Financing Sustainable Electrification in Latin America

 

When: 2011, 2012

Where: Chile

What: Strengthening Institutional Capacities

Key objectives

  • Transfer business-oriented expertise for the financing of sustainable electrification projects
  • Gather top experts to share perspectives on the risks associated with power sector investment in the region and strategies on how to mitigate them
  • Help power companies and financial institutions better recognize the regulation of low carbon electricity in the region while helping regulators understand how risk is evaluated when electricity sector investment decisions are made

When: 2011, 2012

Where: Chile

What: Strengthening Institutional Capacities

In 2011 and 2012, we organized a set of high-level dialogues in Santiago, Chile on financing low-carbon electricity in Latin America. Unique to these Latin American dialogues was the open discussion that took place between regulators, public and private power companies in the region, and financial institutions. It created in both cases a unique opportunity to share views and practices, helping companies and financial institutions better recognize the regulation of low carbon electricity in the region while helping regulators understand how risk is evaluated when electricity sector investment decisions are made.

The first Latin American dialogue took place on August 22-23, 2011 organized in collaboration with the Economic Commission for Latin America and the Caribbean (ECLAC) and the United Nations Department of Economic and Social Affairs (UNDESA). Thirteen countries from the region participated with high-level representatives from their Ministries of Energy, their national Regulatory agency/commission, and their major public and private electric utilities. A total of 56 participants attended. Discussions centered on how to develop coherent energy development policies to ensure the right incentives are in place to promote low carbon electricity investments and how projects that give access to low-carbon electricity can be sustainable for the environment, society and the economy.

In a follow-up to the high-level workshop organized in August 2011, a second dialogue took place on October 29-30, 2012, jointly hosted with ECLAC and the Ibero-American Association of Energy Regulators (ARIAE). The objective of this dialogue was to deepen discussions on the challenges and opportunities in the financing of low carbon electricity in the region, focusing on the role of appropriate regulatory frameworks for investment. The dialogue featured interactive discussions where attendees were able to share and exchange their perspectives and knowledge on how regulatory risks are perceived and the strategies to diminish them, as well as how the financing of low carbon electricity projects in the region is viewed and the social acceptance of such projects, in particular hydroelectric projects given Latin America’s large potential for hydropower development, as seen from a sustainable optic. A total of 40 people attended the conference.

These workshops are part of a capacity-building program we initially developed with the Global Environment Facility (GEF) and the United Nations Department of Economic and Social Affairs (UNDESA). The program was designed to promote a bottom-up approach to increasing advanced power technology investment flows in developing countries through a series of region-specific interactive dialogues held in Thailand (2009), Kenya (2010), Switzerland (2010), Chile (2011, 2012), Benin (2012), and South Africa (2013, 2014).

“In Latin America, the lack of access to electricity is one of the main factors that contributes to poverty and inequality…ECLAC believes this second dialogue proposes the follow-up needed in the constructive discussions between public and private actors regarding the development of low-carbon electricity in the region.”

Antonio Prado, Deputy Executive Secretary of ECLAC

Participating members and partners

  • AEP
  • Enel
  • Comisión Federal de Electricidad de México
  • Eletrobras
  • United Nations Department of Economic and Social Affairs (UNDESA)
  • United Nations Economic Commission for Latin America and the Caribbean (ECLAC)
  • Ibero-American Association of Energy Regulators (ARIAE)
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