Latin America and the Caribbean leads the world in renewable energy. Hydropower makes up 60% of the generation matrix. Still, there is vast untapped potential for low-carbon energy development. During my current trip to the COP20 in Lima, Peru, I had a chance to focus on the long-established source of renewable energy that has yet to reach its full potential: geothermal in Latin America and the Caribbean.
The Geothermal Development Facility launched this week at COP20 in Lima is designed to lower similar barriers to entry. The facility addresses risk-taking, capacity building and mobilization of private capital. It utilizes international collaboration and cross-sector collaboration between private and public players.
Doing nothing is no longer an option. Power generation in the region cannot keep pace with growing demand. An emerging middle class and record-level urbanization continue to make the current energy matrix unsustainable. Renewable energy sources like geothermal, coupled with energy efficiency measures, is a must.
The stakes are high. With the right financial instruments and risk-mitigation strategies, geothermal offers great promise. To effectively curb the trend of climate change, we must explore every avenue in geothermal development. Every watt matters. Hopefully we can all return from Lima with a similar sentiment of urgency and commitment and take swift action.
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