The energy transition in Latin America will be achieved. But for this, an investment of more than 100,000 million euros annually until 2050, according to the General Director of Naturgy in Latam, Antonio Gallart, on the second day of the 2021 Latibex Forum.
To maintain investor confidence “it is necessary that these policies and frames are of quality and that the expectations of the changes are made while preserving legal certainty, “said Gallard.
The Director of Investor Relations of Neoenergia, Renato Rocha, go in this transition towards a green economy in Latin America the opportunity to generate employment and wealth in the region. The subcontinent has many natural resources and countries like Brazil, one of the most sustainable power matrices in the world, said Rocha.
The most sustainable energy
Brazil already has an essentially green power matrix, as reported by EDP Energías do Brasil CFO Henrique Freire. “85% [de la matriz] it is renewable and 65% comes from hydraulic energy, “Renato Rocha pointed out.
However, “one of the great challenges of the Latin American country occurs in the reduction of 30% of rainfall, due to climate change “, as Rocha indicated. That is why solar and wind energy are gaining momentum, as explained by Henrique Freire, and the regulatory framework needs adjustments, as it was designed with the idea of that hydroelectric would be the only source of energy, as indicated by Ceming’s Head of IR, Antonio Carlos Vélez. Even so, this framework has been adapted and “the changes have been discussed openly in the sector, respecting the contracts investors have already signed, “said Freire in his speech.
Likewise, Brazil has taken great power in distributed generation (self-generation of energy by citizens), but it must get a local industry of the components that renewables need, so as not to be affected by exports (mainly Chinese) and the exchange rate, according to Renato Rocha.
The Covid crisis resulted in an impact on the tax burden Latin America and a deterioration in the public coffers, which caused the devaluation of currencies and current inflation. In the recovery, the evolution of the price of raw materials, currencies and the political situation will be key, especially in the elections in Colombia and Brazil according to the managers who participated in the first table of this second day.
Three investment firms discussed the opportunities offered by related to the new economysuch as e-commerce, financial payments or telemedicine, where the new unicorns are emerging.