Investors remain confident in Latin America’s renewable energy markets
Latin America’s significant renewable energy resources, combined with the region’s rapidly growing energy demand, mean that even in a climate of slowing economic growth investors are continuing to focus on the region’s alternative energy sector. Government mandates are providing incentives for increased investment, especially in the key economies of Brazil, Mexico and Chile, and private sector activity in these markets continues to grow.
It is estimated that the renewable energy market in Brazil, including small hydro, biomass, solar and wind energy, will grow to a value of $25bn. Biofuels will play a big part of this trend, and the sector’s current growth is exceptional – ethanol production in Brazil increased by 20.1% year on year in 2008 to 26.6bn litres, according to official figures released by Companhia Nacional de Abastecimento (Conab). Investment in the Brazilian ethanol sector reached a record $3bn in Q3 of 2008, according to New Energy Finance.
Government support is also increasing – by the end of 2009, Chile is looking to double the size of its renewables sector, from 347MW to 647MW. Meanwhile Brazil, Mexico and other Latin American states are moving ahead with legislation to incentivize investment in alternative energy.
Underlining investor confidence in the sector, a number of landmark deals have recently taken place in Latin American renewable energy. Spain's Grupo Enhol and Chilean developer Haciendas Talinay announced in July 2008 that they plan to spend more than $1 billion building Latin America's largest wind farm north of Santiago. Private equity money is also flowing into the sector, as shown by Conduit Capital’s investment of over $50m in Brazilian hydroelectric project developer GLEP Energias Renováveis e Participações. And in one of the largest cleantech deals of the year, Sao Paulo-based Vital Renewable Energy Company (VREC) announced in November that it had secured over $1bn of funding from a group of US, European and Middle Eastern investors.
The Renewable Energy Finance Forum Latin America (http://www.REFF-LatAm.com), taking place for the second time on 27-28 April 2009 in Rio, will provide a meeting place for investors, project developers and others involved in this rapidly changing market. At a time of increased financial uncertainty which also presents unique opportunities for investors, the Forum will unite senior players from the financial and energy sectors at a high-level event with excellent networking opportunities.
Key conference topics:
• Renewable energy in Latin America – status and growth potential
• Opportunities for domestic and international investors
• The growth of renewable energy-based CDM projects
• Country-by-country examination of the key markets
• The impact of the credit crisis – identifying future sources of funding
The event will feature senior level speakers including:
• Valerio Cecchi, President and Chief Executive Officer, Enel Latin America
• Antonio Gaivão, Senior Vice President, GDF SUEZ Energy Latin America
• Antonio García Méndez, Global Head of Energy, Santander Global Banking and Markets
• Carlos Eduardo Cavalcanti, Head of Biofuels, BNDES
• Fernando Cunha, Director of Partnerships, Petrobras Biofuels
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