In recent years, Latin America has implemented various energy reforms to promote the development of renewable energy. This momentum has been supported by both favorable geographical conditions and public policies aimed at diversifying the energy mix and reducing dependence on fossil fuels.
Of all renewable energy sources, solar energy has experienced the most growth , establishing itself as the cheapest and most accessible alternative worldwide. This technology has not only reduced costs but has also facilitated the development of more clean energy projects in countries that previously relied on traditional energy sources.
The growing push for renewable energy in Latin America
In Latin America, we find successful examples of renewable energy adoption. A prime example is the PaZa la Corriente program in Colombia, which has brought electricity to areas affected by armed conflict. This program has demonstrated how renewable energy can be a sustainable solution to long-standing energy access problems.
Another country that stands out in the region is Chile . In 2012, Chile had just 5 MW of installed solar capacity; today, that figure exceeds 362 MW, with another 873 MW under construction. Chile has implemented an aggressive energy auction policy that has allowed for the rapid expansion of solar and wind projects, positioning it as a regional leader.
Chile: Leadership in solar energy and beyond
Chile has cemented its leadership in the field of renewables thanks to a clear regulatory framework and private investment. A report by the Latin American Energy Organization (OLADE) highlights that Chile led the way in photovoltaic installations in 2014, providing three-quarters of the energy generated in all of Latin America that year. This growth has been constant, which has allowed more than 50% of its electricity matrix to be made up of clean energy.
Chile has also been at the forefront of green hydrogen , an emerging technology with the potential to revolutionize the energy sector. In November 2020, the country launched the “National Green Hydrogen Strategy,” which aims to make Chile a world leader in the export of this clean fuel.
Investment in renewable energy in Chile has exceeded US$7.000 billion in the last seven years, encompassing solar, wind, and even small hydroelectric and biomass projects. This figure translates into more than 80 approved projects and just as many under development, solidifying the country's position as the undisputed leader in the region.
Argentina: Towards a cleaner matrix
Argentina , historically apathetic towards renewable energy, has begun to change. In Jujuy, for example, there is a town that runs entirely on solar power, demonstrating the potential of this technology to transform the lives of entire communities. The country's ambition is to integrate 8% renewable energy into its energy mix in the coming years, a goal supported by government policies.
However, one of Argentina's biggest challenges is the lack of investment in infrastructure, although international organizations and private entities have begun to show interest in the development of large-scale solar and wind projects in the country.
Mexico: The mega solar plant Aura Solar I
Mexico's major milestone in recent years has been the inauguration of the Aura Solar I solar plant in Baja California Sur, which was built in just seven months. Today, the plant supplies more than 130.000 homes, preventing the emission of 60 tons of CO2 each year. Projects like this are essential for the country, as they allow for the diversification of energy generation and reduce dependence on hydrocarbons.
However, despite the progress, Mexico has faced a number of political and economic challenges that have slowed the growth of renewables. Nevertheless, installed capacity in solar and wind energy remains promising, with an average annual growth of 12%.
Peru: Bringing energy to rural areas
Peru has embraced solar energy as the primary solution for providing electricity to its rural areas. Its solar panel installation program has been one of the most ambitious in the region, aiming to install 500 solar panels that will bring energy to approximately 2,2 million people.
This effort is complemented by the expansion of distribution networks that connect the most isolated areas of the country, facilitating access to clean energy for a larger part of the population.
Other countries on the renewable energy map
Panama , for example, has launched tenders for the installation of 66 MW of solar power. Similarly, Guatemala has established photovoltaic plants that currently generate 5 MW and are on track to double this capacity in the coming years.
The German Development Bank has been a driving force in El Salvador , providing loans of up to $30 million to foster small renewable energy businesses. The country has signed contracts worth more than $250 million to develop a solar energy network that will cover most of its electricity needs.
Honduras stands out as the leader in solar energy in Central America. Currently, the country has a dozen solar plants that generate significant capacity for electricity supply, allowing it to position itself as one of the most advanced nations in the region in the adoption of clean energy.
Latin America is in an enviable position when it comes to renewable energy development, with countries such as Chile and Mexico leading the way in terms of installed capacity. Other nations are also moving ahead rapidly, driven by a combination of public and private investment. The growth of solar and wind energy in particular promises to reduce carbon emissions and improve energy security.