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national strategy to generate up to 8 percent of the country’s electricity from renewable sources; the government has offered tax incentives to attract private investors. In 2010, state company Enarsa launched its first tender for 1,000 MW of power through renewable sources. Six photovoltaic energy projects, totaling 20 MW, were awarded. Petroleum Product Demand in Latin America Oil is transformed into a number of products, the most important of which are liquid petroleum gas (LPG), gasoline, kerosene, diesel, fuel oil, and residues (petroleum coke). The following graphs show how significantly Latin America’s gasoline and diesel deficit has increased in the last forty years (although the region shows a large surplus of low-value fuel oil, traditionally used for power generation). In recent years, natural gas has replaced fuel oil for power generation. Figure 8: Latin American Oil Supply and Demand, 1970; 2010 70% 60% 50% 40% 30% 20% 10% 0% LPG Gasoline 1970 supply Diesel demand 1970 Coques Kerosene Fuel oil 70% 60% 50% 40% 30% 20% 10% 0% LPG Gasoline 2010 supply Diesel demand 2010 Coques Kerosene Fuel oil Source: OLADE - SIEE Database The surge in demand for gasoline and diesel comes in tandem with the rapid expansion of Latin America’s vehicle fleet. There are approximately 65 million motor vehicles in Latin America, concentrated in three markets: Brazil (21 million), Mexico (20 million) and Argentina (9 million). With a population near 400 million and a large unsatisfied demand for vehicles, Latin America has become the world’s fastest- growing vehicle market. In five years the fleet has grown 50 percent, to 169 cars per 1,000 habitants, from 113 cars per 1000 habitants. The booming demand for vehicles is expected to continue in the near future. 8PDF Image | Infrastructure and Environment Department
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