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Energy industries

Latin America and Caribbean Energy Transition: Sectors and Companies Driving Development

Strategic Insights

— 2 min read

Latin America and the Caribbean (LAC) is making significant progress in its energy transition, driven primarily by hydropower, with growing momentum in solar, wind, and green hydrogen. The region's power mix is shifting towards a high share of renewable energy, with renewables projected to supply over 75 percent of LAC's electricity mix by 2025. However, the adoption of emerging technologies such as energy storage, carbon capture, utilization, and storage (CCUS), electric vehicles (EVs), and sustainable aviation fuels (SAFs) remains limited. The region is also positioning itself as a key global producer and exporter of green hydrogen, with 36 new green hydrogen projects set to come online in 2030.

Key Takeaways:

  • The LAC region is on track to achieve a high share of renewable power generation, with renewables set to account for over 75 percent of LAC's power mix in 2025.
  • Hydropower currently dominates the region's renewable energy mix, but solar and wind capacity are expanding, helping to unlock the region's full renewable potential.
  • The region has a substantial project pipeline emerging for solar and wind, and is gaining momentum as a prospective green hydrogen export hub.
  • Key players in the region's energy transition include BYD Company Limited, Great Wall Motors Company Limited, Volvo Group, and Engie S.A.
  • The region is at an early stage in scaling emerging technologies such as energy storage, CCUS, EVs, and SAFs.
  • The report explores LAC's climate targets, CO2 emissions, renewable energy potential, and renewable energy policies.
  • The region is taking strides to increase its solar and wind capacity, reducing its reliance on hydropower, which is becoming a more variable source of renewable power due to droughts exacerbated by climate change.
  • Emerging energy transition technologies are in developmental stages, with legislative frameworks in place for renewables, energy storage, and EVs, but not for CCUS and hydrogen.

Statistics:

  • Renewables are projected to supply over 75 percent of LAC's electricity mix by 2025, increasing to over 80 percent by 2035.
  • 36 new green hydrogen projects are set to come online in 2030, positioning LAC as a key global producer and exporter of green hydrogen.
  • The region's renewable energy potential is significant, with solar and wind capacity expected to grow by 2025.
  • The adoption of emerging technologies such as energy storage, CCUS, EVs, and SAFs remains limited in the region.
  • LAC is making significant strides in increasing its solar and wind capacity, with the largest economies (Brazil, Guatemala, and Chile) leading the region in renewable generation share.

Sources:

  • ResearchAndMarkets.com's "Latin America and Caribbean Energy Transition - Sectors and Companies Driving Development - 2025" report
  • Various company websites and news articles cited in the report

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