1. Rethinking our energy future 3GFLAC Bogota, June 18th, 2013

2. Examples of specific RE-rich sites for electricity generation
Renewable energy resource technical potential for electricity generation in LAC (PWh)
Examples of specific RE-rich sites for electricity generation

3. Examples of specific RE-rich sites for electricity generation
Renewable energy resource technical potential for electricity generation in LAC (PWh)
Examples of specific RE-rich sites for electricity generation
Total generation potential: 78 PWh
Corresponding peak capacity: 33 TW

4. Costs of renewables are coming down
Costs (US$/MWh)
Year
Wind
Biomass
Small hydro
Solar
Argentina
2009
127
572
Brazil
2006
150 70 96 77 80
2010 75 82 81
Chile
102
Honduras
120
148
México 66
Panamá
2011 91
Peru 63 60
220
Uruguay 85

5. Costs of renewables are coming down

6. Societal benefits make renewables even more attractive
Long-term energy security
Energy price risk hedging
Reduction of vulnerability to climate change
Job creation
Reduced local health and environmental impacts
Attraction of new investments
Mitigation of climate change

7. Societal benefits make renewables even more attractive
Approximate value of societal benefits: 50 USD / MWh
Long-term energy security
Energy price risk hedging
Reduction of vulnerability to climate change
Job creation
Reduced local health and environmental impacts
Attraction of new investments
Mitigation of climate change

8. Fossil fuel technologies Renewable energy technologies
Inherent differences
Fossil fuel technologies
Renewable energy technologies
Contract duration
Short / long-term
Long-term
Energy costs
Variable
Constant
Generation profile
Baseload / peak
Power plant scale
Large / medium
Medium / small
Societal benefits No
Yes

9. Fossil fuel technologies Renewable energy technologies
Inherent differences
Bias in market* rules
Fossil fuel technologies
Renewable energy technologies
Contract duration
Short / long-term
Long-term
Energy costs
Variable
Constant
Generation profile
Baseload / peak
Power plant scale
Large / medium
Medium / small
Societal benefits No
Yes
* “Market” in the broad sense of the term

10. Fossil fuel technologies Renewable energy technologies
Inherent differences
Bias in market* rules
Fossil fuel technologies
Renewable energy technologies
Contract duration
Short / long-term
Long-term
Energy costs
Variable
Constant
Generation profile
Baseload / peak
Power plant scale
Large / medium
Medium / small
Societal benefits No
Yes
Uneven playing field
* “Market” in the broad sense of the term
Image:

11. Accommodating variability
Electricity systems can accommodate a large share of variable generation, through
Flexible generation technologies such as hydro
Exchange with neighboring systems (regional integration)
Energy storage
Demand management
Images:

12. Accommodating variability
But this requires aligning the incentives
Electricity systems can accommodate a large share of variable generation, through
Flexible generation technologies such as hydro
Exchange with neighboring systems (regional integration)
Energy storage
Demand management
Images:

13. Accommodating variability
But this requires aligning the incentives
Electricity systems can accommodate a large share of variable generation, through
Flexible generation technologies such as hydro
Exchange with neighboring systems (regional integration)
Energy storage
Demand management
Hydro operators need to have the incentives to store water to compensate short-term variability
Images:

14. Accommodating variability
But this requires aligning the incentives
Electricity systems can accommodate a large share of variable generation, through
Flexible generation technologies such as hydro
Exchange with neighboring systems (regional integration)
Energy storage
Demand management
Regional integration plans need to consider renewable energy technologies
Images: