According to the company’s report, initiatives such as Brazil’s auction procedures are boosting the adoption of renewable energy sources. The report suggests that such strategies contribute towards the country’s overall aims to reduce greenhouse gas emissions from deforestation and achieve a national emission reduction of 36.1–38.9% by 2020, compared with levels in 2000.
Indeed, the techniques appear to be working, with over 25% of Brazil’s total power capacity forecast to come from non-hydro renewable sources by 2025.
Harshavardhan Reddy Nagatham, GlobalData’s Analyst covering Power, says Mexico also appears to be making positive moves towards limiting the environmental impact of its energy consumption.
Nagatham explains: “The Mexican government is currently aiming to limit the generation share accounted for by fossil fuel technologies to 65% in 2024, 60% in 2035, and 50% in 2050, leaving a space for renewable power to be adopted widely.
“Mexico contains substantial amounts of coal, oil and gas, which currently dominate the country’s energy mix, so the Mexican government’s move towards limiting the use of fossil fuels is indicative of a commitment to fighting climate change.”
Argentina is another Latin American country to pledge ambitious targets regarding its renewable energy use, despite historically minimal involvement with the sector, particularly as energy demands within the country are increasing substantially.
The low utilization of renewable energy sources such as wind, solar and geothermal to date is primarily due a lack of government incentives that support renewable investment and limited support in terms of financing and project funding options.
Nagatham continues: “Currently, a large number of projects are receiving financing from the Argentinian government, which also encourages private participation through foreign investment in the energy sector.
“These changes mean Argentina has been able to set a target for 8% of its power consumption to be accounted for by renewable energy sources by 2016, up from the 2014 level of 3.5%. This high relative increase is indicative of a global trend in commitment to environmental issues.”