Latin America and Caribbean Energy Transition: The Rise of Renewable Power and Green Hydrogen
Key Ideas
  • Latin America and the Caribbean are making significant progress in renewable power generation, with a focus on solar and wind energy.
  • The region is emerging as a hub for green hydrogen, with 36 new projects set to come online by 2030.
  • Despite the reliance on hydropower, efforts are being made to diversify the renewable energy mix to reduce variability and enhance sustainability.
  • Challenges remain in adopting other energy transition technologies such as energy storage, CCUS, EVs, and SAFs.
The report 'Latin America and Caribbean Energy Transition - Sectors and Companies Driving Development - 2025' highlights the progress of the region towards a high share of renewable power, primarily driven by hydropower, with a growing focus on solar, wind, and green hydrogen. While Latin America and the Caribbean have a lower dependence on fossil fuels compared to other developing economies, the adoption of emerging technologies such as energy storage, CCUS, and hydrogen is still at an early stage. The region is projected to have renewables account for over 75% of its power mix by 2025, with plans to increase this percentage to over 80% by 2035, led by countries like Brazil, Guatemala, and Chile. Despite the dominance of hydropower, there are efforts to expand solar and wind infrastructure to tap into the full renewable potential. Additionally, the region aims to position itself as a key green hydrogen exporter, with 36 new projects slated for 2030. However, challenges exist in the adoption of other energy transition technologies like energy storage, SAFs, and CCUS. The report covers various aspects such as climate targets, CO2 emissions, renewable energy policies, power consumption, renewable power capacity, EV sales, and more, providing insights into the region's energy landscape and transition efforts.
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