1. Competing Agendas: Latin America’s Sustainable Energy Dilemma By Eric Farnsworth LT Jung Park

2. Latin America In the past decade, the middle class in Latin America grew 50%, and now represents 30% of the population According to the experts, the growth is due to rapid growth and job creation To maintain these gains, the region needs to invest in its energy sector before it is too late 2

3. Latin America Growth in Latin American countries 1995-2010 3

4. Latin America 4 Latin America’s power consumption is expected to nearly double by 2030

5. Latin America 5 Unless Latin America can figure out how balance the Energy Trilemma, it will seriously jeopardize the future growth and prosperity will more than likely fail. Meeting the growing energy demand Increasing sensitivity to the environment

6. Everybody Needs Energy Brazil’s Belo Monte Dam project A controversial dam project started in the 70s during the dictatorship that was stalled by the environmentalist’s concerns over the indigenous populations Restarted in 2002 by President Lula Silva as part of the Accelerated Growth Program. Brazil’s ethanol program Originally begun in the 70s to reduce the country’s reliance on crude imports that could be embargoed Chile’s liquefied natural gas (LNG) Chile imports significant part of its LNG from Asia due to unreliable supply from Argentina Venezuela’s Petrocaribe Program Increased regional influence through Petrocaribe program to meet neighbors energy needs with cut-rate supplies of oil in exchange of trade 6

7. Latin America is overall very clean with its energy Hydro power Low fossil fuel usage Coal represents only 4 percent compared to global average of 30 However, present day clean energy production will not solve its future energy desires Obstacles hindering energy investment climate Weak rule of law Environmental concerns Indigenous demands Security threats 7

8. Chile Case Study Good Business-friendly environment Ranked 37 th in the World Bank’s annual “doing business Survey” Stable democracy and free-trade partner with the U.S. and others Role model country in Latin America Rule of Law firmly established 8 Bad Energy sector!!! Missing core product—a traditional energy resource Copper mining is an energy hog (Bolivia refuses to sell natural gas due to border disputes) Low energy conservation awareness

9. Chile continued To satisfy the energy demand Chile: Imports foreign energy 75% of energy supply is fossil fuel However, with high costs and unreliability of imports, the gov’t seeks alternatives: Expansion of nuclear energy— Fukushima? Expansion of hydro power HydroAysen project 9

10. Chile Continued Chile’s choice of energy source is only one of many other issues regarding its energy security Energy delivery Challenging topography Electric highway law 10

11. Brazil Case Study Good Current energy capacity is around 113GW Liberal energy sector—favorable to foreign investments Currently 85% clean hydro from its extensive river systems The current hydro dams are found in the southeastern side of the country Bad Future planned dam projects will be concentrated north Energy delivery complications Negative side effects of dam projects in the Amazon ecosystem Indigenous people Will new dam projects be all bad??? 11

12. Private Investments matter Bolivia Vs. Columbia Bolivia’s closing of its doors to investors Columbia’s opening of its do Bottom Line Is… 12