After a quarter of a century since Brazil started its power sector reform, there are a number of lessons learned and best practices to inform the policy debate across Latin America. Given large amounts of hydro resources, and the imperfections in the mechanism for system expansion and the scheme adopted to induce efficient contracting Brazil engaged in a second wave of reforms in 2004. This process resulted in the incorporation of the obligation for every load in the system to have a contract to back that power, with the contracts obligated as the result of auctions. The criterion for contracting at auction is the smallest tariff with standardized contracts. Terms range from 5 to 30 years. Brazil has expanded its installed capacity almost two-fold from 91 GW in 2005 to 158 GW in 2017.
Will Argentina’s provinces have a renewed role in national energy policy under the Fernandez administration?
Alberto Fernandez assumed the presidency of Argentina on December 10. According to reports, the administration’s energy policy is set to be submitted to Congress for debate with the goal of concluding it before the end of the extraordinary session in February. There have been a series of meetings and statements since President Fernandez took office that point to a renewed role for Argentina’s provinces in helping to set the agenda and shape the policy debate.
President Andres Manuel Lopez Obrador assumed the presidency a year ago. Energy has been a key part of his government and rhetoric promising “profound and radical” change. While he has not reversed the overarching laws supporting Mexico’s energy market liberalization, which he strongly opposed, he has sought to chip away at it. With much focus on oil and Pemex, it bears noting that his government’s recent efforts also cast doubts on the expansion of renewable energy in Mexico and, in turn, the international effort to fight climate change. On the sidelines of our program in Washington, DC we sat down to catch up with Julio Valle, Joint Director of the Wind Energy Association (AMDEE) and Solar Energy Association (ASOLMEX) in Mexico to share the latest clean energy market developments, policy changes surrounding CELs and the unfolding legal challenges.
Mexican president Andres Manuel Lopez Obrador marks one year in office on December 1. As the milestone approaches, rhetoric and innuendo swirling around the country’s energy sector and particularly its renewable energy outlook has begun to take the form of more concrete actions and policies.
In early June, Argentina exported its first liquefied natural gas (LNG) cargo ever. Government officials and industry players agree that the path forward for monetizing the world’s second-largest shale gas play is almost exclusively an LNG conversation. The LNG shipment in early June underscores that development of the gas market is moving ahead despite the country’s macroeconomic difficulties and electoral calendar.