Energy Security

Perspectives for Latin America

Pablo Cisneros
Ejecutivo Principal
CAF

Contents

Energy challenges for the region

CAFs action to promote Latin-American energy sector
development
Overcoming challenges and exploiting opportunities

Abundance of energy resources

distributed unequally

Oil Reserves

Mexico

Guatemala
Costa Rica

Natural Gas Reserves

Trinidad &
Tobago

Coal Reserves

Venezuela

Panama

Hydropower Potential

Colombia
Ecuador

Brazil

Resource
Peru

Bolivia
Paraguay

Chile

Argentina

Uruguay

Oil
Natural
Gas
Coal

Proven
Reserves

Units

Production/
Reserves
Ratio

335.708 MMb

106 b

93

7.980 Tm

109 m3

28

13.871 MMt

106 T

129

Hydropower potential

693.506 MW
3.459.835 GWh/ao

Source OLADE-SIEE, 2013

General vision

A high proportion (50%) of the electricity production

in Latin America is hydroelectric.
Hydroelectric power is dominant in most of the
countries and their development potential is still high.
It is estimated that only 23% of its potential has been
used.
Environmental restrictions may hinder its use. The
region has one of the cleanest energy matrixes in the
world.

Latin America Installed Capacity

Electricity Generating Installed Capacity:
316.745,43 MW

Source: OLADE SIEE 2013

Electricity matrixes of
southern cone countries
Argentina
Diesel
2,69%
Turbo Vapor
15,06%

Turbo Gas
11,61%

Biomass
7,65%

Nuclear
3,40%

Ciclo
Combinado
29,55%

Hydro
65,29%

Wind
0,05%

Uruguay

Hydro
56,85%

Motores
Diesel
3,22%

Termo
0,46%

Fuel/Diesel
Oil
5,76%

Hydro
99,54%

Imports
6,41%
Wind
1,30%

Chile
Wind
1,60%
Steam
9,42%

Biomass
9,26%

Nuclear
1,57%
Coal
Gas
1,52% 10,50%

Solar
0,00%

Hydro
37,64%

Paraguay

Brasil

Diesel/Fuel
Oil
15,59%

Coal
16,02%

Others
2,44%

Gas
31,40%

Hydro
34,55%

Gas
19,65%

Source: CAMMESA Argentina, ANEEL Brasil, ANDE Paraguay, Ministerio de Energa Chile, DNE MIEM Uruguay

Electricity matrixes of
andean countries
Colombia

Gas
27,76%

Hydro
66,46%

Ecuador

Per

Coal
5,17% Cogeneracin
0,42%

Turbogas
20,45%

Gas
57,05%

Wind
0,13%
Fuel Oil
0,06%

Wind
0,01%
Hydro
42,94%

Venezuela
Turbovapor
15,05%

Turbogas
15,60%

Combined
Cycle
4,83%
ICE
2,58%

Hydro
61,94%

Source: CNG Venezuela, UPME Colombia, MEM Per, Conelec Ecuador y AE Bolivia

ICE
21,47%
Elica
0,05%

Solar
0,00%
Biomasa
(bagazo de
caa)
1,96%

Bolivia

Termo
61,97%

Hydro
38,03%

Hydro
46,52%

Turbovapor
9,54%

Electricity matrixes of
Central America and Mxico
Mexico

Costa Rica

Dual
5,26%

Nuclear
3,05%
Geothermal
1,54%

Combined
Cycle
34,11%
Termo
28,64%

Geothermal
13,8%

Coal
4,92%

Hydro
21,76%

Thermal
8,0%

Wind
Solar PV 0,74%
0,00%

Panam

Thermal
43,9%

Hydro
56,1%

Source: ANSP Panam, SENER Mxico, ICE Costa Rica.

Wind
2,7%

Hydro
75,3%

Biomass
0,2%

General vision
Biomass is highly relevant in Brazil, both in transport and electricity. Other countries
like Uruguay, Ecuador and Colombia have shown improvement.
Wind energy has recently had tremendous growth, led by Brazil, with the execution
of successful auctions. Mexico and Uruguay have announced major projects in this
area. Other countries may follow these examples.
Solar energy still has little use. Cost reduction can increase their application,
especially in remote and isolated communities.
Geothermal energy has been used primarily in Central American countries, but
also have potential in Bolivia and Chile.

Electric service in Latin America provides coverage for 93% of the total population,
levels of urban and rural reach 99% and 74%, respectively. While the overall situation
of the sector is not unfavorable relative to the world average, several countries and
parts of Latin America are still lagging.

 Energy challenges for the region

Energy challenges
Multiple forecasts indicate that the region faces a
growing energy demand. Energy demand grew by
31.36% during 1990-2000, and 34.23% during the
decade 2000-2010.
Given this situation, theres a need for several
countries within the region to increase their energy
supply, especially in electricity, natural gas and
petroleum products.

Long term comprehensive planning is also needed.

Energy challenges

The
region
will
require
significant
investment in energy infrastructure over the
next 20 years. Values between USD 1-2 trillion
cited in the estimates. Various sources of
funding will be needed.

 CAFs action to promote LatinAmerican energy sector

development

What is CAF?

Multilateral financial institution with Latin-American identity

and global projection

1.

Its mission
Sustainable Development
Regional Integration

2.

Provides multiple banking services to public and private

sector clients within its member countries.

3.

Versatile, agile and competitive institution regionally and

globally

4.

Headquarters in Caracas

5.

Country office in Asuncion, Bogota, Buenos Aires, Brasilia,

Panama City, La Paz, Lima, Madrid, Montevideo and Quito

Main source of multilateral infrastructure

financing for Latin America
Approvals in infrastructure for Latin America
(USD millions)

BM
World
Bank

BID
IDB
24.648

18.856

2000-2010

CAF
CAF
25.474

... And also for energy

Approvals in energy for Latin America
(USD millions)

WorldBM
Bank

BID
IDB

CAF
CAF

9.103

6.519
5.520

2000-2010

Membership Evolution

1990

Bolivia

Colombia

Ecuador

Per

Venezuela

2000

5 countries

2011

16 countries

Argentina
Bolivia
Brasil
Colombia
Ecuador
Panam
Paraguay
Per
Trinidad y Tobago
Uruguay
Venezuela
Costa Rica
Chile
Jamaica
Mxico
Rep. Dominicana

Espaa

Portugal

18 countries

Distribution of CAF's support for

Energy
Biofuels
1%

Electricity
Transmission
25%

Corporate Loans
11%

Hydrocarbons
11%

Electricity
Generation
52%

Distribution of CAF's support for

Electricity Generation
Natural Gas
4%
Oil and Coal
12%
Combined Cycle
19%
Nuclear Power
Generation
4%
Wind and
Biomass Power
Generation
5%

Hydraulic Power
Generation
56%

Non Renewable 35%

Renewable and
Nuclear 65%

Support for energy projects

Evolution of CAFs Portfolio (MM USD)
18.000
16.000

14.000
30,13%
12.000

31,09%

23,98%

4.841 MM
USD

18,90%

10.000
7,92%
8.000
7,04%

16,01%

7,19%

6.000
10.729 MM
USD

4.000
2.000
0

2005

2006

2007

2008
Others

2009
Energy

2010

2011

2012

CAF approvals in the last 10 years for

the energy sector
Jan-12

# of Projects

US$ MM

Venezuela

22

3.828

Argentina

14

2.275

Brasil

18

1.681

Colombia

21

1.039

Per

17

675

Ecuador

14

671

Bolivia

16

660

Uruguay

508

Costa Rica

200

Paraguay

75

Mxico

50

135

11.662

Total

Project Examples
(MM USD)

Argentina
Repotenciacin de Central Nuclear Embalse
NASA
Bolivia
Lnea de Transmisin Caranavi Trinidad
ENDE
Brasil
Gasoducto Bolivia-Brasil
TRANSPORTADORA BRASILEIRA GASODUTO BOLIVIA-BRASIL S.A.
Obras Parque de Generacin Hidroelctrica
Centrais Eletricas Brasileiras S.A. Eletrobras
Mxico
Proyecto Elico EURUS
Eurus S.A.P.I. de C.V.
Multinacional
SIEPAC
Empresa Propietaria de la Red
Per
Construccin gasoducto Camisea
Transportadora de Gas del Per
Venezuela
Central Hidroelctrica Manuel Piar (TOCOMA).
CORPOELEC
Proy. Rehabilitacin Central Hidroelctrica Simn Bolvar (GURI)
CORPOELEC

Corporate Sovereign
Loans
Loans
240
240
240
32
32
32
294
215
215
215
294
294

Project
Finance

Catalytic
Loans

50
50
50
27
27
27
95
95
95
1.880
1.500
1.500
380
380

CAFs areas of action on Energy

Infrastructure
Energy Policies
Integration

Consolidate impulse given to the

development of energy
infrastructure
Contribute to institutional and public
policy development
Promote integration projects

Energy and Climate

Change

Support the development of

renewable energy and energy
efficiency

Network articulation

Give impulse to national and regional

networks

Knowledge
Generation

Execution of high quality studies on

energy issues

I
N
N
O
V
A
T
I
O
N

Examples of activities:
Support for Energy Policies
Structuring the national energy plan 2011-2020 - Bolivia. They drive new
changes to the oil and electricity sector laws in Bolivia (currently under
review).

Example of activities:
Support for Energy Integration
New Interconnection projects have been identified between countries
within the region
Hydro Power
Hydro Power
Plant Cachuela
Plant Inambari
Esperanza
Peru-Brasil
Bolivia-Brasil
Capacity
(MW)

Swap
Colombia
Paraguay - Bolivia Chile
Brasil Uruguay
Panam
Argentina - Interconnection
Interconnection
Interconnection
Chile

2.200

800

180

3.470

2.850

150

2.370

792

Annual
benefits (MM
US$)

342

102

Benefit / Cost
Index

1,60

1,40

Length(Kms.)
Investment
Cost (MM
US$)

Exist.

300
614

SIEPAC II

500

300

420

1.800

30

207

330

500

200

66

21

88

41

2,90

24,30

1,10

3,00

0,95

Example of activities:
Support for Energy Integration
URUPABOL Project (Uruguay, Paraguay and Bolivia)
- Pre feasibility study completed for small scale LNG
infrastructure.
- Feasibility study under way.

Example of activities:
Renewable energies and climate change
Identification of Hydro power potential in Brazil and Peru:

Opening possibilities for the development of public and private projects in

hydropower, small, medium and large scale

Example of activities:
Regional network articulation
Shared Energy Agenda to:
- Identify priority issues within Latin Americas energy
sector
- Generate and augment synergies and shared actions
in common interests with other regional energy
organizations and institutions
- Elaborate a Shared work Agenda between regional
energy organizations and institutions

Technology Innovation Initiative

on renewable energy
CAF in technological innovation
CAF identified the need for promoting the generation of innovative
patentable technologies to use renewable energetic resources that
currently are being underutilized.

Latin America and the Caribbean have the potential to generate state
of the art patentable technologies that could contribute to sustainable
development. To unleash this potential, CAF launched the Regional
Renewable Energy Technology Innovation Initiative.
The initiative has the support of FINEP of Brazil and other institutions
of countries in the region.

Examples of CAFs publications

Overcoming challenges
The region has responded relatively well thus far, to
the challenge of meeting energy needs and harness its
potential. However, it is necessary to intensify
investment, especially in electricity, natural gas and oil
refining.
Energy demand and requirements to reduce the
impacts of resource exploitation have grown. The
search for new sources and increased energy efficiency
are key factors in the energy sector.
Cooperation between different actors and institutions
is central to meeting the challenges of the new times.