Abdul Latif Jameel Company Ltd., a Saudi Arabian industrial firm that is involved in auto imports to real estate, is reportedly seeking attention from the clean-energy market of Latin America.
According to Roberto de Diego Arozamena, Chief Executive Officer of Abdul Latif Jameel’s energy unit, the company is focusing on government-organized auctions, in which developers seek for long-term contracts to sell power. It is observed that the governments in Mexico, Chile, and Peru offer a strong potential for growth in renewable energy, and encourage international investors to facilitate in diversifying the electricity mix.
The Saudi company acquired the Spanish solar developer Fotowatio Renewable Ventures (FRV) in 2015. The acquisition came with around 3.8 GW of projects in emerging solar markets inclusive of Africa, Australia, Latin America, and the Middle East.
Abdul Latif Jameel Energy is reportedly developing around 5 GW of renewable energy projects globally and 30% of this is in Latin America. Arozamena stated that Latin America was an important market in the context of declining costs of renewables and governments giving support.
Meanwhile, the Saudi company’s quest for renewable-energy is aligned to the target set in 2016 of producing around 70% of its power from natural gas and 30% from renewables and other sources by 2030. It is reported that investments in the clean power market of Latin America rose 65% to $17.2 billion last year. According to sources, this was said to be much higher than the global average of 3%.
The clean-energy projects of Mexico are reportedly booming and this has put the country neck-to-neck with Brazil in the context of investments. Abdul Latif Jameel Energy recently said that it had secured financing to start with the construction of a 342-megawatt solar project in Mexico, which would be the first in the country. And, in Chile, it was awarded a hybrid project that would power around 224,000 Chilean homes. Arozamena added that they had a strong pipeline in Latin America and they would focus on solar and wind.