Market Outlook

Corporate demand drives energy transition in Latin America

Martin Vogt, CEO of MPC Energy Solutions, was interviewed by the LATAM Investor Report. In the article he spoke about  the role of renewable energy in this region and how the energy transition will more and more be driven by industrial and commercial consumers. 

As Vogt explains: “The last decade of the energy transition was dominated by governments, who set feed-in tariffs for utility-scale projects. Then it became a type of hybrid, with the governments defining auction frameworks, while the private sector competed to set the final prices. In that second phase the state’s role evolved to become simply the connection between the renewable energy producer and the off-taker.

But we are seeing from different regions like US, Iberia or Scandinavia that the next stage is corporate demand. The government is no longer setting the regulatory framework but the private sector demands renewable energy from IPPs. These tend to be smaller projects than the utility-scale renewable plants that have dominated until now.” 

"Vogt’s vision ties in neatly with COP26, which is looking for the private-sector to contribute more in the fight against climate change. Indeed, with state finances across Latin America stretched by the pandemic, corporate clients are a more feasible source of finance for renewable energy projects." (Quote LATAM investor)


Read more about this and the potential of the different LATAM countries in the full interview (page 14-18) in the LATAM Investor report Q4 2021: Here

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