Green tech to be hot topic La Jolla energy conference

The Institute of the Americas’ XXIX La Jolla Energy Virtual Conference will be held from May 18 to 22. BNamericas talked with former Mexican deputy energy minister Leonardo Beltrán, who is a featured speaker at the event, to learn more about the topics to be discussed. 

Under former President Enrique Peña Nieto, Beltrán helped negotiate the constitutional changes ratified in the 2014 energy reforms – a key driving force behind the rapid expansion of renewables in Mexico over the last few years.

BNamericas: What do you plan to discuss at La Jolla energy conference?

Beltrán: Part of what we’ll be discussing will be new technologies, certainly. Storage, for instance.

BNamericas: It seems news about storage technologies are emerging almost daily.

Beltrán: Exactly, that’s moving all over the world. That’s one of the discussions that Latin America is having, not only because of natural [renewable] resources, because of the potential [storage technologies] have to actually augment renewable energy generation in the region.

A number of other technologies are associated with that, digitization, of course, is something that should be present in the discussion, probably new business models like community energy and decentralized energy services. Certainly that’s part of the discussion.

And even more so, given what’s happening in California, but which can be replicable in some other areas of the region.

BNamericas: What’s happening in California and could be replicated?

Beltrán: I am referring to the growth of rooftop solar and solar water heaters in California with its Go Solar California project. California designed a program that provides information on rebates, tax credits, and information on installing and interconnecting solar electric and solar thermal systems with a target to reach within a timeframe, a budget, aligning incentives between the consumer and the producer. 

We are observing such programs as an increasing trend in some countries, Brazil and Mexico, for example, but these opportunities can be embraced across Latin America and the Caribbean. 

This experience can be replicated in Latin America and the Caribbean not only because of solar irradiation, but because it can help in providing energy services in underserved communities, and also would create business opportunities for local manufacturers and regional development. 

I believe that in several countries in the region where there is still a large population lacking access to energy services, this is one way to take advantage of indigenous resources, and where it would be much more cost-effective to promote the decentralized energy services business model. 

BNamericas: How has the outlook on renewables shifted during the pandemic? 

Beltrán: The first thing is this data point I mentioned earlier, the International Energy Agency report, that the only resource that actually increased in 2020 in terms of power was renewables.  

That should give you a strong sense of how, even with the pandemic, renewables are growing, so that’s a strong message.

The second thing is the oil and gas sector was experiencing a battle between the largest players in the market, Russia, Saudi Arabia, the US, now China. Of course, this situation has not been resolved, so would it be possible to continue to have this depressed market in the short term? Of course, prices aren’t the main drivers for decisions in the market, but there are different signals that hydrocarbons are losing ground.

BNamericas: Where do you see investment in renewables gaining ground?

Beltrán: Certainly in the EU, they are the big players [in renewables]. For instance, all the different factories are being designed with green [certification].

Also, you see in all the financial markets that the strongest market movers – big banks, investment firms – are divesting hydrocarbons, coal in particular, and now are increasing movement toward renewables. 

If you see the level of investments in renewables, last year this was larger than that in conventionals. If you look at the bottom rung in demand, they are moving toward environmentally conscious products, and that’s coming from below.

Governments are moving more to something more sustainable. Presidents are moving toward sustainability issues. 

BNamericas: Baja California Sur state relies heavily on ecotourism, and residents, businesses and government are resisting federal plans to increase energy supply through new combined cycle plants. Do you see any way for such actors to gain more influence in decisions about their energy supply? Should they have such influence?

Beltrán: Certainly. Part of developing the future of green energy is developing regional auctions, perhaps developing green technology auctions, understanding what resources are available at a given node, and then from there deciding a particular auction that would be conducive with the indigenous resources to be deployed and developed there.

In that sense, the question is if there is a possibility from the federal government that states have control in that decision.