The LAC region captured 6% of the total $268.7 billion invested worldwide in clean energy in 2012, up from 5.7% in 2011. (For purposes of the Climatescope analysis, clean energy is defined as wind, solar, biomass, small hydro, geothermal and other renewable power generation, and biofuels.)
“The rapidly falling costs of clean technologies such as solar and wind power combined with an improved investment climate means that clean energy generation in the region is now truly affordable,” said Nancy Lee, General Manager of the MIF.
Climatescope’s research partner, Bloomberg New Energy Finance, tracked clean energy policies in the LAC region. As of the end of 2012, BNEF identified 110 such policies, up from 80 at the end of 2011.
Climatescope 2013 also tracked a dramatic rise in the diversification of investment destinations in the region.
“The growth of clean energy investment outside Brazil in 2012 was significant,” said Michael Liebreich, chief executive of Bloomberg New Energy Finance. “Total financing outside Latin America’s largest country jumped to 45% in 2012 from 17% in 2011, as Chile, the Dominican Republic, Mexico and Uruguay, among others, posted outsized growth rates.”
Key findings of Climatescope 2013 include:
• Tenders for clean power contracts are on the rise and foreshadow greater deployment in the future.
• Eight countries now have net-metering laws, which allow self-generators to feed their surplus power back to the grid.
• Retail power prices remain generally high across the region, offering significant opportunities for deployment of renewables.
• The region’s clean energy value chain is expanding, with 35 out of 40 chain segments in six renewable sectors now occupied.
• There are 927 carbon offset projects, registered under different standards in the region, with more than half pertaining to power generation.