Inside This Issue

www.thedialogue.org August 4-8, 2008

FEATURED Q&A BOARD OF ADVISORS What is the Outlook for Wind Energy in Latin America? Jeffrey Davidow James R. Jones President, Co-chair, With oil prices forecasted to and the resulting increase in energy needs, Institute of the Manatt Jones remain at or above historic which have brought the region to look at Americas Global Strategies LLC highs, wind energy may be renewable energy and wind in particular becoming more viable as an as a viable option to diversify their energy Ramon Espinasa Doris Rodriguez Q alternative energy source, as indicated by matrices and help satisfy their growing Consultant, Partner, the announcement last week by Spain’s Inter-American Andrews Kurth LLP electricity needs. Several countries, like Development Bank Grupo Enhol and Chile's Haciendas Brazil, Chile, the Dominican Republic, Talinay of a billion-dollar joint venture Everett Santos and Peru, are already taking steps in terms Luis Giusti President, that would have a capacity to produce 500 of regulation, and the rest [of the coun- Senior Adviser, DALEC LLC megawatts of electricity for Chile. What tries] should follow the same road to make Center for Strategic & is the outlook for wind energy in Latin way for this energy source, which every International Studies R. Kirk Sherr America? Should governments in the day is more profitable, although it still CEO, region be doing more to encourage wind needs a push by governments to hasten its David Goldwyn Arrakis Geodynamics energy generation, and if so, what? President, Ltd. Q&A continued on page 4 Goldwyn International Guest Comment: Mauricio Strategies LLC Roger Stark Partner, Trujillo: "We are definitely seeing Jonathan C. Hamilton K&L Gates an interesting activation of the Partner, wind energy sector in all of Latin White & Case LLP Roger Tissot A America. Week after week advances are Independent Energy made toward the implementation of mas- Raul Herrera Consultant Partner, sive wind parks in different countries, such Corporate and Max Yzaguirre as Brazil, Mexico, Chile, Argentina, and Securities Practice Chief Executive Officer, soon Peru. The case of Central America is Arnold & Porter LLP The Yzaguirre Group also important, since it is a region on LLC. which oil prices are having a big impact William Irwin and which at the same time has very good Manager, International wind resources, factors that are driving the Government Affairs Blackout Hits Lima as Demand Chevron Corporation industry's development. There are several Puts Pressure on Generators initiatives for the implementation of wind parks on a grand scale that for a long time Cars traveled on darkened streets in Subscribers may pose questions to the have been trying to get off the ground but Lima, Peru on Thursday after a blackout Board of Advisors for the Featured Q&A by have only done so in recent years. This is left hundreds of thousands without contacting Editor Robert Simpson at: thanks to wind energy's greater competi- power. See story on page 3. [email protected] tiveness, oil prices, the threat of climate Photo: Agencia Andina. change, and sustained economic growth Inside This Issue

FEATURED Q&A: What is the Outlook Trinidad Seeks New Markets for Blackout Hits Lima as Generators for Wind Energy in Latin America? ...... 1 its Oil in the Wake of PetroCaribe ...... 2 Struggle to Keep Up With Demand...... 3 Petrobras Agrees to Switch to Brazilian Firm Signs MOU to Research Alert: Dominican Republic's Service Contract in Ecuador ...... 2 Build Dam in Mozambique...... 2 Electricity Sector Remains Troubled...... 3 Oilworkers Agree to Call Off Strike Dominican Government Agrees Support for New Constitution After Reaching Deal With Petrobras ...... 2 to Buy Shell's Refinery Stake...... 2 in Ecuador Continues to Rise ...... 4

ENERGY SECTOR BRIEFS Oil & Gas News Oilworkers Agree to Call Off Strike After Reaching Deal With Petrobras Brazilian Firm Signs MOU to Build Dam in Mozambique Petrobras Agrees to Switch to Brazilian state oil company Petrobras on Mozambique signed a memoran- Service Contract in Ecuador Monday averted a strike by agreeing to dum of understanding with compensate workers for time spent travel- Brazilian construction and engineer- Brazilian national oil company Petrobras ing from oil platforms to the shore, ing firm Camargo Correia to build has agreed to switch to a service contract Reuters reported. The Norte Fluminense a $3.2 billion hydroelectric dam in with the Ecuadorean government under union had threatened to strike for five days the African country, Reuters report- which it will be paid a fee for extracting oil starting on Tuesday and shut down the rather than being Campos Basin, which accounts for about ed. Camargo Correia may also oper- allowed to keep and sell 85 percent of Brazil's petroleum output. In ate the dam, which is expected to part of the oil itself, the compromise reached earlier this week, produce up to 1,500 megawatts of Ecuadorean Oil Minister Petrobras will count the days spent travel- electricity. Camargo Correia still Galo Chiriboga said ing back to shore as paid half days, and the needs to find additional funding Thursday, according to compensation will be retroactive from before a deal is finalized, said Reuters. Chiriboga said January 2005. Petrobras platform staff Mozambique's planning and devel- Chiriboga the government and currently work 14 days offshore followed opment minister, Aiuba Quereneia. Ecuadorean govern- Petrobras would meet by 21 days off, according to energycur- ment file photo. immediately to work out rent.com. Last week, under the threat of a Dominican Government Agrees details of the new service contract, includ- strike from the larger oil workers union to Buy Shell's Refinery Stake ing economic conditions, but he gave no FUP, Petrobras agreed to raise profit shar- The Dominican Republic's govern- details on when the deal would be signed, ing terms for workers from 12.9 percent to ment on Tuesday reached an agreement for the purchase of Royal Dutch Shell's stake in the Refidomsa Petrobras' executive director for energy told reporters refinery, EFE reported. The $110 in Quito that the company plans to keep investing in the million deal gives the government full control of the refinery. Finance Andean nation after the contract switch. Minister Vicente Bengoa and Shell representatives said the purchase would be closed within 90 days fol- according to the report. Petrobras' execu- 15.2 percent. In related news, Petrobras lowing an asset inventory and a tive director for energy, Decio Oddone, CEO Jose Sergio Gabrielli said last Friday financial audit of Refidomsa. told reporters in Quito that the company the company plans to start production at plans to keep investing in the Andean its massive offshore Tupi oil field in the Venezuela's Citgo Grants $1.5 nation after the contract switch and first quarter of next year, according to Million to Maryland Charity expects to increase output by 5,000 barrels Bloomberg News. Initial output will be Venezuelan-owned oil company per day this year. Ecuadorean President between 20,000 and 30,000 barrels per day Citgo is making a $1.5 million Rafael Correa is expected to meet today (bpd), and will rise to 100,000 bpd in with Chinese consortium Andes 2010, Gabrielli said. donation to a Maryland-based non- Petroleum and Spain's Repsol to secure profit group, the charity said deals similar to the one reached with Trinidad Seeks New Markets for Monday. The gift, which will be Petrobras. As part of negotiations with its Oil in the Wake of PetroCaribe spread out over four years, will help foreign oil companies, the government in fund programs for low-income and June offered to lower a windfall tax on the Venezuela's PetroCaribe initiative, which immigrant workers. Chavez is using companies' earnings for one year from 99 provides subsidized oil to countries in the Citgo to create a constituency in the percent to 70 percent if they agree to drop Caribbean, is pushing Trinidad and United States and also to embarrass lawsuits challenging the tax. Since the Tobago out of the Caribbean petroleum the Bush administration over its windfall tax was imposed last year, the market, Reuters reported on Monday. social policy shortcomings, Michael companies have halted most investment in Trinidad and Tobago's state oil company Shifter, the vice president for policy Ecuador's oil sector, and some have filed Petrotrin has seen its Caribbean sales fall at Inter-American Dialogue, told the for arbitration in international court. to nearly half their normal level of 60,000 Ecuador produces around 500,000 barrels barrels per day (bpd) since Venezuelan Washington Post Tuesday. per day, nearly half of which is produced President Hugo Chavez started by private firms. PetroCaribe in 2005. Recent changes to

PetroCaribe, including Chavez's promise to allow 70 percent financing if oil prices top $150 per barrel, have further Research Alert decreased Trinidad and Tobago's ability to compete, the report said. Petrotrin is Dominican Republic's Electricity Sector Remains Troubled expected to lose market share in Guyana, which recently joined PetroCaribe, and in Fitch Ratings on Monday released a special report suggesting that the Dominican Jamaica, where Venezuela is financing the Republic's electricity sector is "on the brink of financial distress," and stating that it expansion of a refinery owned by state oil will be up to the government of President Leonel Fernandez, recently re-elected in a company Petrojam. Petrotrin's vice presi- landslide, to "fix the system." dent for refinery and marketing, Kenneth Allum, told Reuters the company plans to Rolling blackouts and electricity shortages have become a way of life for people in the compensate by opening up new markets Dominican Republic, Fitch said. High electricity losses, the majority from theft, and for its oil exports, especially in the United low collections from end users have plagued the sector and resulted in perpetual elec- States. In 2007, the US imported on aver- tricity shortages, Fitch concluded. age 99,000 bpd from Trinidad and Tobago, "Although the country has more than sufficient generation capacity to meet total a decrease compared to 2006, when the demand, the government's decision to cap electricity prices, tolerate theft by end country exported 117,000 bpd and ranked users, and give free electricity has resulted in insufficient funds for state-owned elec- as the 20th largest exporter of oil to the tric distribution companies to cover their operating costs and pay private-sector gen- US, according the Department of Energy. erators for contracted capacity," Fitch analysts wrote. In an interview with local daily Newsday, Trinidad and Tobago Energy Minister Because the Caribbean nation's power companies depend upon increasingly expen- Conrad Enill said the country had nothing sive oil to generate electricity, a reduction or elimination of subsidies would only lead to fear from Venezuela's new dominance to increasing electricity shortages, unless the government also raises prices—thereby in the Caribbean oil market, and that passing the variable cost of energy to end users—and enforces a new electricity law Petrotrin's plans to upgrade its Pointe-a- that punishes end users for electricity theft, Fitch said. Pierre refinery would create new products "While subsidies have allowed state-owned distribution companies to honor their to market abroad. contracts with private-sector generators, the situation is not sustainable over the longer term, as the government will continue to face pressure to prioritize investment Power Sector News in health and education at the expense of the electric sector," Fitch analysts wrote in the report. Blackout Hits Lima as Generators As a result, investors in the sector will be increasingly turning to the Fernandez gov- Struggle to Keep Up With Demand ernment "to fix the system." A stand-by agreement with the International Monetary Fund (IMF), which provided a framework for the sector to reach financial self-sus- As many as 240,000 homes were left with- tainability, expired in January and has yet to be renewed. "Unfortunately, little was out power in the Peruvian capital of Lima, achieved during the period the agreement was in place," Fitch said. as electricity generators struggle to keep "So far, the re-elected government seems to be taking an approach that is likely to per- up with demand amid torrid economic petuate the sector's instability, rather than to eliminate market distortions and growth in the Andean nation, Reuters enforce the new electricity law," Fitch stated. reported. An official from Luz del Sur,one of the two main power distributors in While Fernandez is considered one of the most respected and internationally-mind- Lima, said at least 120,000 homes were ed heads of state in the Caribbean, he has come under increasing political pressure at without power on the south side of the home to deal with rising food and fuel costs, which have put the import-dependent city, and a similar number of homes was Dominican Republic at relative economic disadvantage with other countries in Latin likely affected on the north side, according America. to the report. The blackout was caused by a failed valve on a gas line to the Etevensa power plant, shutting down a generator that can produce up to 10 percent of Peru's electricity. The country's power hydroelectric plants. "Reserves have fallen saying. Peru has large natural gas reserves generators are struggling to keep up with and are very small. They aren't sufficient capable of feeding power plants, but it has demand as annual economic growth in to guarantee that there won't be electricity few pipelines to transport the gas. A wider the country approaches 10 percent. interruptions when there are problems pipeline into Lima, which would increase Generation has also been affected by a dry with generators," Cesar Butron, the head power reserves, is not expected to be ready rainy season that has lowered output by of power grid agency Coes, was quoted as for another year, according to Reuters.

Political News Featured Q&A Continued from page 1

Support for New Constitution growth and compete with other sources up? Several things need to happen, most in Ecuador Continues to Rise that are cheaper still, such as hydroelec- notably implementation of market tricity." incentives (preferably in the form of Popular support in Ecuador for a new feed-in tariffs), which should be carefully Constitution continues to increase, but Guest Comment: Jan designed to help create a more level play- still falls short of the level of approval Borchgrevink: "Wind energy ing field for renewable energy, with due needed to pass the draft charter in a refer- has been notoriously slow in consideration of wind. Governments in endum planned for next month, Reuters A penetrating Latin America, at the region would do well to study and reported, citing a poll released Thursday. present not even reaching 0.2 percent of subsequently 'tropicalize' successful mar- According to the Cedatos-Gallup survey, worldwide 100 GW installed capacity, ket models, such as the Spanish and support for the proposed Constitution despite a booming global market with a German, which in addition to a substan- rose nine points from a poll last month to 30 percent-plus growth rate. We are now tial clean energy supply have fostered a 41 percent, still short of the 50 percent seeing a mix of market drivers, however, quite substantial industrial base, more- majority needed to win approval in the heating new project development activi- over creating thousands of wind energy referendum, which is scheduled for ty, which would cause the forecast to be sector related jobs. Permitting regula- September 28. Cedatos pollster Carlos upgraded from the 'cautiously opti- tions should be clear, transparent and Cordova attributed the increase to "a mistic.' Such drivers include, of course, environmentally sustainable. Secondly, series of popular moves" made by the pervasively volatile fossil fuel costs national and regional grids must be President Rafael Correa in recent weeks, coupled with security of supply issues, expanded and equitable access ensured according to the report. Last month, dwindling hydro resources (also partially for all wind plants, so as to allow Correa announced the seizure of hun- brought on by climate change), carbon exploitation of the resource which in cer- dreds of companies owned by a powerful finance, GDP growth, and the fact that in tain regions shows promise of abun- economic group linked to the 1998 col- some regions substantial wind energy dance. Increased public mapping of wind lapse of Ecuador's biggest bank, resources are being identified. The virtu- resources would also contribute to accel- Filanbanco. The bank's collapse cost the ally virgin market furthermore means erate market maturity. Needless to say government and depositors hundreds of plenty of land available for development, the investment climate could also use millions of dollars in losses. The proposed where permitting, and NIMBY (not in improvement, in certain particular mar- Constitution drafted by an assembly con- my back yard) issues should play a less kets." trolled by Correa's supporters would obstructive role than in higher popula- increase the presidential powers over tion density areas of the developed and Guest Comment: Vera democratic institutions and the economy. largely saturated markets of Europe and Rechsteiner: "With the triple- The Cedatos poll interviewed 1,500 peo- North America. The question neverthe- threat combination of rising ple and had a margin of error of 3.2 less remains: how quickly can the region A fossil fuel costs, a credit short- points. react, jump on the bandwagon, and catch age hampering financing of new genera- Q&A continued on page 6 Argentine,Venezuelan Presidents Cancel Visit to Bolivia over Violence scheduled to meet with Morales to discuss added, according to Reuters. Chavez told Venezuelan President Hugo Chavez and energy cooperation. Tuesday's protests reporters in Buenos Aires that "there will his Argentine counterpart, Cristina came just days before this Sunday's be other opportunities" to meet about Fernandez, canceled a joint trip to south- national referendum on whether Morales energy with Morales and Fernandez. ern Bolivia Tuesday after anti-government and eight regional governors should protests in different regions of the country remain in office (editor's note: see related ICRC Says Video Suggests Misuse led to two deaths and temporarily closed Q&A in the July 10, 2008 issue of the daily of Red Cross Emblem in Colombia their destination airport, wire services Latin America Advisor.) "These people are reported. Two Bolivians died and 30 were the enemies of our homeland," Morales The International Committee of the Red injured in confrontations between miners told a crowd at a rally in the southern Cross (ICRC) on Wednesday said it was and police forces in the western mining town of Villamontes, shortly after Chavez seriously concerned by what it called the city of Oruro, according to EFE. Separate called him to cancel the visit, Reuters Colombian government's apparent "delib- protests against President Evo Morales in reported. "And because 150-200 people erate misuse" of the ICRC's emblem in the Tarija also turned violent, closing the air- cause trouble at [Tarija] airport ... what July 2 rescue of 15 rebel-held hostages. In port where Chavez and Fernandez are we losing? Bolivia is losing out on a press release, the ICRC said that new planned to land. The two leaders were signing [energy] contracts," Morales video footage of the rescue operation

Copyright © 2008, Inter-American Dialogue Page 4 of 6 Inter-American Dialogue’s Latin America Energy Advisor August 4-8, 2008 showed that a member of the rescue team under fire amid rising inflation in Mexico. was "wearing a tabard marked with the red Amid soaring food prices, annualized POLITICAL & ECONOMIC BRIEFS cross emblem before the operation had inflation was 5.26 percent in June, the PRI, PAN Parties Have Same Level even begun, suggesting intentional mis- highest level in three and a half years, of Support Ahead of Midterm use." The humanitarian group's assertion according to The Los Angeles Times.In appears to contradict the Colombian gov- announcing the change at the secretariat, Mexico's opposition PRI party has ernment's initial claim that the use of the Calderon said he chose Ruiz because "he as much support as President Felipe emblem was an unapproved, last-minute has been a businessman who has lived and Calderon's conservative PAN party decision by the individual who wore it. suffered the condition of businesses in ahead of next year's midterm con- Colombian President Mexico and has been on the other side of gressional elections, Bloomberg Alvaro Uribe called the the counter" from the government. "He News reported Monday, citing a poll misuse of the emblem a knows what to do: deregulate the econo- published by local daily El Universal. "good faith" error, and my and free the country's productive The PRI and PAN would each take said military officials forces to spark growth," Calderon added. 30.3 percent of the vote if the elec- who lied about its use as Besides rising inflation, Ruiz will take tions were held today, according to part of an investigation office amid declining economic growth the survey. The PRI has positioned into the matter could be and a drop in remittances from Mexicans Uribe. itself as a centrist broker in punished, local daily El Photo: Casa de working abroad. Remittances are Mexico's Tiempo reported. In its Nariño second-largest source of foreign exchange Congress, and its support is key to press release, the ICRC noted that use of after oil exports. passage of Calderon's oil reform bill, the emblem is a violation of the Geneva which aims to partially open invest- Conventions. "Complete and total respect Lula Calls for Deeper Integration ment in Mexico's oil sector to for- for the red cross emblem is essential if the Between Brazil and Argentina eign firms. ICRC is to be able to bring assistance and protection to the people worst affected by Brazilian President Luiz Inacio Lula da Lula Launches International armed conflicts and other situations of Silva on Monday called for deeper integra- Fund to Protect Amazon violence," it stated. "As a neutral and tion with neighboring Argentina, Brazilian President Luiz Inacio Lula impartial humanitarian organization, the Bloomberg News reported. Lula, who da Silva launched an international ICRC depends on the trust of all the par- traveled to Buenos Aires with more than fund last Friday to finance conserva- ties to the conflict to be able to carry out 300 Brazilian business leaders to speak at a tion and sustainable development in its humanitarian work." In the dramatic business seminar, said the Amazon, Reuters reported. The July 2 rescue operation, a military team trade between Brazil and posing as rebels freed the 15 hostages, Argentina could rise to fund, which Lula declared would not which included ex-Colombian presiden- $30 billion this year from diminish Brazil's sovereignty over tial candidate and three US defense con- $24.8 billion last year the Amazon, will support forest con- tractors, without firing a shot. The opera- and that he could imag- servation, scientific research and tion grabbed front page headlines around ine a future in which the sustainable development projects, the world and was considered a major vic- two countries share the Lula. according to the report. Brazil hopes tory by the government in its campaign same currency. The Brazilian govern- to raise $1 billion within one year against the FARC rebel group. Brazilian leader said the ment file photo. and as much as $21 billion by 2021. countries have the potential to increase Brazil's BNDES development bank Economic News production of agricultural goods, includ- will manage the fund. ing biofuels, according to the report. Argentina and Brazil took opposite sides Annual Inflation in Venezuela Calderon Names Pro-Business in the days and hours leading up to last Rose to 33.7 Percent in July Ally Mexico's Economy Secretary week’s collapse of global trade talks in Venezuela's annual inflation rate Geneva. Brazil softened its position Mexican President Felipe Calderon on against wealthy countries' agricultural increased to 33.7 percent for July in Wednesday named his pro-business for- subsidies in order to support a deal, while metropolitan Caracas, the mer chief of staff as secretary of the econ- Argentina joined India and other develop- Associated Press reported. The fig- omy. Gerardo Ruiz, a top manager of ing nations to oppose it, saying it would ures released Thursday by Calderon's 2006 presidential campaign hurt farmers. But Lula and Argentine Venezuela's Central Bank showed and former president of the Council of the President Cristina Fernandez, speaking at monthly inflation slowed to 1.9 per- Social Union of Mexican Businesses, will the same business seminar, sought to min- cent from 2.4 percent in June, due to replace Eduardo Sojo, who was named imize their differences, saying they could the elimination of price controls and president of the government's national work together to promote the interests of an increase in food supplies. statistics institute, INEGI. Sojo had come developing countries.

Featured Q&A Latin America Energy Advisor Continued from page 4 is published weekly by the tion facilities, and increasing demands ing 100 percent dispatch of wind energy Inter-American Dialogue, Copyright © 2008 for electric energy, Latin America could will also contribute to achieving these Erik Brand, General Manager, Publishing greatly benefit from greater amounts of goals. Ultimately, progress in attracting [email protected] energy produced by wind power. new wind capacity will depend on the Although the number of countries that level of political support by governments Robert Simpson, have adopted legislation for renewable for continued reforms, through these Editor [email protected] energy projects (including wind) has (and other available) regulatory meas- increased, in many cases the regulatory ures." Matthew Schewel, schemes fall short of the reforms needed Reporter, Assistant Editor [email protected] to attract new wind investments; govern- Guest Comment: Cristian ments will need to do more to support Sainz: "Latin America has great Danielle Jetton, these investments. Perhaps two of the potential for renewable energy, Computer Services Coordinator most important steps governments can A above all with respect to wind Inter-American Dialogue: take to promote financeable projects are and solar energy. However, the wind Peter Hakim, to enact meaningful fiscal incentives for power generation industry is still in the President wind projects and adopt electricity mar- development stage, and the primary Michael Shifter, ket reforms that encourage or mandate cause is the lack of a regulatory frame- Vice President, Policy long-term power purchase agreements work that can offer legal certainty and Joan Caivano, and off-take pricing structures attractive establish clear and reliable conditions to Director, Special Projects to investors. A number of governments attract investors interested in alternative Dan Erikson, have taken steps in this direction with energy for electricity generation. There Senior Associate, US Policy positive results. Fiscal incentives in have been a few efforts at the country Claudio Loser, Mexico (which experts indicate has iden- level, such as the Ley Corta in Chile and Visiting Senior Fellow tified sites with over 10,000 MW of wind the Proinfa program in Brazil, but on a Manuel Orozco, resource potential) include 100 percent regional level Latin American govern- Executive Director, Remittances and Rural depreciation in the first year of capital ments have not yet supported the devel- Development Project costs for renewable investments and opment of this clean and renewable Tamara Ortega Goodspeed, R&D credits. However, these fiscal incen- energy source in an effective way. Latin Senior Associate, Education tives fall short of energy reforms to America should copy successful exam- Marifeli Perez-Stable, Mexico's power sector. Under Brazil's ples in the way of legislation, particular- Vice President, Democratic Governance award-winning Proinfa program, two ly the case of Germany. There, the appli- Jeffrey M. Puryear, important incentives were combined: 1) cation of the feed-in tariff guarantees a Vice President, Social Policy access to financing by the Brazilian fixed sum per MW installed, which Viron Vaky, Social and Economic Development Bank assures returns for investors, making Senior Fellow and 2) a 20-year power off-take guaran- investments more viable." Subscription Inquiries are welcomed at tee from Eletrobras. In 2008, Brazil proj- [email protected] ects the installation of over 107 MW of new wind capacity through Proinfa, and Latin America Energy Advisor is published weekly, with the exception of some major US experts project installation of another holidays, by the Inter-American Dialogue 900 MW of new wind capacity by 2009, 1211 Connecticut Avenue, Suite 510 provided the Brazilian government con- Mauricio Trujillo is Executive Director of Washington, DC 20036 tinues to support the program. the Latin America Wind Energy Phone: 202-822-9002 Fax: 202-822-9553 Governments seeking to attract new Association. The opinions expressed by the members of the wind power investments will benefit Board of Advisors and by guest commentators do not necessarily represent those of the publisher. from adopting market reforms that set Jan Borchgrevink is President of Costa The analysis is the sole view of each commentator clear policies aimed at making wind Rica-based Nordteco. and does not necessarily represent the views of pricing competitive vis-a-vis other fuel their respective employers or firms. The informa- tion in this report has been obtained from reliable sources (e.g., through feed-in tariffs or Vera Rechsteiner is a Partner in the sources, but neither its accuracy and complete- other price structures). Well-developed Business Transactions Section at Andrews ness, nor the opinions based thereon, are guaran- strategies to deal with interconnection Kurth LLP. teed. If you have any questions relating to the contents of this publication, contact the editorial and transmission challenges—wind offices of the Inter-American Dialogue. Contents resources are often in remote locations— Cristian Sainz is President of Nowa of this report may not be reproduced, stored in a and regulatory measures aimed at ensur- Energias in Buenos Aires. retrieval system, or transmitted without prior written permission from the publisher.