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ACCELERATING ACCESS AND TRANSITION


In this interview, Ariel Yépez-Garcia, Energy Division Chief of the Inter-American Development Bank (IDB) talks about how the Bank’s comprehensive approach is contributing to ending energy poverty and achieving a sustainable and inclusive energy transition in LAC.


OPEC Fund Quarterly: What are the biggest challenges in the LAC region on energy access and energy transition? Ariel Yépez-Garcia: Latin American and the Caribbean (LAC) has progressed in expanding electricity coverage in the last years. In 2019, the region achieved a 97 percent rate of electricity coverage, compared to 79 percent in 1990. Despite this progress, there are still 18.5 million people with no access to electricity. Moreover, electrification rates have slowed down in recent years, mainly due to challenges in electrifying “last-mile” communities in rural settings. In addition, electricity consumption per capita remains notably low compared to other regions in the world, and the affordability of electricity services remains an important issue. Most of the people in LAC without electricity service are in remote rural areas served by off-grid technologies.


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But key challenges remain to scale up the off-grid renewable energy sector. These include the prevalence of geographical and socio-economic constraints in rural areas, such as limited productivity, income-generating opportunities and market access. The immediate challenge is to


accelerate the transition to cleaner energies in the electricity sector, achieve universal access to electricity in LAC and advance the electrification of other sectors such as transportation and industry. This transition must be inclusive for governments, society and, above all, for the most vulnerable. Therefore, at the IDB, we propose


a transition that allows 100 percent of Latin Americans to have access to electricity and improve their quality of life. Ending energy poverty needs a comprehensive approach, and IDB’s institutional guidance follows that





We propose a transition that allows 100 percent of Latin Americans to have access to electricity and improve their quality of life.


Ariel Yépez-Garcia


PHOTO: IDB


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