A new report from GBI Research has shown how the share of renewable energy in South and Central America is set for growth, while thermal power sources also continue to do so. In its report, the New York based analysts predict that thermal power installed capacity will fall from 39.9% in 2001 to 35% in 2020.
Government policies promoting renewable energy will play a "vital role" in this development, writes GBI Research.
Brazil has employed a FIT program to promote renewable development supported by banking measures. Renewable energy has grown at 16.5% in the country, between 2005 and 2007, and Brazil aims for renewable energy to supply 45% of the countrys total energy consumption by 2030.
Mexico too, writes GBI Research, aims to push renewable share up to 35% by 2024. A series of wind farms will be commissioned to facilitate this, between 2012 and 2014.
"Non conventional" energy in Chile is set to be increased from 5% in 2010 to 10% in 2024. Argentina has set the goal of 8% by 2016. Colombia lacks financial or political support for renewable energy growth, despite huge potential, GBI notes.
To conclude, GBI Research writes that thermal power generation will continue to grow to meet supply shortfalls. It is expected to grow at 5.1% by 2020 in the five countries, and renewable energy and hydro 16.7% and 4.6% respectively.