Renewable Energy World – A Case for Cautious Optimism: Renewable Energy Auctions in Latin America

    View Authors September 2016

    Kevin S. Levey and Loana Martin of Squire Patton Boggs, co-authored the article, “A Case for Cautious Optimism: Renewable Energy Auctions in Latin America”, in the September 20, 2016 edition of Renewable Energy World. The following is an excerpt from the article:

    “Global Trends in Renewable Energy Investment 2016’s list of top 10 developing countries with renewable energy sector investment in 2015 included Latin American countries Brazil ($7.1 billion), Mexico ($4 billion), and Chile ($3.4 billion). IHS Markit sees continued growth in renewable energy investment in Latin America with new solar installations scheduled to reach 2.7 GW of installed PV module capacity this year alone. This trend is expected to continue with Chile and Mexico having held successful auctions that garnered high participation and some of the lowest prices per megawatt hour (MWh) globally. Although these data points are cause for optimism in the region, a relatively young government in Argentina trying to restore a badly damaged international reputation and economic and political woes in Brazil caution against over exuberance.”

    The article goes on to discuss the particulars of success stories in Mexico and Chile as well as set-backs faced in Brazil and steps being taken in Argentina. Bottom line, there is cautious optimism that well-planned power auctions have the potential of spurring substantial growth in renewable energy investment in relatively short periods of time.