Latin America’s renewable energy challenge

Latin America & Caribbean tendered projects by bid price and capacity, 2013-2017
Auction prices for solar- and wind-generated electricity are falling across Latin America, and sometimes are lower than fossil fuel-generated power (source: macpixxel for GIS)
  • Costs for implementing renewable energy are dropping across Latin America
  • Decarbonization, once a pipe dream, has now become feasible
  • The biggest obstacles are a lack of proper infrastructure and political will

Like the rest of the world, Latin America is undergoing an energy revolution. What makes the region’s change unique are the challenges that the major countries face in taking advantage of it. Some are making use of their geographic advantages like ample sun and wind. Others, mostly inadvertently, have put up barriers that will slow the adoption of renewables and keep the region dependent on coal and gas for longer than necessary.

Renewable energy is now competitive in most Latin American countries, even without subsidies. Auction prices are now consistently falling below the cost of electricity generated by fossil fuels.

Not a subscriber yet?

Subscribe now and get the latest in-depth geopolitical analysis and forecasts from GIS’s unrivaled cadre of experts.

Learn more about our subscription plans.

You can also buy this report for €8.99 Buy

Add your comment