Measures to promote renewable energies for electricity generation in Latin American countries

Abstract

This study analyses the measures used to promote renewable energy for electricity generation in the 18 Latin American countries that signed the Paris Agreement, in an electricity demand growth context. The Latin American countries have had a remarkable growth in the use of renewable energy for electricity generation. Biomass, wind and solar energy have experienced strong growth, however, their participation in the energy mix remains small. All the studied countries have established renewable energy targets, 16 having adopted at least one promotion measure. The most used measures are tax incentives, mainly through exemptions in income tax, value added or sales tax and on tariffs. Also, most countries are using auction systems, which are replacing the Feed-In Tariff system. The net metering system adoption is also growing in the region. The results of the study show a positive relationship between the most active countries in renewable energy promotion and the performance achieved in the studied years. Therefore active policies are considered necessary for the future development of renewable energies.