Good prospects of the Inter-American Development Bank on solar, wind and geothermal generation in the region

Good prospects of the Inter-American Development Bank on solar, wind and geothermal generation in the region

14/09/2016 source “Cesla”

The appreciation of the Inter-American Development Bank (IDB) indicates that solar and wind power could have the most growth potential in the Latin American region. The IDB is also giving much emphasis on the issue of geothermal energy.

According to the entity’s financing portfolio, over the past decade, hydro generation in dams have had higher percentage, followed by wind, solar and geothermal in this order.

The head of the IDB Energy Division, Ariel Yepes, said that is “very important boosting geothermal energy” and that the Bank is “is seeking to support the agendas of countries with regard to geothermal generation since 2014,” the year that were intensified the aids for this type of technology.

But everything depends on the potential of the countries of the region: the areas with greatest geothermal potential are located in the zone of fire rings and some islands in the East Caribbean.

Although it is not a renewable energy, the IDB is also supporting the production of natural gas, included in Panama, because it is less polluting. “I very much welcome what is being driven by the Panamanian government: promote the generation based on combined cycles with natural gas; is very good because it reduces costs and environmental contamination”, said Yepes, who participated in the first day of the Week of Renewable Energies. The IDB is supporting, in the private part, the natural gas plant that the company AES is building in Panama.

In 2015, the Bank lent about 1,000 million Dollars for generation, distribution and power transmission projects; of this amount, 40% was allocated to generation, another 40% were assigned to transmission and the remaining 20% were directed to distribution. Of this amount, 800 million Dollars were funded by the government sector, and were intended in part to wind and solar generation, in order to provide access to people in outlying areas.

Colombia, Ecuador, Peru and Chile are the countries that receive more support for this type of projects, being Ecuador the country that more support requested the IDB in this regard. In Panama, for its part, were approved projects amounted in about 20 million Dollars.