The Inter-American Development Bank expects investments in renewable sources to use up to 80 percent of its loans to private sector energy projects in Latin America and the Caribbean over the next three years. Such projects focus on wind, geothermal, biomass and hydroelectric sources.
“Several countries in the region want to diversify their energy sources and have changed their regulatory framework to attract more investments in clean energy,” said Hans Schulz, who leads IDB’s Structured and Corporate Finance Department, in a press release. “Investment in the region is on the rise.”
In 2009, the bank provided USD1.2 billion in financing to the private sector, a third of which went to renewable energy and energy efficiency projects in the region.