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generated by the same level of spending on fossil fuels.69 Additional reports have also shown that the deployment of NRETs contributes positively to employment as compared to other technologies - both regarding the number of jobs generated in the renewable energy sector as well as economy-wide.70 • NRETs reduce the local health and environmental impacts of fossil fuel technologies. The generation of electricity from fossil fuels, and in particular from fuel oil, diesel oil and coal produces negative impacts on the environment and on human health due to air pollution from nitrogen oxides, sulfur oxides, and particulate matter.71 Extraction processes of fossil fuels can have high on- site environmental impacts. Moreover, the trend towards using fracking technologies to extract natural gas will likely increase environmental risks of extraction. The use of renewable energy helps mitigate these impacts.72 • Non-hydro renewable electricity production can reduce power plant siting concerns. There has been sharp criticism related to the impacts of large hydropower plants in the LAC region73 exemplified –for instance- by resistance to projects in Brazil (Belo Monte)74 and in Chile (Hydro- Aysen).75 High profile efforts to halt oil and gas exploration have been reported in regions such as Yasuní in Ecuador76 and the • The renewable electricity industry represents a significant opportunity to attract new investment. LAC currently accounts for just 4% of the global investment on NRETs, but has the potential to capture a much larger share of global investment on NRETs, estimated at $6 trillion during 2012- 2035. Societal costs and benefits are difficult to generalize because they are location-sensitive: they depend on the geographical context, the utility, the technology, and ultimately the project itself. Some of these benefits may be quantified into a dollar figure using established methodologies.78 Others may be quantified but only partially. In particular, the hedge value of NRETs against fossil fuel price volatility, which is one of their most relevant benefits, is hard to fully quantify, simply because there are no 25- year hedges for fossil fuels available in the market against which NRET costs could be compared on a like-for-like basis.79 Finally, some benefits may only be considered in a qualitative way as their impact is hard to measure, such as siting concerns and investment attraction. For purposes of illustration, Table 2 summarizes avoided costs and societal benefits of grid-connected PV electricity generation provided by a range of studies, mainly in the context of the United States.80 The value of fossil price hedge appears relatively small due to the lack of available methodologies to quantify this benefit over the long term. Some of these benefits would apply as well to other technologies. The consideration of avoided costs and societal benefits are important. For instance, societal benefits that apply to all NRETs (avoided costs due to GHG emissions, pollutant emissions, and fossil fuel price hedge) represent about 47 $/MWh. Reducing this amount from the NRET LCOE values on (or by adding them to the fossil fuel-fired LCOE values), shows that most NRETs are societally cheaper (on a LCOE basis) than even the most inexpensive fossil fuel technologies. Camisea gas project in Peru’s Kugapakori-Nahua-Nanti Reserve.77 Certain types of NRETs can be sited more easily and flexibly than conventional generation and therefore reduce many of these social and environmental concerns. Rethinking our energy future p. 15PDF Image | White Paper on Renewable Energy for the 3GFLAC
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