The energy sector in Latin America offers opportunities to Spanish investment

CAF, Development Bank of Latin America, organized the first round table called "Sustainable investment in the energy sector: Why invest in Latin America?". The meeting took place at the Wellington Hotel in Madrid, with the main objective of promoting discussion between diverse actors with experience in the energy sector of the region, seeking to favor a business climate. At the same time, the event has helped identify possible actions that enable an increase in the sustainable participation of investments in this sector. 

The meeting, inaugurated by Hamilton Moss, CAF's Vice President of Energy and Guillermo Fernández de Soto, CAF's Director for Europe, gathered representatives from the ministries of energy and from diverse companies of the public and private sectors of Latin America and Europe, who analyzed the barriers and opportunities of the energy sector in the area. 

CAF's Vice President of Energy pointed out the importance of generating dialogue spaces and meetings between the public and private sectors and financing agencies to contribute solutions to the energy needs of the region: As a development bank, CAF not only contributes financing but also knowledge". Moss insisted that "integration, which is essential in Latin America, should not be confused with interconnection, which is an important element but not the only one for integration". 

In his opening statement, Guillermo Fernández de Soto, CAF's Director for Europe, underlined "the need for foreign investment to promote the growth and development of the energy system in the region, as well as their respective economies". Fernández de Soto highlighted that "CAF finances projects in the energy and infrastructure sectors, and knowledge has to be added to maintain development and to be close to the entrepreneurial world and that of the citizens, to contribute to satisfy their needs". He also reminded that "the region has the cleanest energy matrix in the world, but it must improve its efficiency to compete globally and supply the increasing local demand".  

At the same time, German Rios, CAF's Corporate Director for Strategic Affairs, has been in charge of introducing the participants to the economic scenario in Latin America, emphasizing that "for the first time since the 80's, Latin America will have two consecutive years of economic downturn. There are significant differences in performance by country, and we must consider the risk of losing the gains obtained during the boom of raw materials: reduction of poverty and consolidation of the middle class. It is imperative to have a long-term vision and carry out a productive transformation in the region, and undertake reforms such as improving the quality of education, closing the infrastructure gap, and promoting the entrepreneurial ecosystem". 

Social advances and economic growth in the past decade have taken the region closer to the levels of the most advanced economies, but this has brought new threats and challenges as, for example, how to ensure that all Latin Americans may have access to stable energy services. This was one of the issues addressed in the first part of the round table, moderated by Hamilton Moss. Participants included: Fernando Lagarde, Legal Coordinator of the Ministry of Energy and Mining of Argentina; Pedro Jatobá, Superintendent of International Operations at Eletrobras in Brazil; Marcelo Tokman, General Manager of ENAP in Chile; Juan José Carrasco, Executive Director of the Comisión de Integración Energética Regional, CIER (Regional Energy Integration Commission), in Uruguay; Rafael Alexandri, General Director of Planning and Energy Information at the Energy Secretariat of Mexico; and Gonzalo Casaravilla, President of UTE in Uruguay. For two hours they shared with the participants the challenges and opportunities offered by the energy sector in Latin America in general and in their respective countries in particular. 

The first session of entrepreneurial experiences, headed by CAF's Director of Energy Analysis and Strategies, Mauricio Garrón, included the participation of renowned representatives of Latin and Spanish companies. Their interventions helped identify possible actions to enable a sustainable increase in participation of investments in the energy sector of Latin America.

After lunch and networking time, the second session of entrepreneurial experiences included the participation of representatives of the most important energy companies in Spain. On this occasion, the moderator was Renny Lopez, CAF's Corporate Director for Energy Projects. 

According to the report Energía: una visión sobre los retos y oportunidades en América Latina y el Caribe ( Energy: a vision of the challenges and opportunities in Latin America and the Caribbean), production and energy consumption in the region must be coordinated with sustainable policies and, at the same time, involve sector such as automotive, petrochemical, agro-food, mining, or services. In this respect, foreign investment is presented as a necessary ally. With the implementation of initiatives such as the first round table under the title "Sustainable Investment in the Energy Sector: why invest in Latin America?", CAF strengthens the search for transatlantic entrepreneurial cooperation that leads to economic investments.