Latin America and Caribbean Energy Transition - Sectors and Companies Driving Development - 2025

Latin America and Caribbean Energy Transition - Sectors and Companies Driving Development - 2025

Summary

Latin America and the Caribbean (LAC) is progressing toward a high share of renewable power, chiefly driven by hydropower, with growing momentum in solar, wind, and green hydrogen. While the region has relatively low fossil fuel reliance compared to other developing economies, it remains at an early stage in scaling emerging technologies such as energy storage, CCUS, EVs, and SAFs.

Latin America and the Caribbean (LAC) remains at an early stage of the energy transition for emerging technologies such as energy storage, CCUS, and hydrogen. However, a substantial project pipeline is emerging for solar and wind, and the region is gaining momentum as a prospective green hydrogen export hub.

The region is on track to achieve a high share of renewable power generation, with renewables projected to supply over 75% of LAC’s electricity mix by 2025. While hydropower currently makes up the majority of this share, solar and wind capacity are expanding, helping to unlock the region’s full renewable potential.

Despite LAC’s strong performance in renewable power and relatively low reliance on fossil fuels compared to other developing economies, the adoption of other energy transition technologies, such as EVs and SAFs, remains limited.

Key Highlights

• The LAC region is on track to achieve a high share of renewable power generation, with renewables set to account for over 75% of LAC’s power mix in 2025. This percentage is set to increase to over 80% by 2035, with Brazil, Guatemala, and Chile leading the region for highest renewable generation share.
• The region is still heavily reliant on hydropower, but is planning on expanding its solar and wind infrastructure so as to harness the full potential of renewables.
• The region has also announced 36 new green hydrogen projects set to come online in 2030, as LAC looks to position itself as a key hydrogen exporter.
• Other, more nascent, energy transition technologies, such as energy storage, SAFs, and CCUS, are however lagging.

• Latin American climate targets, CO2 emissions, renewable energy potential, leaders in renewable energy, renewable energy policies, power consumption and demand, renewable power capacity and generation, decommissioning of thermal power, energy storage capacity, electric vehicle and hybrid vehicle sales, upcoming renewable refineries, biodiesel, ethanol, RD, SAFs, CCUS outlook, upcoming CCS projects, hydrogen policies, upcoming hydrogen capacity by stage, type and end use.

• Assess key changes and trends that are taking place in the region, such as growing hydrogen infrastructure as LAC aims to position itself as a key global producer and exporter of green hydrogen.
• Assess how the region is taking strides to increase its solar and wind capacity, so as to reduce its reliance on hydropower, which is becoming a more variable source of renewable power due to droughts, which have been exacerbated by climate change.
• Identify who the key players are in a range of energy transition technologies, in terms of owners, as well as equipment manufacturers and EPC providers.
• Identify the development stage and legislative framework the following energy transition technologies are currently in: renewables, energy storage, EVs and hybrids, renewable fuels, CCUS, and hydrogen.