As anthropogenic climate change accelerates, Latin America finds itself at a pivotal intersection in the global energy transition. The Intergovernmental Panel on Climate Change (IPCC) has highlighted the urgent need for mitigation, particularly as August 2024 marked the 14th consecutive month of global temperatures exceeding pre-industrial levels by 1.5 °C [0c0e10be]. The International Energy Agency (IEA) projects that wind and solar energy will surpass hydropower by 2024, with renewables expected to outpace coal by 2025 [0c0e10be]. This shift presents both opportunities and challenges for Latin American countries, which exhibit significant regional heterogeneity in renewable energy adoption.
Countries such as Uruguay, Costa Rica, Brazil, and Chile have made notable strides in integrating renewable energy into their power grids. For instance, 2022 data indicates that solar and wind energy contributed 5.7% and 30.8% of Uruguay's energy mix, respectively, while Costa Rica saw contributions of 0.16% from solar and 11.34% from wind [0c0e10be]. Brazil's figures were 11.85% for solar and 11.51% for wind, and Chile led with 23.97% from solar and 12.98% from wind [0c0e10be]. In contrast, Caribbean nations remain heavily reliant on fossil fuels, with 80% of their power generation sourced from non-renewable energy [0c0e10be].
Despite these advancements, energy poverty remains a pressing issue in the region. The Sustainable Development Goal (SDG) 7 aims for universal access to sustainable energy, yet the poorest quintile of the population has nine times less access to energy than the wealthiest [0c0e10be]. In Brazil, low-income households allocate nearly half of their income to energy costs, highlighting the economic strain associated with energy access [0c0e10be].
Latin America is also rich in critical minerals essential for renewable technologies, with Chile being a leading copper and lithium producer. However, mining activities have been linked to socio-environmental conflicts, including significant ecological crises from mining spills and dam collapses in Brazil in 2015 and 2019 [0c0e10be]. The region faces significant climate anomalies and wildfires in 2024, further complicating the landscape for energy transition and environmental policy [0c0e10be]. Political instability continues to affect the implementation of effective environmental policies, emphasizing the need for a sustainable transition that addresses consumption patterns and ecological limits [0c0e10be].
The evolving geopolitical dynamics surrounding energy resources in Latin America underscore the importance of strategic partnerships and investments in renewable energy. As the region navigates its path towards a sustainable energy future, the integration of green investments and innovative practices will be crucial for balancing economic growth with environmental protection.
