South America is expected to lead global growth in investments in renewable energy over the next five years – this is according to research carried out by the London law firm Ashurts.
The report, titled Powering Change: Energy in Transition, gathered opinions from more than 2 business leaders from all G20 countries – a group made up of finance ministers and central bank heads from the world's 19 largest economies – and highlighted three dominant sources of renewable generation in which respondents are investing or plan to do so. The most favored is solar energy, followed by wind, hydroelectric and onshore wind.
When asked, for example, about the importance of renewable projects as part of the energy transition, 42% of those interviewed in Brazil and 44% in Mexico stated that it is an essential path to achieving this level of change. With these indices, both are among the top five countries.
Furthermore, the study pointed out that G20 investors from within South America already have investments in renewable ventures. The majority, 66%, are in Brazil investing in solar and wind energy.
Why South America?
According to Ashurts, South America stood out due to its availability of solar irradiation and wind resources that provide opportunities in these two sources. At the same time, there is an acceleration of investments in search of the decarbonization of the electrical matrix, a result of society's pressure on corporations and governments.
Other data
More than half, 52%, of respondents said they were currently investing in solar energy, ahead of hydro, 43%, and onshore wind, 42%. Another 22% commented that they were thinking about investing in photovoltaics for the next five years. In other words, this means that almost three-quarters (74%) of people see a role for solar energy in their current or future investment plans.
Covid-19
According to the study, the dataset was captured before the Covid-19 crisis and the sharp reduction in oil prices. “However, we believe market fundamentals and prospects for the clean energy transition will remain largely unchanged over the long term,” the report concludes.
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