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Latin America’s primary energy demand Primary energy demand2 in Latin America has more than doubled in the last forty years, but the rate of growth has not been constant. Energy demand grew rapidly in the 1970s, a period that coincided with strong levels of economic activity and fast expansion of the electricity grid. The rate of growth declined in the late 1980s and 1990s when the debt crisis sent the region into a deep recession and a slow recovery. Improved energy efficiency also lowered the growth rate of consumption. Use of conventional energy sources (hydrocarbons, electricity) expanded rapidly while demand for traditional resources (wood, animal waste) declined. In the last decade, overall energy consumption has increased at a rate of 3 percent per year, again fueled by strong levels of economic activity. Figure 4: Latin America’s Primary Energy Consumption 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 7% 6% 5% 4% 3% 2% 1% 0% -1% -2% -3% Primary energy consumption % change Source: ECLAC The share of fossil fuels in Latin America’s primary energy mix over the last forty years has not changed substantially,3 accounting for 74 percent of primary energy needs. However, in 1970, the picture was different. Oil met 61 percent of those needs while coal and natural gas combined accounted for 13 2 Primary energy sources are those obtained directly from nature, such as hydroelectricity, wind, solar, wood and vegetable fuels, or those from extraction, such as oil, natural gas, coal, and geothermal. Source: CEPAL database. 3 Primary energy consumption = Energy production – Exports + Imports + change in inventories from all primary sources: oil, natural gas, coal, hydroelectricity, geothermal, wood, bagasse, nuclear, renewable. Source: CEPAL data. 4 million boe % annual change, Moving Average 5 year 2005 2000 1995 1990 1985 1980 1975 1970PDF Image | Infrastructure and Environment Department
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