Winning the race for renewable energy is critical for those controlling and setting global standards. Since the annual meetings of the United Nations General Assembly, the G20 and BRICS (now called "enlarged BRICS"), it is clear that countries are focused on the development of alternative energy (solar energy is the main example) and energy. creation.alternative. Competitive ecosystems are redefining traditional and non-traditional technologies. traditional industries and geopolitical alliances. This is the new global solar architecture. The dynamics of the Western Hemisphere, once a bastion and symbol of America's global influence, have changed over the past two decades. The lack of joint attention from the US government and the private sector has led Latin American and Caribbean (LAC) governments to look east for more robust development aid and trade partners. On September 13, Chinese President Xi and Venezuelan President Maduro upgraded their relations to "all-round strategic cooperation" and signed agreements in the fields of economy, trade and tourism, science and technology, civil aviation and space. The lure of Chinese capital is too attractive for countries in the region to ignore. IMF data shows that China has overtaken the US as South America's largest trading partner in two decades.
However, World Bank trade data show that the United States is still Latin America's largest trading partner.
Who should society trust? What is certain is China's focused and ongoing economic engagement with Latin America and the Caribbean, as evidenced by more than $137 billion in sovereign loans to Latin American countries since 2005, said Margaret Myers, director of Latin America for Asia and the Caribbean at The Inter. -International. The American Dialogue.
Exports from Latin American countries to China increased from 1.3% in 2000 to 14.5% in 2020. China has also established three regional funds to support regional investment: the China-China Industrial Cooperation (LAC) Investment Fund with $30 billion Americans; US$10 billion China-Latin America Cooperation Fund; and a $20 billion China-Latin America special infrastructure loan program. In response to China's growing engagement with Latin America and the Caribbean, the United States has increased investment and focus in the region, and competition, particularly in the solar energy sector, has increased significantly.
Solar Energy in Latin America
LAC's desire to invest in renewable energy is clear. There are an average of 217 sunny days per year, and Solargis resource maps show that the region has a high level of photovoltaic potential. Currently, solar energy produces only 3-4% of electricity in the LAC region. However, LAC has the largest program of solar energy projects outside of East Asia and North America. The region is building four times more solar power than Europe and seven times more than India. Latin America has the potential to increase wind and solar energy capacity by more than 460% by 2030, according to the Global Energy Monitor. As climate change increases the frequency of devastating hurricanes, Latin America must ensure sustainable energy production from national resources. For example, after Hurricane Irma devastated the Bahamas, the government created a solar microgrid to provide the residents of Ragged Island with renewable energy.
Brazil, Mexico, Colombia, Chile and Peru account for the majority of current solar projects, with more than 88% of installed solar capacity and about 97% of planned capacity under construction. However, America still has time to take action.
US
Solar power is America's fastest and cheapest source of electricity. As of 2022, more than 263,000 Americans work in solar energy at more than 10,000 companies, and the sector has generated nearly $35 billion in private investment. In an effort to capitalize on these investments, US development aid organizations are emphasizing environmental, social and governance (ESG) investments.
In 2019, LAC launched renewable energy.
The leading solar panel company is First Solar.
China
China has a huge advantage over the United States in solar energy production. The country accounts for more than 80% of the supply chain and spends ten times more than the US and Europe on solar energy production. Data from Boston University's China Global Energy Database shows that Chinese financial development institutions such as the China Development Bank and the Export-Import Bank of China have financed $10 billion of energy production in Latin America since since 2000. Many of these projects are working. State-owned companies such as PowerChina, which has more than fifty projects in Latin America by 2022. Chinese companies are also involved in two of the largest projects in the region. In Argentina, the Cauchari photovoltaic complex. It was developed as China's BRI project. The first phase began in 2018 with an initial investment of $390 million. The new phase of the project was approved in 2022 during the trip of President Alberto Fernandez to China. Another major project is a $1 billion, 1.1 gigawatt solar power project near Açu, Brazil, which is being developed by a Chinese company. On September 22, China Signal reported that three of the four bidders for Bogotá, Colombia's second metro line, were Chinese state-owned enterprises. Chinese Vice Minister Liu Hanyuan described China's commitment to helping the Caribbean transition to renewable energy: “There is no limit to the transfer of this technology to the Caribbean. But we need two things: increasing demand and creating new systems that will help lower energy costs."
CONCLUSION
As climate change intensifies, solar energy offers a sustainable solution. With abundant sunshine and the potential of photovoltaic technology, LAC is poised for increased investment in renewable energy. The United States cannot stand by while China shapes the region's energy future. The Biden administration has taken the first steps to reengage with the region, with the US National Renewable Energy Laboratory helping workers in Antigua and Barbuda install solar panels, batteries and hurricane-proof turbines. Vice President Kamala Harris also announced $20 million to support climate investment programs in the Caribbean. However, the United States must more effectively mobilize its collective resources to lead, solicit input from, and collaborate with countries in Latin America and the Caribbean to set environmental and sustainability standards in the region. A report published earlier this year by the UN Committee on Economic, Social and Cultural Rights identified 14 cases of human rights violations or environmental risks linked to Chinese projects in Latin America. Moreover, Chinese initiatives often pay little attention to indigenous families in areas targeted for development. The report says: "Chinese investors and financiers did not respect due diligence procedures and chose to do business in a region with a high potential for social conflict and environmental risks." Leveraging the shared values and actions of the American Western Hemisphere towards social entrepreneurship, technology and values combined with humility and cultural competence. These ongoing collective efforts will reduce the region's dependence on foreign energy sources.
This endeavor will be full of challenges. China's ability to produce solar panels and its historical lack of claims in the region give China a clear advantage. The United States must be resilient and find innovative ways to remain competitive during the transition to renewable energy in Latin America and the Caribbean. China is currently winning the race, but the race is far from over. The United States needs to step up its game.
Special thanks to Nathaniel Schochet for his excellent thought leadership, research, and editorial contributions to this article.
