CAF and regional organizations launched Energy Efficiency program for Latin America

CAF, Development Bank of Latin America, jointly with the Latin American Energy Organization (OLADE, for its acronym in Spanish), the Regional Association of Companies of the Oil, Gas, and Biofuels Sectors in Latin America and the Caribbean (ARPEL, for its acronym in Spanish), the Regional Energy Integration Commission (CIER, for its acronym in Spanish), the World Energy Council (WEC), the Economic Commission for Latin America and the Caribbean (ECLAC), the Organization of American States (OAS), and the Latin American Integration Association (ALADI, for its acronym in Spanish), presented the Energy Efficiency regional program, second stage of the initiative "Toward a Shared Energy Agenda", aimed at promoting the development of energy efficiency projects in the region.  

In order to promote an energy market that prioritizes efficiency both in the use of resources as well as in its production, the regional program aims its actions and proposals to the regional actors associated to supply, such as energy suppliers, public entities, and private entities. It also adds the energy consumer sector. 

During the presentation of the program, carried out at the headquarters of the Latin American Integration Association (ALADI, for its acronym in Spanish) in Montevideo, Carlos Alvarez, Secretary General of the organization highlighted the importance of integration between countries to achieve energy efficiency. He stated, "Latin America may become a very significant actor in a world that is in turmoil and transition. The challenge is big, and the return to a vision of strategic planning, more open and flexible, is very relevant for the development of our region". 

Ramon, Mendez, National Energy Director of Uruguay, highlighted the importance of having political leadership that supports these objectives related to change. He stated, "The strong presence of the Sate, far from being disastrous for the market, promotes participation". As an example, he indicated that Uruguay invests an annual amount equivalent to 3 percent of GDP in energy transformation. He added that "the region is starting to be looked at in a different way" due to the incorporation of innovative mechanisms that propose a re-formulation of the traditional schemes.

At the same time, Alfonso Blanco, Inter-Institutional Coordinator of the Energy Efficiency program, indicated that there are still barriers to innovation, such as limitations to access to information. to guarantee funds, to financial instruments, and a scarcity of local professional capacities. During his speech, Blanco presented some of the initiatives that are being developed by the different regional organizations, among which he mentioned events, web seminars, and collaborations with energy producing companies. 

Gladis Genua, CAF´s Director Representative in Uruguay, recalled that the first stage of this joint work was focused on a balance of the energy agenda in Latin America and its challenges. She stated, "For CAF, the issue of energy is of vital importance, as approximately 30 percent of our financing portfolio in the region refers to projects in this area, both in generation, as well as distribution and transmission. Now we have to address the issue of energy efficiency because although we have enough resources, it is this generation´s responsibility to use them adequately so that they may be enjoyed in the future". 

CAF made an alliance with the German Development Bank KfW, to offer two lines of financing aimed at the consolidation of projects associated to energy supply and demand. 

Mauricio Garron, Senior Energy Specialist at CAF, explained that a first instrument is aimed at the final consumers and SMEs, and is channeled through local banks and financial institutions. He also noted that energy generating and distributing companies that require financial support may ask for credits that are granted directly by CAF through the existing mechanisms. He specified that there is a non-reimbursable technical assistance fund which will support the development of energy studies and audits that companies require to establish the gains and benefits of the projects.  

The event included the participation of representatives from the Regional Association of Oil and Natural Gas in Latin America and the Caribbean (ARPEL), The Economic Commission for Latin America and the Caribbean (ECLAC), the Regional Energy Integration Commission (CIER), the Organization of American States (OAS), the Latin American Energy Organization (OLADE), and the World Energy Council (WEC).