Latin America must diversify its energy sector to withstand climate change

Problems of infrastructure and politics hamper Latin American initiatives to thwart the problems of climate change, from guerrilla attacks on power systems in Columbia to congressional stalemate in Mexico. Energy experts in Latin America maintain that over-dependence on hydropower threatens the stability of the region at a time when environmental disasters are more common, leading to energy crisis across the region.

“Because of fewer resources for long-term adaptation to climate change effects on water resources, these developing countries are more vulnerable to changing water availability and extreme weather,” Jessica Belt of Green Biz said.

Irrigation from dams is responsible for 12 to 16 percent of world food production, according to an estimate by the World Wildlife Fund. Ms. Belt explains that dependence on dams in developing countries jeopardizes not just electricity generation but contributes to food insecurity as well. Diversified sources of renewable energy will reduce the geopolitical threats that arise from reliance on hydropower. The research group IHS, and James McKeigue of Money Week, believe that Latin America will install 700 MW of solar panels this year and expects the regional solar industry to grow at 25 percent per year over the next decade. Technology and capital are making their way into the region.

CEO Tadashi Ishikawa of Japanese clean technology company, Aqua Power Systems, says: “Geography-wise, South America is an ideal point of expansion since it is near the United States. But what makes it (more) attractive is its growing need for alternative source of power.” Mr. Tadashi may be correct in his projection – last year solar power installation in the Latin American region grew by 350 percent.