Latin America and Energy Revolutions - Affordability, Extreme Weather and Vast Terrain

Whilst Brazil and Chile may not share a common history, language, culture or even physical geography, it’s quite clear that both countries are spearheading energy transitions that will radically transform the lives of millions across Latin America and potentially across other geographies too.??

I have just returned from an eye-opening trip to visit our vibrant World Energy Council community in these two remarkable countries, learned about? diversity and significant progress in making energy transitions happen.?

Let me share my reflections.???

Country Contexts?

#Chile is strongly defined by its unique geography and pencil-like shape. It has abundant solar and wind resources but not in the same place. After #China, it operates the world’s second largest electric bus fleet.

Chile is?also a major global supplier of critical minerals and metals, such as Lithium and Copper, required to accelerate global decarbonisation and depends heavily on fossil fuel imports to meet 80 per cent of its primary energy needs.

Isolated from the rest of the region by the Andes, it is in the process of strengthening the integration of its northern and southern grid networks with new investment in a 1500km HDVC transmission line.?

#Brazil has an abundance of hydropower, solar and wind resources. Renewable energies already make up nearly 90 per cent of its electricity matrix and half of its primary energy use!

Endowed with significant oil and gas reserves, Brazil is a global leader in producing and using biofuels for sustainable mobility. Brazil’s regionally integrated electricity grid is extensive except in the Amazon region.?

Despite the differences in the physical geography of these two countries, both are grappling with common challenges:?

1. Affordability! Affordability! Affordability! Managing the costs of whole system transition and with attention to the societal transformation agenda.?
2. Grappling with more frequent and extreme weather events, these countries are at the forefront in addressing the physical climate risks facing variable and decentralised renewable power systems at scale.?
3. Looking beyond 1.5oC to manage other planetary boundaries associated with scaling renewable power systems e.g. mining, nature-based energy infrastructures (forests, water).?
4. Weighing up options of strengthening and extending grids and developing additional dynamic and flexible storage solutions?
5. Securing investment for domestic energy transitions and new economic development opportunities e.g. becoming global hubs for trade in low C hydrogen-based fuels.?

Chile is a global exemplar in fully liberalised and highly competitive market design. Meanwhile Brazil has a mix of state-owned and partially liberalised markets and can showcase its entrepreneurialism in creating the world’s first biofuels ecosystem and value chain.?

I am grateful to Juan Carlos Olmedo for arranging my visit to the impressive Coordinador Eléctrico Nacional facility in Santiago, which has been designed to withstand earthquakes and keeps electricity flowing despite the country’s steep solar power ramps and vulnerability to forest fires and emerging physical climate risks.?

I took my seat at a highly interactive and truly BIG round table event - a World Energy Cafe hosted by #World Energy Council Brazil and involving 40+ of its member organisations. Our local hub has also undertaken a 1000+Women in Energy survey, conducted in partnership with #Deloitte. The survey establishes an important baseline for pushing the conversation beyond quotas to empowering women as leaders, designers, users, entrepreneurs and buyers of energy.?

Despite my very best efforts, I couldn’t get my hands on the cute, mini solar and wind power teaching kits developed as part of World Energy Council - WEC Chile 's pioneering and highly successful KidsinEnergy programme.

Hats off to M. Trinidad Castro Crichton and Karin Niklander (AES) for the impressive achievements and activation of our Chilean energy hub, and our Regional Vice Chair Claudio Seebach for his work in activating the region. I’d also like to thank Juan Francisco Mackenna for taking us all home for lunch. Seventh generation Irish: Céad míle fáilte!?

?In my keynote address to the 15th annual Fundación Copec-UC seminar I drew attention to the trap of trying to pick technology winners. A better approach is to design markets to incentivise investment in a portfolio of solutions which enable affordable and flexible energy storage services and include load shifting and managing demand as a resource.

There is no one-size-fits all storage matrix, a diversity of storage needs and over a dozen types of energy storage technologies in development worldwide - including pumped hydro, electrical and non-electrical batteries, chemical and gravity-based solutions - highlighted by Bryan Willson .??

During my brief visit to Rio, I was delighted to join Luiz Fernando Leone Vianna and Nelson Fonseca Leite and 40-plus founders for the launch of the World Energy Council Brazil Association.?

I’d like to thank Luiz Carlos Ciocchi (Director General of ONS - Operador Nacional do Sistema Elétrico ) and Bento Albuquerque for making time to meet and exchange insights on Brazil’s specific achievements, challenges and opportunities relating to energy transition.?

Final shout out to María Haydeé Jiménez and Talita Covre for making this adventure enjoyable and productive!?

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