Latin America and the Caribbean are facing a decisive moment in their energy transition: according to the Latin American Energy Organization, the progress of clean energy is described as “enormous” and with a long-term path. The current picture places the region as one of the most advanced on the planet in decarbonization.
According to data from the Olade, near to 70% of the regional energy matrix already comes from renewable sources. Even so, Latin American clean production amounts to just 5% of the world's generation, a contrast that opens space for new projects and to strengthen the energy resilience and cooperation between countries. These reflections were shared during the closing of the Energy Week in Chile.
Potential and key figures for renewable energy deployment
Taking advantage of the solar and wind power barely reach 1–2% of its potential in the area, despite having exceptional enclaves. In the desert of Atacama and the Andean plateau some of the highest radiation levels in the world are recorded, while the winds of the Patagonia Chile and Argentina offer ideal conditions for large-scale parks.
Even the hydroelectric power could be multiplied by three if accompanied by investment, territorial planning and sustainability criteria. For Olade, this opens a window for technological innovation and financing, in addition to closer coordination of public policies and the network stability.
Green mining and new value chains
The Latin American energy transition is closely linked to its mining role: the region contributes around 25% of critical minerals for clean technologies such as batteries or power grids. At the same time, mining is energy-intensive and can represent up to 30% of electricity consumption in countries such as Chile and Peru. In this context, the contribution of critical minerals is key to clean technology value chains.
Hence the drive for a “green mining” supplied with renewables, capable of reducing emissions and strengthening productive chainsThis approach would allow for adding value to resources before exporting them, with more skilled employment and technological capabilities within the region.
Sustainable mobility, a decisive front
Transport concentrates around 35% of global emissions of carbon, so decarbonizing the mobility system It is unavoidable. Chile has managed to position itself among the leaders of the electric public transport, although the great challenge lies in the extension to the interurban area and the mass adoption of zero-emission vehicles.
The region, without reaching the Asian rhythms, is closing the gap in electrification and digitalization of transport. This push can boost batteries, charging infrastructure and intelligent systems, provided that they are accompanied by clear regulatory frameworks and investment stability.
Green hydrogen and regional integration
The Olade has renewed the mandate of its general secretary for three years, with priorities that include energy integration in electricity and gas infrastructure, as well as in standards and regulations. Greater coordination would allow for the sharing of surpluses, strengthen security of supply, and make the transition more cost-effective.
In parallel, the green hydrogen It is still in its initial phase: the expectations of having a very consolidated demand towards 2025 have not materialized due to the costs compared to fossil fuels. Even so, Latin America and the Caribbean retain a strong appeal for investment, with an eye toward the next decade see more mature and competitive projects.
The panorama drawn by Olade combines regional leadership in renewables with significant room for improvement: more solar and wind power where exceptional resources exist, a push for sustainable hydroelectric power, decarbonized mining, electric mobility, and an integration and hydrogen agenda that, if well-directed, can strengthen the region as a key player in the global transition.
