Capital flows underpinning the energy transition discussed by public and private sectors, as well as financing and development agencies, at the 6th Latin American Energy Forum in Washington DC


Latin American Energy Forum Press Release

In the post-COP26 world, more than double the money is being made available to developers in Latin America’s energy sectors than ever before, so how will the market mobilize that capital and double the number of projects reaching financial close within five years?

Over the past 27 years, EnergyNet and our partners have focused on energy access and we have seen countless “trends” and “scale investment vehicles” come and go. However, throughout this period, the only thing that does not stop is Latin America’s journey towards energy transition. The paths chosen will be based on the resources, technical development, financial mobility and regional integration of each country.

As the Latin American Energy Organization (OLADE) has observed,capital-rich economies with few fossil natural resources will progress faster in their transition than economies with fewer capital resources or those that still have vast fossil energy resources such as coal, oil or natural gas . Going through transitions does not necessarily imply abandoning the energy sources of the past, they can continue to be present in the consumption matrix, even if they will gradually lose relative importance.”

At 6and Latin America Energy Forum in Washington DC in March, investors and governments will take a deep dive into how capital will move from [available capital] for [invested capital].

If we look at the total number of projects reaching financial close, it currently stands at around 10%, so the main challenge going forward will be “how do we [as a sector] increase this percentage to 20%?’ Here are some areas that will be discussed at the Forum that will enable such growth:

  • Education – invest significantly in project preparation and business development skills
  • Facilitate Entrepreneurs – Identify the scale, projects and areas of the energy value chain that will significantly benefit from the participation of Latin American entrepreneurs through the creation of business opportunities and project financing
  • The Just Transition – Moving away from less clean fuels will have a significant and positive impact for all Latin Americans, creating far more jobs and far more wealth. To do this, the sector as a whole needs capital flows and aggressive energy planning at the highest levels of government; the importance of technological innovation (ie in minerals and materials); new energy vectors such as green hydrogen; investments – public and private – in clean technologies in a post-covid context, and the actions needed to ensure a just transition at the local, sub-regional and regional level.
  • The BlackRock Investment Institute estimates that US$1 trillion needs to be invested annually in low-carbon projects in developing countries, whose global emissions have increased in recent years thanks to economic development and higher birth rates. . With over 16.5 GW of renewable capacity installed by the end of 2021, the outlook for Latin America looks even stronger this year. Brazil and Mexico, in particular, will continue to lead the way in decarbonization in LATAM.
  • 18 GW of wind, solar and storage are expected to come online in Latin America in 2022, with solar at the forefront thanks to projects like the Cerro Dominador solar thermal plant in Chile’s Atacama Desert, which opened its doors in June 2021 in the Atacama Desert in Chile.
  • As the IEA reports: “Momentum for low-carbon hydrogen is also growing in Latin America, with many countries now developing long-term hydrogen strategies and a project pipeline of over 25 projects, including several the gigawatt scale to export it beyond the region”.

In order to implement an energy transition, a growing number of stakeholders want to dig deeper into how funding will be channeled, what ESG indicators multilaterals are looking for, and what will be the project readiness funding gap that will need to be filled and by whom. Who’s gonna do it. create more packaged and bankable projects while reducing transaction times.

6and The Latin American Energy Forum (LAEF) returns to Washington DC, March 16-18, 2022, bringing together high-level stakeholders from Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, Trinidad and Tobago with Washington and global partners to create capital flows in critical infrastructure and project pipelines.

The theme of the Forum being Capital flows at the service of the energy transition, LAEF enables these discussions to take place around a series of high-level panels and intimate interactive conference rooms. Some of the confirmed stakeholders present include:

  • Alfonso Blanco Bonilla, Executive Secretary, OLADE
  • Hon. Micho Chebat, Minister, Ministry of Utilities, Energy and Logistics, Belize
  • Hon. Franklin Molina Ortiz, Minister, Ministry of Hydrocarbons and Energy, Bolivia
  • Hon. Diego Mesa, Minister, Ministry of Mines and Energy, Colombia
  • Hon. Miguel Lotero, Deputy Minister, Ministry of Mines and Energy, Colombia
  • Hon. Juan Carlos Bermeo, Minister, Ministry of Energy and Non-Renewable Resources, Ecuador
  • Hon. Stuart Young, Minister, Ministry of Energy and Energy Industries, Trinidad and Tobago
  • Hon. Rolando Castro, Vice Minister, Ministry of Energy and Environmental Quality, Costa Rica
  • Juan Miguel Duran Prieto, President, National Mining Agency ANM, Colombia
  • Frederico Munia, Secretary of Energy, Oil, Gas and Mining, Program for Investment Partnerships (PPI), Brazil
  • Juan Miguel Duran Prieto, President, National Mining Agency ANM, Colombia
  • Heloisa Borges, Gas Manager, Brazil Energy Research Office (EPE)
  • Timmy Baksh, Director of Energy Research and Planning Division, Ministry of Energy and Power Industries, Trinidad and Tobago
  • Armin Dorghaten, President, YPFB
  • Fernando Gonzalez, CEO, Cerro Dominador
  • Ariel Yepez, Head of Energy Division, Inter-American Development Bank (IDB)
  • Javier Aguilar, Senior Mining Specialist, World Bank Group
  • Speaker details TBC, European Investment Bank (EIB)
  • Speaker Details TBC, International Renewable Energy Agency (IRENA)
  • Craig O’Connor, Director – Project Finance Division, Export-Import Bank of the United States (US EXIM Bank)
  • Nancy Rivera, Managing Director of Structured Finance, US International Development Finance Corporation (DFC)
  • Rael McNally, Director, Blackrock Real Assets | Infrastructure
  • Eduardo Holgado, Managing Director, Investment Banking Division – Project, Infrastructure & Principal Finance, Goldman Sachs
  • Andres Rebolledo, energy consultant and former energy minister of Chile
  • Fernando L. Benalcazar, Senior Mining and Energy Advisor at APD Proyectos Cía. Ltda., former Vice Minister of Mines of Ecuador
  • Paul Simons (former Deputy Director of the International Energy Agency, former US Ambassador to Chile, Argentina and Ecuador, today he is at Yale in the international part)
  • Leonardo Beltran, SEforALL Board Member, Foundation Board Member for Mexico, Distinguished Visiting Scholar at the Center on Global Energy Policy at Columbia
  • Mauricio Roitman, energy consultant, former president of Enargas
  • Silvia Zumarraga, General Manager Market Development, Wärtsilä
  • Cesar Butron F., Chairman of the Board of Directors, Economic Operation Committee of the National Interconnected System (COES) – Peru
  • Nestor Sanchez, Global Energy Project Developer, Caterpillar Inc.
  • Carlos Garibaldi, Executive Secretary, ARPEL
  • Jaime Peralta, Board Director, National Electrical Coordinator (CEN), Chile
  • Allan Benavides, General Manager, Heredia Public Service Enterprise (ESPH), Costa Rica

6and The annual Latin American Energy Forum (LAEF) will again be co-located with this year’s 8th Annual Powering Africa Summit (PAS). PAS brings together governments, utility heads and regulators from across Africa in discussions with international project developers, international investors, US government agencies and service providers

For more information on this Summit:

Meeting dates: March 16 – 18, 2022
Location: Marriott Marquis, Washington, DC, USA
Contact: Monica Rico Castrillo – Senior Director of Marketing

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