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University of New Mexico

Latin American Energy Dialogue, White Papers and Reports

2011

Energy

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What's Holding Back Clean Energy Lending In Central America?, Inter-American Dialogue's Latin American Energy Advisor Dec 2011

What's Holding Back Clean Energy Lending In Central America?, Inter-American Dialogue's Latin American Energy Advisor

Latin American Energy Dialogue, White Papers and Reports

The Washington-based Inter- American Development Bank earlier this year announced the approval of a $30 million medium- term financing facility for a Honduran bank to support loans to environmentally sustainable projects. The bank is developing a portfolio of loans to small- and medium-sized businesses in biofuels and other sustainable sectors. How important is lending to small- and medium-sized energy companies for their success? What challenges do banks face in Central America, in terms of regulatory measures or political uncertainty, as they seek to tap the SME market and emerging-industry businesses like those in the clean energy sector?


Will Petrocaribe Expand Beyond Preferential Oil Purchases?, Inter-American Dialogue's Latin American Energy Advisor Dec 2011

Will Petrocaribe Expand Beyond Preferential Oil Purchases?, Inter-American Dialogue's Latin American Energy Advisor

Latin American Energy Dialogue, White Papers and Reports

At a PetroCaribe ministerial meeting in Nicaragua in October, officials from the countries involved in the Venezuela-sponsored initiative concluded agreements on more than $16 billion in new investment, EFE reported. The agenda also sought to expand the scope of PetroCaribe beyond just preferential oil purchases, including possible projects addressing electricity, renewable energy and food security. What is the reasoning behind the expansion into projects beyond the initiative's original scope? How much of a benefit has PetroCaribe been to its signatories? Is PetroCaribe achieving Venezuela's political aims, and will it take on increasing importance over time?


What Strategies Are Guiding Chinese Investments In Brazil?, Inter-American Dialogue's Latin American Energy Advisor Nov 2011

What Strategies Are Guiding Chinese Investments In Brazil?, Inter-American Dialogue's Latin American Energy Advisor

Latin American Energy Dialogue, White Papers and Reports

China's Sinopec announced last week that has agreed to buy a 30 percent stake in the Brazilian unit of Portugal's Galp for almost $5.2 billion, the latest in a series of Chinese companies' ventures into the Brazilian energy sector, Dow Jones reported. What role is the Asian country playing in the Brazilian energy sector, and how is it likely to develop? What strategies are guiding Chinese companies' investments? Is Brazil benefitting from these acquisitions? Will there likely to be pushback against such investments?


Will Mexico Be Able To Exploit Its Shale Gas Resources?, Inter-American Dialogue's Latin American Energy Advisor Nov 2011

Will Mexico Be Able To Exploit Its Shale Gas Resources?, Inter-American Dialogue's Latin American Energy Advisor

Latin American Energy Dialogue, White Papers and Reports

Mexico is abandoning plans to build as many as 10 nuclear reactors and will focus instead on natural gas-fired electricity plants, Bloomberg News reported last week. According to Energy Minister Jordy Herrera, Mexico is shifting course in light of new discoveries of natural gas deposits. He added that Mexico would seek private sector investment for about $10 billion during five years to expand a natural gas pipeline network. Is Mexico's plan to scrap new nuclear projects a good idea? How significant are the new natural gas deposits? Will Mexico be able to exploit them to meet growing energy needs? Should …


Will New Regulations Derail Energy Investment In Argentina?, Inter-American Dialogue's Latin American Energy Advisor Oct 2011

Will New Regulations Derail Energy Investment In Argentina?, Inter-American Dialogue's Latin American Energy Advisor

Latin American Energy Dialogue, White Papers and Reports

The government of newly re-elected President Cristina Fernández de Kirchner ordered oil, gas and mining companies to repatriate all proceeds from export sales in a bid to control significant capital flight, Dow Jones reported. According to national statistics agency Indec, oil, natural gas, metals and other related products accounted for $7.7 billion in exports during the first nine months of the year. Is the new regulation a good idea? Will the regulation have a significant effect on oil and gas companies, which have long faced what they call burdensome taxes and pressure to keep domestic prices low? What consequences could …


Can Shale Gas Really Transform The Region's Energy Sector?, Inter-American Dialogue's Latin American Energy Advisor Oct 2011

Can Shale Gas Really Transform The Region's Energy Sector?, Inter-American Dialogue's Latin American Energy Advisor

Latin American Energy Dialogue, White Papers and Reports

Argentina has the world's third largest technically recoverable shale-gas resources, according to the U.S. Energy Information Administration, with several large shale gas discoveries recently announced in the country's Neuquén Basin. Mexico is ranked fourth globally, while Paraguay, Uruguay, Brazil and several other Latin American countries also boast of the potential for their shale resources. Will shale gas lead to another energy boom for Latin America? How do investors view the potential for shale gas deposits, which involve new technologies and uncertain regulatory structures, compared to the region's rich conventional resources? How will shale gas affect existing natural gas businesses, as …


How Should The Dominican Republic Improve Its Power Sector?, Inter-American Dialogue's Latin American Energy Advisor Oct 2011

How Should The Dominican Republic Improve Its Power Sector?, Inter-American Dialogue's Latin American Energy Advisor

Latin American Energy Dialogue, White Papers and Reports

Dominican President Leonel Fernández on Oct. 11 inaugurated the largest wind energy farms ever built in the Caribbean nation. The Los Cocos and Quilvio Cabrera farms, which cost some $100 million, will save the country the cost of annual imports of 200,000 barrels of oil, the government said. However, critics say the 33 megawatts that the facilities will inject into to the national grid will do little to address its 600 megawatt ""energy deficit,"" and that the blackouts and other inefficiencies that have plagued the country's electricity grid will not be resolved by the wind farms alone. Is the Dominican …


Will Chile's Power Sector Stymie Development?, Inter-American Dialogue's Latin American Energy Advisor Oct 2011

Will Chile's Power Sector Stymie Development?, Inter-American Dialogue's Latin American Energy Advisor

Latin American Energy Dialogue, White Papers and Reports

Chile was hit by three major blackouts from Sept. 24-26, halting operations at copper mines and darkening several parts of the country, including Santiago. The outages led to calls for the country to invest more in its power sector. Is Chile's power sector a weak link in the country's development? What needs to happen in the power sector in order to avoid future blackouts? Are problems in the country's electrical grid affecting its ability to attract businesses and investment?


What Is The Outlook For Paraguay's Electricity Sector?, Inter-American Dialogue's Latin American Energy Advisor Oct 2011

What Is The Outlook For Paraguay's Electricity Sector?, Inter-American Dialogue's Latin American Energy Advisor

Latin American Energy Dialogue, White Papers and Reports

Paraguayan President Fernando Lugo has pledged to guarantee energy sovereignty for the country, claiming that its complicated energy sharing agreements with Brazil and Argentina are unfair. Paraguay is seeking to export excess power to Uruguay, an important source of revenue, but says that Argentine officials have made unreasonable demands. Are the energy sharing agreements unfair and if so, what changes should be made? How successful has Lugo been in negotiating ""energy sovereignty"" for Paraguay? Is the dispute with Argentina likely to be resolved soon and allow Paraguay to export energy to Uruguay?


Renewable Energy Best Practices In Promotion And Use For Latin America And The Caribbean, Andrea Luecke Oct 2011

Renewable Energy Best Practices In Promotion And Use For Latin America And The Caribbean, Andrea Luecke

Latin American Energy Dialogue, White Papers and Reports

According to the Renewable Energy Policy Network for the 21st Century (REN21), the number of countries with policies directed at promoting renewable energy has doubled over the past five years (REN21, 2011. The United States, along with European and Asian countries, is actively promoting renewable energy to catalyze and achieve profound economic and environmental changes. By contrast, the countries of Latin America and the Caribbean (LAC) have been slow to adopt renewable energy because of poverty, lack of awareness, and lack of government support to mitigate climate change, stabilize energy supplies, or invest in innovation (UN Industrial Development Organization, 2011). …


Perspectives For Distributed Generation With Renewable Energy In Latin America And The Carribean: Analysis Of Case Studies For Jamaica, Barbados, Mexico, And Chile, Christiaan Gischler, Nils Janson Oct 2011

Perspectives For Distributed Generation With Renewable Energy In Latin America And The Carribean: Analysis Of Case Studies For Jamaica, Barbados, Mexico, And Chile, Christiaan Gischler, Nils Janson

Latin American Energy Dialogue, White Papers and Reports

This paper deals with how to promote distributed generation (DG) done with renewable energy (RE) in emerging markets of Latin American & the Carribean (LAC), with the purpose of increasing competitiveness & achieving sustainable economic growth. It also argues that the key rationale for promoting renewable DG in LAC is to reduce the cost of electricity for a country as a whole. The paper examines four case studies (Jamaica, Barbados, Mexico, & Chile) to assess what these countries are or are not doing, and why, in promoting renewable DG, and finds that they have some viable options for renewable DG …


What Accounts For The Drop In Price Of Wind Power?, Inter-American Dialogue's Latin American Energy Advisor Sep 2011

What Accounts For The Drop In Price Of Wind Power?, Inter-American Dialogue's Latin American Energy Advisor

Latin American Energy Dialogue, White Papers and Reports

In a Brazilian energy auction last month, companies agreed to sell power at the world's cheapest rates for wind energy, leading some analysts to speculate that developers will have difficulty fulfilling those contracts, Bloomberg News reported Aug. 31. Recently completed auctions in Peru and Uruguay similarly saw prices for wind power fall significantly, and the Uruguayan government is now considering purchasing four times as much energy than expected from wind farms. What accounts for the dramatic drop in price for wind power? Is the trend likely to continue in these countries and elsewhere? Will companies have trouble fulfilling the contracts?


Will Conflict Over Energy Sector Development Increase?, Inter-American Dialogue's Latin American Energy Advisor Sep 2011

Will Conflict Over Energy Sector Development Increase?, Inter-American Dialogue's Latin American Energy Advisor

Latin American Energy Dialogue, White Papers and Reports

Last month, Per's Congress unanimously approved a landmark law that requires companies to consult with indigenous communities before beginning infrastructure, energy and mining projects on their territories, which is intended to help mitigate social conflicts that have threatened to derail billions of dollars in investment. Meanwhile, hundreds of indigenous people are leading a 526-kilometer march in Bolivia as a show of opposition to the construction of a highway being built through indigenous territory. As indigenous communities in the Andes become increasingly vocal in opposition to development plans, are their protests having a significant effect? Does their increasing clout threaten to …


How Should Mexico's State-Run Pemex Be Reformed?, Inter-American Dialogue's Latin American Energy Advisor Aug 2011

How Should Mexico's State-Run Pemex Be Reformed?, Inter-American Dialogue's Latin American Energy Advisor

Latin American Energy Dialogue, White Papers and Reports

In an interview with Fortune, the CEO of Mexico's Pemex, Juan José Suárez Coppel, described the state oil company's problems as having ""too many cooks in the kitchen,"" adding that efficiency gets lost. Coppel suggested that sweeping changes would have advantages and though they are unlikely to occur this year, could happen in the future. Will energy policy and changes to Pemex play a significant role in the next election? If so, which proposals are likely to be debated? What steps should Pemex take to increase efficiency within its current limitations? How should the company be reformed in the medium …


Should Per's State-Run Energy Companies Play A Bigger Role?, Inter-American Dialogue's Latin American Energy Advisor Aug 2011

Should Per's State-Run Energy Companies Play A Bigger Role?, Inter-American Dialogue's Latin American Energy Advisor

Latin American Energy Dialogue, White Papers and Reports

Peru's state-owned energy companies may play a greater role under the administration of newly-inaugurated President Ollanta Humala, Peruvian Minister of Energy and Mines Carlos Herrera said last month, according to Reuters. Herrera added that the idea would be for state companies, such as Petroperú and Electroperú, to have a greater role in state management and the ""general idea is for the capital to be private."" Should Peru's state-run companies be expanded or reformed? If so, in what way and how should the private sector be involved? Would Brazil and Colombia be good models to follow?


What Is The Outlook For Colombia's Oil Sector?, Inter-American Dialogue's Latin American Energy Advisor Aug 2011

What Is The Outlook For Colombia's Oil Sector?, Inter-American Dialogue's Latin American Energy Advisor

Latin American Energy Dialogue, White Papers and Reports

In the wake of Colombia's ratings upgrade to investment status earlier this year and strong second-quarter profits, Colombian state-run oil company Ecopetrol announced last month that it would sell $1.4 billion of stock to pay for investments aimed at doubling production. The company added that it would increase the number of shares more than seven-fold if demand exceeds expectations. Will the investment-grade rating lead to as strong demand for the shares as the company expects? What is the outlook for Ecopetrol and the Colombian oil sector in the short to medium term? What challenges does the Colombian oil industry face?


Can Latin America Capitalize On Oil Wealth In The Long Term?, Inter-American Dialogue's Latin American Energy Advisor Jul 2011

Can Latin America Capitalize On Oil Wealth In The Long Term?, Inter-American Dialogue's Latin American Energy Advisor

Latin American Energy Dialogue, White Papers and Reports

Venezuela holds some 85 percent of Latin America's crude oil reserves, and the region overall has the world's second-largest oil reserves after the Middle East, according to figures presented by the Latin American Energy Organization (OLADE) at a two-day seminar earlier this month in Quito. Looking ahead 20 years, what are the geopolitical implications of Latin America's vast hydrocarbon resources? What energy trends will shape the economies of Latin America and the Caribbean in the long term, and how can the countries of Latin America best capitalize on energy wealth in the global environment moving ahead? Can Latin America avoid …


How Is China Changing Latin America's Energy Sector?, Inter-American Dialogue's Latin American Energy Advisor Jul 2011

How Is China Changing Latin America's Energy Sector?, Inter-American Dialogue's Latin American Energy Advisor

Latin American Energy Dialogue, White Papers and Reports

China recently announced several loans worth billions of dollars to Ecuador and Venezuela—to be paid back largely in the form of oil—for public works, energy and infrastructure projects. These investments and others have made China the biggest credit source for the two governments, often on terms that other financial institutions would spurn, analysts have pointed out. Are China's big loans going to be good deals for the Latin American countries? Will the money come through, and will it be used effectively for the intended purposes? Is China's increased investment in Ecuador, Venezuela and other countries in the region playing out …


What Is The Fate Of Chile's Hidroaysén Project?, Inter-American Dialogue's Latin American Energy Advisor Jul 2011

What Is The Fate Of Chile's Hidroaysén Project?, Inter-American Dialogue's Latin American Energy Advisor

Latin American Energy Dialogue, White Papers and Reports

A court ruling in Chile on June 20 suspended the controversial HidroAysén project, a proposed plan to dam two rivers and build five hydroelectric plants in Patagonia, The New York Times reported. While environmental groups hope that the ruling is the first step in canceling the dams, a lawyer for the project told local newspaper La Tercera that the ruling was ""purely formal"" and made no decision about the complex's legality. Does Chile's booming demand for energy outweigh the detriments of the project, as the government has claimed? Are there adequate alternatives to supply the necessary power for the country's …


Is The Region Capable Of Meeting Increased Electricity Demand?, Inter-American Dialogue's Latin American Energy Advisor Jul 2011

Is The Region Capable Of Meeting Increased Electricity Demand?, Inter-American Dialogue's Latin American Energy Advisor

Latin American Energy Dialogue, White Papers and Reports

Brazil's Säo Paulo state has suffered several major power failures this year, while the Venezuelan government has enacted rationing measures and begun importing electricity from Colombia. Meanwhile, Argentina's electricity consumption in May grew by 7.8 percent over the year prior, and the Chilean government has repeatedly said it will need to double its electricity generation capacity in the next 10 to 15 years. As Latin American economies continue to grow, how capable are they of meeting electricity demand? Are power shortages likely to hamper growth and, if so, where? What role should the state play in developing the power sector, …


What Is The Future Of Energy Integration In Central America?, Inter-American Dialogue's Latin American Energy Advisor Jun 2011

What Is The Future Of Energy Integration In Central America?, Inter-American Dialogue's Latin American Energy Advisor

Latin American Energy Dialogue, White Papers and Reports

First proposed in 1987, the Central American Electricity Interconnection System (SIEPAC), a plan to create a more robust regional transmission grid in Central America, is scheduled to become operational this year. In order to allow economies of scale to occur, the aim is to harness the transmission project to create an integrated regional electricity market known as the Mercado Eléctrico Regional (MER). What are the potential benefits and downsides of the MER? What challenges does the integrated market face? What steps do the region's governments and institutions need to take to bring it to fruition?


Will A New Bureau Lead To Better Regional Energy Policy?, Inter-American Dialogue's Latin American Energy Advisor Jun 2011

Will A New Bureau Lead To Better Regional Energy Policy?, Inter-American Dialogue's Latin American Energy Advisor

Latin American Energy Dialogue, White Papers and Reports

After stepping down as the U.S. ambassador to Mexico, Carlos Pascual was appointed in May as the State Department's special envoy and coordinator for international energy affairs. He will be tasked with designing and establishing a new Bureau for Energy Resources to unify energy diplomacy within the State Department. Will the creation of the new bureau lead to better energy policy and collaboration in the Americas? What energy issues in the region should the U.S. government be focusing on? What are some potential areas of conflict or disagreement between U.S. energy priorities and the interests of countries in Latin America …


Agreement For The Supply Of Electricity To Peru And Surplus Exportation To Brazil: Seeking Energy Regulation In Per, Vanessa Cueto La Rosa, Jimpson Dávila O., Patricia Patrón Jun 2011

Agreement For The Supply Of Electricity To Peru And Surplus Exportation To Brazil: Seeking Energy Regulation In Per, Vanessa Cueto La Rosa, Jimpson Dávila O., Patricia Patrón

Latin American Energy Dialogue, White Papers and Reports

This study gives a background and analysis of the energy agreement between Peru and Brazil: a history of the agreement and present challenges to current regulation following its approval. It also analyzes agreement implementation and regulation broken down into the following categories: planning and intersectoral coordination, citizen participation, transparency, accountability, and manageability. In addition, it identifies contradictions in Peruvian state energy policy and regulation while providing recommendations for more effective energy regulation.


How Will Changes To U.S. Ethanol Subsidies Affect Brazil?, Inter-American Dialogue's Latin American Energy Advisor May 2011

How Will Changes To U.S. Ethanol Subsidies Affect Brazil?, Inter-American Dialogue's Latin American Energy Advisor

Latin American Energy Dialogue, White Papers and Reports

Last month, U.S. senators introduced competing legislation regarding the ethanol producer subsidy and import tariff, which are set to expire this year. A bill proposed by Democrat Dianne Feinstein (Calif.) and Republican Tom Coburn (Okla.) would eliminate the 45-cent subsidy for ethanol producers and 54-cent tariff for ethanol imports, while legislation from R Senators Charles Grassley (R-Iowa) and Kent Conrad (D-N.D.) would sharply reduce, but still retain, the measures. What are the advantages and drawbacks of the bills and is one likely to pass? How would the legislation affect the ethanol industry? Does Brazil have the infrastructure and capacity to …


Are Conflicts Hampering Per's Energy And Mining Sectors?, Inter-American Dialogue's Latin American Energy Advisor May 2011

Are Conflicts Hampering Per's Energy And Mining Sectors?, Inter-American Dialogue's Latin American Energy Advisor

Latin American Energy Dialogue, White Papers and Reports

There are currently 200 conflicts over natural resources in Peru, particularly in rural areas where residents complain extractive projects are destroying their lands and that they are unlikely to see many of the economic benefits, Reuters reported May 2, citing Per's human rights office. Those conflicts threaten to derail investments totaling some $40 billion over the next decade, according to the report. Are these tensions likely to crimp Per's energy and mining sectors? Which types of projects face the most strident opposition? How should the next president handle such situations? How would Ollanta Humala and Keiko Fujimori differ in their …


Is Ecuador's Refinery Of The Pacific On Track?, Inter-American Dialogue's Latin American Energy Advisor May 2011

Is Ecuador's Refinery Of The Pacific On Track?, Inter-American Dialogue's Latin American Energy Advisor

Latin American Energy Dialogue, White Papers and Reports

In 2008, PDVSA and PetroEcuador agreed to build the "Eloy Alfaro Delgado" Refinery of the Pacific, which reportedly will be the only high-conversion plant on Latin America's Pacific coast. The facility will require an investment of $12 billion, of which Venezuela and Ecuador have so far committed $3 billion. On March 9, Ecuadorean President Rafael Correa announced that more money would be distributed to accelerate the manufacturing of construction equipment. Is preliminary work on the refinery on track to be ready by 2015? Are the right plans in place for the refinery to attract the necessary investment and who would …


Is Venezuela Facing Another Electricity Crisis?, Inter-American Dialogue's Latin American Energy Advisor Apr 2011

Is Venezuela Facing Another Electricity Crisis?, Inter-American Dialogue's Latin American Energy Advisor

Latin American Energy Dialogue, White Papers and Reports

On April 7, a fire damaged a power line in Venezuela and caused the country's worst blackout since 2009. Top government officials were adamant that Venezuela is now better equipped than in 2009-10 when electricity shortages crimped the economy during a severe drought. However, the recent outage came amid a series of power shortages since March that industry analysts and business owners claim are hampering production. Does the Venezuelan government have the situation under control or is the electricity crisis likely to repeat itself? What steps should be taken to fix the electricity grid? Will the country be able to …


How Will Rising Fuel Costs Affect The Caribbean?, Inter-American Dialogue's Latin American Energy Advisor Apr 2011

How Will Rising Fuel Costs Affect The Caribbean?, Inter-American Dialogue's Latin American Energy Advisor

Latin American Energy Dialogue, White Papers and Reports

The administration of Jamaican prime minister Bruce Golding on April 11 caved in to pressure "at the eleventh hour" and rolled back the rate of the ad valorem tax on fuel, the Jamaica Gleaner reported, in an apparent bid to ward off opposition-led national street protests over fuel prices that party officials worried could turn violent. The opposition PNP party wants a permanent cap on the gas tax, as well as the removal of the general consumption tax on electricity, while the administration has pointed out that the increases in the price of fuel were being driven by the price …


Energía Nuclear En América Latina: Antes Y Después Del Desastre Japonés, Paul Isbell Mar 2011

Energía Nuclear En América Latina: Antes Y Después Del Desastre Japonés, Paul Isbell

Latin American Energy Dialogue, White Papers and Reports

This article begins by outlining the use of nuclear energy in Latin America as compared to other regions of the world. More specifically, it details the history and current output of energy from the six nuclear reactors throughout Latin America. Additionally, it discusses the plans that many countries in the region have to create nuclear energy programs in the future, and the impact that the events in Japan have had on these plans.


How Does The Current Surge In Oil Prices Compare To 2008?, Inter-American Dialogue's Latin American Energy Advisor Mar 2011

How Does The Current Surge In Oil Prices Compare To 2008?, Inter-American Dialogue's Latin American Energy Advisor

Latin American Energy Dialogue, White Papers and Reports

With ongoing tensions in the Middle East, oil prices have soared to heights not seen since before the economic crisis. What is the impact of the surge in oil prices on Latin American countries? Which countries and industries stand to benefit? Which stand to lose? How does the situation compare to the last time prices reached $100 per barrel in 2008? Experts discuss what they think about this topic.