The Energy Transition in Latin America
Opportunitas Advisors launches its podcast “Radar Opportunitas,” to discuss trends in risk, strategy, and public policies in Latin America. In the first episode, Guillermo Bolinaga, founding partner of the firm, speaks with Francisco Monaldi, economist, senior advisor at Opportunitas Advisors, and director of the Energy Program for Latin America at the Baker Institute’s Center for Energy Studies at Rice University. They delve into the future of energy transition in Latin America, its potential, and the challenges it faces.
Energy transition is a crucial process for the future of Latin America. The region has significant potential to be a global leader in this transition, thanks to the abundance of renewable resources and critical minerals. However, it also faces challenges that must be overcome to maximize this potential, such as lack of investment, deforestation, and resistance from the sector. In this episode, they explore this process and the role of the private sector.
Monaldi explains that the region has the world’s second-largest fossil fuel reserves after the Middle East, and despite not reaching its full potential, there has been a significant increase due to production growth in Brazil and Guyana. This increasing trend is expected to continue over the next 10 years. Professor Monaldi points out that, due to energy transition, some countries will be impacted by the global decline in fossil fuel demand. However, others will benefit from the supply of critical minerals essential for electrification, such as Chile, Bolivia, Argentina, Peru, and Brazil. To learn more about this topic, click here.