ENERGY ADVISOR a WEEKLY PUBLICATION of the DIALOGUE August 25, 2017

LATIN AMERICA ADVISOR ENERGY ADVISOR A WEEKLY PUBLICATION OF THE DIALOGUE www.thedialogue.org August 25, 2017

BOARD OF ADVISORS FEATURED Q&A TOP NEWS Nigel Blackaby Global Head, OIL & GAS International Arbitration Group, Freshfi elds Bruckhaus Deringer Has Mexico’s Energy Former Petrobras Mary Rose Brusewitz CEO Charged in Partner, Strasburger & Price Reform Affected Corruption Case Jeffrey Davidow Brazilian prosecutors heading the Senior Counselor, “Operation Car Wash” probe fi led The Cohen Group Renewables? charges against Aldemir Bendine, Ramón Espinasa who formerly headed state oil Consultant, company Petrobras. Inter-American Development Bank Page 2 Luis Giusti Senior Advisor, Center for Strategic & RENEWABLES International Studies Jonathan C. Hamilton Infrastructure Partner, Woes Crimping White & Case Argentina’s Raul Herrera Partner, Renewables Corporate & Securities Practice, Arnold & Porter Argentina’s next renewable energy Mexico has seen increased investment in its renewable energy sector, some three years after auction in November will be for James R. Jones President Enrique Peña Nieto enacted the country’s landmark energy reform. // File Photo: Chairman, Mexican Government. half the capacity of last year’s Monarch Global Strategies auction, due to insuffi cient infra- Jorge Kamine Mexico’s renewable energy sector is expected to attract $70 structure affecting the country’s Counsel, billion in foreign investments between 2015 and 2029, ac- ability to increase its renewables Skadden Arps capacity. cording to consulting fi rm PricewaterhouseCoopers. In early Craig A. Kelly Q Page 3 Director, August, Mexican renewable energy group Zuma Energía Americas Int’l Gov’t Relations, announced it had received $600 million in project fi nancing to build the Exxon Mobil OIL & GAS country’s largest wind farm. How has the country’s landmark energy Jeremy Martin Ecopetrol Vice President, Energy & Sustainability, sector reform, which began in 2013, contributed to the outlook for Mex- Institute of the Americas Chief Echeverry ico’s renewables sector? Which sub-sectors within that sector are likely Larry Pascal Resigns Chairman, to see the most investment, and why? Are there any foreseeable issues Americas Practice Group, that may arise as Mexico looks to expand its renewable energy sector The president of Ecopetrol, Juan Haynes & Boone Carlos Echeverry, resigned, citing over the next decade? Charles Shapiro family reasons. Ecopetrol’s cur- President, rent vice president will take over World Affairs Council of Atlanta in the role. Doris Rodriguez, partner at Andrews Kurth Kenyon, and R. Kirk Sherr Page 2 President, Pedro S. Llado Camarillo, lawyer at Gonzalez Calvillo Abo- Clearview Strategy Group gados: “Mexico’s energy reform targeted increases in private Mark Thurber investment and renewable sources of energy by, among other Partner, A Andrews Kurth things, instituting a competitive wholesale market and setting aggressive Alexandra Valderrama targets for clean-energy generation and greenhouse emissions reduc- Manager, International Government Affairs, tions and establishing a market for clean energy certifi cates. As a result, Chevron Mexico successfully attracted essential new investment and technology Lisa Viscidi into its energy sector. It is expected that by 2030, 62.2 percent of Mexi- Program Director, Inter-American Dialogue co’s new capacity will be clean. Solar and wind are poised for the most Max Yzaguirre investment, given Mexico’s resources and that solar and wind energy President and CEO, dominated Mexico’s fi rst two auctions. Located in the ‘solar belt,’ Mexico’s The Yzaguirre Group solar resources are among the world’s most abundant, and its high wind levels are signifi cantly higher than the global average. A third sub-sector Echeverry // File Photo: Ecopetrol. Continued on page 3

OIL & GAS SECTOR NEWS urgent basis in December 2015. Petrobras said NEWS BRIEFS it had hired Deloitte to investigate allegations Former Petrobras of graft that the company had received via its Brazil’s Oil Regulator corruption hot line. Both Bendine and Elek had Releases Details of CEO Charged in been brought on to Petrobras’ management in 2015 with the stated purpose of helping to October Oil Auction Corruption Case clean up the rampant corruption and misman- Brazilian oil regulator ANP on Wednesday agement at the oil fi rm that had led to the “Op- unveiled the details of the country’s upcoming Brazilian prosecutors heading the massive “Op- eration Car Wash” corruption probe, which has pre-salt oil exploration auction set for Oct. 27, eration Car Wash” corruption probe on Tuesday implicated politicians and offi cials throughout Reuters reported. Petrobras has extended its fi led charges against Aldemir Bendine, who Latin America. Petrobras did not immediately preferential rights on three of the blocks up for formerly headed state oil company Petrobras respond to a request for comment by Elek. auction, meaning the state-run oil company can and state-owned bank Banco do Brasil, The [Editor’s note: See related Q&A in the June 16 take at least a 30 percent stake in each of the issue of the Energy Advisor.] blocks and share them with the winning bidders. The new rules will change the criteria for Ecopetrol President choosing the operators as well as the system for submitting bids in the auction. Echeverry Resigns,

VP to Lead Company Brazilian Government

Ecopetrol President Juan Carlos Echeverry Eyes Privatization resigned, citing family reasons, after serving of Eletrobras Bendine // File Photo: Brazilian Government. in the position for two and a half years, the Brazil’s Mining and Energy Ministry on Monday state-owned oil company announced Aug. 17, gave notice to the country’s state-owned power Wall Street Journal reported. Bendine has been according to Colombia Reports. Felipe Bayon, utility, Eletrobras, saying that it would propose charged with corruption, money laundering Ecopetrol’s current vice president, will take over privatizing the company as the government and obstruction of justice. He was CEO of in the role on Sept. 15, Colombia’s Financial struggles to close the country’s record-setting Petrobras from 2015 to 2016 and ran Banco do Superintendency said. The superintendency budget defi cit, Reuters reported. The ministry Brasil before that. Prosecutors allege Bendine said Echeverry had successfully navigated gave Eletrobras notice of the plan and said received bribes from Brazilian construction the challenges presented by the global drop publicly that it would bring the proposal to conglomerate Odebrecht in exchange for lu- in oil prices in 2014. “Echeverry has done an President Michel Temer’s special council on crative contracts. Bendine denied wrongdoing extraordinary job at Ecopetrol during one of the privatizations. The model for privatizing the through his lawyer, saying that he has neither most diffi cult periods for the world oil industry,” utility and the terms of the privatization have received nor solicited any bribes. Prosecutor said Mining and Energy Minister Germán Arce. not been decided, but the government would Athayde Ribeiro Costa on Tuesday alleged that Echeverry also came under criticism during his keep its right to veto some strategic decisions Bendine requested some $952,000 in bribes tenure for Ecopetrol’s plans to begin fracking for the company, the ministry said. from Odebrecht before becoming CEO of activities in the country, as well as for union Petrobras. Prosecutors allege the payment was claims of the exploitation of workers. Under allegedly made in three installments. Ben- Echeverry, Ecopetrol expanded its operations dine has been under arrest since July for his into Mexico and the Caribbean in order to Russia’s Rosneft Finds alleged involvement in the corruption scheme. secure more supplies of oil after learning Buyers for Four Months On Wednesday, Petrobras suspended its top that Colombia’s reserves were set to run out of Venezuelan Oil compliance offi cial over a potential confl ict within approximately the next fi ve years. Last of interest, The Wall Street Journal reported. week, Echeverry told Reuters that the state oil Russian state oil fi rm Rosneft has struck deals Petrobras’ board voted to temporarily suspend company had plans to explore unconventional with several buyers to sell nearly its entire João Adalberto Elek Jr. after determining that deposits in the center and north of Colombia quota of imported Venezuelan crude for the his division had awarded a no-bid contract in a bid to increase reserves, as well. Ecopetrol rest of this year, Reuters reported Wednesday. to Deloitte while the auditing fi rm was in the is Colombia’s largest company and its largest The sale marks the fi rst time Russia has sold process of hiring Elek’s daughter. The one-year, producer of crude. [Editor’s note: See related Venezuelan oil on such a large scale. In the $8 million contract had been awarded on an Q&A in the July 7 issue of the Energy Advisor.] past, Rosneft has sold Venezuelan crude and products to the United States and Asia.

Petrobras May See FEATURED Q&A / Continued from page 1

Few Bids for Natural that could attract additional investment is another 5 gigawatts in renewables installed Gas Plant Project geothermal, given its abundance in Mexico, capacity through 2020. Onshore wind cur- its high capacity factor and that it is not sub- rently represents the largest share, followed Brazilian state oil company Petrobras is trying ject to variability concern. As is the case in by clean co-generation and geothermal to get international competition to build a $1 emerging markets, availability and commer- power plants. Going forward, we also see a billion natural gas plant and is excluding large cial ease of fi nancing and lack of infrastruc- growing participation of solar photovoltaic, local engineering fi rms that have been impli- ture are a concern. Underlying issues in Mex- based on attractive project fundamentals cated in the “Operation Car Wash” corruption ico include ‘ejido’ lands, local opposition and such as low installation costs (land and scandal in the hopes of creating a model for crime-related violence affecting certain key labor), along with tax incentives on imported “clean” contracting, Reuters reported Aug. 18. areas. Concern has already been expressed components and favorable climate resourc- The project, however, will see fewer bids from about producers’ ability to timely meet es. This will be tempered by social tensions global players than originally expected, due the conditions in contracts awarded in the and land permits that may become key risks to more stringent requirements in the bidding auctions. Moreover, a future resurgence in for certain projects. Differently from other process. Of the 30 foreign companies Petro- the price of oil could result in a reversion to countries, Mexico considers nuclear and bras has invited to bid on the contract, only fi ve fossil-generated energy. Given the increasing co-generation with carbon dioxide seques- fi rms plan to participate in the consortiums, global importance of renewables and that tration as clean energy. Co-generation will submitting bids by Aug. 28, according to three the emerging market challenges are, in many compete with alternative renewables as sources with knowledge of the matter. Con- cases, surmountable, these issues do not the country pursues its carbon-reduction tracting executives said bidders would have to appear likely to stop the expansion, but they commitments. Nevertheless, the successful spend as much as $10 million in order to create may affect its pace.” fi rst and second renewable energy auctions the detailed engineering designs Petrobras is in 2016 will place renewable energy in direct requiring for the bidding process, and uncer- Cristiane Spercel, vice pres- completion with other conventional energy tainty surrounding the contracts has caused ident and senior analyst, and technologies with action prices as low as companies to hesitate to bid. Of the 30 foreign Natividad Martel, vice president $35.80 per megawatt-hour and $31.80 per companies Petrobras has invited to bid on the A and senior analyst, for the megawatt-hour, respectively for wind and contract, only fi ve fi rms plan to participate in Project & Infrastructure Finance Group at solar. The only concern is whether the rapid the consortiums, submitting bids by Aug. 28, Moody’s Latin America: “The Energy Transi- decline in prices are sustainable in the according to three sources with knowledge tion Law enacted in 2015 has contributed to medium term. The penetration of the market of the matter. The fi ve companies planning to a pick-up in renewable investments in Mexi- will continue, but the pace will be ultimately bid are units of Spanish companies Acciona co. The long-term program for renewable de- depend on the ongoing cost reduction of the and Sener Ingenieria y Sistemas, Italy’s Marie velopment considers the expansion of clean technology, improved reliance and stable Tecnimont, Japan’s Toyo and China Aluminum energy share in the country’s total electricity framework that helps cover social and land International Engineering, the sources said. output to 35 percent by 2024. In addition to issues for new projects.” clean energy targets, a key change to the new framework was the reduction in entry Dino Barajas, partner at Akin barriers for private investments, along with Gump Strauss Hauer & Feld RENEWABLES NEWS the introduction of mechanisms to facilitate LLP: “Mexico’s renewable energy competitive energy trading. The availability A sector has once again become Infrastructure Woes of a Clean Energy Certifi cates market and a the lightning rod for foreign investment in gradual reduction in subsidies for oil prod- Latin America. Brazil, Chile and Argentina Crimping Argentina’s ucts are also key developments to support are still giving Mexico a run for its money, Renewables Growth the scale-up of Mexican renewables over the but the longevity of Mexico’s renewable next several years. The country has commis- energy continues to give developers and sioned a total of 5.9 gigawatts of alterna- long-term investors comfort that its attrac- Argentina’s next renewable energy auction in tive renewables through December 2016, tiveness will not be just a fl ash in the pan. November will be for half the capacity of last representing about 8 percent of Mexico’s Solar is currently the most active sector for year’s auction, due to insuffi cient infrastructure installed capacity. Recent auctions will add newer investors, given the ability to scale affecting the country’s ability to increase its Continued on page 6

COPYRIGHT © 2017, INTER-AMERICAN DIALOGUE PAGE 3 LATIN AMERICA ENERGY ADVISOR August 25, 2017 renewables capacity, Bloomberg News reported Monday. The government will auction just 1.2 ADVISOR Q&A gigawatts of renewable power, mostly wind and solar projects, which energy trading company SAESA has projected will attract some $2 bil- What Did U.S. Vice President Mike Pence lion in investment, down from the 2.4 gigawatts of renewable projects tendered last year that Accomplish on His Latin America Trip? brought in approximately $4 billion. “We don’t need to auction all renewable capacity now, U.S. Vice President Mike Pence there, while emphasizing the need for the said Energy Minister Juan José Aranguren. last week visited South and countries of the hemisphere to work together “We’ll have, at the same time, transmission Q Central America, where he to devise a ‘peaceable’ solution. During the line auctions and solve the bottlenecks.” The sought to reassure the region trip, the vice president made two substantive government plans to award contracts for eight following comments from President Donald policy speeches, which carried important new transmission lines to accompany the Trump of a possible military intervention messages that should be carefully studied clean power expansion. The country currently in Venezuela, as its government teeters on throughout Latin America and in the United has limited transmission infrastructure that the brink of dictatorship. Pence also looked States. The fi rst focused on the opportuni- reaches the regions that are ideal for wind and to strengthen diplomatic, economic and ties to expand trade and commerce—and solar power generation. Argentina needs to security ties with U.S. allies in the region, was notably delivered in Argentina, the one add approximately 3,100 miles of transmission including Argentina and Colombia. Was country on the trip that is not yet a free-trade lines over the next three years in order to keep Pence successful in his damage-control partner of the United States, where Pence pace with its growing renewables capacity. efforts following Trump’s threats of military gave high praise to Macri’s reform agenda. intervention? What does Pence’s visit signal The second, in Chile, focused on similar about U.S. foreign policy priorities in the themes and hailed the U.S.-Chile Free Trade POLITICAL NEWS region? How strong will Latin American ties Agreement as a ‘model agreement’ that has with the United States be during Trump’s resulted in a ‘dramatic expansion of trade, presidency? investment and opportunity’ for the people Venezuela’s Ortega of both countries. Both speeches urged the Claims to Have Dan Erikson, managing director countries of the region to deepen their ‘mar- at Blue Star Strategies and ket-based reforms’ and were heavily tilted Evidence of Graft special advisor to the U.S. vice toward advancing an opportunity-based A president from 2015-2017: agenda in U.S.-Latin American relations. Fired Venezuelan Attorney General Luisa Orte- “Vice President Pence deserves credit for These speeches, coupled with the announce- ga Díaz claimed on Thursday to have evidence carrying out an important and substantive ment of new agreements to expand U.S. that President Nicolás Maduro and other top trip to Latin America, where he both rein- pork exports to Argentina and rice exports to ruling party offi cials were involved in a corrup- forced and added additional nuance to this Colombia, suggest the emergence of a more tion scheme with Brazilian construction con- administration’s policies toward the region. sober-minded, pragmatic and fundamentally Moreover, his visit built on the recent White optimistic approach to Latin America that, if House visits by three of the leaders—Pres- nurtured, could help weather the inevitable ident Macri visited the Oval Offi ce in April, confl icts that will continue to test the U.S. followed by President Santos in May and relationship with the region.” President Varela in June—while reaching out to a fourth, Chilean President Michelle Bachelet, who had maintained greater dis- EDITOR’S NOTE: More commentary on this tance during the early months of the Trump topic appeared in the Q&A in Wednesday’s administration. Regarding Venezuela, Pence issue of the daily Latin America Advisor. expressed deep concern about the situation Ortega // File Photo: Venezuelan Government. glomerate Odebrecht, Reuters reported. Ortega Ortega did not present proof of corruption by from Odebrecht, which has admitted to bribing made the announcement from Brazil where she Maduro or his associates, she claimed to have offi cials in several Latin American countries. fl ed after she broke with Maduro’s government evidence that Socialist Party offi cial Diosdado She also alleged that Maduro and the ruling and Venezuela’s new powerful constituent Cabello received approximately $100 million party’s Jorge Rodríguez were also involved. assembly removed her from her position. While

NEWS BRIEFS “The international community must investigate the United States, Brazil and Switzerland, and such cases,” she said. Venezuelan authori- plea bargain testimony from Odebrecht employ- Guatemalan President ties did not respond to Reuters’ request for ees has embroiled politicians throughout Latin Reportedly Seeking comment. Maduro’s government has accused America in the scandal. [Editor’s note: See Ortega of corruption, and on Wednesday, related Q&A in the July 14 issue of the daily Ouster of CICIG Chief state-controlled television showed images of Latin America Advisor.] Guatemalan President Jimmy Morales plans to what it said was the inside of her apartment, ask U.N. Secretary General António Guterres showing marble fl oors, large paintings of to remove the head of the U.N.-backed Ortega, expensive clothes and high-end wines. ECONOMIC NEWS International Commission against Impunity in Ortega has said the graft claims against her Guatemala, or CICIG, which has been inves- are politically motivated. Trump Threatens to tigating corruption in the country, including probing Morales’ family for suspected graft, Ecuador’s Top Terminate NAFTA two government offi cials said Wednesday, Reuters reported. Offi cials said Morales will Prosecutor to Present U.S. President Donald Trump threatened in a travel to New York this week and ask Guterres speech Tuesday in Phoenix to terminate the to replace CICIG chief Iván Velásquez Gómez. Graft Case Against VP North American Free Trade Agreement, or NAFTA, Reuters reported. Negotiators from the Ecuador’s top prosecutor, Carlos Baca, on Mon- Brazilian Government day said he would present a corruption case against Vice President Jorge Glas, Reuters Launches Plan to reported. President Lenín Moreno stripped I think we’ll probably Privatize State Assets Glas of his authority earlier this month over end up terminating corruption allegations related to the scandal The government of Brazilian President Michel NAFTA at some point.” involving Brazilian construction conglomerate Temer on Wednesday launched a plan to privat- — Donald Trump Odebrecht. Baca said his offi ce has evidence ize highways, ports and the country’s mint in of “illicit association” against the embattled order to raise revenues and boost investment vice president. “We will request the National in infrastructure, the Financial Times reported. Court of Justice set a hearing date against Altogether, the government is eyeing 57 assets United States, Mexico and Canada wrapped up Jorge Glas, the vice president,” Baca read from for possible auction, including São Paulo’s city their fi rst round of talks on Sunday in Washing- a statement to reporters. At least 92 of the 137 airport, Congonhas. ton as they begin renegotiating the 1994 trade accord, with subsequent rounds of talks scheduled for Mexico and Canada in September, back The corruption allegations to the United States in October and additional U.S. Expands Travel have split members of rounds scheduled for later in the year. However, Advisory to Mexico former President Correa’s at Tuesday’s rally in Phoenix, Trump said he Tourist Areas Alianza PAIS party. may want to terminate the deal altogether. “Personally, I don’t think we can make a deal. I The U.S. government on Tuesday broadened a think we’ll probably end up terminating NAFTA travel advisory for Mexico as the murder rate at some point,” he said, adding that scrapping rises in the country, The Wall Street Journal sitting members of Ecuador’s Congress must the accord may lead to a new agreement. “I reported. The State Department encouraged vote to allow an investigation of a sitting vice personally don’t think you can make a deal U.S. citizens to “exercise caution” when visiting president and to allow prosecutors to present without a termination.” After Trump’s remarks, popular tourist destinations such as Baja evidence to the court. Glas denies wrongdo- Mexican Foreign Minister Luis Videgaray said California and the Caribbean Coast of Mexico, ing. “I have never allowed corruption or been in a tweet that his country will proceed with including resort city Cancún. The rise in the a part of it,” he said after Baca’s statement. the talks. “Mexico will remain at the table with murder rate has been tied to infi ghting between Brazil’s Odebrecht is at the center of a massive serenity, fi rmness and with the national interest drug cartels. Previous travel warnings from the corruption scandal in which the company paid ahead,” he said. Also during his speech, Trump United States had not included these areas of politicians bribes across Latin America and in said he may seek to shut down the U.S. gov- Mexico. The State Department’s warning is the other countries around the world in exchange ernment in order to force Congress to provide fi rst such advisory to target resort areas that for securing lucrative contracts. The company money for his proposed multi-billion-dollar wall are integral to Mexico’s tourism industry. has already paid $3.5 billion in settlements in along the U.S.-Mexico border.

FEATURED Q&A / Continued from page 3 LATIN AMERICA ENERGY ADVISOR is published weekly by the Inter-American Dialogue Copyright © 2017 up projects over time as developers fi nd of new transmission lines need to be built suitable long-term offtakers after starting by 2030 to exploit eolic and photovoltaic re- Erik Brand with smaller investments. More established sources located in the northern and western Publisher [email protected] Mexican renewable energy players have con- parts of Mexico, far from population centers tinued to develop larger wind developments, and industrial activity. Juggling all the com- Gene Kuleta Editor given that they have been in the market for ponents without dropping one is a signifi cant [email protected] longer periods and understand the intrica- challenge. Total investment in the sector is Nicole Wasson cies of the legal matrix and where the niche Reporter, Assistant Editor opportunities may lie. The fact that these [email protected] investors have larger sunk costs in devel- Mexico’s renewable oping large projects is also making them energy sector has more aggressive in competing for Mexico’s once again become electricity demand. Over time, if solar instal- Michael Shifter, President lation costs continue to fall, solar develop- the lightning rod for Genaro Arriagada, Nonresident Senior Fellow ers will likely gain the upper hand, because foreign investment Sergio Bitar, Nonresident Senior Fellow solar developments may be more agile at in Latin America.” Joan Caivano, Director, Special Projects starting small to meet opportunistic market — Dino Barajas Michael Camilleri, Director, Peter D. Bell Rule of Law Program openings and then scaling up as footholds Kevin Casas-Zamora, Nonresident Senior Fellow are gained throughout the country. The risk Ariel Fiszbein, Director, Education Program appetite of project-fi nance lenders will likely Alejandro Ganimian, Nonresident Fellow ultimately determine the course and speed expected to top $120 billion over the next 15 Peter Hakim, President Emeritus of development in Mexico’s burgeoning years, $90 billion of which will have to be in Claudio Loser, Senior Fellow renewable energy market. As the energy pro- generation assets. PricewaterhouseCoopers Nora Lustig, Nonresident Senior Fellow duction portfolio continues to become more expects $70 billion in foreign investments. Margaret Myers, Director, China and diversifi ed, it will be Mexico’s consumers Mexico’s potential for electricity genera- Latin America Program who will benefi t from natural hedges against tion from renewable sources is important; Manuel Orozco, Director, Migration hydrocarbon fuel pricing spikes with a di- it is estimated to be 50,000 MW for eolic Remittances & Development verse energy production basket. I predict the generation with load factors that can top 40 Jeffrey Puryear, Senior Fellow announcement of more large-scale projects percent, and the National Renewable Energy Tamar Solnik, Director, Finance & Administration Lisa Viscidi, Director, Energy Program as investors continue to make large bets on Laboratory ranks Mexico’s solar resources Denisse Yanovich, Director, Development and the Mexican energy market.” among the world’s best and most abundant, External Relations 1.5 percent of the territory being suffi cient to José Alberro, co-head of the generate all electricity consumed. By 2019, Latin America Energy Advisor is published international arbitration and lit- eolic capacity is expected to triple, and weekly, with the exception of some major U.S. holidays, by the Inter-American Dialogue igation practice at Cornerstone photovoltaic capacity is expected to grow 1155 15th Street NW, Suite 800 A Research: “Four years after 20-fold. Those estimates include the winners Washington, DC 20005 Phone: 202-822-9002 Mexico’s landmark energy sector reform, it of the fi rst and second renewable energy www.thedialogue.org has started meeting its ambitious goals for auctions carried out over the last couple of ISSN 2163-7962 renewables: a few days ago, Mexican renew- years. It is interesting to note that the fi rst Subscription Inquiries are welcomed at able energy group Zuma Energía announced renewable energy auction resulted in aver- [email protected] it had received $600 million in project fi nanc- age purchases prices of $45.15 per MWh The opinions expressed by the members of the Board of ing to build the country’s largest wind farm. from photovoltaic sources and $55.39 per Advisors and by guest commentators do not necessarily Mexico expects to provide 35 percent of MWh from wind source—some of the lowest represent those of the publisher. The analysis is the sole view of each commentator and does not necessarily electricity from renewable sources by 2024, in the world. The second auction resulted in represent the views of their respective employers or 40 percent by 2035, and 50 percent by 2050. prices 15 percent lower.” fi rms. The information in this report has been obtained from reliable sources, but neither its accuracy and The investments in eolic and photovoltaic completeness, nor the opinions based thereon, are generation necessary to reach these objec- The Advisor welcomes comments on its Q&A guaranteed. If you have any questions relating to the contents of this publication, contact the editorial offi ces tives require allocating land to that purpose section. Readers can contact editor Gene of the Inter-American Dialogue. Contents of this report and adapting the grid. Some 15,000 miles Kuleta at [email protected]. may not be reproduced, stored in a retrieval system, or transmitted without prior written permission from the publisher.