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Latin Americas Top Countries In Renewable Energy

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Latin Americas Top Countries In Renewable Energy ( latin-americas-top-countries-in-renewable-energy )

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SPECIAL MENTION NICARAGUA Nicaragua is a renewable energy paradise in Central America. Its abundant resources allow this small country to boast great potential for hydropower, geothermal electricity and wind power [79]. And it is already being exploited. In 2013, over 50 per cent of total power supply was supplied by renewables. Together, geothermal and wind power accounted for more than 30 per cent of all generation [62]. Over the period between 2008 and 2012, Nicaragua had the highest annual growth in Latin America for non-hydro renewable power generation: almost 30 per cent [63]. Despite Nicaragua being one of the smallest countries on the continent, in 2012 it occupied the 20th position (out of 32) based on GDP [30], today it boasts one of the highest levels of clean energy investment per unit of GDP. In 2012, US$292 million were invested in clean energy in Nicaragua, equivalent to 2.8 per cent of the country’s GDP. In the same year, Nicaragua increased its renewable energy installed capacity by more than 40 per cent compared to 2011 [7]. Despite 2013 bringing a significant decline in investments, this US$11 billion economy has been able attract US$1.6 billion to its renewable energy sector since 2006. That’s more than many other countries in Latin America [51]. The great success story of Nicaragua has been the increasing market penetration of geothermal energy. Twenty years ago, there was no geothermal generated power in Nicaragua. By 2013, there were over 150 MW of installed capacity supplying around 16 per cent of the total electricity consumed in the country [62]. Nicaragua is not one of the major consumers of renewable electricity in Latin America. In fact, it is still a highly dependent fossil fuel economy. Around 50 per cent of total electricity generation comes from burning oil and diesel. It also has a low electrification rate: over 22 per cent of the population does not have access to electricity [6]. WAS SUPPLIED BY GEOTHERMAL IN 2013, 16% OF TOTAL ELECTRICITY IN NICARAGUA Nonetheless, Nicaragua deserves recognition for overcoming such drawbacks. In 2003, electricity generation from renewables and the electrification rate were 12 and 10 percentage points lower than they were in 2012 [80]. Thanks to renewables, Nicaragua is slowly catching up. Nicaragua has been able to attract investments in the clean power sector despite its size and modest economy. In 2010, an historical US$430 million was attracted to the sector [7]. Around half of it to geothermal generation, and half to wind power. Subsequent years were less exciting, but since 2011 about US$690 million have been brought to Nicaragua, the equivalent to six per cent of the country’s 2013 GDP. The Nicaraguan market is expected to rise a further twice over again in the coming years [81]. In particular, micro financing institutions are playing a key role in Nicaragua’s clean energy future. Today, micro financing in Nicaragua is responsible for more than US$1.2 million of investment in renewables [7]. Nicaragua has great geothermal resource potential. It is estimated that its geothermal generation could worth up to 5,500 MW, over four times current total installed capacity [80]. Over the coming decade, geothermal power could grow at least a further 250 to 400 MW [80]. In the last five years, its capacity grew twice over [62]. WWF | Green Energy Leaders: Latin America’s Top Countries In Renewable Energy | Page 34

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