Uruguay can be considered a benchmark in terms of renewable energy after the change in the energy matrix that the country began to undergo in 2010 and which required US$7.8 billion in energy infrastructure. Locally 97% of electricity is generated from renewable sources, but this It is not the same reality that is reflected in the region.
The data provided by the International Renewable Energy Agency (IRENA) reveals that current levels of investment in renewable energy are “well below what is needed to achieve the global ambition of implementationand continued investments and subsidies for fossil fuel assets globally are hindering progress.” According to Irena, Latin America and the Caribbean attracted at least US$20 billion in investment in renewable energy in 2022; however, that only represents about 4% of the world total, highlighting the urgent need to accelerate the flow of capital to the region.
In order to promote these investments, Irena chose Uruguay as the venue for the first Latin American Investment Forum of the International Energy Agency. The announcement was made this Wednesday morning at the CAF headquarters by the Director General of Irena, Francesco La Camera; the Minister of Industry, Energy and Mining, Omar Paganini; and his deputy minister, Walter Verri.
According to La Camera, the case of Uruguay is an example for the region and that is why it was selected as the venue by Irena after she applied as host. “Our relationship with the authorities has been very fluid, they have participated in Irena’s advice and we have always had a very good relationship. This led us to devise this forum together,” he said in dialogue with El Observador.
“It’s comforting to see how Uruguay is a world-class player worldwide and That Irena has chosen Uruguay to choose the first forum in Latin America for us is a source of pride“, said the undersecretary in dialogue with El Observador and stressed that this demonstrates the weight that Uruguay has with its renewable energy policies in the global context.
In the same line, Irena’s CEO noted that the Latin American Investment Forum will mark an important moment for the region to “take stock of progress towards energy transitions, accelerate investments and consolidate regional cooperation.”.
Later it was the turn of Minister Paganini who emphasized that Uruguay is a global example with its first energy transformation. “In a decade he managed to decarbonize the production of electrical energy; Now we are laying the foundations for the second transition, which has electric mobility, the development of green hydrogen and its derivatives, and energy efficiency as its pillars”mentioned the Minister of Industry, Energy and Mining.
Asked about the challenges when it comes to continuing to incorporate renewable energies into the generation system, Verri pointed out that they lie in researching and developing storage projects and advancing on the green hydrogen route. “It will be revolutionary when that happens. Uruguay’s roadmap (in green hydrogen) strongly positions us in the world context as a country that could be a net exporter,” he said. For the structure of the country, this would result in more energy independence and less dependence on oil.
In the vision of La Camera, after the drought, Uruguay is betting on adopting solar energy and biomass in order to better balance the system. “It also contributes to the balance sheet with its vocation to export energy,” highlighted the general director of Irena.
As a challenge, The Chamber determined that there are two power plants: the physical and legal infrastructure that sustains and supports renewable energy.
During the forum presentation The ambassador of Uruguay in the United Arab Emirates and permanent representative in Irena, Álvaro Ceriani, asked The Chamber to evaluate the possibility of installing a regional office of the Agency in Uruguay. Consulted about it by El Observador, Irena’s general director pointed out that “everything is possible” although it is not something that will be worked on in the short term since those who make this type of decision are the member states of the agency and not the director.
Vice Minister Walter Verri during the forum presentation
Forum
Local and regional projects of any magnitude may be submitted through the Climate Investment Platform (CIP) to be considered by investors and financiers at the Forum. Projects submitted may also be eligible for consideration by the Energy Transition Accelerator Finance Platform (ETAF), a multi-stakeholder climate finance platform managed by IRENA that aims to advance the global energy transition in economies Developing.
Francesco La Camera pointed out that he hopes that the forum will facilitate and be a link between the projects that are presented and the financial entities and highlighted the possibility of discussing business to business and recalled the successful experience of the first edition of the forum in Bali . The Chamber highlighted that the forum will mark an important moment for the region and pointed out that although the size of the companies does not matter, many small and medium-sized companies are expected.
The inaugural version of the Latin America Investment Forum is expected to attract both high-level government officials, financial institutions and private sector companies from the region and around the world and provide a platform to accelerate investments in renewable energy projects in Latin America.
To submit a project or find out its eligibility criteria, you can access the Irena website.
