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South America In the past few decades South America has at times enjoyed economic growth due to the development and exportation of its oil and gas resources. However, economic and diplomatic issues surrounding the flow of energy across borders have had adverse impacts on the economies of South American countries.51 For example, Argentina abruptly cut off supply of natural gas to Chile in mid-2004; and a transmission line built a few years ago to connect Peru and Ecuador has rarely been used due to disagreement on electricity price.52 Reports of blackouts and worker strikes have become increasingly regular. At the same time, energy consumption and demand is growing in South America and is projected to increase by 72 percent through 2035(includes Central America), according to the EIA.53 Awareness of climate change issues is another factor leading many of these countries to seek development of renewable resources. The melting of Andean glaciers and changing rain patterns have negatively impacted local agriculture and residential patterns thanks to the dwindling water supply.54 The United Nations predicts that Latin American countries will be severely affected by climate change, despite the fact that the region’s greenhouse gas emissions represent a small proportion of total global emissions.55 To address the of issues energy security, increasing demand, and sustainability, some countries in South America have taken steps to increase domestic energy security by supporting the development of their renewable energy resources. Geothermal resources represent an opportunity to meet energy needs with a clean, baseload, sustainable form of energy in South America, particularly along the Andean Mountain Range and the Southern Cone of the continent. Experienced companies from Australia, Italy, the US, and other countries are taking an interest in the development of South America’s geothermal resources. Many are partnering with a resident company, bringing local understanding to the project as well as making development more feasible. Some local and international mining companies have undertaken smaller- scale operations, working to develop geothermal resources to help meet the electricity needs of their operations. A key player in development financing for renewable energy throughout Latin America and the Caribbean is the Inter-American Development Bank (IDB). Already contributing to some geothermal projects, such as the Copahue project in Argentina, the bank’s recent efforts seem to redouble its commitment to climate-friendly solutions: thus far it has approved US$ 30 million for renewable energy projects for the Emerging Energy Latin America Fund II,56 had an additional US$ 70 billion capital injection,57 and began a five-year target to use 25 percent of its loans toward climate-related projects. Argentina May 2012 Argentina traditionally relies on fossil fuels and hydropower generation, as well as natural gas. Like other countries in the area, Argentina went through a time of privatization in the energy sector, which kept renewable technologies comparably uncompetitive and left holes in energy supply to rural areas. In the latter 00s the government stepped up its involvement; new renewable energy projects are 12PDF Image | Geothermal International Market Report
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