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Societal Benefits from NRE for Power Generation in LAC NRETs deliver more than energy.59 While these resources constitute a near zero carbon option, they also constitute, as a group, an indigenous energy resource without an expiration date and with several societal benefits.60 To guide the decision process on the use of these resources, a synthesis of key societal benefits follows: • NRETs contribute to de-carbonization of regional economies. Although by global standards greenhouse gas emissions from the power sector are low in LAC, current projections predict that these will increase as more fossil-fuel based, mostly natural gas plants are built to meet regional demand.61 Scaling up NRETs is one of the most effective strategies to reduce the emissions of greenhouse gases in the region as it would also facilitate the de-carbonization of the transport and industrial sectors. The adoption of bold renewable energy deployment targets will also strengthen the position of countries that take proactive action in the international climate change arena. • NRETs can contribute to long-term energy security. Energy security can be defined as a country’s control over its energy sources (i.e. sovereignty) and the ability of the energy system to respond to fuel supply disruptions (i.e. resiliency).62 o Given the inexhaustible nature of renewable energy supplies, the security of supply spans generations . The recent Global Energy Assessment from IIASA concludes that LAC in particular could capture energy security benefits from a shift toward renewable energy.63 o Volatile fuel prices can complicate and disrupt energy planning and broader economic initiatives, directly affecting inflation and therefore affecting macroeconomic stability64. As a diverse stock portfolio can decrease the impact of volatile individual commodities, an energy portfolio diversified through NRETs helps insulate LAC economies from oil and natural gas price fluctuations. • Diversification of power supply can help reduce vulnerability of hydro-based power systems to unstable hydrological cycles. In the case of a hydro-dependent power matrix, other renewables can help address the impact of extreme events in hydrological cycles, or changes over time in firm capacity, while maintaining a low carbon footprint in the sector.65 Glacial retreat, for example, is already affecting hydropower output in the Andean nations.66 Non-hydro renewable electricity can serve as an insurance policy against the risk of an unstable hydropower outputs.67 • Low operation and maintenance (O&M) costs typically associated to renewables can help redirect budgetary resources to other development priorities. A 10% increased share of renewable electricity would decrease regional oil consumption by 20 million barrels per year, or about to 2% of region’s 2009 gross domestic product (GDP).68 This would lead to additional resources readily available to be invested in social needs. This is particularly relevant for Haiti where 3% of the GDP could be saved by a shift towards renewables. • NRETs have a positive impact on job creation. Generally, it is estimated that NRETs create more jobs per dollar invested than conventional electricity generation technologies. According to a study in the United States, jobs created by employment of renewable energy are three times those Rethinking our energy future p. 14PDF Image | White Paper on Renewable Energy for the 3GFLAC
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