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the way to make renewable energy and energy efficiency the centerpieces of their energy futures. Countries and regions that take the lead in developing these new energy sources will have first-mover advantage in one of the world’s fastest growing economic sectors—reaping the economic growth and job creation that will flow from it. This discussion today is more relevant than ever as the region faces macro trends reshaping power system evolution,12 including: the need to mitigate greenhouse gas emissions; the impacts of climate change, calling for a higher resilience of power systems; an increasing impact of fossil fuel price volatility; the advent of new information and communication technologies for grid monitoring and control (smart grids); the emergence of new clean energy business models for both large and small-scale generation; and an increased vehicle fleet electrification. While there have been some non-traditional renewable energy investments across the region, the use of these resources has not nearly reached its potential as some barriers to their implementation and myths remain. First of all, NRETs are perceived as a luxury that the region cannot afford without subsidies or external support. Many also believe that NRET can cover only a minor part of the power demand. Furthermore, there is a perception that intermittent resources such as wind or solar impose a hefty burden on power systems. Finally, there is an implicit perception that policy recipes to promote renewables necessarily come at high economic cost for the countries that implement them. Since successful policies cannot be simply transferred across borders, there is little clarity on how to accelerate the deployment of NRETs. This document focuses on the region’s need to define its future energy model and meet the increasing energy demand by addressing three questions: What is the magnitude of the available renewable sources? What are the associated societal benefits?13 And, what are the policy options for adopting renewable energy? These issues are presented and the stage is set for broader discussions about a new energy future in which new, resilient, and renewable energy sources meet most of the electricity requirements in the LAC region as a complement to its substantial hydropower base. To reach this goal, the report focuses on NRETs for grid-connected electricity generation. There are equally compelling discussions –beyond the scope of the analysis- regarding new paradigms for increasing energy efficiency, use of renewable energy in transportation and heat applications, and for expanding energy access through off-grid systems. Rethinking our energy future p. 6PDF Image | White Paper on Renewable Energy for the 3GFLAC
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