Latinvex Quotes Dino Barajas on Energy Outlook for Latin America
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Latinvex has quoted Dino Barajas, a cross-border transactions partner at Akin Gump, in the article “Latin America Energy: Political Uncertainty Amidst Success.” Barajas spoke about the outlook for energy across Latin America this year as well as in certain countries in the region.
Speaking about the region as a whole, Barajas thinks the outlook is strong, with new hydrocarbon finds and low fossil fuel prices “providing an incentive for governments to become more energy independent utilizing their own natural resources.” He said the diversification of power generation resources will help governments “provide a large stable industrial platform” for large energy consumers, while renewable energy will also continue to attract strong investment from abroad.
Barajas then made some specific predictions:
- Mexico: “Both its hydrocarbon and electricity sectors have attracted numerous new international investors over the last couple of years.” It will continue to be the lightning rod for energy investment in Latin America, with the competitive pricing in Mexico’s recent electricity auctions serving as “concrete proof of the intense competition amongst developers for new projects.”
- Brazil: “Growth in the solar sector will likely continue at a rapid pace. … Renewable energy development will continue to maintain Brazil as an energy leader in the region and allow it to export excess electricity at attractive prices to its neighbors.”
- Argentina: “Argentina will be this year’s wild card in energy development. The country has been able to leap to the forefront of renewable energy development in an amazingly short amount of time. The government’s creative mechanisms supporting renewable energy should be utilized by other jurisdictions looking to attract investors.”
- Central America: The region “continues to hold great promise for investors if local governments are able to revamp their past efforts to attract investment. … It’s uncertain how long the window will be available so early movers stand to benefit the most.”
In 2017, Barajas was named for the fourth straight year by Latinvex as among the 100 lawyers in Latin America. More information on that recognition can be found here.