Focusing on five key themes - hydrocarbons, electricity, mining, social license to operate, and arbitration/dispute resolution- via in-depth country and regional case studies, this book seeks to capture the contrasting and sometimes conflicting trends in energy governance in Latin America as it wrestles with a dependence on fossil fuels whilst shifting toward a low carbon future.
Energy transition continues to sit at the centre of the Latin American policy debate as the world continues to push for carbon neutrality by 2050. Latin America is undergoing a renewable energy transition, with substantial reserves (solar, wind, hydro, geothermal) and many countries in the region setting ambitious renewable energy policies, laws, and regulations to address climate change. However, recent initiatives to promote renewables must be placed in context. Historically, Latin America has developed and improved its economic and social standards due primarily to an economy based on the extractive industries and fossil fuels. This places renewables at the crossroads of multiple drivers, as the region seek to ensure security of supply, attract investment, and facilitate a low carbon energy transition.
Author(s): Geoffrey Wood, Juan Felipe Neira-Castro
Series: Energy, Climate and the Environment
Publisher: Palgrave Macmillan
Year: 2022
Language: English
Pages: 292
City: Cham
Acknowledgements
Contents
Editors and Contributors
About the Editors
Contributors
Abbreviations
Note on Units
List of Figures
List of Tables
Part I Introduction
1 Latin America: Renewables at the Crossroads of Multiple Drivers
1.1 Introduction
1.2 From Mexico to Tierra del Fuego: Latin America
1.3 At the Crossroads: Moving Forward?
1.4 Outline of the Book
2 Transformation of Energy Law in Latin America: Towards a Sustainable, Unified and Global Energy Law
2.1 Introduction
2.2 Disperse and Autarchic Energy Law: Pre-2010
2.3 Sustainable, Unified and Global Energy Law: Post-2010
2.3.1 Shared Principles
2.3.2 Shared Regulatory Cycle
2.3.3 Interdisciplinary
2.3.4 Convergent Energy Governance
2.3.5 Global Energy Law
2.4 Conclusions
Part II Hydrocarbons, Electricity and Mining
3 The Peruvian Renewable Energy Experiment: Lessons for Policymakers
3.1 Introduction
3.2 The Legislation and Its Results
3.2.1 Context for the Incentive Programme Enactment
3.2.2 The Main Features of the Legislation
3.2.3 The Bidding Results
3.3 Effects on the Power Market
3.3.1 The Relevant Commercialization Rules
3.3.2 The Intrinsic Problem of the RER Levies
3.3.3 The Market Response
3.3.4 The Future of the Market
3.4 The Future for RER Legislation in Peru
3.4.1 Making the Same Policymaking Mistake
3.4.2 Does a Market-Approached Mechanism Rightly Incentivize New RER Capacity?
3.5 Conclusions
4 Searching for Security of Energy Supply Through Renewable Energy Sources: A Practical Overview of the Chilean Case
4.1 Introduction
4.2 Historical Domestic Facts: Chile
4.2.1 Domestic Overview
4.2.2 Energy Availability
4.2.3 Arrival of Non-Conventional Renewable Energy Regulation in Chile
4.3 Non-Conventional Renewable Energy Development in Chile
4.4 Projections
4.4.1 Energy Needs Projections in the Mining Industry
4.4.2 Green Hydrogen
4.4.3 Industrial Water Consumption
4.4.4 Electromobility
4.5 Conclusion
5 Venezuela: Petroleum Industry and Regulation
5.1 Introduction
5.2 Evolution of Hydrocarbon Regulation in Venezuela Until 1998: Summary of the Main Aspects
5.3 Excessive Regulatory Activity of the State Over the Hydrocarbons in Venezuela During the last Two Decades: A General Overview
5.4 General Comments on the Venezuelan Petroleum History and the Excessive Regulation by the Venezuelan State Over Its Hydrocarbons Industry
5.5 Final Reflections
References
6 The Mexican Energy Transition
6.1 Introduction
6.2 The Expropriation of the Oil and Gas Industry
6.3 The Mexican Hydrocarbon Sector and the Energy Transition
6.3.1 Brief Overview Among the Most Relevant Reforms
6.3.1.1 1938 to 2014
6.3.2 Energy Reform 2014
6.4 The Hydrocarbon Sector and the Energy Transition
6.5 PEMEX Business Plan
6.6 Legal Framework for the Energy Transition
6.7 Conclusions
7 Energy Transition in Argentina: Past, Present and Future
7.1 Argentina’s Standing on the Energy Transition
7.1.1 The Global Agenda Impacts Argentine Energy Policy
7.1.2 Argentine Energy Mix: Past, Present and Future
7.2 Scattered but Steady Efforts to Diversify the Energy Matrix
7.2.1 Renewables: Wind and Solar Power
7.2.2 Hydrogen
7.2.3 Lithium
7.3 The Need for Comprehensive Policymaking
8 The Important Role of Mining Within the Energy Transition: The Case of the Lithium Sector in Argentina
8.1 Introduction
8.2 Lithium in Context
8.2.1 Lithium Demand
8.2.2 Lithium Sources
8.3 The Lithium Industry in the Lithium Triangle
8.4 Lithium in Argentina
8.4.1 Argentinean Constitutional Organization
8.4.2 Lithium Regulation: General Mining Legal Framework
8.4.3 Lithium History in Argentina
8.5 Specific Regulation for Lithium?
8.6 The Argentine Lithium Region
8.7 Argentinean Electromobility Initiative
8.8 Conclusion
9 Energy Transition in the Peruvian Mining Sector: Regulatory Approach or Just Private Self-Regulation?
9.1 Introduction
9.2 The Mining Industry and the Energy Transition Regulatory Framework in Peru
9.2.1 The Mining Sector in Peru
9.2.2 Mineral Policy in Peru
9.2.3 Regulatory Mining Framework
9.2.4 Energy Transition Framework
9.3 Energy Transition in the Mining Industry
9.4 Conclusions
Part III Social License to Operate and Dispute Resolution Mechanisms
10 Social Licensing to Operate and Social Justice in Energy Transition: The Case of Brazil
10.1 Introduction
10.2 The Brazilian Energy Sector
10.2.1 Background
10.2.2 Social License to Operate (SLO)
10.2.3 Socio-Environmental Context
10.2.4 Challenges
10.3 Social Justice in the Brazilian Energy Sector
10.3.1 Socio-Environmental Protection and Mitigation Measures
10.3.2 Public Consultations in Accordance with Brazilian Law
10.4 Final Considerations
11 Social License to Operate: A Review of the Colombian Case
11.1 Introduction
11.2 Colombia and the Social License to Operate
11.3 Colombia’s Lands Restitution Public Policy and the Relationship with the Concept of Social License to Operate
11.4 Prior Consultation
11.5 Conclusions
12 Peruvian Regulations for Renewable Energy Resources: An Analysis of the Regime Based on Arbitration Awards
12.1 Introduction
12.2 RER Regime
12.2.1 What is the RER Regime?
12.2.2 How Does the RER Regime Work?
12.3 Critical Aspects of the RER Regime
12.3.1 National Interest and Public Necessity
12.3.2 Timely Supply of Electricity
12.3.3 The Attraction of Foreign Investors (by Long-Term Supply Contracts and Guaranteed Rates)
12.4 Analysis of Arbitration Cases Derived from RER Regime Projects
12.4.1 Santa Lorenza S.A.C. (“Santa Lorenza”) Against Minem
12.4.2 Electro Zana S.A.C. (“Electro Zana”) Against Minem
12.4.3 Empresa Generacion Hidraulica Selva Sociedad Anonima (“Egehissa”) Against Minem
12.4.4 Empresa De Generacion Electrica Colca S.A. (“Egecolca”) Against Minem
12.4.5 Recurrent Issues on the Analysed Arbitration Cases
12.4.6 Proposed Measures to Decrease Litigation Related to RER Supply Contracts
12.5 Conclusions
13 Energy Transition in Latin American Countries and the Conflicts Associated with Such Transitions
13.1 The Approach to Energy Transition in Latin America
13.2 Timeline for Transition
13.3 Conflict Arising from the Energy Transition
13.4 Conclusions
Part IV Epilogue
14 Epilogue: Changing Latin America Through the Energy Transformation?
14.1 Energy Transformation in a Pandemic Context
14.2 Energy and Mineral Riches, Between Affluence and Dependence
14.3 Funding the Energy Transition, Private Investment, and the Role of the State
14.4 Energy Justice and the Social Impact of Renewable Energy
14.5 Concluding Words: Energy Transformation as the Promotor of Regional Change
Index
