, Construction of renewable energy plants

Construction of renewable energy plants

Renewable energy plant construction continues unabated in most every Central America country.

Renewable energy is generally thought of as being from sources such as sunlight, wind, rain, and running water.

In other words, any natural source of energy that is automatically replenished during the course of a human lifespan and cannot run out when used. The production and use of such energy should conform to current environmental protection standard and should leave a minimal carbon footprint.

Central America is the world’s leader in the development of renewable energy plants. Resources such as oil, natural gas, and coal are not considered renewable energy resources. Neither are non-renewable fuels such as natural gas, LPG (liquid propane gas), petroleum and other fossil fuels as well as nuclear energy.

LPG in the US

While renewable energy plants are being built far and wide throughout Central America, the current boom in liquid propane gas from the United States has taken on a life of its own. Liquid propane gas is a byproduct of shale. LPG, otherwise known as “shale gas” is released through a process known as hydraulic fracking. Fracking has come under fire for its potential to pollute ground water and cause earth tremors.

Economics of LPG

So great is the LPG demand in the United States that in 2016, US companies will produce and export more LPG than previous market leaders Qatar, Saudi Arabia, Algeria, and Nigeria combined. The capacity for shipping LPG to Asian countries such as China has more than doubled in the last year. In Central America, the Panama Canal project has expanded and deepened the waterway in order to open up global trade routes for (LPG) liquefied natural gas coming from the United States and destined for Asia as access through the canal will reduce the travel distance by about 5000 nautical miles.

Renewable Energy Plant Construction in Central America

The boom in LPG production and export from the United States certainly bode well for the economy, but in no way threatens the investment and development of renewable energy projects in Central America. According to opendemocracy.net, “Chinese energy companies have and continue to support and invest in Latin America to increasingly exploit its renewable energy potential. Argentina is getting on board also with the region’s energy transition. New wind and solar projects are under construction across the region as partnerships with Chinese deliver affordable finance and materials to local governments and businesses.(2) Cost Rica, for example, has the stated goal of developing renewable energies and becoming carbon neutral by 2021.

CENTRAL LAW team of lawyers of the Energy, Environment, Natural Resources and Infrastructure is well versed in advising companies wishing to opérate in the region as investors of projects of renewable energy plants and or as bidders. For more information contact us at This email address is being protected from spambots. You need JavaScript enabled to view it.