For renewable energies, it is difficult to compete with low gas prices

In general, what is the situation of renewable energies today. Does it take off or is it different in each country?

Latin America has innovated in the field of renewable energies. Now, for geopolitical reasons, he is a little behind. At the first moment, Brazil made much more effort. Now, Argentina is leading the process with strength, with an advantageous situation compared to other countries.

What I am currently seeing is a tremendous boost for clean energy and, for geopolitical reasons, we are lagging behind. Already, the focus is more on job creation and work and has fallen somewhat in this area. Argentina is now very strong in the lead. Colombia wants to revive. But in countries where gas prices are very low, competition is difficult. Renewable energies can not compete without the very important support of the government.

In a context where several countries aim to become oil and gas exporters, is not it?

We are seeing that many countries want to become energy exporters and nobody wants to buy. Energy security inside the doors remains a very important factor.

Nobody wants to buy because of the political instability and the certainty that sales contracts can be maintained?

Nobody has full confidence in his neighbor. And there are also competing economic interests. Chile, Peru and other countries compete on mining issues. In these cases, the cost of energy is very important and no one wants to help the neighbor too much. Energy security, competition in some key sectors, means that the price of energy can give a very competitive advantage to another country competing with its neighbor.

In addition to energy reserves and available infrastructure, is the financing of renewable energy development projects crucial? Or a cultural change or a vision on how to get energy?

I think funding is not a big problem. There is a great deal of interest in investing in renewable energy, as it is projects that can be maintained, a contract and guarantee that they can be repaid. But in many countries, guarantees are not given and in some countries the World Bank provides them. Colombia, Argentina, for example, to help resolve the uncertainty surrounding the repayment of these projects, but in reality, we do not see a big funding problem.

So where are the disadvantages in Latin America?

There are many problems of social impact. It has not been talked about here. But there are many blocked projects, not just renewable ones. Always in gas, because of social impact problems on the environment. There is strong social opposition, with communities seeking to take advantage of renewable energy projects in areas with high indigenous populations in Mexico. In this country, it is proposed that communities own projects, in order to receive some of the benefits of these systems located on their land: hospitals, schools, regardless of the rent of land. Difficult problems to solve beyond financial problems. Many bureaucratic problems too. Something that adds a financial risk.

And Europe in another case and with a very long road traveled in several countries …

The Scandinavian countries want today to go further: they have a very strong penetration of renewable energies in the sector of the electricity. And now, they want to electrify as much as possible the demand, the transport, the heating, the industrial sector. All you can to the maximum. And they want this energy to be as clean as possible. They have a system of collaboration based on total trust in their neighbors, which helps a lot in this direction. Germany in Denmark, etc. And a very strong environmental conscience and a very strong purchasing power allowing the population to pay a little more for this type of energy.

Can we read in a geopolitical conflict the impact of the powers and their export matrix linked to fossils and other countries, according to their resources, related to renewable energies?

Yes, it is true, the countries of Latin America are countries with reserves of gas and oil. This has also slowed renewables a bit, as many have their generation based on gas and oil. And we see that in the case of Peru, it does not have as much interest in renewable energy, if the government does not want to subsidize, they will not enter as easily as in other countries. There are countries that have to import fuels if and if, and prefer to pay for renewable energy and have their own generation. But there is this offer.