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Fortunately, the impacts generated by large-scale hydropower plants do not arise in the implementation of micro and small hydropower plants. Small-scale hydropower plants such as those in Peru, Bolivia and Nicaragua, are friendlier to the environment, especially run-of-river hydropower plants which do not require dams, and they have greater social acceptance compared with large-scale plants. 3.1.2. Geothermal Geothermal energy is the thermal energy existing underground. It can be used to generate electricity, by means of a turbine, when water is found in a geothermal reservoir at high temperatures, between 150 and 400°C. Geothermal energy is poorly developed in the region; it is essentially concentrated in Central America (Costa Rica, El Salvador, Guatemala, Mexico and Nicaragua) and is primarily used to provide energy to the electrical grid. In South America, some countries such as Argentina, Chile and Peru, have conducted preliminary geothermal assessments and are currently granting geothermal energy exploration concessions.61 Another important application that has not been developed in Latin America and the Caribbean is the implementation of geothermal energy projects for home heating. Currently Latin America and the Caribbean has only 1,471 MW of installed geothermal capacity. 3.1.3. Wind Few wind farms have been installed in Latin America and the Caribbean countries, despite the region’s wind potential, in particular due to the absence of policies to encourage large-scale wind farms, the lack of information regarding potential locations, and the lack of infrastructure needed for their installation. Some countries have had positive experiences in the installation of wind farms, including Nicaragua, which currently generates 14.87% of its electricity from wind,62 and the Dominican Republic, which produces 2% from wind. In other countries, there is opposition to wind farms from local residents because of the perceived visual impact. For example, in Chiloé Island, Chile, the local community opposes a proposed wind farm with the potential to generate up to 428 MW of electricity.63 Currently, the region’s wind power generation equals 3,203 MW. 3.1.4. Biomass Biomass, such as wood, crop residues and crops, can be used for energy purposes by means of direct combustion or other technologies like gasification for heat or electricity generation. It could, therefore, be used to replace fossil energy sources, either to generate heat or electricity. Burning firewood and crop residues does not generate major greenhouse gases if they are grown sustainably and burned efficiently, but it can cause local pollution. This is a problem in countries like Haiti where 41% of the population rely on firewood for cooking.64 The region’s biomass consumption is estimated at 66 million tonnes per year.65 This should decrease with economic development in the coming years. 3.1.5. Biofuels Biofuels are primarily produced using corn, sugar cane, palm oil and rapeseed crops. Over the last decade, biofuels emerged as an alternative to partially replace oil consumption in many Latin America and Caribbean countries in a context of rising prices, mainly due to their lower production costs. Therefore, countries have established laws and regulations to promote biofuels, leading to a steady increase in their use. This experience is not new. In Brazil a similar measure was implemented decades ago to replace fossil fuels with ethanol. In 2010, it was estimated that 3% of the arable land in Latin America and the Caribbean was used for biofuel production, and that this could increase up to 10% by 2030, driven by the regional increase in the demand for vehicles.66 This would also increase the biofuel industry’s demand for agricultural land, 18 Low-Carbon Development in Latin America and the Caribbean: Evolution, experiences and challengesPDF Image | Low-Carbon Development in Latin America
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