The growth in global demand for clean energy is transforming international trade. Bilateral trade agreements play a key role in facilitating renewable energy exports, eliminating tariff barriers, promoting strategic investments and ensuring market integration.
In this article, Bring Consulting explores how international treaties can leverage renewable energy exports and strengthen countries’ position in this strategic sector.
The Importance of Trade Agreements in Renewable Energy
Bilateral treaties establish favourable conditions for trade in renewable energy, providing:
✔ Reduction of Tariff Barriers: Facilitates the export of electricity, biofuels and clean energy technologies.
✔ Legal and Regulatory Security: Provides predictability for investors and companies in the energy sector.
✔ Energy Integration: Allows interconnection between countries, optimizing the distribution and use of renewable energy.
✔ Attracting Foreign Investment: Enables the development of sustainable projects and energy infrastructure.
Success Stories: Trade Agreements and Renewable Energy
📌 European Union & Mercosur
In December 2024, Mercosur and the European Union concluded negotiations on a partnership agreement that aims to integrate environmental and social practices into value chains, recognizing the interdependence between trade and sustainability. This agreement seeks to promote cooperation in areas such as green energy, creating trade and investment opportunities for both blocs.
📌 Brazil & Chile
As of August 2024, Brazil and Chile have signed 19 agreements covering areas such as tourism, agriculture, energy, technology and the environment. These agreements aim to strengthen bilateral relations and promote sustainable development, including cooperation in the renewable energy sector.
📌 Atlas Renewable Energy & Copec in Chile
In March 2024, Atlas Renewable Energy and Copec signed an agreement for the BESS del Desierto project, a battery energy storage system with a capacity of 200 MW and a duration of 4 hours. This project will allow the reinjection of around 280 GWh per year into the Chilean electricity grid, increasing the stability and reliability of the country's electricity supply.
Challenges and Opportunities in Renewable Energy Exports
🔹 Challenges:
- Regulatory differences between countries.
- Limited infrastructure for renewable energy export.
- Need for harmonization of technical and environmental standards.
🔹 Opportunities:
- Green Hydrogen: The expansion of green hydrogen trade presents a promising market.
- Electrical Interconnections: Electrical interconnection projects between countries can optimize the use of renewable resources.
- Financial Incentivess: International organizations offer financing for sustainable energy projects.
The truth is that bilateral trade agreements are fundamental to expanding renewable energy exports, ensuring energy integration, sustainable investments and competitive advantages for the countries involved.
Is your company ready to seize the opportunities in the renewable energy market? Bring Consulting helps businesses to strategically position themselves and navigate the global energy trade landscape.
Get in touch and find out how we can help!
