Latin America boasts one of the cleanest electricity sectors globally, with over 60% of its power generated from renewable sources, primarily hydropower. The region holds immense potential for further expansion of solar, wind, and geothermal energy. However, fully harnessing these resources hinges on identifying pathways to accelerate capital for clean energy, modernize and expand grids and infrastructure, enhance system reliability, and deepen regional power integration overall.
The region currently faces significant inefficiencies and challenges when it comes to renewable integration with electricity network losses averaging 16%—nearly three times higher than the 6% average in OECD countries. Modernizing grid infrastructure is essential to enabling an effective energy transition and fully unlocking the region’s renewable potential. This requires a concerted focus on updating networks to handle variable energy inputs, ensure system reliability, and meet the growing demand from electrification in sectors such as transport and heating.
It is estimated that $240 billion in annual investment until 2030 is needed to meet these goals. Accelerating this flow of capital requires dedicated financial mechanisms and public-private collaboration to unlock the necessary resources. At the same time, regulatory frameworks must provide stability and clear incentives for private investments, guaranteeing returns and reducing risks. Finally, technology is key to achieving efficiency and resilience. Advanced grid management systems, smart meters, and robust supply chains can reduce losses, optimize operations, and support the sustainable transformation of the region's energy systems.
Overall, strengthening regional collaborations and multi-stakeholder dialogue across the public and private sectors is key to harness the opportunity for Latin America to become a clean energy powerhouse, while also consolidating the energy sector as a new driver of sustainable economic and social development.
It is against this backdrop that the World Economic Forum has been convening a public-private working group of 50+ regional and international energy and finance experts to identify challenges and propose solutions for unlocking investments and fostering regional partnerships to drive power system transformation in Latin America. This in-person event will mark the launch of a report highlighting the working group findings, and will be an opportunity to present findings to participants at the OLADE X Energy Week.
