Still, Chinese energy projects are occasionally met with resistance. The Industrial and Commercial Bank of China had previously loaned $287 million to Honduras for the Patuca III dam project, which came online in 2021.Ĭhinese investments in this sector are largely welcome in Latin America, where inadequate energy infrastructure harms economic competitiveness, imposes high costs on households and businesses, and leads to power interruptions in many places. Having recently cut ties with Taiwan, Honduras is reportedly negotiating a credit line with China for the development of the Patuca II hydroelectric dam, part of the country’s plans to develop a 600 MW hydroelectric complex. China’s presence in power generation and transmission is far greater when taking into account other forms of energy generation, such as wind and solar, and it will continue to grow as new Chinese dams and other projects come online.īeijing’s appetite for energy investments in this region is still strong, even as it dials down its lending for other major infrastructure projects. According to the Boston University China’s Global Energy Finance database, China’s development finance institutions – the China Development Bank and China Export-Import Bank – have financed nearly $10 billion in energy generation and distribution projects in Latin America and the Caribbean since 2000, with Chinese companies and China’s commercial banks supporting even more deal-making in this sector.įor example, Figure 1 shows a mere sampling of Chinese hydropower generation projects in just four countries, Bolivia, Brazil, Ecuador and Peru. That project would add to China’s countless power generation and distribution investments across the region over the past two decades. The company is reportedly preparing a bid for Enel’s Peruvian energy distribution assets, valued at $3 billion. China Southern Power Grid, established alongside Chinese energy giant State Grid in 2002, is looking to fill that gap. The latest evidence is a new, sizeable deal in Peru, where the Italian company Enel is downsizing its presence. Careers, Fellowships, and Internships Open/Closeįor a decade, China’s major electricity companies have been laser focused on energy generation and transmission in Latin America and the Caribbean, a trend accelerated by the departure of Western competitors, including Brazil-based Odebrecht and U.S.Wahba Institute for Strategic Competition.Science and Technology Innovation Program.Refugee and Forced Displacement Initiative.The Middle East and North Africa Workforce Development Initiative.Kissinger Institute on China and the United States.Nuclear Proliferation International History Project.North Korea International Documentation Project.
Environmental Change and Security Program.Hyundai Motor-Korea Foundation Center for Korean History and Public Policy.
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