. However, success in this area requires innovation, an encouraging policy framework and abundant capital investment, as well as greater governmental effort to raise awareness.
Potential investors can find it difficult to find the micro-data needed to assess where in Latin America renewable energy projects may be more attractive. A new report by the Multilateral Investment Fund (MIF), part of the Inter-American Development Bank (IDB), looks at 26 countries in the region and ranks them according to the environment for investment in clean energy.
The report, Climatescope 2013 (now in its second annual edition), assesses a range of relevant indicators and creates an index to measure and identify low-carbon investment opportunities. The indicators review data such as local power prices, value-chain profiles, local capital availability, net metering and power market structure, among others. The index is also designed to help policymakers to design regulatory frameworks that will be more conducive to such investment.
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