Energy

IN SUMMARY

Energy is crucial for the development of people and countries in Latin America and the Caribbean (LAC).

Energy not only makes it possible to illuminate our homes, take a hot shower, and preserve food; but it is also vital for the economy since it powers industry, commerce, and transportation. Energy is key for practically all activities in today's society such as science, education, and healthcare. Thanks to technology, the use of electricity will steadily increase, replacing fossil fuels. Although this may seem like good news, the generation of electrical energy can have negative effects on the environment if it is not done sustainably.

CHALLENGES AND OPPORTUNITIES

LAC’s electrical network is relatively environmentally friendly thanks to a high level of hydroelectric power production. However, as climate change affects rainfall and reduces supply, countries may become more dependent on fossil fuels and their economies more vulnerable to price fluctuations.

To diversify their energy, alternative sources must be incorporated such as wind and solar, but also other backup sources such as geothermal energy and natural gas. Given their greater volatility and intermittency, renewable energy sources have to rely on better transmission networks and storage solutions such as batteries, thereby ensuring supply and adapting to the increase in demand. This transition and diversification process requires significant innovation and investment.

OUR
STRATEGY

We seek to develop clean and sustainable energy on a large scale.

We work with experienced energy project sponsors to accelerate the transition from fossil fuels to renewable energy. We not only invest in energy production but also in solid support systems through modern distribution networks and storage capacity while promoting and keeping track of energy efficient technologies.

OUR
COMMITMENT

energy To achieve the goals that Latin American and Caribbean (LAC) countries have set for renewable energy, investment must be dramatically increased. Although it is the private sector that drives the market, governments create the legal frameworks that reduce risks, foster competition, and promote technology. The IDB Group works with the public and private sectors to create the right environment and improve the financing that LAC needs.

We allocate our own capital and mobilize external resources. We offer financial products that are adapted to the needs of our clients and the markets in which they operate to reduce risks. We provide support in taking advantage of capital markets to improve long-term investment. We incorporate gender programs so that more women enter the energy sector; and we offer climate change mitigation and adaptation solutions for our clients and their projects.

We not only ensure the financial viability of each project but also the long-term social and economic impact. We consider environmental and social aspects, gender equality, climate change, and corporate governance.