Latin America is slowly transitioning from natural gas to renewable energy sources while also shifting from coal and oil sources to reduce emissions.
FREMONT, CA: Fossil fuels overtake hydropower generation to source Latin America's main electricity generation. Activists worry that fossil fuel adoption can compromise sustainability obligations. Research shows that natural gas accounts for 31 percent of Latin America’s energy supply. In comparison to oil and coal, natural gas is cleaner, but produces large emissions. Hydropower generation is a cheaper and more efficient energy source, but Latin American countries continue to use natural gas.
United Nations Environment Programme (UNEP) predicts that natural gas as fuel is growing disproportionately to hydropower and other cheaper and more sustainable alternatives.
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Transitioning from coal: The natural gas industry is an important transitioning alternative to high-emissions coal and oil energy. Steady transitioning involves movement towards cleaner alternatives in the future. Shifting from coal and oil to natural gas does not reduce emissions significantly, as natural gas transportation and handling are cost-ineffective and environmentally damaging.
Global accords limit Latin America's increasing natural gas adoption over hydropower to reduce global temperatures above preindustrial levels. The International Energy Agency, Latin America, should halt further investments or development of fossil fuel projects. Latin America should consider other data-based alternatives proven to be cost and energy-effective and sustainable in the long run. Battery-run energy productions are more cost-effective than intermittent gas-fired power plants.
Natural gas: Inter-American Development Bank (IDB) study shows 70 percent of Latin America's natural gas reserves need to remain unexploited for the countries to fulfill the Paris Agreement's climate regulations. Conversion from natural gas to full-time adoption of renewable resources can affect the tax revenues that fund the countries’ exports. Energy officials predict that developing new natural gas projects will lead to stranded projects beyond 2030. Many countries already have established natural gas infrastructure, and authorities suggest that natural gas can be a secondary energy source to renewable energy.
Potential of renewable energy: It is already technically and economically feasible, as well as financially attractive, to build and operate solar and wind power plants in many Latin American countries, such as Peru, Argentina, and Brazil, since they are at parity with hydrocarbon-based power generation. Energy transitions would reduce emissions and boost the region's economy, and decarbonizing, the region by 2030, would generate 15 million new jobs and 100,000 additional jobs in renewable energy.