Regions | LATAM Clean Energy

Regions of Focus

In 2018, Latin America’s clean energy market grew more than 25 times faster than the global rate (Renewable Energy World). On average Latin American countries have collectively targeted 70% of their generation from renewable sources by 2030, which is why Noble Generation launched LATAM Clean Energy. The venture has already secured 280 MW of renewable projects in Central America. In addition to having the customary security from physical assets, contracts, cash flows and insurance, these projects also have 20-Year PPAs at 250% premium over US solar and wind projects. Investment exits are anticipated after 5-7 years through sales to strategic buyers seeking to increase LAC presence through the purchase of strong operating assets.

Central America

Historically, Central America has been powered mostly by hydropower, but in the mid-1990s hydro’s share dropped as it began to be replaced by fossil fuels. In the mid-2000s, increasing shares of renewables, such as wind in Costa Rica, Honduras, and Nicaragua, decreased the region’s dependence on oil. Despite the range of fossil fuel options now available, the region is continuing to expand its use of renewable energy, a trend that is in the global interest as well as the economic, social, and environmental interest of Central American countries. Today, the region has a total installed generation capacity of 12GW.

It is a promising time for Mexican renewables. After the energy sector was monopolised by the state electricity company CFE, limiting private participation for more than 75 years, a much awaited constitutional reform law was approved in 2013 which has liberalised the sector for private investment and transformed the power sector into a promising market. Overall investment in the sector rose in 2014 to US$2.4 billion.

Because Mexico is the thirteenth largest emitter of greenhouse gases worldwide, General Climate Change Law set a goal to reduce emissions by 30% by 2020 and 50% t by 2050.

South America is one of the world's leading renewable energy-producing regions, with a total installed capacity of 211.2GW. The region accounts for nearly 10% of the world’s total installed renewable energy, which stood at 2,350 GW in 2018. Wind and solar energy installations have seen huge growth over the past decade. The region’s total installed wind power capacity surged from 849 megawatts (MW) in 2009 to 18.6GW in 2018. South America has also witnessed a significant jump in its total installed solar capacity, which went up to 5.4GW in 2018 from 15MW in 2009.