Comparison of Ibero-American Renewable Energy Legal Frameworks

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1 Comparison of Ibero-American Renewable Energy Legal Frameworks Workshop Germany-Brazil Comparing the Brazilian and German Public Policies Experiences on Renewable Energy Sources and Energy Efficiency Campinas, March, 2013 Iñigo del Guayo Castiella Professor in Administrative Law University of Almería

2 Renewable energies? Production of Electricity (hydro, solar photovoltaic, thermo solar, biogas, biomass, geothermal and wind) Transport (Biofuels: Brazil) Thermal (domestic uses)

3 South American Countries Brasil, Chile and Colombia Argentina, Bolivia, Ecuador, Perú, Paraguay, Uruguay and Venezuela

4 Argentina (I) 57% Thermal 35% Hydroelectricity 6% Nuclear 2% Imports

5 Argentina (II) Act for the promotion of electricity production out of renewable energies 2006 Act for the promotion of wind and solar energies 1998 Act for the promotion of biofuels 2006 Act for the promotion of bio-ethanol 2007 Taxes, premiums, but congestion

6 Brazil 74% Hydroelectricity 8% Natural and Industrial Gas 5% Biomass 5% Imports 3% Nuclear 3% Oil products 1% Coal 1% Wind

7 Chile 35% Hydroelectricity 31% Natural Gas 16% Coal/Oil 16% Diesel/fuel-oil 1% Wind 1%Biomass

8 Colombia 67% Hydroelectricity 28% Natural Gas 5% Coal

9 A General Overview (I) Electricity production in Latin America is basically based in fossil fuels (greenhouse gases emissions and not always locally available) Strong availability of hydroelectricity, the use of the rest of renewable energies being marginal

10 A General Overview (II) A significant number of countries have electricity generation costs, compatible with the costs of renewable energies In past 4 years there have been an increase of the use of renewable energies (15%)

11 A General Overview (III) 70 million persons do not have access to electricity Renewable energies are a key instrument of policies aimed to fight climate change and energy poverty (they do not emit greenhouse effect gases and are decentralised)

12 A General Overview (IV) Barriers: investment and maintenance costs, construction complexities, and low investment returns Promotion Programmes to use renewable energies for the production of electricity (the State regulates, promotes and guarantees and the private sector executes the installation)

13 A General Overview (V) Argentina, Brazil and Peru guarantee the purchase of electricity generated out of renewable There is a strong scope for PPP Investment is subject to clear, transparent and reliable regulatory frameworks

14 Latin America in a wider context Beyond the Carbon Economy. Energy Law in Transition (2008) Property and the Law in Energy and natural Resources (2010) Energy Networks and the Law. Innovative Solutions in Changing Markets (2012)

15 Some Findings The following two slides are based on the findings of Lila Barrera-Hernández, Are We There Yet? The Long Road to South America's Energy Future, at Zillman, D.N., Redgwell, C., Omorogbe, Y.O., Barrera-Hernández, L. K., «Beyond the Carbon Economy. Energy Law in Transition», Oxford University Press, Oxford 2008

16 Beyond a carbon economy in Latin America? (I) Region s success with alternative energy programs and a strong hydropower sector The hydrocarbon sector is yet to develop at its full potential. Peak thresholds is farther away than for other regions. With the exception of Brazil, the «beyond carbon» risks missing the target in LA

17 Beyond a carbon economy in Latin America? (II) For most South American countries attracting foreign investment to fund the expansion of hydrocarbon reserves and related infrastructure, particularly in countries that may be at risk of becoming net importers or whose income is directly tied to hydrocarbon exports, is first in the agenda

18 The future for renewable energies (I) Efforts directed towards hydrocarbons Venezuela, Brazil, México, Bolivia, Peru, Colombia and Argentina, have huge reserves of conventional oil and gas (in particular the first four ones)

19 The future for renewable energies (II) Are renewable energies an option only for developed and already polluted countries? Within the Region, only Mexico and Chile belong to the OCDE Is development inevitable linked to oil and gas?

20 The future for renewable Shale Gas energies (III) It removes the use of other fossil fuels It slows down the development of renewable energies It speeds up the fulfilment of the reduction of polluting emissions Huge reserves in Argentina, Brazil y Colombia

21 The future for renewable energies (IV) The region has abundant hydropower potential TAIPU (Brazil-Paraguay) Yacyretá (Argentina, Paraguay) Salto Grande (Argentina-Uruguay) Chile s Pangue-Ralco Dam Belo Monte (Xingú, Altamira, Pará, Brazil) Some of them were very controversial

22 The future for renewable energies (V) Poor legal and institutional frameworks Weak accountability mechanisms Increasing stakes involved in developing adequate energy supplies

23 Biofuels Biofuels: EU Law and Policy, in Zillman, D.N., Redgwell, C., Omorogbe, Y.O., Barrera-Hernández, L. K., «Beyond the Carbon Economy. Energy Law in Transition», Oxford University Press, Oxford 2008

24 Energy Networks, Renewable Energies and the Law (I) Distance between production sites and consumption sites Energy poverty Lack of integration of electricity systems Lack of distribution and transport networks

25 Energy Networks, Renewable Energies and the Law (II) Management of the network Renewable energies pushing into decentralization Congestion of the network Transparent and reliable regulatory frameworks and institutional reinforcement