ENERGY ADVISOR a WEEKLY PUBLICATION of the DIALOGUE February 3, 2017

LATIN AMERICA ADVISOR ENERGY ADVISOR A WEEKLY PUBLICATION OF THE DIALOGUE www.thedialogue.org February 3, 2017

BOARD OF ADVISORS FEATURED Q&A TOP NEWS Nigel Blackaby Global Head, OIL & GAS International Arbitration Group, Freshfi elds Bruckhaus Deringer Will Temer’s PDVSA Default Mary Rose Brusewitz ‘Probable’: Fitch Partner, Strasburger & Price Government Bet Venezuelan state oil company Jeffrey Davidow PDVSA’s oil output is expected Senior Counselor, to drop by 200,000 barrels per The Cohen Group on Renewables? day this year after the company Ramón Espinasa failed to fi nd the funding to invest Consultant, in production and agreed to cut Inter-American Development Bank output by 95,000 barrels per day Luis Giusti for six months. Senior Advisor, Page 2 Center for Strategic & International Studies Jonathan C. Hamilton POWER SECTOR Partner, White & Case USAID to Continue Raul Herrera Caribbean Energy Partner, Security Initiative Corporate & Securities Practice, Arnold & Porter The USAID mission director in Ja- Brazilian Mines and Energy Minister Fernando Coelho Filho canceled a renewable energy auc- James R. Jones tion last year but has not yet rescheduled the tender. // File Photo: Brazilian Government. maica said the United States will Chairman, support the Caribbean in reducing ManattJones Global Strategies greenhouse gas emissions. Jorge Kamine Offi cials from Brazil’s northeastern states met in January Page 3 Counsel, with the country’s minister of mines and energy, Fernando Skadden Arps Coelho Filho, to ask that new rounds of renewable energy OIL & GAS Craig A. Kelly Q Director, auctions take place this year. The ministry had canceled Number of Americas Int’l Gov’t Relations, the wind and solar reserve energy auction, scheduled for Dec. 19, and Exxon Mobil Suspects in Coelho said the government is readjusting the renewable energy tender Jeremy Martin Petrobras Probe Vice President, Energy & Sustainability, model, which had originally been created based on the assumption that Institute of the Americas May Double Brazil’s economy would be growing at an annual rate of 4.5 percent. Larry Pascal Sources close to the negotiations Growth, however, has been fl at or negative for several years now. Will Chairman, say the plea deal with Odebrecht Americas Practice Group, the Brazilian government reset its efforts to expand the renewable en- employees and former employees Haynes & Boone ergy sector? Will investment in renewables signifi cantly benefi t Brazil’s includes testimony implicating Charles Shapiro allies of President Michel Temer President, struggling economy? How big of an investment will the defi cit-ridden in the Petrobras corruption probe. World Affairs Council of Atlanta nation be able to make in renewables over the years to come? Page 2 R. Kirk Sherr President, Clearview Strategy Group Mark S. Langevin, director of the Brazil Initiative and pro- Mark Thurber fessor at The George Washington University’s Elliott School Partner, Andrews Kurth of International Affairs: “Brazil’s National Council of Energy Alexandra Valderrama Policy estimated annual growth in electricity demand at 4.8 Manager, A International Government Affairs, percent under an annual economic growth projection of 3.3 percent until Chevron 2024. These projections included signifi cant expansion of wind energy, Lisa Viscidi from 5.4 percent of total installed electricity generation capacity to 12 Program Director, Inter-American Dialogue percent by 2025, and growth of 5.3 percent for solar. The recession has Max Yzaguirre driven industrial and residential consumption down. The decision to can- President and CEO, cel the Second Energy Reserve Auction for alternative renewables comes The Yzaguirre Group after the government’s new forecast of a signifi cant reduction in demand for 2019. This decision primarily affects wind energy installations in the Temer // File Photo: Brazilian Government. Continued on page 3

OIL & GAS SECTOR NEWS social spending, low crude output and payment NEWS BRIEFS disputes with suppliers. The newly appointed PDVSA Default executive vice president is Maribel Parra, who Australia’s Melbana is a rear admiral in the armed forces. Also, Doubles Cuban Onshore ‘Probable’: Fitch Simón Zerpa will serve as the new fi nance vice president. Zerpa previously led a bilater- Reserve Estimates Venezuelan state oil company PDVSA’s oil out- al Venezuela-China fund, through which the Australia-based oil and gas company Melbana put is expected to drop by 200,000 barrels per South American country borrowed billions of Energy has more than doubled its reserve day this year after the company failed to fi nd dollars from Beijing, to be repaid in oil and fuel estimates for Cuban onshore oil, UPI reported the funding to invest in production, in addition shipments. Wednesday. CEO Peter Stickland said in a to agreeing to cut output by 95,000 barrels per statement that there were 612 million barrels day for six months as part of a deal with the Number of Suspects of prospective oil in the company’s Block 9 Organization of Petroleum Exporting Countries onshore area, and with a potential for billions and non-member countries in a bid to boost oil in Petrobras Case of barrels of oil-in-place. He added that modern prices, according to analysts, Bloomberg News oil recovery techniques may increase the recov- reported Thursday. Despite the recent increase Expected to Double ery factor above a historic 5 percent level. in global oil prices, PDVSA will likely be unable Brazilian prosecutors expect the number of suspects in the Petrobras corruption scandal Argentina’s Electricity to double as former executives of construction conglomerate Odebrecht sign plea deals Rates Expected to and agree to cooperate with prosecutors Surge in March in exchange for lighter sentences, Agence Argentina’s electricity rates are expected to France-Presse reported Jan. 26. Federal spike by 60 percent to as much as 90 percent prosecutor Deltan Dallagnol, who is heading for many consumers starting in March, accord- the probe, said he expects that testimonies ing to fi gures presented by Energy Minister from Odebrecht executives will lead to “new Juan José Aranguren on Tuesday, Reuters Del Pino // File Photo: Venezuelan Government. investigations throughout Brazil.” Already, more reported. However, approximately 83 percent than 100 politicians have been ensnared in the to relieve its fi nancial burden because of its of energy consumers will see an increase in probe and are suspected of accepting bribes drop in output, leading Fitch Ratings to say that electricity rates of 183 pesos (about $11.51) from Odebrecht for themselves or for their the state oil company’s default is “probable.” per month or less, Aranguren said. In related news, Venezuelan President Nicolás political party in exchange for allowing builders Maduro on Sunday created an executive vice president position for PDVSA and named new [The testimony] could Venezuela Oil Shipments vice presidents to the state oil company in affect Mr. Temer’s what he said was an effort to fi ght corruption, ability to govern, Delayed Because of Reuters reported. Eulogio Del Pino will remain because there could PDVSA’s Inability to Pay in his position as PDVSA’s president, but new be a lot of names of vice presidents were named, including in the About a dozen tankers carrying more than four many of his allies.” areas of fi nance and exploration. “We have to million barrels of Venezuelan crude and fuels clean out the corruption that has incubated — Thiago de Aragão are anchored in the Caribbean Sea, unable in [the oil industry]; I call on the oil workers to to travel to their fi nal destinations because forcefully defeat corruption,” Maduro said. For to overcharge on their contracts with state oil debt-laden state oil company PDVSA is unable years, the country’s main industry has been company Petrobras. Dallagnol said the compa- to pay for port services, inspections and hull plagued by graft, ranging from smuggling to ny’s bribery scheme was more sophisticated cleaning following several oil leaks in key Ven- kickbacks and bribery that led to the prosecu- than expected. On Monday, Brazilian Supreme ezuelan ports, Reuters reported Jan. 26. The tion of some U.S.-based contractors who had Court President Cármen Lúcia accepted the South American country’s oil production and done business with the company. Previous plea deal, which sources close to the negotia- exports are at two-decade lows, and PDVSA’s attempts to shake up the company’s leader- tions say includes testimony implicating allies trouble paying creditors and service providers ship have not led to signifi cant changes in its of President Michel Temer in the Petrobras cor- has only made it more diffi cult for the company management style, which is known for heavy ruption probe, The Wall Street Journal reported. to boost production, the wire service reported.

Temer has denied wrongdoing in the past. News Now reported Wednesday. She added Following Lúcia’s approval of the agreement, USAID to Continue that the United States will also give support Temer said she acted correctly and did what to these countries to help reduce greenhouse she had to do, but he did not comment on the Caribbean Energy gas emissions, among other clean energy testimony in the agreement. Ever since taking Security Initiative initiatives. Barry said the United States had in over the presidency from former President Dil- recent years increased its involvement in the ma Rousseff after her impeachment last year, promotion of clean energy in the Caribbean, Maura Barry, the mission director of the United Temer has been trying to push forward a series with a focus on the region’s tourism sector, via States Agency for International Development of controversial reforms that he hopes will cut the Caribbean Energy Security Initiative. “We in Jamaica, confi rmed that the United States spending and reduce the defi cit. Forthcoming all know that the tourism sector is incredibly will continue to provide support to Jamaica details from the testimony “could affect Mr. vital to Caribbean economies, and that is why and other Caribbean countries as they work Temer’s ability to govern, because there could supporting the industry in adopting renewable to become energy independent, Caribbean be a lot of names of many of his allies,” said Thiago de Aragão, a political scientist at con- FEATURED Q&A / Continued from page 1 sulting fi rm Arko Advice in Brasília. “That could paralyze the government.” states of Bahia, Ceará, Pernambuco and term supply and the longer-term demand Rio Grande do Norte and the immediate for greater investment in renewable energy prospects for investors in this renewables production and electricity transmission. Bra- POWER SECTOR NEWS value chain. The decision to delay and then zil is at the crossroads, but it is unlikely that cancel the only auction for solar and wind the Temer government will make a big bet on energy generation in 2016, without sched- solar and wind in the coming year. Hopes Dimming for uling an auction for 2017, also undermines Brazil Solar Plant the objectives of the federal government’s Pietro Erber, director of the program to incentivize investment in alter- National Institute of Energy Construction native renewables (PROINFA). Recession Effi ciency (INEE): “In early and reduction in demand have forced the A December, the minister of mines The Brazilian government’s plan to boost solar government to consider the possibility of and energy canceled an auction to be held energy plant construction is faltering due to initiating a process to cancel generation on Dec. 19 for the supply of ‘reserve energy,’ high costs, strict rules requiring local compo- contracts through ‘reverse’ auctions. While as the energy generated from renewable nents and competition from low-cost Chinese intermittent energy sources is denominated. suppliers, according to regulators and power The reason was that the Brazilian intercon- sector executives, Reuters reported Tuesday. It is unlikely that nected power system is under no signifi cant The government’s three-year-old program is the Temer government shortage risk. Actually, the supply surplus reportedly moving so slowly that the national will make a big bet evaluated by EPE, the ministry’ planning development bank is taking another look at on solar and wind offi ce, will be 6.5 gigawatts per year (9.7 percent of total demand) in 2017 and 6.9 local component requirements. “Investors are in the coming year.” disheartened,” said Armando Abreu, director gigawatts per year (9.3 percent) in 2020. — Mark S. Langevin of Braselco, an energy consultancy in the The economy has been undergoing a serious northeastern city of Fortaleza. “Many of these crisis since 2014, and electricity demand projects, in my opinion and that of many oth- has decreased as a result. Hence, the post- ers, probably won’t get off the drawing board.” such a move provides an escape valve for poning of the auction shouldn’t come as a The government has already awarded three poorly planned and ineffi cient power gener- surprise. However, it came late. Wind and so- gigawatts of projects, but only 19 of the 111 ation projects, it also sends a chilling signal lar power are experiencing signifi cant expan- have started construction. An inspection report to investors. Political pressure is building sion and are expected to play a fundamental by electricity regulator ANEEL said 24 of the to either hold an auction in 2017 or provide role in enabling the country’s compliance approved plants face diffi culties in their “eco- government assistance to these industries, with the COP 21 NDC targets. Their compet- nomic viability.” Solar panels built in Brazil cost including equipment suppliers, to survive itive growth refl ects technical improvements more than competitors’, and fi nancing from until the economy recovers and demand as well as tax exemptions. Furthermore, they Brazil’s national development bank, the only mounts. It is critical that planners achieve a are not charged for the backup required to affordable long-term source for funding for the balance between the need to reduce short- compensate their intermittence, which is sector, has historically high interest rates. Continued on page 6

POLITICAL NEWS Is Guatemala Successfully Fighting Graft? Brazilian Senate The son and brother of Guate- of corruption in Guatemala is much bigger malan President Jimmy Morales than an ineffectual president. Key players, Elects Temer Ally Q were detained Jan. 18 on including members of Congress, continue to accusations of fraud. Morales’ benefi t from the old corrupt ways. The judi- as New Leader son, José Manuel Morales Marroquín, and ciary continues to be ineffective, tied to old brother, Samuel Morales, are accused of practices of stalling judicial proceedings by Brazil’s Senate on Wednesday elected Eunicio submitting false receipts connected to a arguing arcane procedural steps. This is in Oliveira, an ally of President Michel Temer, as $12,000 food contract with the government, spite of the unprecedented work of gathering its new president on a vote of 61-10, Reuters though neither is reportedly accused of evidence by CICIG and the attorney general reported. Oliveira was elected despite having receiving any money through the alleged that is being submitted to the courts. A key been accused of pocketing a bribe of 2.1 scheme. Morales campaigned on an problem is the infl uence of organized crime million reais ($670,000) from a defendant in anti-corruption platform when running for in the selection of Supreme Court and Appel- the Petrobras corruption scandal. Oliveira has president in 2015. Is Morales’ government late Court judges. Civil society organizations denied wrongdoing. A member of the Senate succeeding in cracking down on corruption? are also denouncing the growing infl uence since 2011, Oliveira headed Temer’s Brazilian Do the allegations against Morales’ family of organized crime in Congress. Meanwhile, Democratic Movement (PMDB) party in the erode the president’s credibility on fi ghting not one person has been convicted for upper chamber. His election as Senate presi- corruption, and will they have wider political corruption associated with ex-President dent is expected to help the president garner consequences? What new measures should Otto Pérez Molina and his vice president, support for legislation to reform the country’s Guatemala take to impede the proliferation Roxana Baldetti (both of whom remain in pension system, which is part of Temer’s effort of corruption throughout the country? jail). A package of reforms developed by to plug the country’s massive budget defi cit. Ol- CICIG with civil society would address these iveira’s naming as Senate president places him Francisco Villagrán de León, problems by preventing the involvement third in the line of succession to the presiden- visiting scholar at The George of lawyers with links to organized crime in cy, after the Chamber of Deputies speaker. As Washington University’s Elliott the selection of judges and by reducing the Senate president, Oliveira replaces Renan Cal- A School of International Affairs broad powers of the chief justice to make heiros, who last year defi ed a Supreme Court and former ambassador of Guatemala to the judicial appointments at lower levels and order to step down following his indictment in United States: “The arrests are highly embar- run the judiciary’s administration. But to get corruption charges. “The Senate must not fall rassing—and no doubt deeply troubling—for these reforms through Congress (and an out of step with the current momentum in the President Morales, the fi rst sitting Guatema- eventual referendum) civil society will need fi ght against corruption in the country,” Oliveira lan president to see his own son put in jail. to mobilize another show of force similar to said Wednesday before the vote, Reuters His credibility and commitment to fi ghting that which ousted Otto Pérez Molina.” reported. He added that he would defend the corruption were already being questioned, Congress from judicial interference. and this doesn’t help. But Morales is not perceived as personally being involved in EDITOR’S NOTE: More commentary on this Venezuela’s Maduro corruption. Rather, he is viewed as a weak topic appeared in Wednesday’s issue of the president who cannot provide effective daily Latin America Advisor. Grants VP Wide- leadership for his government. The problem Reaching Powers Bloomberg News reported Monday, citing the has the power to issue economic orders in mat- Venezuelan President Nicolás Maduro has government’s offi cial gazette. The new powers ters ranging from taxes to allotments of foreign granted his vice president, Tareck El Aissami, for the vice president include the ability to de- currency for state-owned companies. “In terms new wide-reaching powers that exceed those termine the spending plans of government min- of budgets, any minister or offi cial is now going held by previous vice presidents and even istries and also to expropriate private business- to have to ask for Tareck’s permission,” José rival those held by the country’s presidents, es, the news service reported. El Aissami, who Vicente Haro, a professor of constitutional took offi ce as vice president last month, now law at the Central University of Venezuela, told

NEWS BRIEFS Bloomberg News. “Without a doubt, he’s now last month’s prison riots between rival gang the country’s second-most powerful man.” members, which left some 140 people dead, Tillerson Sworn in Maduro’s move to grant the broad powers has was evidence of a violent break between the as U.S. Secretary of State fueled speculation about possible succession First Capital Command and groups allied with plans. Maduro’s opponents have been pushing the Red Command. Former ExxonMobil chief executive offi cer Rex a recall referendum, but any public vote to oust Tillerson was sworn in late Wednesday as U.S. Maduro now would result only in his vice pres- secretary of state. Vice President Mike Pence ident replacing him. Maduro’s government has ECONOMIC NEWS swore in Tillerson in the Oval Offi ce just after faced numerous economic problems, such as the Senate confi rmed him in the position on skyrocketing infl ation and shortages of food, a vote of 56-43, the most votes ever against medicine and other basic goods. [Editor’s note: Remittances to a secretary of state nominee, The New York See Q&A on Venezuela on the Jan. 20 issue of Mexico Hit Record Times reported. Tillerson said he would “repre- the daily Latin America Advisor.] sent the interests of all of the American people Level of $27 Billion at all times.” Brazil, Colombia Mexicans living abroad sent a record-high Agree to Intensify amount of remittances home in 2016, taking Mexico Begins 90-Day advantage of a strong U.S. labor market and Consultation Ahead of Anti-Drug Eff orts a weak Mexican peso, amid concerns that U.S. President Donald Trump may take action NAFTA Talks With U.S. The defense ministers of Brazil and Colombia against immigrants or remittances, The Wall The Mexican government on Wednesday agreed Tuesday to intensify their fi ght against Street Journal reported Wednesday. Mexicans announced it would begin a 90-day consulta- drug traffi cking, following a string of deadly tion with the Senate and the country’s private prison riots among drug gang members in Bra- The previous record-high sector ahead of discussions with the United zil, Reuters reported. During the meeting in the for remittances to Mexico Brazilian city of Manaus, the offi cials agreed States to renegotiate the North American Free was $26.1 billion in 2007. Trade Agreement, or NAFTA, The New York to share more intelligence and transportation Times reported. U.S. President Donald Trump along their shared 1,000-mile porous border in has called NAFTA the “single worst trade deal the Amazon rain forest. Efforts at demobilizing sent home $27 billion in remittances, the Bank ever approved in this country” and has called the Revolutionary Armed Forces of Colombia, of Mexico said, amounting to an 8.8 percent for its renegotiation, threatening to pull the or FARC, rebels following their pace accord increase year-over-year, and more than the United States out of the deal entirely if he can- last year with the Colombian government previous record-high of $26.1 billion in 2007. not reach more favorable terms for his country. have raised fears that former combatants It is common for migrant workers to send Negotiations are expected to start in May. could join drug gangs in Brazil. “We cannot let home more money when the peso is weaker as peace in Colombia be cause for concern in the compared to the U.S. dollar, giving recipients region,” said Colombian Defense Minister Luis more local currency. In peso terms, remittanc- Carlos Villegas. ”We must stop the so-called es in 2016 rose by about 28 percent from the Uruguay to Sell $2.05 Bn dissident FARC forces from advancing toward year before. The peso hit new lows compared in Debt This Year our borders ... All of our military and policing to the dollar amid anti-Mexico and anti-im- Uruguay will sell $2.05 billion in debt this year, muscle will be brought against the dissidents.” migrant rhetoric from then-President-elect up from $1.7 billion last year, the country’s Brazil’s defense minister, Raul Jungmann, Donald Trump. During his campaign, Trump Economy Ministry said, Reuters reported has increased the frequency of his visits to said he would put restrictions on remittances Wednesday. The government is hoping the the border regions and pledged to double the to Mexico as a way of pressuring the country to move will help balance the economy after budget for a border surveillance program that pay for the wall he has promised to build along posting a 4 percent fi scal defi cit last year—its uses advanced technology. FARC forces have the U.S.-Mexico border. Since his election, sharpest in nearly three decades. Uruguay’s splintered at the same time that Brazilian however, Trump has not publicly mentioned the fi nancing needs will total $2.97 billion, and the drug gangs that run the country’s $4.5 billion threat of restricting remittances as a means of government plans to receive $550 million from cocaine trade are being realigned, Reuters funding the wall’s construction. Remittances multilateral lenders. It will tap reserves for reported. Brazil’s two most powerful gangs, the to Mexico, 95 percent of which come from $200 million and expects the $170 million to São Paulo-based First Capital Command and workers in the United States, have surpassed come from “other” sources, the report said. the Rio de Janeiro-based Red Command, have oil as the primary source of foreign currency in divided up the country’s drug routes. However, recent years.

FEATURED Q&A / Continued from page 3 LATIN AMERICA ENERGY ADVISOR is published weekly by the Inter-American Dialogue Copyright © 2017 borne by the interconnected system. There- unlikely, given the bleak growth forecasts fore, canceling the auction was correct, for the Brazilian economy. It is also doubtful Erik Brand since it would not be fair to burden electric- that environmental concerns will motivate a Publisher [email protected] ity consumers with the cost of unnecessary signifi cant investment in renewables by the generating capacity. Its construction might incumbent government.” Gene Kuleta Editor benefi t the northeastern economy and [email protected] population, but it is not the only means to Thaís Mélega Prandini, execu- Nicole Wasson achieve these purposes. However, it would tive director at Thymos Energia: Reporter, Assistant Editor certainly benefi t renewable power industries “Brazil is emerging from a [email protected] and related agents. These are matters to be A period of severe recession evaluated and supported by other authori- to begin a steady year in 2017, according ties, such as the ministries of industry and to IMF projections from the last week of regional development. Finally, it is a question January, indicating that the economy is once Michael Shifter, President to be submitted to and evaluated by the again showing positive signs. Investing Genaro Arriagada, Nonresident Senior Fellow National Energy Policy Council, where all the in renewable energy sources is extremely Sergio Bitar, Nonresident Senior Fellow stakeholders have a seat.” important, not only for the electricity sector, Joan Caivano, Director, Special Projects but also for the economy as a whole. Brazil Kevin Casas-Zamora, Nonresident Senior Fellow Isabella Alcañiz, assistant signed the Paris Agreement, a commitment Ramón Espinasa, Nonresident Senior Fellow professor in the Department of to reduce greenhouse gas emissions and Ariel Fiszbein, Director, Education Program Government and Politics at the increase the share of renewable sources Alejandro Ganimian, Nonresident Fellow A University of Maryland: “Despite on the energy matrix, so the expansion of Peter Hakim, President Emeritus his promise to push forward renewable renewable energy is on the agenda of public Claudio Loser, Senior Fellow energy, the Brazilian minister of mines and policies. This effort has been made since Nora Lustig, Nonresident Senior Fellow energy, Fernando Coelho Filho, has failed the creation of auction mechanisms to get Margaret Myers, Director, China and Latin America Program to do so. In fact, over the past few months energy from renewable sources, resulting in Manuel Orozco, Director, Migration he has canceled several auctions for wind an expectation, until 2024, that there will be Remittances & Development and solar energy and is now stating that the a 27 percent participation of the new renew- Jeffrey Puryear, Senior Fellow government will need to review its existing able sources, with foreseen investments of Tamar Solnik, Director, Finance & Administration renewable energy tender model, due to a the order of 150 billion reais, or about $48 Lisa Viscidi, Director, Energy Program weakening economy. Yet, Brazil’s economic billion, not including the hydroelectric power slowdown does not constitute new informa- plants, which are also renewable. The cur- Latin America Energy Advisor is published weekly, with the exception of some major tion. Rather, the economy has been caught rent problem is that with the reduction in the U.S. holidays, by the Inter-American Dialogue in a slump since before the Temer adminis- forecast of consumption growth, demand 1155 15th Street NW, Suite 800 Washington, DC 20005 Phone: 202-822-9002 tration came to power. Moreover, sustained has fallen, affecting all energy sources. This www.thedialogue.org low oil prices further weaken the incentives scenario led to a lower need to contract new ISSN 2163-7962 to invest in renewables. Given these critical projects, which resulted in a negligible or conditions, I do not expect the Brazilian even null amount of energy being contracted Subscription Inquiries are welcomed at government to prioritize an expansion of the at the auctions. The government canceled [email protected] renewable energy sector in the near future. the last reserve auction scheduled to take A signifi cant investment in the sector could place in December for this reason, but is The opinions expressed by the members of the Board of Advisors and by guest commentators do not necessarily benefi t the sluggish economy; while its planning new auctions for the renewable represent those of the publisher. The analysis is the sole impact on unemployment–which is expected energy sources to happen in 2017 and the view of each commentator and does not necessarily to rise in the near future–may be smaller, following years. This scenario takes into represent the views of their respective employers or fi rms. The information in this report has been obtained renewables do not carry the volatility that account the recovery of energy demand and from reliable sources, but neither its accuracy and hydrocarbons entail, and solar energy has also some frustration of part of the expected completeness, nor the opinions based thereon, are guaranteed. If you have any questions relating to the the potential to help revitalize the consumer supply that is already contracted.” contents of this publication, contact the editorial offi ces market if it sees a strong demand for solar of the Inter-American Dialogue. Contents of this report may not be reproduced, stored in a retrieval system, panels. A sustained demand for cheap The Advisor welcomes comments on its Q&A or transmitted without prior written permission energy could push the Temer administra- section. Readers can contact editor Gene from the publisher. tion to expand the sector, but that appears Kuleta at [email protected].