Latin America’s Energy Transition

Latin America and the Caribbean already generate a substantial share of electricity from renewables, with hydropower central to the region’s energy mix, but drought and other climate stresses expose vulnerabilities.

Growing electricity demand, urbanization, aging grids, limited clean-energy investment, and continued fossil-fuel dependence complicate the expansion of solar and wind. The transition also varies politically: climate action competes with concerns such as inflation, crime, and economic hardship, while governments and financial institutions increasingly connect decarbonization to development, security, public health, and justice. Venezuela’s grid failures and China-linked energy influence illustrate the infrastructure and geopolitical dimensions of the transition.