Why this is important to Wisconsin businesses: As these countries transition to clean power, Wisconsin companies may find opportunities to play a role.
Latin America is embracing clean technology.
Renewables, led by hydropower, generate 60% of the electricity in Latin America and the Caribbean—twice the global average, according to a November 2023 report by the International Energy Agency (IEA).
The efforts could signal broad opportunities for Wisconsin suppliers to provide products, technology, and other services.
Here are the priorities in four South American countries:
• Colombia has set goals of reducing greenhouse emissions by 51% by 2030, and achieving net zero by 2050. The country also aimed to increase renewable energy generation to more than 12% by 2022. According to the IEA, in 2021, renewable energy accounted for 25% of Colombia’s total energy supply and 29% of final consumption. Hydropower was the primary source. Colombia has conducted three renewable energy auctions and awarded nine wind and 16 solar large-scale projects, worth about $3.1 billion, according to the U.S. Commerce Department’s International Trade Administration (ITA). The projects will help the country advance toward its goal of generating 2.5 gigawatts (GW) of solar, wind, and biomass energy.
• Chile plans to retire all of its coal-burning power plants by 2040, with 70% of its electric generation to come from renewable sources by 2030 and 2 GW of energy storage to be available by then. Chile is focusing on green hydrogen and battery storage to reach its goals. According to PV Magazine, Chile is on target to become the second-largest battery market in the Americas, behind only the U.S. As of October 2023, the country had 12 storage projects operating with a total capacity of 1.3 GW, and 85 more storage projects are in development, expected to bring another 6.4 GW of storage. Chile’s strategy also calls for production of green hydrogen, taking advantage of strong winds in mountainous Patagonia and some of the world’s highest levels of solar radiation in the Atacama Desert. According to the World Economic Forum, Chilean green hydrogen could be among the most affordable in the world. The government has already pledged $50 million in funding to six green hydrogen projects.
• Since 2016, Argentina has approved 244 clean energy projects that will add a total of 6.3 GW of solar, wind, biomass, and small hydro power to comply with its goal of generating 20% of the country’s electricity demand by 2025, according to the ITA. A report by the Energy Information Agency (EIA) said by 2022, hydro power provided more than 16% of the country’s electricity generation, while nearly 10% came from wind and 2% from solar. However, an inadequate transmission infrastructure made it difficult to distribute electricity throughout the country, the EIA said. Argentina’s government has launched programs providing subsidies for construction of renewable energy projects and its National Energy Efficiency Plan aims to reduce energy use and promote energy efficiency.
• Peru is focused on water. With a population of 34 million, 16 million people lack access to safe water and 14 million don’t have sanitary toilet facilities, according to global nonprofit Water.org. A World Bank Group report estimates it will cost $32 billion to $52 billion to provide universal access to safe drinking water and sanitation by 2030. Water is essential for Peru’s manufacturing, mining, and agriculture sectors, its tourism industry, and its diverse wildlife ecosystems.
Wisconsin companies could have a range of opportunities in Latin America, from renewable power systems and services to advanced water treatment technologies.
