Clean Energy Investments in Latin America Total $9.7 billion in 2012 Four Countries Saw Triple-digit Investment Growth
For Immediate Release - April 30, 2013
Washington DC - Total new financial investments in clean energy in non-Brazil Latin America rose 127% in 2012 compared to 2011 figures, reaching $4.6 billion. This growth reverses the first global decline in new clean energy investments last year, as the region became more active in renewable energy.
The trend emerges as 200 senior level financiers and developers will meet at the 3rd Annual Renewable Energy Finance Forum – Latin America & Caribbean (REFF-LAC) in Miami next week. REFF-LAC will address the rapidly changing state of renewable energy finance, and insights about the path ahead, with a specific focus on the Central, South American and Caribbean markets and how they are interacting with the broader global markets.
Globally, new investments in clean energy fell 11% from $302.32 billion in 2011 to $268.69 billion in 2012, according to Bloomberg New Energy Finance (BNEF). This is the first time BNEF has observed a decrease in renewable energy financing. However, Latin America was a bright spot, with four countries seeing triple-digit investment growth, including:
• Mexico total new financial investments in clean energy for 2012 reached $1.9 billion, up 595% compared to 2011 figures
• Chile total new financial investments in clean energy for 2012 reached $1 billion, up 313% from $246 million in 2011
• Uruguay total new investments totaled $105 million, up 285% from the previous year
• Peru total investments came to $643 million, representing a 176% increase from $233 million invested in 2011
“The increased investments in non-Brazil Latin America was driven by increased activity by the Inter-American Development Bank,” said Maria Gabriela da Rocha Oliveira, Head of Latin America Research and Analysis at BNEF. “Additionally, European players, both project developers and manufacturers, have become more active in the region given grim conditions at home.”
“As investments in clean energy declined in 2012 due to the ongoing financial crisis, the sector was actually growing in most of Latin America. This is a huge boon for clean energy finance and the region, which we expect to continue to grow,” said Carlos St. James, president of the Latin American & Caribbean Council on Renewable Energy (LAC-CORE) and CEO of VOLA Investments LLC. “The most exciting trend is that this has moved beyond Brazil, with other countries now seeing amazing growth and potential.”
Total financial investments in clean energy by country were led by Brazil ($5,171.1 million), Mexico ($1,998.5 million) and Chile ($1,018.3 million), according to BNEF. By sector, biofuels ($539.47 million), biomass and waste ($822.34 million) and geothermal ($76.69 million) received the most new financial investments.
ACORE, a 501(c)(3) non-profit membership organization, is dedicated to building a secure and prosperous America with clean, renewable energy. ACORE seeks to advance renewable energy through finance, policy, technology, and market development and is concentrating its member focus in 2013 on National Defense & Security, Power Generation & Infrastructure, and Transportation. Additional information is available at www.acore.org.
On April 30-May 1, REFF-LAC will address the rapidly changing state of renewable energy finance, and insights about the path ahead, with a specific focus on the Central, Latin American and Caribbean markets and how they are interacting with the broader global markets. In the face of tremendous long-term growth potential and new political support, the renewable energy markets are today suffering from the credit crisis, withdrawal of major lenders, loss of tax equity capacity, economic recession, and new legislative initiatives. REFF-LAC is hosted by Euromoney Energy Events and the American Council on Renewable Energy (ACORE), in partnership with the Latin American & Caribbean Council on Renewable Energy (LAC-CORE). REFF-LAC is made by the industry, for the industry. Our panel of conference Co-Chairs provide guidance on the business-critical issues facing you today ensuring high-level, topical debate that gets to the heart of the industry. For more information or to register, visit http://www.refflac.com/index.php.