Growing interest in Latin America to promote renewable technologies

(06/05/2010)

According to Fitch Ratings, the prospects are good for renewable energy development in Latin America and the Caribbean, even as development across the region remains in the early stages and information on clean power initiatives is limited. There is growing interest from Latin American governments to promote renewable technologies, and most countries possess abundant renewable energy sources such as wind, small hydro, biomass and solar.

Fitch believes the absence of robust regulatory frameworks and limited domestic financing options constitute the main impediments to thoroughly develop such technologies. Also, the cost effectiveness of renewables, consistency of energy dispatch, and adequate economic incentives to make renewable energy projects economically feasible, provide additional challenges for renewable energy capacity additions in the region.

The consistent development of renewable power sources could help secure power supply and contribute to stabilizing countries' balance of payment as they reduce their dependence on fossil fuel import for thermal generation.

The full report, 'Renewable Energy: Poor Economics Promote Renewal Policies,' is available on the Fitch Ratings website. The report provides a country-by-country analysis on the development and success rate of renewable energy development, as well as the various financial incentives offered by the countries.

Related categories:  Biofuels and biomass   Environmental technologies market data   Hydroelectric power   Solar power and photovoltaics   Wind power