Distributed generation

Energy, Regulation & Policy, Renewables    Jul 28, 2021 2:05 PM

Marcelino Madrigal, senior specialist in the Energy Division of the Inter-American Development Bank (IDB), talked about the distributed generation segment in Latin America and the Caribbean.

Madrigal said that this segment could further accelerate its participation in the region, Valora Analitik reported.

“When we look at where we are with respect to others, in Latin America we are far from being at the expected levels of utilization of this technology,” Madrigal warned.

The expert said that countries such as Brazil and Mexico, which are leaders in the region in the incorporation of this generation alternative, are far behind other countries in Asia and Europe.

Madrigal explained that this could be due to financing issues and the recent incorporation of policies and regulations on the activity in this region.

“The first distributed generation regulations appeared in Latin America ten years ago, when the way our systems operate is at least 30 or 35 years,” Madrigal said.

The expert highlighted that 17 countries in the region have net metering policies: Argentina, Bahamas, Barbados, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Guatemala, El Salvador, Honduras, Jamaica, Mexico, Nicaragua, Panama, Suriname and Uruguay.

Madrigal believes that the sector could play an important role in the economic reactivation of the countries.

“Distributed generation is a key tool to generate employment and to get out of the economic slowdown,” the expert said.

Bottom-Line: Distributed generation represents a great opportunity for the region, but it is important to advance in regulation and incentives to attract the investors’ interest.

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