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Expert Analysis

Challenges Facing Fuel Switching In Latin America Remain

Law360, New York (July 17, 2014, 10:36 AM EDT) -- Compared to the U.S., electricity is more expensive and often dirtier in Latin America and the Caribbean. That's because many public and private power producers in those regions have historically relied on diesel or fuel oil for power generation. Recently, however, the surge in availability of low-cost liquefied petroleum gas ("LPG or propane"), thanks to abundant U.S. shale formations, has generated a boom in "fuel switching" (i.e., the conversion of "old fuel" power plants so that they can use cheaper, cleaner natural gas fuels)....

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