The Global Wind Energy Council (GWEC) will promote bilateral contracting between private so that renewable energies have a greater penetration in the energy matrices of the countries of the world.
Ramon Fiestaspresident for Latin America of the GWEC, stressed that public intervention towards regulated contracting processes is no longer “so strictly necessary” because wind energy has become the most competitive source of generation in the more mature markets that already have renewables.
“This brings a change in the start-up of projects, either through public contracting or, what we promote, private bilateral contracting, since it is the most competitive because a consumer will choose the cheapest. And if it is renewable on top of that, even better”, he maintained during the second day of the Solar, Wind & Hydropower Regional Virtua Summit, organized by Latam Future Energy.
“Therefore, regulatory contracting paths and formulas must be enabled so that the projects go ahead. And that is why we promote private markets, the standardization of contracts, as well as the perspective of time that is needed for it, ”he added.
and although He gave the example of the Term Market for Renewable Energies (MATER) in Argentina, where 1723.3 MW have already been assigned with dispatch priority (1,197.71 MW are wind farms), stated that said country, and others in the region, still require tenders and public calls to provide positive signals to investors that there is a concrete intention to meet the objectives of clean energy consumption.
Along the same lines, the LATAM president of the GWEC stated that “in Argentina the development of projects slowed down in the last legislature, but it is important to point out that it is different from what happened in other countries.”
“Perhaps it was not built on top of what was already there and at the desired pace, but there are important aspects in the regulatory architecture that remained as favorable elements for the continuity of projects, such as the MATER, which allows us to trust that if there is much more visibility clear of energy planning for the coming years, it could once again regain traction and become the market that it was”, he explained.
He even acknowledged that although there are countries where changes in energy policy deviate from environmental commitments, such as Mexico, for a few years there has been a “realignment” in LATAM that “should” translate into an improvement in energy frameworks.
“There are markets like Chile that in a few years will show enormous momentum. While in Peru we see that there is an important need to align environmental policy with energy policy and to improve the regulatory framework that provides a long-term signal of certainty”, he declared.
How much can wind energy grow in Latin America and the Caribbean? This was one of the many questions that were addressed during the LFE event, to which Ramon Fiestas He answered that “the region stabilizes around 5 GW installed per year”, according to the records given until last year.
“But this 2022 we hope to repeat figures or improve them. We trust that the trend will continue in the coming years, but also increase because we see that climate ambition is one of the fundamental axes of the development of renewables in the region”, he clarified.