GBI Research, the leading business intelligence provider, has released its latest research, “South American Renewable Energy Market to 2020 - Favorable Policies and Regulations Drive Growth in The Region”, provides key data, information and analysis on the market opportunities in the South American renewable energy market. The report provides a detailed assessment of installed capacity and growth opportunities arising from the South American renewable energy market. At the outset, the report analyses the renewable energy market of top five countries of the South American region. The report’s coverage of the South American renewable energy market is comprehensive, with dedicated sections on regulatory frameworks and the key market drivers and restraints in top five countries of the region.
The report is built using data and information sourced from proprietary databases, primary and secondary research, and in house analysis by GBI Research’s team of industry experts.
Favorable Policies and Legislations Drive Renewable Energy Market in South America
Currently, government policies and renewable energy legislation play a vital role in the development of renewable energy sources. Countries in the South American region are aware of this and have enacted favorable policies to encourage investment in non-conventional energy sources such as wind, solar and biomass. Of the top five countries discussed in this report, Argentina, Brazil, Chile and Colombia have formulated legislation to promote renewable energy development. Argentina and Chile have set Renewable Portfolio Standards (RPS) targets for the implementation of renewable energy sources. In addition to this, a number of governments also provide indirect subsidies and tax credits to promote renewable energy. These policies and support will help the South American countries to achieve rapid growth in renewable energy, as the existing programs and legislations bring significant installed capacity to the market.
Financial Support by International Banks will Aid Renewable Energy Growth in the region
According to the Economic Commission for Latin America and the Caribbean (ECLAC), countries in this region would require an investment of $572 billion in the electricity sector between 2007 and 2030 to meet the energy demand. According to the United Nations Framework for Climate Change (UNFCC), more than 85% of the energy investment in this region will come from the private sector. International banks including the Inter-American Development Bank (IDB) are financing various power generation projects in this region. Since 2000, the IDB has financed more than $2.1 billion in renewable energy projects in the region, including hydro, wind and geothermal projects. The focus is to develop sustainable energy for the longer term through renewable energy sources. The banks also provide financial support for technical assistance programs for sustainable energy and energy efficiency.
Clean Development Mechanism (CDM) Projects Increase Renewable Energy Investment in the Region
The Clean Development Mechanism (CDM) is an arrangement under the Kyoto Protocol allowing developed countries to invest in projects that reduce greenhouse gas emissions in developing countries. The mechanism, which became operational in 2006, has been one of the key reasons for renewable energy investment in the South American region. Of the total 2,127 projects that were registered up to April 2010, 461 of them were registered for development in the Latin American region. More than 60% of the total projects relate to the energy segment, especially renewable energy sources. A combination of small hydro, solar, wind and biomass contributes to the majority of this investment. These projects are expected to increase the renewable energy investment in the region.
Environmental Protection, Increased Adoption of Renewable Energy and Other Benefits
Developed countries promote the use of renewable energy as a way to ease global environmental issues arising from the emission of greenhouse gases. With the depletion of fossil fuel resources, renewable energy has become the ideal solution to meet the long term energy needs. The price parity of wind energy generation over conventional energy sources is likely to favor the increased adoption of wind energy development. In addition to this, the adoption of renewable energy brings various benefits such as the creation of jobs and the revitalization of small and medium size industries. These reasons will play a vital role for renewable energy development in the South American region.
Renewable Energy Contribution in the Overall Energy Mix is Set to Increase in the Top Five Countries in the South American Region
The major part of power generation in the South American region is from renewable sources, especially hydro power. In the top five countries considered for this research, 63.5% of installed capacity is from hydro power, while 32.2% is contributed by the conventional thermal power. Nuclear and biomass represents about 1.4% and 2.4% respectively, while non-conventional renewable energy sources, such as wind and solar, represented less than 0.5% of the total energy mix.
The electricity production through hydro power and thermal power has increased significantly over the last decade. Both of these energy sources are expected to show moderate growth over the forecast period. With increasing legislative and financial support for renewable energy sources, the share of renewable energy is expected to increase and hence experience robust growth over the forecast period, especially in Brazil, Argentina and Chile. Power generation from biomass, solar and geothermal is also expected to show moderate growth over the forecast period.
For more information or to buy this report please click here: www.gbiresearch.com
About GBI Research
GBI Research is a leading business information company providing global business information reports and services.
Our highly qualified team of Analysts, Researchers, and Solution Consultants use proprietary data sources and various tools and techniques to gather, analyze and represent the latest and the most reliable information essential for businesses to sustain a competitive edge. If you have any queries about this report or would like further information, please contact
- North America: +1 646 395 5477
- Europe: +44 161 227 0669 (or) +44 207 753 4299
- Asia Pacific: +91 40 6616 6767
- Email: firstname.lastname@example.org