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.
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.
On May 22nd and 23rd the Institute of the Americas hosts the XXVIII La Jolla Energy Conference. As we count down to this year’s Conference, we’ll be raising the curtain on a few of our key topics and panels. As we gather this year, we’ll spend time assessing the dramatic transformation that the global energy sector is undergoing and implications for our hemisphere. The resurgence in upstream developments across the region will be featured but also against the backdrop of the question of how much oil and for how long? Venezuela will be a key area for discussion including our nightcap roundtable focused on political developments and a full panel on the future of the energy sector and discussion of the path forward.
Last December, Argentina enacted regulations to implement law No. 27.191 to accelerate its distributed generation (DG) market, decentralize energy sources, reduce emissions and create jobs. As with most nascent legal and regulatory measures, success will depend on designing the proper policies that will attract local investment and grow its DG market sustainably.